CLA-2-98:OT:RR:NC:N3:352
Ms. Jill Neece
Springs Creative Products Group, LLC
300 Chatham Avenue, Suite 100
Rock Hill, SC 29730
RE: The tariff classification of fabric pieces imported for testing, approval and for soliciting orders for products of foreign countries
Dear Ms. Neece:
In your letter dated June 23, 2011 you requested a tariff classification ruling.
You state that you import textile fabrics for major retailers in the United States. Textile factories in China and Korea send you fabric samples in a variety of styles and fiber contents, one to four yards in length. In the U.S., you cut the fabric samples into smaller swatches for testing, licensor approval (if appropriate), and to solicit future sales. You also maintain a swatch in your own fabric archives. You indicate that these samples are not re-sold.
Heading 9811, Harmonized Tariff Schedule of the United States (HTSUS), provides for, inter alia, samples used for soliciting orders of foreign merchandise. Guidelines regarding the manner in which textile samples should be marked or otherwise treated to render them eligible for duty-free treatment under subheading 9811.00.60, HTSUS, are set forth in TBT-06-002: Updated Textile Sample Guidelines, dated May 8, 2006. These guidelines state, in part:
I. General Guidelines for Sample Shipments Classified under Subheading 9811.00.60
In order to satisfy the requirements of subheading 9811.00.60, the sample must be “used in the United States only for soliciting orders for products of foreign countries.” Samples imported for such uses as quality control, testing or photography do not meet the order solicitation provision, and are thus not eligible for duty/quota-free treatment under this subheading.
In each instance the mutilation must occur before importation into the U.S. and the invoice must bear the statement “MUTILATED SAMPLES – 9811.00.60” before importation into the United States. Samples can not be mutilated or the mutilated sample statement can not be added to the invoice after the samples have arrived into the United States.
A. Requirements for Samples Entered as 9811.00.60 – Valued at not more than $1 each or marked or mutilated.
Subheading 9811.00.60 provides for samples valued at not more than $1 each. The value claimed should be a realistic value that represents the actual cost of the article plus the cost of mutilation.
Samples valued at more than $1 each may be classified under subheading 9811.00.60 provided that they are marked, torn, perforated or otherwise treated so as to make them unsuitable for resale.
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C. Requirements for Samples Entered as 9811.00.60 – Mutilated fabric samples
Continuous Lengths or Rolls Not Exceeding Two Yards in Length
Continuous lengths or rolls of fabric may be marked or perforated with the word ”SAMPLE” at intervals of one-half yard for the entire length. The sample piece may measure no more than two yards in total length. The size of the word “SAMPLE” must be at least one inch high and 5 inches long and must be placed at a perpendicular angle across the front or face of the fabric. If marking is used, it must be indelible and in contrasting color to the fabric.
Swatches
Fabric swatches of a maximum size of eight inches by eight inches may be entered under 9811.00.60 without mutilation. Any swatches larger than eight inches square require either a cut, a hole, or marking in the main body of the swatch. A cut must be at least one inch in length. If a hole is punched, it must be at least one inch in diameter. If the fabric swatch is marked, the word “SAMPLE” must be at least one inch in length and two inches in height, and must be in indelible ink or paint in a contrasting color to the swatch.
The applicable subheading for the fabric sample pieces under two yards in length, mutilated as outlined above, and used in the United States only for soliciting orders for products of foreign countries, will be 9811.00.60, HTSUS, which provides for any sample (except samples covered by heading 9811.00.20 or 9811.00.40), valued not over $1 each, or marked, torn, perforated or otherwise treated so that it is unsuitable for sale or for use otherwise than as a sample, to be used in the United States only for soliciting orders for products of foreign countries. The rate of duty will be Free.
For those fabric pieces which do not meet the conditions outlined in TBT-06-002 or heading 9811 (for instance, fabric greater than two yards in length, those used for quality control, for licensor approval, etc.) the applicable subheading for the fabric would be the appropriate Chapter 1-97 classification. If you wish to obtain rulings for those fabrics, please submit requests with samples and sufficient information to classify.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Maribeth Dunajski at (646) 733-3045.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division