Hardware Res., Inc. v. United States
Hardware Res., Inc. v. United States clarifies that the de minimis exemption (19 U.S.C. § 1321) does not apply to goods subject to Section 301 tariffs, even if the total value is under $800. This ruling affects importers who have been using the de minimis rule to avoid paying Section 301 duties on low-value shipments from China.
Aforeworn detected this change in the Small Cross-Border Importers space on July 8, 2026 and published this briefing so affected operators are forewarned rather than caught off guard. It is rated High urgency. China-sourced sellers, apparel importers, electronics importers, dropship-to-DTC businesses importing goods subject to Section 301 tariffs should confirm how it applies to their specific situation before acting. There is a time constraint attached: Immediately; CBP may issue retroactive assessments. Consult with customs broker 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
The court ruled that the de minimis exemption cannot be used to avoid Section 301 duties on Chinese-origin goods. CBP may now require duties on shipments previously entered duty-free under $800.
Who it affects
China-sourced sellers, apparel importers, electronics importers, dropship-to-DTC businesses importing goods subject to Section 301 tariffs
What you must do
Review all current import entries using de minimis for Section 301-covered goods and ensure duties are paid. Update customs procedures to stop claiming de minimis for these goods.
Deadline
Immediately; CBP may issue retroactive assessments. Consult with customs broker within 30 days.
Source: https://www.courtlistener.com/opinion/10846245/hardware-res-inc-v-united-states/
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