The American textile manufacturing sector has signaled a unified front in support of the Last Sale Valuation Act, a bipartisan bill introduced by Senators Bill Cassidy (R-LA) and Sheldon Whitehouse (D-RI). This legislation marks a potential end to the nearly 40-year-old ‘First Sale’ rule, a customs valuation method that has allowed importers to pay duties based on the price paid to a manufacturer in a multi-tier supply chain, rather than the typically higher price paid by the final US importer. For domestic producers, the move represents a critical attempt to restore competitive parity in a market where shipments reached $63.9 billion last year but have been increasingly undercut by offshore ‘tariff mitigation’ strategies.
Ending valuation advantages for multi-tier global supply chains
At the heart of the debate is the transition from a ‘First Sale’ to a ‘Last Sale’ valuation standard. Under current practices, sophisticated global retailers often use middleman trading companies to artificially lower the declared customs value of imported apparel, effectively diluting the impact of US tariffs. By requiring duties to be assessed on the bona fide transaction value just prior to exportation, the bill aims to close a loophole that domestic advocates argue has drained federal revenue and incentivized predatory trade practices. Kim Glas, President and CEO, National Council of Textile Organizations (NCTO), emphasized, closing this gap is essential to leveling a playing field that currently disadvantages the 471,046 American workers employed across the textile supply chain.
Strategic realignment and the shift towards onshoring
The introduction of the Last Sale Valuation Act follows a series of aggressive trade maneuvers in early 2026, including the formal closure of the de minimis exemption and the announcement of new reciprocal trade deals with Western Hemisphere partners like Guatemala and El Salvador. Industry analysts view this latest bill as part of a broader ‘reshoring’ strategy intended to curb the dominance of non-market economies. While some importing coalitions warn of potential inflationary pressure on consumer apparel prices, the domestic industry contends that the reform will spur long-term capital investment. With US textile exports totaling $28 billion in 2024, the NCTO maintains that securing the home market from valuation fraud is the only way to ensure the viability of the $2.98 billion in capital expenditures recently injected into domestic production facilities.
NCTO is a Washington-based trade association representing the entire spectrum of the U.S. textile industry, from fiber and yarn producers to finished sewn product manufacturers. It serves as the primary legislative voice for domestic mills against global trade disparities. Representing a sector with over $60 billion in annual shipments, NCTO is currently focused on a 2030 strategy to integrate AI-driven manufacturing and secure military procurement through the Berry Amendment. Historically, the organization has been the vanguard in litigating against ‘triple-transformation’ loopholes in free trade agreements.
