CLA-2 CO:R:C 555552 RA
Michael S. O'Rourke, Esq.
Rode & Qualey
295 Madison Avenue
New York, New York 10017
RE: Marking of footwear imported as samples
Dear Mr. O'Rourke:
This is in response to your letter of December 19, 1989,
on behalf of Pagoda Trading Co., Inc., St. Louis, Missouri,
requesting a clarification of the requirements applicable to
footwear imported under the free provision in subheading
9811.00.60, Harmonized Tariff Schedule of the United States
(HTSUS).
FACTS:
The 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)), if they have been marked, torn, perforated, or
otherwise treated so as to render them unsuitable for any
other use. The marking requirements for such samples are set
forth in the interim update of Customs Directive 3500-07,
Textile Sample Guidelines dated January 4, 1989. The
guidelines provide that the minimum acceptable method of
complying with the requirements of this tariff provision would
be to drill a 1/4-inch hole in the sole of each shoe. Also,
in the case of textile footwear subject to visa requirements
or quota restraints, a label with the words "Sample-Not-For-
Resale" must be permanently attached to a place on the
footwear which is readily visible.
You point out that under our rulings relating to item
860.30, TSUS, the importer had the option of attaching a label
rather than having a hole drilled in the sole of the sample
shoe. You ask whether this is still the case with respect to
non-quota footwear.
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ISSUE:
Does non-quota footwear require a 1/4-inch hole drilled
in the soles in order to be entitled to free entry under
subheading 9811.00.60, HTSUS?
LAW AND ANALYSIS:
Subheading 9811.00.60, HTSUS, provides for the free entry
of sample articles valued at less than $1 or treated to render
them unsuitable for any use other than as samples for taking
orders for foreign-made merchandise. In Headquarters Ruling
Letter 058647 dated October 25, 1978, we held that under the
predecessor statute the importer could opt to indelibly stamp
the sole of a shoe "Sample-Not-For-Resale" instead of drilling
or punching a hole in the sole or heel of the sample. You
state that this alternative treatment to render footwear
unsuitable except for sample use was confirmed in subsequent
correspondence but appears to conflict with the wording of
Customs Directive 3500-07. This directive pertaining to the
entry procedure for textile products provides that a 1/4-inch
hole in the sole of each shoe is the minimum acceptable
treatment for footwear. In view of this, you request a
clarification as to acceptable treatment and contend that the
importer should have the option to either drill a hole in the
sole or attach a label with the words "Sample-Not-For-Resale
in a readily visible place.
We are of the opinion that, in consideration of our past
rulings and established position, non-quota footwear samples
may be either drilled or marked with a label at the importer's
option, provided the appropriate district director is
satisfied that the treatment is sufficient to insure that the
footwear can be used only as samples for soliciting orders for
foreign merchandise.
HOLDING:
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
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director is satisfied that such treatment renders the shoes
unsuitable for use for any purpose other than soliciting
orders for foreign merchandise.
Sincerely,
John Durant, Director
Commercial Rulings Division