HQ 114453 - Entry of textile shipments valued at $200 or less; 19 U.S.C. - United States International Trade Commision Rulings

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HQ 114453

October 21, 1998

ENT-1-RR:IT:EC 114453 GG

CATEGORY: ENTRY

Ms. Domitille Leriche
Groupe Redoute
International Department
57, rue de Blanchemaille
59082 ROUBAIX Cedex 02
FRANCE

RE: Entry of textile shipments valued at $200 or less; 19 U.S.C.

Dear Ms. Leriche:

This is in response to your letters dated August 13, October 2, October 6, October 13, and October 15, 1998, requesting a ruling on the correct entry procedures to be used for mail order shipments of textile articles.

FACTS:

Groupe Redoute is a French mail order company. Customers located in the United States will order merchandise from your catalogue by phone, by mail, or by fax. Payment for the merchandise and for all associated shipping and handling charges will occur at the time the order is made. The packages will be sent directly to the individual purchasers in the United States by post. The shipments will contain textile articles, such as women's ready-to-wear clothing, and also accessories such as belts, earrings, bracelets, scarfs, shoes, etc. The majority of the textile articles will be manufactured in countries subject to quota restrictions. The articles will be for the personal use of the individuals making the purchase. In the August 13, October 2, and October 6 letters, you indicate that the value of each shipment will not exceed US$200. However, your letter dated October 13, 1998, states that some packages will exceed this amount.

ISSUE:

Whether each shipment qualifies for the administrative exemption under 19 U.S.C. ?1321.

LAW AND ANALYSIS:

Section 321(a)(2)(C) of the Tariff Act of 1930, as amended (19 U.S.C. ?1321(a)(2)(C)), provides for the duty free entry of articles valued at $200 or less which are imported by one person on one day. The purpose of this provision is to minimize expense and inconvenience to the government disproportionate to the revenue that is collected. The applicable regulations for mail importations of this nature are found in sections 10.151, 10.153, 143.23(j), and 145.31 of the Customs Regulations (19 CFR

Section 10.151 provides that shipments valued at not over $200 may be entered under informal entry procedures free of duty and tax, unless there is reason to believe that the shipment is one of several lots covered by a single order or contract and that it was sent separately for the express purpose of securing free entry or of avoiding compliance with any pertinent law or regulation. As a general rule, the exemption is not allowed in the case of any merchandise of a class or kind provided for in any absolute or tariff-rate quota, whether the quota is open or closed. (19 CFR ?10.153(g)). You indicate that the textile articles which your customers will order are products of countries subject to quota and visa restraints. Although quota/visa requirements may apply to commercial shipments of textiles of any value, textile and textile products imported for the noncommercial, personal use of the individual importing the merchandise are not subject to such restraints. Consequently, the exception of 19 CFR 10.153(g) will not apply if the textile merchandise is for the noncommercial, personal use of the importer. See Headquarters Ruling Letter 226254, dated November 3, 1995.

You indicate that some of the shipments will contain merchandise that is valued at $200 or less and is for the personal use of the customer. Further, each shipment will be ordered by and sent directly to the individual purchaser. Provided each importer claims the Section 321 exemption on no more than one shipment a day, and provided the shipment is not one of several increments of a single order sent separately to avoid payment of duty, the administrative exemption from duty will apply in these circumstances.

The contents of shipments sent by mail to persons in the United States must be declared to U.S. Customs on the form provided by the foreign post office, giving a full and accurate description of the contents and value of the merchandise. The declaration should be attached to the package in question. An accompanying invoice or bill of sale, giving an accurate description and the purchase price of the merchandise, should be securely attached to the outside of the package or enclosed therein. (19 CFR ?145.11.) In addition to the declaration and invoicing requirements, packages imported by mail must also usually be entered on a Customs Form 3419, 368, or 7501. However, qualifying Section 321 shipments (i.e., those not over $200 in value) arriving in the mail may be passed free of duty and tax without the filing of an entry. (19 CFR ?145.31). The declaration and invoice take the place of the bill of lading required of other Section 321 shipments which arrive otherwise than by mail. (19 CFR ?143.23(j).)

You also indicate that some of the shipments may have a value of greater than $200. In those cases, the imported merchandise would be subject to duty at the rate applicable to the tariff number under which the article is classified. The form of entry would also be different than that used for items entered free of duty under Section 321. As a general rule, packages imported by mail with a value between $200 and $2,000 may be entered under informal entry procedures. In the mail environment, this means that the sender must attach a declaration and invoice to the shipment. Upon arrival in the United States, a Customs officer will prepare and attach a mail entry (Customs Form 3419 or 3419A), and then return the package to the U.S. Postal Service for delivery and collection of duty. (19 CFR must be entered formally. Customs will send a notice to the addressee notifying him or her of the arrival of the shipment and of the place at which entry is to be made. (19 CFR ?145.12(a).)

Notwithstanding the general rule that merchandise valued at $2,000 or under may be entered informally, certain merchandise valued between $250 and $2,000 must be entered formally. This exception to the general rule usually involves quota class merchandise. Enclosed please find a list of Harmonized Tariff Schedule numbers which will help you determine if a formal entry will be required.

You also inquire about country of origin marking and labeling requirements for the textile products. As a general rule, every article of foreign origin imported into the United States is required to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article will permit in such manner as to indicate to the ultimate purchaser in the United States the English name of the country of origin of the article. (19 U.S.C. ?1304(a).) However, articles which are imported for use by the importer and are not intended for sale in their imported or any other form, and articles which are exempt from duty under ??10.151 and 143.31 of the Customs Regulations, do not have to be marked with country of origin information under the provisions of 19 U.S.C. ?1304. These exceptions are found in Sections 134.32(f) and (n) of the Customs Regulations. However, although the imported textile articles will be exempt from country of origin marking under Section 1304, they must nevertheless be labeled with origin, size, style, fiber content, and washing instructions under the provisions of the Textile Fiber Products Identification Act. You will need to contact the Federal Trade Commission, Division of Enforcement, 6th and Pennsylvania Avenue, N.W., Washington, D.C. 20508, to obtain advice on the specific FTC labeling requirements for your merchandise.

HOLDING:

Textile and other articles ordered through a mail order company by individual purchasers for their personal use, valued at $200 or under, and shipped directly to the customer, are entitled to duty free entry under the provisions of Section 321 of the Tariff Act of 1930, as amended, provided that the use of this exemption is restricted to a single shipment imported by one person on one day.

Mail order shipments valued over $200 and up to $2,000 may be entered under the informal entry procedures applicable to mail importations, provided the merchandise contained in the shipments is not on the list of tariff numbers requiring formal entry for values over $250.

Sincerely,

Jerry Laderberg
Chief
Entry Procedures and Carriers
Branch

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