Dutiable status of denim jackets imported as trade samples

W557151 June 17, 1993 CLA-2 CO:R:C:S W557151 RA Mr. James Sowry Director International Business Systems Pty. Ltd. P.O. Box 863 Toowong, Queensland 4066 Australia RE: Dutiable status of denim jackets imported as trade samples Dear Mr. Sowry: In your letter of February 17, 1993, you r quested information regarding the duties and restrictions applicable to denim jackets imported from-Australia for use as trade samples FACTS: You state that your company is acting on behalf of an· Australian fashion house that intends to sell denim jackets in the U. S. Your representative will enter this country with approximately ten jackets which will not be s9ld in the-u s: but· will be used only as trade samples. You ask for advice concerning any duties or quota restrictions that may be applicable to the imported jackets. ISSUE: Are denim jackets imported for use as trade samples subject to duty and textile quota and visa requirements? LAW AND ANALYSIS: Subheading 9811.00.60, Harmonized Tariff Schedule of the United States (HTSUS), provides for the free entry of any sample valued not over $1.00 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 foreign-made products. Guidelines regarding the manner in which textile samples should be marked or otherwise treated to render them eligible for duty-free treatment under this tariff provision are set forth in the interim update of Customs Directive 3500-07 dated January 4, 1989 (copy enclosed). -2- The guidelines provide that wearing apparel samples must either be (1) mutilated by cutting or tearing a section (at least two inches in length) from, or punching a hole (at least one inch in diameter) into, a prominent area of the garment, or (2) indelibly marked with the word "SAMPLE" (at least one inch in height and two inches in length) in a prominent and visible area. Textile samples which conform to the guidelines and are classifiable in subheading 9811.00.60, HTSUS, are not subject to quota restraint levels and, if they are to be imported for use by the importer and not for sale, need not be marked with the country of origin. See Headquarters Ruling Letter 732082 dated March 14, 1989. The rates of duty applicable to jackets which are not entitled to free entry under subheading 9811.00.60, HTSUS, are indicated in the enclosed excerpts from the tariff schedule. HOLDING: Denim jackets imported for use solely as trade samples to solicit orders for foreign-made products may be accorded free entry under subheading 9811.00.60, HTSUS, if treated by marking or cutting in accordance with the textile guidelines. Sincerely, John Durant, Director Commercial Rulings Division