There is a US legislative proposal making its way through Congress that matters to any ecommerce brand considering a US fulfilment strategy. It is called the Last Sale Valuation Act. It is not law yet, but it has bipartisan backing and a clear policy logic that closes a door some merchants may be planning to walk through. Here is what it does, who it affects, and why Teleship merchants are already on the right side of it.
What customs valuation is and why it matters
When goods are imported into the US, duties are calculated as a percentage of the declared customs value. The valuation method you use determines the number duties are applied to. Some importers use a "first sale" approach: in a multi-step transaction chain (manufacturer to trading company to importer to end customer), they declare the earliest, lowest transaction price as the customs value, reducing the duty basis. It is a legitimate practice today, but one that is only available to importers who structure their supply chain specifically to use it.
The Last Sale Valuation Act, introduced on a bipartisan basis by Senator Sheldon Whitehouse (Democrat) and Senator Bill Cassidy (Republican), would require customs value to reflect the final sale into the US, not an earlier transaction. The goal is to close the gap between what sophisticated importers pay and what everyone else pays.
Why it is bipartisan
The bipartisan sponsorship is worth noting because it signals staying power. The policy logic appeals to both sides of the aisle:
- From the left: first-sale valuation advantages large, complex importers with international trading structures over smaller merchants who cannot access it, distorting competition.
- From the right: anchoring customs value to the actual transaction price is more accurate, more transparent, and harder to game through transfer pricing arrangements.
Bipartisan bills move faster. This is not one to ignore.
Teleship already works this way
Teleship calculates duties based on the native transaction value: the actual sale price between the merchant and the end customer. There is no first-sale structure, no intermediary pricing layer, no attempt to reduce the duty basis through transaction engineering.
That means for Teleship merchants, this proposal changes nothing. Your duty calculation today already reflects what the Last Sale Valuation Act would require. You are already compliant with the approach the law is trying to mandate.
Why moving inventory to a US 3PL will not reduce your duty bill
Some non-US brands have explored moving inventory to a US-based third-party logistics provider as part of a broader structure intended to reduce import duty costs.
The idea: by controlling the point at which goods enter the US commercial chain, you might be able to optimise the declared customs value.
Under last-sale valuation, that logic does not hold. If duties are anchored to the final sale to the end customer, the structural arrangement between you and your 3PL does not change the duty basis. The sale that matters is the one between you and the shopper, which is exactly the value Teleship already uses.
A US 3PL can still make sense for delivery speed, return handling, and customer experience in the US market. But it should be evaluated on those merits alone. If part of the business case rested on a duty-savings structure, that case does not survive this proposal.
What to do now
- If you are evaluating a US 3PL move: separate the delivery case from the duty case. The delivery case may be strong. The duty case is not.
- If you have a trading company or intermediary structure: model what your duties look like under last-sale valuation now, before the proposal advances.
- If you ship through Teleship: nothing changes. Your duty calculation is already based on the native transaction value.
How Teleship keeps you covered
Because Teleship uses the native transaction value as the duty basis today, your checkout already reflects what compliant last-sale valuation looks like. If the proposal becomes law, nothing in your duty calculation needs to change.
We will track the bill as it progresses and flag any nuances that could affect specific merchant structures or product categories. You will hear from us before anything requires action.
If you want to understand how the Last Sale Valuation Act could affect your current fulfilment or duty structure, get in touch and we will walk through it with you. Contact us to get started.
Teleship is a UK-based cross-border shipping and compliance platform. This post is for informational purposes only and does not constitute legal or tax advice. For guidance specific to your business, please consult a qualified customs attorney or trade advisor.