The tariff classification of mutilated duffle bags with metal display rack from China

N027821 June 3, 2008 CLA-2-98:OT:RR:NC:N3:341 CATEGORY: Classification TARIFF NO.: 9811.00.60 Paul Anuschat Geo S. Bush & Company, Inc. P.O. Box 8829 Portland, OR 97208-8829 RE: The tariff classification of mutilated duffle bags with metal display rack from China Dear Mr. Anuschat: In your letter dated May 6, 2008 you requested a classification ruling on behalf of Fred Meyer Inc., regarding the applicability of subheading 9811.00.60, Harmonized Tariff Schedule of the United States (HTSUS), of duffle bags imported for use as samples. Samples of the "mutilated" duffle bags will be returned to as requested. You have stated that the duffle bags with the metal rack will be imported into the United States for store display and are only used to promote the sale of the bags. There will be four to five man-made textile duffle bags of various sizes, and a specially designed metal display rack imported together. The duffle bags will be properly mutilated so that they are rendered unsuitable for resale. It is your contention that duffle bags, mutilated in the same manner as the submitted samples, are entitled to duty free treatment under subheading 9811.00.60, HTSUS. Subheading 9811.00.60, HTSUS, provides for the free entry of articles used in the U.S. as samples only to solicit orders for products of foreign countries, provided they are valued not over $1.00 each, or are marked, torn, perforated or otherwise treated, so as to render them unsuitable for sale or for use otherwise than as samples. Thus, there are three basic requirements for classification of a textile article under this heading; it must be used for solicitation of orders; it must be valued not over $1.00 or marked, or mutilated; and it must be unsuitable for resale after being used by the importer. The duffle bags you provided have holes punched in them. There are four holes measuring about three-quarters of an inch in diameter in each bag. The punched holes render the bags unsuitable for use other than as samples. The metal racks are designed to display the bags using the punched holes to hold the bags. Provided that the duffle bags displayed on the metal rack represent the actual bags to be ordered, provided the actual duffle bags are manufactured in a foreign country, and provided that the display duffle bags are used in the United States to solicit orders of the foreign-made bags or to stimulate demand for them so as to increase future orders, then the submitted duffle bags and the metal display rack are eligible for duty free treatment in subheading 9811.00.60, HTSUS. The mutilation of the duffle bags fulfills the requirements of subheading 9811.00.60, HTSUS. There is no quantitative limitation on items imported under this subheading. 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 Vikki Lazaro at 646-733-3041. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division