The importation of commercial samples into the United States involves specific customs regulations and potential duty obligations. For UK-based businesses, understanding the available options for importing samples duty-free or under temporary arrangements is crucial for managing costs and complying with trade policies. The process is governed by U.S. Customs and Border Protection (CBP) and offers several pathways, each with distinct requirements, risks, and limitations. Key methods include duty-free consumption entries for low-value or treated samples, temporary importation under bond (TIB), and the use of carnets. The choice of method depends on factors such as the sample's value, intended use, and the importer's need to retain the samples for future sale.
Duty-Free Consumption Entries
One primary method for importing commercial samples without incurring duty is through a duty-free consumption entry. This option allows goods to enter the United States under regular consumption entry stipulations but free of any duties. It is applicable to small amounts of consumption samples, including alcohol samples, tobacco samples, and samples not valued over $1. The U.S. Harmonized Tariff Code (HTS) contains a specific provision for such samples under HTS number 9811.00.60. This code covers "Any sample except samples covered in 9811.00.20 (alcohol samples) or 9811.00.40 (tobacco samples), valued not over $1 each, or marked, torn, perforated, or otherwise treated so that it is unsuitable for sale or for use other than as a sample."
Under this provision, samples can be imported duty-free if they are permanently marked as a "sample," or cut, torn, or perforated in a manner that is visibly unsuitable for sale. The commercial documents must show a value for the samples, even if they are provided at no cost or have no commercial value, and must include the statement "mutilated samples – 9811.00.60" to ensure duty-free treatment. After use, samples imported under this method must typically be destroyed or donated to a charity or other non-commercial entities. Importers are not permitted to sell them or reconstitute them into articles suitable for sale.
For samples valued under $800, importers can potentially use entry type 86, which allows for goods valued under $800 to be imported free of duties, taxes, and fees. This is a separate provision that may be applicable depending on the specific circumstances of the import.
Temporary Importation Under Bond (TIB)
For samples intended to be used temporarily to solicit orders or exhibit at trade shows, temporary importation under bond (TIB) is a common option. This procedure permits the importation of goods into the United States duty-free by posting a bond. The bond is submitted by the importer, agreeing to export or destroy the sample within a specific time period. TIBs can be used for the exclusive purpose of soliciting orders of the merchandise.
Goods imported under a TIB must not be sold or offered for sale and must be exported or destroyed within one year from the date of importation. Extensions can be requested for additional one-year periods, but the total time cannot exceed three years. While TIBs offer flexibility, they come with significant risks. Failure to export or destroy the samples prior to the expiration date will result in liquidated damages equal to double the estimated duties for the samples. This method is not suitable for samples that the importer wishes to retain for indefinite use or sale.
Carnet System
Another option for temporarily importing commercial samples is the carnet system. A carnet acts as both a customs bond and customs entry documentation, purchased in advance of the shipment from the country of origin. The United States recognises two types of carnets for this purpose: the ATA Carnet and the AIT Carnet. This method is ideal for importers who need to move samples in and out of the U.S. frequently, such as for trade shows or client demonstrations, as it simplifies the customs process for multiple trips.
Permanent Importation for Sale
If the commercial samples are intended to be retained in the United States for indefinite use or eventual sale, importers can choose to import them as a regular customs entry. In this case, duties and taxes may apply depending on the specific HTS classification and duty rate. The importer must follow all standard regulations and requirements for a customs entry. The primary advantage of this method is that the goods remain in the U.S. indefinitely, and the importer retains the right to sell the samples after use. This is the appropriate pathway when the samples are not intended for destruction or temporary exhibition but are part of the product development or sales inventory.
Key Considerations and Compliance
Regardless of the chosen method, compliance with all CBP regulations is mandatory. Additional marking and defacing requirements may apply, particularly for textile products and footwear. The type of fabric, size, and other considerations can also trigger additional requirements. It is strongly advised to work with a customs broker to navigate the process and fulfil all necessary requirements, as the specifications can be complex.
Furthermore, samples are subject to duties unless an exemption or remission is obtained through compliance with applicable laws and regulations. Duty is assessed upon the samples in accordance with their condition at the time of importation. The collection of duty may be postponed if the importation is not entered for consumption until the withdrawal of the merchandise from which the samples are taken, or until an application for the destruction or abandonment of such merchandise has been accepted.
The eligibility for duty-free treatment is not automatic and depends on the samples not being subject to antidumping, countervailing duties, quotas, or additional fees or IRS taxes. Importers must conduct thorough research to ensure their chosen entry method aligns with their business needs and the specific nature of their samples.
Conclusion
UK-based businesses importing commercial samples into the United States have several structured options to manage customs duties. The duty-free consumption entry is suitable for low-value or physically treated samples, while temporary importation under bond and carnets are designed for samples used temporarily for sales solicitation or exhibition. For samples intended for permanent retention and sale, a regular customs entry is required, potentially with duties and taxes. Success hinges on selecting the appropriate method, adhering to strict documentation and treatment requirements, and often seeking guidance from a customs broker to ensure full compliance with U.S. trade regulations.