NCTO backs bill to end customs first sale rule in U.S. textile industry - Furniture Today
The National Council of Textile Organizations (NCTO) is backing a bill to eliminate the customs 'first sale' rule for U.S. textile imports. This rule currently allows importers to pay duties based on the first sale price in a multi-tier transaction, often reducing duty costs. If repealed, importers would have to use the higher transaction value, increasing duties.
Aforeworn detected this change in the Small Cross-Border Importers space on July 13, 2026 and published this briefing so affected operators are forewarned rather than caught off guard. It is rated High urgency. Apparel importers, China-sourced sellers, and any small cross-border importers using the first sale rule to lower duties on textiles and apparel. should confirm how it applies to their specific situation before acting. There is a time constraint attached: No immediate deadline, but action needed before bill passes (likely months). Start review within 30 days.. Acting after that point can mean penalties, a lapsed licence, or lost eligibility — exactly the kind of surprise Aforeworn exists to prevent. Aforeworn monitors Small Cross-Border Importers continuously and turns every detected change into a plain-English briefing like this one, so you always know first. Forewarned is forearmed.
What changed
A bill supported by NCTO aims to end the customs first sale rule for textiles, which would require importers to declare the higher transaction value instead of the first sale price, increasing duty costs.
Who it affects
Apparel importers, China-sourced sellers, and any small cross-border importers using the first sale rule to lower duties on textiles and apparel.
What you must do
Monitor the bill's progress, assess current use of first sale rule, and prepare for potential duty increases by reviewing supply chain contracts and pricing.
Deadline
No immediate deadline, but action needed before bill passes (likely months). Start review within 30 days.
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