CLA-2-98:OT:RR:NC:N3:352
Mr. Mike Packard
Pearl Izumi USA
101 S. Taylor Ave
Louisville, CO 80027
RE: The tariff classification of a printed knit polyester fabric imported for the purpose of soliciting orders for products of foreign countries, from China
Dear Mr. Packard:
In your letter dated February 22, 2017, you requested a tariff classification ruling. A sample was provided.
The submitted sample is described as a “piece of fabric used for soliciting orders of foreign merchandise” (henceforth referred to as “the fabric”). You state that the fabric is knitted of 100% polyester fibers. According to your letter, this item has no particular style number because it will change depending on the garment designs printed on the fabric. The instant sample depicts several small representations of a cycling jersey (front and back) in various colorways, with the wording “11121833” TRANSFER CYCLING SS BASELAYER” printed along the top of the fabric.
You state that your sales representatives will “take the fabric pieces to their customers (bike shops, large retailers, etc.) to show them the design and color of the cycling jerseys as well as let them feel the fabric so that they can assess the quality of the material.” Further, you state that “the overseas factory will be adding the word SAMPLE to the fabric prior to shipping; the size of the word “SAMPLE” will be at least 1” in length and 2” in height, and will be in indelible ink.” The fabric piece, which measures 28 inches by 40 inches, is not intended for re-sale. The purpose of the printed fabric is to let the cycling jersey customer feel the quality of the fabric as well as see the design and color of the jerseys prior to ordering the jerseys, which would be manufactured in Vietnam.
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.
[…]
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 under two yards in length, to be marked/mutilated as outlined above prior to importation, and to be 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.
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 https://hts.usitc.gov/current.
This ruling is being issued under the assumption that the subject goods, in their condition as imported into the United States, conform to the facts and the description as set forth both in the ruling request and in this ruling. In the event that the facts or merchandise are modified in any way, you should bring this to the attention of Customs and you should resubmit for a new ruling in accordance with 19 CFR 177.2. You should also be aware that the material facts described in the foregoing ruling may be subject to periodic verification by Customs.
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 via email at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division