ENT-1-RR:IT:EC 114453 GG
Ms. Domitille Leriche
Groupe Redoute
International Department
57, rue de Blanchemaille
59082 ROUBAIX Cedex 02
FRANCE
RE: Entry of textile shipments valued at $200 or less; 19 U.S.C.
1321; 19 CFR 10.151 and 10.153; mail importations; 19 CFR
145.31; country of origin marking.
Dear Ms. Leriche:
This is in response to your letters dated August 13, October
2, October 6, October 13, and October 15, 1998, requesting a
ruling on the correct entry procedures to be used for mail order
shipments of textile articles.
FACTS:
Groupe Redoute is a French mail order company. Customers
located in the United States will order merchandise from your
catalogue by phone, by mail, or by fax. Payment for the
merchandise and for all associated shipping and handling charges
will occur at the time the order is made. The packages will be
sent directly to the individual purchasers in the United States
by post. The shipments will contain textile articles, such as
women's ready-to-wear clothing, and also accessories such as
belts, earrings, bracelets, scarfs, shoes, etc. The majority of
the textile articles will be manufactured in countries subject to
quota restrictions. The articles will be for the personal use of
the individuals making the purchase. In the August 13, October
2, and October 6 letters, you indicate that the value of each
shipment will not exceed US$200. However, your letter dated
October 13, 1998, states that some packages will exceed this
amount.
ISSUE:
Whether each shipment qualifies for the administrative
exemption under 19 U.S.C. 1321.
LAW AND ANALYSIS:
Section 321(a)(2)(C) of the Tariff Act of 1930, as amended
(19 U.S.C. 1321(a)(2)(C)), provides for the duty free entry of
articles valued at $200 or less which are imported by one person
on one day. The purpose of this provision is to minimize expense
and inconvenience to the government disproportionate to the
revenue that is collected. The applicable regulations for mail
importations of this nature are found in sections 10.151, 10.153,
143.23(j), and 145.31 of the Customs Regulations (19 CFR
10.151, 10.153, and 143.23(j), and 145.31).
Section 10.151 provides that shipments valued at not over
$200 may be entered under informal entry procedures free of duty
and tax, unless there is reason to believe that the shipment is
one of several lots covered by a single order or contract and
that it was sent separately for the express purpose of securing
free entry or of avoiding compliance with any pertinent law or
regulation. As a general rule, the exemption is not allowed in
the case of any merchandise of a class or kind provided for in
any absolute or tariff-rate quota, whether the quota is open or
closed. (19 CFR 10.153(g)). You indicate that the textile
articles which your customers will order are products of
countries subject to quota and visa restraints. Although
quota/visa requirements may apply to commercial shipments of
textiles of any value, textile and textile products imported for
the noncommercial, personal use of the individual importing the
merchandise are not subject to such restraints. Consequently,
the exception of 19 CFR 10.153(g) will not apply if the textile
merchandise is for the noncommercial, personal use of the
importer. See Headquarters Ruling Letter 226254, dated November
3, 1995.
You indicate that some of the shipments will contain
merchandise that is valued at $200 or less and is for the
personal use of the customer. Further, each shipment will be
ordered by and sent directly to the individual purchaser.
Provided each importer claims the Section 321 exemption on no
more than one shipment a day, and provided the shipment is not
one of several increments of a single order sent separately to
avoid payment of duty, the administrative exemption from duty
will apply in these circumstances.
The contents of shipments sent by mail to persons in the
United States must be declared to U.S. Customs on the form
provided by the foreign post office, giving a full and accurate
description of the contents and value of the merchandise. The
declaration should be attached to the package in question. An
accompanying invoice or bill of sale, giving an accurate
description and the purchase price of the merchandise, should be
securely attached to the outside of the package or enclosed
therein. (19 CFR 145.11.) In addition to the declaration and
invoicing requirements, packages imported by mail must also
usually be entered on a Customs Form 3419, 368, or 7501.
However, qualifying Section 321 shipments (i.e., those not over
$200 in value) arriving in the mail may be passed free of duty
and tax without the filing of an entry. (19 CFR 145.31). The
declaration and invoice take the place of the bill of lading
required of other Section 321 shipments which arrive otherwise
than by mail. (19 CFR 143.23(j).)
You also indicate that some of the shipments may have a
value of greater than $200. In those cases, the imported
merchandise would be subject to duty at the rate applicable to
the tariff number under which the article is classified. The
form of entry would also be different than that used for items
entered free of duty under Section 321. As a general rule,
packages imported by mail with a value between $200 and $2,000
may be entered under informal entry procedures. In the mail
environment, this means that the sender must attach a declaration
and invoice to the shipment. Upon arrival in the United States,
a Customs officer will prepare and attach a mail entry (Customs
Form 3419 or 3419A), and then return the package to the U.S.
Postal Service for delivery and collection of duty. (19 CFR
145.12(b).) Shipments valued over $2,000 which arrive by mail
must be entered formally. Customs will send a notice to the
addressee notifying him or her of the arrival of the shipment and
of the place at which entry is to be made. (19 CFR 145.12(a).)
Notwithstanding the general rule that merchandise valued at
$2,000 or under may be entered informally, certain merchandise
valued between $250 and $2,000 must be entered formally. This
exception to the general rule usually involves quota class
merchandise. Enclosed please find a list of Harmonized Tariff
Schedule numbers which will help you determine if a formal entry
will be required.
You also inquire about country of origin marking and
labeling requirements for the textile products. As a general
rule, every article of foreign origin imported into the United
States is required to be marked in a conspicuous place as
legibly, indelibly, and permanently as the nature of the article
will permit in such manner as to indicate to the ultimate
purchaser in the United States the English name of the country of
origin of the article. (19 U.S.C. 1304(a).) However, articles
which are imported for use by the importer and are not intended
for sale in their imported or any other form, and articles which
are exempt from duty under 10.151 and 143.31 of the Customs
Regulations, do not have to be marked with country of origin
information under the provisions of 19 U.S.C. 1304. These
exceptions are found in Sections 134.32(f) and (n) of the Customs
Regulations. However, although the imported textile articles
will be exempt from country of origin marking under Section 1304,
they must nevertheless be labeled with origin, size, style, fiber
content, and washing instructions under the provisions of the
Textile Fiber Products Identification Act. You will need to
contact the Federal Trade Commission, Division of Enforcement,
6th and Pennsylvania Avenue, N.W., Washington, D.C. 20508, to
obtain advice on the specific FTC labeling requirements for your
merchandise.
HOLDING:
Textile and other articles ordered through a mail order
company by individual purchasers for their personal use, valued
at $200 or under, and shipped directly to the customer, are
entitled to duty free entry under the provisions of Section 321
of the Tariff Act of 1930, as amended, provided that the use of
this exemption is restricted to a single shipment imported by one
person on one day.
Mail order shipments valued over $200 and up to $2,000 may
be entered under the informal entry procedures applicable to mail
importations, provided the merchandise contained in the shipments
is not on the list of tariff numbers requiring formal entry for
values over $250.
Sincerely,
Jerry Laderberg
Chief
Entry Procedures and Carriers
Branch
Enclosure