A company that sent a free sample of its cosmetic product to consumers was not required to collect tax on the shipping and handling fee charged to the customer. Provided the shipping and handling charge reflects the actual amount paid by the company shipping the product, the transaction is not considered to be a retail sale. The company will be responsible to pay the sales or use tax on the product given to prospective customers. If the charge for shipping and handling exceeds the normal charge for shipping the products for sale, the charge for shipping the free sample will be taxable. (TSB-A-06(10)S, New York Commissioner of Taxation and Finance, March 9, 2006)