CLA-2 CO:R:C:S 557825 WAS
Mr. David R. Loeser, Jr.
Chase, Leavitt CHB, Inc.
24 Griffin Way
Chelsea, MA 02150
RE: Marking of footwear imported as samples under subheading
9811.00.60, HTSUS
Dear Mr. Loeser:
This is in reference to your letter dated February 18, 1994,
on behalf of Cole Haan Footwear & Accessories ("importer"),
concerning the proper marking of footwear imported as samples
under subheading 9811.00.60, Harmonized Tariff Schedule of the
United States (HTSUS). A sample of the merchandise was submitted
for review.
FACTS:
You state that the sample merchandise consists of footwear
imported for use as samples for soliciting orders for foreign-made products which are entitled to free entry under subheading
9811.00.60, HTSUS [formerly 860.30, Tariff Schedules of the
United States (TSUS)]. You state that the footwear has the word
"sample" embossed in the sole. You claim that to mark the
footwear in any other way (i.e., drilling a hole through the
sole, cutting the upper, etc.) would drastically affect the
appearance of the shoe. It is your position that footwear that
has been altered/damaged by means of drilling or cutting holes in
the shoe is not conducive to the salability of the product. The
importer has advised that they can move the "sample" embossment
on the sole, or enlarge it, or add "not for resale" to the shoe
as needed. In addition, the importer has stated that an
affidavit certifying that the footwear is not for resale and is
used for soliciting orders only may be included with each
shipment of sample footwear.
ISSUE:
Whether the words "Sample Not For Resale" embossed on the
sole of the footwear is sufficient to satisfy the requirements
for free entry under subheading 9811.00.60, HTSUS, when imported
into the U.S.
LAW AND ANALYSIS:
Subheading 9811.00.60, HTSUS, provides for the free entry of
samples which are either valued at less than $1 each, or marked,
torn, perforated, or otherwise treated so that they are
unsuitable for sale or for use otherwise than as a sample, to be
used in the U.S. only for soliciting orders for products of
foreign countries. The controlling factor is whether the importer
uses the samples for the purpose of soliciting purchase orders of
foreign made merchandise and the creation of demand for future
orders.
In Headquarters Ruling Letter (HRL) 555552 dated August 10,
1990, we held that non-quota footwear imported for sample use may
either have a 1/4 inch hole drilled in each sole or a label with
the words "Sample Not For Resale" permanently attached to a
readily visible place in order to qualify for free entry under
subheading 9811.00.60, HTSUS, provided the district director is
satisfied that such treatment renders the shoes unsuitable for
use for any purpose other than soliciting orders for foreign
merchandise.
In an earlier ruling regarding the proper marking of
footwear imported for use as samples, HRL 056847 dated October
25, 1978, Customs held that an importer may opt to indelibly
stamp the merchandise "Sample Not For Resale" on the sole of a
shoe, rather than punching or drilling a 1/4 inch hole in the
sole or heel of the shoe, and that this marking would be
"conspicuous" and in accord with the intent of item 860.30, TSUS
See also HRL 557460 dated September 29, 1993 (holding that
stamping the legend "Sample Not For Resale" in indelible ink or
gold leaf onto the lining of the shoe or embossing this legend
onto the upper leather of the outside heel area is sufficient
treatment under subheading 9811.00.60, HTSUS.)
In the instant case, based upon HRLs 555552, 056847 and
557460, we believe that the proposed marking of the sample
footwear by means of embossing the sole of the shoe with the
visible legend "Sample Not For Resale" in a contrasting color as
shown on the sample submitted with your ruling request is
sufficient to render the footwear suitable only for soliciting
orders for foreign articles as required by subheading 9811.00.60,
HTSUS. Thus, provided that the legend cannot be removed without
disfiguring the soles of the shoe and the legend is stamped on
the sole in close proximity to the heel so that the ink will not
likely wear off, the footwear samples may enter into the U.S.
free of duty under subheading 9811.00.60, HTSUS.
HOLDING:
The footwear imported for sample use which has the marking
"Sample Not For Resale" embossed on the sole of the shoe in a
readily visible place may qualify for free entry into the U.S.
under subheading 9811.00.60, HTSUS, provided that the legend
cannot be removed without disfiguring the soles of the shoe and
the legend is stamped on the sole in close proximity to the heel
so that the ink will not likely wear off.
Sincerely,
John Durant, Director
Commercial Rulings Division