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Trade and Industry Department The Government of the Hong Kong Special Administrative Region
Brand Hong Kong - Asia world city

Commercial Information Circulars

24-hour hotline : 23 922 922

e-mail address : enquiry@tid.gov.hk

Ref : EIC 111/2/17 
        EIC 111/2/20 
      

16 May 2006

Dear Sirs,

Commercial Information Circular No. 186/2006

US : Updated Guidelines for Textile Samples

The US Customs and Border Protection (CBP) has recently updated the guidelines for textile sample shipments ("Guidelines"). A copy of the Guidelines is at Annex (pdf format) .

 

DETAILS

 

  1. The Guidelines list out the requirements for (A) samples entered under subheading 9811.00.60 of the Harmonized Tariff Schedule (HTS); (B) as properly marked commercial samples; and (C) as fashion samples.

Sample Requirements

(A) Samples Classified under HTS Subheading 9811.00.60
     (sometimes also referred as "mutilated samples")

  1. Samples entered the US under HTS subheading 9811.00.60 are exempt from duty and quota (where applicable). To be classified under HTS subheading 9811.00.60, the samples must: 
  1. be used in the US only for soliciting orders 1 for products from foreign countries ; and 
     
  2. meet one of the following – 
  1. valued at not more than US$1 each 2 ; or
     
  2. marked, torn, perforated or otherwise treated in accordance with the requirements specified under Part I in the Guidelines that renders the articles unsuitable for resale or for use other than as samples.
  1. In making sample shipments under HTS subheading 9811.00.60, traders must note that - 
  1. the mutilation must occur before importation into the US; 
     
  2. the relevant invoice must bear the statement "MUTILATED SAMPLES – 9811.00.60" before importation into the US; and 
     
  3. a formal entry is required if the shipment is valued greater than US$2,000. 

(B) Properly Marked Commercial Samples

  1. Properly marked commercial sample provisions currently exist for Mainland China, Vietnam, Ukraine and Russia. Samples shipped under these provisions are classifiable under the appropriate HTS Chapter 1 – 97 number. They are subject to duty but exempt from quota/visa requirements. 
     
  2. The requirements for samples to be shipped as properly marked commercial samples include -
  1. the shipment must be valued at US$800 or less; and 
     
  2. the samples must be properly marked in accordance with the requirements specified under Parts II in the Guidelines. When compared with those under HTS subheading 9811.00.60 (i.e. paragraph 3 above), the requirements are more lenient that allow samples to be entered for photography, modeling or other similar purposes. 
  1. In making properly marked commercial sample shipments, traders must note that formal entry is required if the shipment value is greater than US$250. For shipments valued at US$250 or less, an informal entry can be filed. 

(C) Fashion Samples

  1. Same as properly marked commercial samples, fashion samples are classifiable under the appropriate HTS Chapter 1 – 97 number and are subject to duty but exempt from quota/visa requirements. 
     
  2. Articles to be qualified as fashion samples must meet all the following requirements:
  1. they accompany a buyer returning to the US;
     
  2. they were purchased at the retail level;
     
  3. they include not more than a single article in a particular style or colour; and
     
  4. they include not more than 24 pieces total.
  1. Traders must note that each article of qualifying fashion samples must be legally marked with the country of origin. There are no additional separate mutilation or marking requirements for fashion samples. Mail and cargo shipments are not eligible for treatment as fashion samples.

Points to Note

  1. The Guidelines have also specified the following which traders must take note of - 
  1. If the samples have been allowed to be sold in the US as a regular commercial shipment, the importer and any related company can be prohibited from importing commercial sample shipments, as well as be subject to any appropriate penalty action. Furthermore, the importer must obtain the appropriate visa or visa waiver for all future entries of sample shipments.
     
  2. Provided that the articles are not from the same supplier, two or more properly marked commercial sample shipments are allowed to arrive on the same conveyance to the same importer, even that they were manufactured or produced in the same country. In this connection, traders are reminded to strictly follow the specified marking requirements for these combined shipments. The burden of proof in those particular instances is on the importer to show that these articles are commercial samples and are not for resale. Any evidence of circumvention can result in seizure and/or penalty action. 
     
  3. A properly marked commercial sample shipment must not be combined with a regular commercial shipment for entry purposes.

 

ENQUIRIES

 

  1. For enquiries about the content of this circular, please contact Miss S Y TANG at telephone number 2398 5405.

Yours faithfully,




(Ms Charmaine LO)

for Director-General of Trade and Industry

1. Samples imported for such uses as quality control, testing or photography do not meet the order solicitation provision and are thus not eligible. 
2. The value claimed should be a realistic value that represents the actual cost of the article plus the cost of mutilation.



Note : While every effort is made to ensure the accuracy of the above information, the Department cannot guarantee this to be so and will not be held liable for any reliance placed on the same.