Simple English definitions for legal terms
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Term: CHIEF USE
Definition: Chief use is a way to figure out how to classify something for taxes by looking at who will use it, instead of just one person. This helps make sure things are taxed fairly.
Definition: Chief use is a method used to determine the appropriate tariff classification of a commodity. It involves examining the intended users of the commodity as a whole, rather than individually.
Example: Let's say a company imports a type of fabric that can be used for both clothing and upholstery. The chief use of the fabric would be determined by examining the intended users of the fabric as a whole. If the majority of the fabric is intended for clothing, then the chief use would be considered as clothing fabric and classified accordingly.
Explanation: The example illustrates how the chief use method takes into account the overall intended use of a commodity, rather than individual uses. By examining the intended users as a whole, the appropriate tariff classification can be determined based on the primary use of the commodity.