Retail and Commercial Samples Purchased Overseas Courier Shipping And Hand-carry

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1 Retail and Commercial Samples Purchased Overseas Courier Shipping And Hand-carry

2 Retail and Commercial Samples Retail and commercial samples are often purchased abroad by Kohl s employees while on shopping trips, or they are shipped from vendors and factories for review and approval. When these samples are either carried through Customs or shipped and cleared through U.S. Customs by a courier, they are required to be accompanied by sufficient product information. This procedure will provide the process and documentation requirements for bringing product samples into the United States. It is important to note that if these procedures are not followed and samples are entered into the U.S. without making proper declarations to U.S. Customs, they will be considered smuggled goods and significant fines and penalties will be imposed on the individual traveler or Kohl s Department Stores. Retail Shopping Samples Product Development associates and Buyers travel abroad and purchase products, in retail stores, that will be used for product ideas and new product development for Kohl s. These products are either carried back with the Kohl s employee, or are shipped directly from the store or another location. In order to get these products into the U.S. without problems or delays, detailed product information and documentation must be created and presented to U.S. Customs upon arrival. Courier Shipments of Samples When a Kohl s employee is traveling in a foreign country, and merchandise is purchased to be used for product development purposes, that merchandise should be shipped back to Kohl s through a courier service such as DHL Express. 1. Any merchandise purchased and shipped via courier must be marked, torn, perforated or otherwise treated so that it is unsuitable for sale in the U.S. (mutilated), prior to leaving foreign country.(see below) a. No duty will be assessed on mutilated goods b. If the product cannot be mutilated, full duty will be assessed 2. A commercial invoice (see below), in English, must accompany the shipment with detailed description, quantity, and value of all merchandise. 3. Any merchandise that is purchased abroad by Kohl s employees must be shipped to Kohl s using DHL Express. 4. Kohl s has an account with DHL that should be used to allow for proper clearance with Customs and billing of all shipping charges. a. Kohl s DHL account number is:

3 5. Below is an example of the DHL form to be completed by the Kohl s associate. a. The Kohl s DHL account number must be entered in box 1 b. All shipping charges and duty will be charged to Kohl s. Mark the boxes for Receiver in sections 1 and 6 c. Make sure to include your department expense account number on the form in the Shippers Reference box. See your department Administrative Assistant for your code. i. Example: Dept# - Account# ( ) d. You are able to ship more than one box of samples on one DHL form. Make sure to detail the number of boxes and the weight and dimensions of each box in section 4. e. State Mutilated Samples on the form and include the HTS# for Mutilated Samples ( ) i. If you are stating Mutilated Samples on the form, you will need to ensure that ALL samples are mutilated per the instructions below f. Kohl s IOR/EIN number must be recorded in box 6 ( ) g. The form must be signed by the Kohl s employee 5a. Always include the Kohl s DHL account number 5b. All Charges for shipping are to Kohl s X Kohl s Associate Name and Expense number 5d. This section must be completed. You may ship more than one box on one DHL form 5c. Include our name and your dept. account number Name and Address where Samples are shipped from Kohl s Department Stores N56 W17000 Ridgewood Drive Menomonee Falls, WI X Mutilated Samples Multiple Items - See Commercial Invoice for Full Details X f. Kohl s EIN# 5e. Always include the Mutilated Sample HTS Code USA Kohl s Associate Name Associate # 5b. Duties and fees are charged to Kohl s 5g. Kohl s Employee Must Sign and Date the DHL Form

4 Hand-Carried Samples When a Kohl s associate is traveling in a foreign country and merchandise is purchased to be used for product development purposes, those goods can be handcarried only when the following procedure is followed. NOTE: Samples should only be hand-carried where absolutely necessary. Delays at arrival are possible and your samples may be detained by Customs until a formal entry is submitted with duty payment. 1. Any merchandise purchased and carried home with the Kohl s employee must be marked, torn, perforated or otherwise treated so that it is unsuitable for sale in the U.S. (mutilated) prior to leaving foreign country. 2. A commercial invoice, in English, must accompany the traveler with detailed description, quantity, and value of all merchandise being hand-carried. 3. All hand-carried goods must be declared with U.S. Customs (Customs Declaration Form 6059B) upon return into the U.S. a. Hand-carried samples must be packed in a carton or case separate from personal items being carried in luggage. b. All samples must be properly mutilated. c. A commercial invoice with complete details of all items being handcarried must be included with each piece of luggage. d. Receipts for each item being hand carried must be attached to the commercial invoice. e. Any merchandise not declared to U.S. Customs will be considered smuggled goods i. The traveler s social security number and/or Passport will be flagged by U.S. Customs and travel will be restricted. ii. Monetary penalties will be assessed for any goods found by U.S. Customs that have not been properly declared an merchandise will be seized 4. Please note the requirements on the Customs Declaration form, which is required for re-entry into the United States. All retail samples that have been purchased overseas, and that are being hand-carried back to the U.S., are required to be declared per the U.S. Code of Federal Regulation. a. Please review the Customs Declaration form 6059B below for reference regarding your requirement to declare retail samples.

