A bill to amend the Tariff Act of 1930 to modify the determination of transaction value for customs valuation.

Bill Number

S. 3841

Origin Chamber

Senate

Congress

119th Congress, Session 2

Status

Introduced

Latest Action

2026-02-11: Read twice and referred to the Committee on Finance.

Last Updated

2026-02-12T11:56:22Z

AI-Generated Summary

Purpose

The Last Sale Valuation Act of 2026 aims to clarify and update the rules for determining the "transaction value" of imported goods under U.S. customs law. This value is used to calculate import duties (taxes on goods entering the country). The bill focuses on defining what counts as a sale "for exportation to the United States," especially in complex supply chains with multiple sales, to ensure accurate and fair valuation.

Key Provisions

• Definition of "Sold for Exportation to the United States" (amends Section 402(b)(4) of the Tariff Act of 1930):
• For a single sale: The price actually paid or payable by the buyer in the United States to the seller in another country.
• For a series of sales: The price actually paid or payable by the U.S. buyer in the last sale that brings the merchandise into the United States (often called the "last sale rule").
• Enhanced Access to Records (amends Section 402(h)(5)):
• Allows U.S. Customs and Border Protection (CBP) to access importers' books and records when verifying or adjusting the declared value of goods.

Significant Changes to Existing Law

• The bill introduces a precise statutory definition for "sold for exportation to the United States," which was previously interpreted through regulations and court rulings. This shifts the focus in multi-sale scenarios from earlier sales (e.g., between foreign manufacturers) to the final sale entering the U.S., potentially simplifying valuation for importers.
• It explicitly grants CBP broader authority to review financial records during value adjustments, strengthening enforcement but requiring importers to maintain accessible documentation.

Potential Impacts

• On Government Agencies: CBP gains clearer guidelines and tools for audits, which could improve efficiency in collecting duties and reduce disputes over valuations, estimated at billions in annual revenue.
• On Citizens and Businesses: Importers (e.g., U.S. companies buying foreign goods) may face higher or more predictable duty costs if earlier undervalued sales are no longer used. This could increase expenses for retailers and manufacturers but promote transparency in supply chains.
• On International Relations: The changes align U.S. practices more closely with global trade standards (like those from the World Trade Organization), potentially reducing trade disputes with partners but requiring foreign sellers to adapt pricing in U.S.-bound transactions.

Main Stakeholders Affected

• Importers and U.S. Businesses: Directly impacted by changes in how import values are calculated, affecting costs and compliance.
• Exporters and Foreign Suppliers: Must ensure pricing in final U.S. sales reflects true value to avoid penalties.
• U.S. Customs and Border Protection (CBP): Benefits from enhanced enforcement powers.
• Consumers: Indirectly affected through potential price changes on imported goods like electronics, clothing, or vehicles.

Notable Legal, Constitutional, or Political Implications

• Legal: Provides statutory clarity to reduce litigation over customs valuations, which have historically relied on administrative interpretations. This could streamline court challenges but increase scrutiny on record-keeping, potentially raising privacy concerns under general administrative law (though not directly challenging constitutional rights).
• Constitutional: No direct implications, as it operates within Congress's authority over foreign commerce (Article I, Section 8 of the U.S. Constitution).
• Political: Introduced by bipartisan senators (Cassidy and Whitehouse), it reflects efforts to modernize trade laws amid concerns over unfair practices like undervaluation in global supply chains. Referred to the Senate Finance Committee, passage could influence broader trade policy debates without partisan controversy evident in the bill text.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Sen. Cassidy, Bill [R-LA]

Cosponsors (1)

Sen. Whitehouse, Sheldon [D-RI]

Recent Actions

• 2026-02-11: Read twice and referred to the Committee on Finance.
• 2026-02-11: Introduced in Senate

Bill Versions

• Last Sale Valuation Act of 2026 — issued 2026-02-11 — PDF (2 pages)