Скачать или смотреть [ROUNDUP] What Congress’s “Last Sale” Move Means for Importers with Mollie Sitkowski

Host: Annik Sobing

Guest: Mollie Sitkowski

Published: February 2026

Length: ~25 minutes

Presented by: Global Training Center



First Sale Under Fire: What Importers Need to Know Now



In this Simply Trade Roundup, Annik sits down with trade attorney Mollie Sitkowski to unpack one of the hottest topics in customs right now: first sale and the new Senate proposal that could effectively eliminate it. Recorded on President’s Day, this episode breaks down—in normal language—what first sale is, why it became a go‑to mitigation tool after 2018, and what it would mean for importers if Congress redefines “sold for exportation” to a strict last‑sale rule.

What You’ll Learn in This Episode



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2026 so far in trade




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Why January felt strangely calm, and how February “flipped the switch” back into high gear for the trade community.







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First sale 101 (plain English)




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How multi‑tier transactions work: manufacturer → middleman (e.g., Hong Kong parent) → U.S. importer.




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The valuation statute 19 USC 1401a (transaction value: price paid or payable when sold for exportation to the U.S.).




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The key question: is the sale “for exportation” at the manufacturer → middleman stage, or at the middleman → importer stage?




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The Nissho Iwai court decision (1990s) that allowed use of the manufacturer price as the dutiable value if:




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The goods were clearly destined for the U.S. (through waybills, U.S. labeling/marking, etc.).




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There was a bona fide sale between manufacturer and middleman (title/risk of loss, inventory, not just a flash pass‑through).










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Why first sale became so important




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Before 2018, first sale was mostly used in textiles with high duty rates.




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After the first round of Trump tariffs (301, 232, etc.), almost all of Mollie’s China import clients started using or exploring first sale—because you can’t control the HTS list or which country is targeted next, but you can control value.




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One client even called it “bulletproof mitigation” (with Mollie’s caveat: nothing is bulletproof in this environment).







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Global context and earlier attempts to limit first sale




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2007–2008: WTO/GATT valuation guidance interpreting “sold for exportation” as the last sale before import, and how most countries followed that reading.




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U.S. Customs tried to adopt that approach; the trade community pushed back; Congress stepped in and reaffirmed both the statute and court precedent—Customs cannot unilaterally change 1401a.







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The new Senate bill: “last sale” language




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Senators Cassidy and Whitehouse have introduced a bill to amend 19 USC 1401a and define the sale for exportation in two ways:




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For a single sale: the price paid by the buyer in the U.S. to a foreign seller.




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For a series of sales: the last sale that introduces the merchandise into the U.S.(i.e., the middleman → U.S. importer transaction).







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Practical effect: if passed, first sale is gone; only the last sale price would be acceptable for transaction value.







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What this means for importers


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