CLA-2 RR:TC:SM 560712 KSG
Tim Sheldon
Manager of Import Operations
Talbots
175 Beal Street
Hingham, Massachusetts 02043
RE: Subheading 9811.00.60; samples
Dear Mr. Sheldon:
This is in response to your letter of August 26, 1997,
asking if
sample textiles imported under subheading 9811.00.60,
Harmonized Tariff Schedule of the United States ("HTSUS"),
can be given at no charge to a local recycling company to
recycle into rags for the automobile industry or be put in
bales for subsequent exportation.
FACTS:
Your company imports sample textiles under subheading
9811.00.60, HTSUS. After using these samples, you are
proposing to give these imported articles at no charge to a
local recycling company to recycle into rags for the
automobile industry or to put them up in bales which would
then be exported.
ISSUE:
Whether imported textiles samples imported under
subheading 9811.00.60, HTSUS, can be given at no charge to a
local recycling company to recycle into rags for the
automobile industry or to put up in bales with other
textiles for subsequent exportation.
LAW AND ANALYSIS:
Subheading 9811.0060, HTSUS, provides that 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 U.S. only
for soliciting orders for products of foreign countries may
be entered duty free. In Headquarters Ruling Letter (HRL)
557683, dated March 3, 1994, Customs held that footwear
samples entered under subheading 9811.00.60, HTSUS, and used
as samples could later be disposed of by being donated to a
charity, exported for sale, or used as samples abroad. The
key limitation was that the samples could not be
reconstituted into footwear which is suitable for sale in
the U.S.
The first scenario, in which the samples would be given
at no charge to a local recycling company to be made into
rags, is equivalent to donating the samples to a charity
since your company is not paid for the samples. In
accordance with the finding in HRL 557683, this scenario
would be acceptable under subheading 9811.00.60, HTSUS.
The second scenario, in which the samples would be
given at no charge to a recycling company to be baled and
exported, is similar to the example in HRL 557683 in which
the samples were exported and sold. Since the samples would
not be sold or reconstituted for use in the U.S., the second
scenario is also acceptable.
HOLDING:
The two scenarios presented, in which textile samples
would be given at no charge to a recycling company either
to be made into rags or to be baled and exported, are both
acceptable under subheading 9811.00.60, HTSUS.
A copy of this ruling letter should be attached to the
entry documents filed at the time this merchandise is
entered. If the documents have been filed without a copy,
this ruling should be brought to the attention of the
Customs officer handling the transaction.
Sincerely,
John Durant, Director
Commercial Rulings Division