5 The Value of all Commercial merchandise purchased while abroad, and hand carrying, must be declared to U.S. Customs.

6 All Commercial merchandise purchased while abroad, must be declared to U.S. Customs. U.S. Customs officers have the right to stop, and if necessary, detain you, for the purpose of verifying the contents of your luggage. ALWAYS be courteous and cooperative in your interactions with these Government Officials. Duty will not be assessed on the first $800 in value; for non-mutilated merchandise. Provide detailed description of the items being hand carried including the words Mutilated Retail Samples The actual retail purchase value should be declared in USD$. You should have all receipts available for Customs inspection. Mutilated Retail Samples 4 Cotton Women s T-Shirts $200

7 Product Development and Preclass Samples Many samples are received that are used for Product Development s review and approval as well as samples for Preclassification purposes. These samples are shipped to Kohl s by Li & Fung, the Agent or Vendor via DHL Express or other courier service. In order to receive these product samples, the following procedure must be followed: Development and Preclass Samples 1. Any product samples or swatches shipped from the vendor to Kohl s via courier must be marked, torn, perforated or otherwise treated so that it is unsuitable for sale in the U.S. (mutilated) prior to leaving foreign country. 2. A commercial invoice, in English, must accompany the shipment with detailed description, quantity, and value of all merchandise being shipped. 3. All freight fees and duty are paid by the shipper. Sample Mutilation requirements Any retail or commercial samples or swatches that are hand-carried or shipped to Kohl s must be marked, torn, perforated or otherwise treated so that it is unsuitable for sale in the U.S. (mutilated). Properly mutilated samples will enter the U.S. duty free under Harmonized Tariff Schedule (HTS#) code Mutilation must occur before importation to the U.S. NOTE: Samples cannot be mutilated after the samples have arrived in the U.S. Proper Mutilation of Samples 1. Fabric swatches of a maximum size of eight inches by eight inches (8 x8 ) can be shipped without mutilation. a. Any swatch larger than 8 x8 will need to be mutilated with a hole at least 1 high and 5 long. Additionally, the swatch can be marked with the word SAMPLE in indelible ink with letters at least 1 high and 2 wide. 2. Continuous Lengths or Rolls of fabric, not exceeding two yards in length, may be marked or perforated with the word SAMPLE at intervals of one-half yard for the entire length. a. The word SAMPLE must be at least 1 high and 5 in length. b. The marking must be at a perpendicular angle across the front or face of the fabric and must be indelible and in contrasting color. 3. Apparel or textile samples need to be marked with the word SAMPLE, in contrasting color, and must be at least one inch in height and two inches in length and written in indelible ink or paint and must be in a prominent area. a. Indelible markings are those markings that cannot be erased or obliterated.

8 4. Merchandise samples can also be cut or torn in a visible area and must be at least two inches in length and must be made to the outside of the garment. a. A garment may also be mutilated by punching or cutting a hole on the outside of the garment in a prominent area. The hole must be at least 1 in diameter. b. Smaller sizes or infant s wear may be smaller than the minimum size as defined; however, the mutilation must still render the garment unsuitable for sale. 5. If the merchandise has not been mutilated, duties will be assessed. Duty will have to be paid at the time of arrival and is required to obtain release of the sampels. NOTE: Do not declare Mutilated Samples if you have not mutilated your samples as per these guidelines. If your samples cannot be mutilated, full duty will be assessed and a formal entry with Customs will be required. Commercial Invoice Requirements A commercial invoice must accompany each shipment of samples with detailed descriptions, quantities, and value of all merchandise being hand-carried or shipped. 1. The invoice must have a detailed product description including material content, gender, and whether it is knit or woven. 2. For general merchandise samples, a detailed description that provides content, measurements and use is necessary. 3. The value declared on the invoice must be the purchase price or a fair market value. Please note that U.S. Customs does not accept the term No Commercial value. To Customs everything has a value. a. A receipt for any retail purchases must be attached to the invoice to substantiate the purchase price. 4. The invoice must be in English and in U.S. Dollars. 5. The invoice must include a statement such as, Mutilated Samples in order to enter free of duty. a. If you state Mutilated Samples on the commercial invoice, ALL samples must be mutilated or fines, penalties and duty will be assessed.

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10 Sample Completed Commercial Invoice Failure to properly declare samples Samples entering the U.S. without proper declaration are considered smuggled goods and in violation of Customs regulations. Improperly declaring samples can result in product seizure, increased scrutiny of import activity, fines and penalties. 1. Product that is found not properly marked and cannot be identified during entry will be returned to the vendor at their expense or will be abandoned in Customs custody. 2. If product is not properly mutilated, U.S. Customs will assess full duty. The duty charges will be billed back to the vendor or to the Kohl s associates department budget.