Legal Definitions - chief use

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Definition of chief use

Chief use is a legal principle, primarily applied in customs and trade law, used to determine the correct classification of a product. It means that a product's main purpose or function is identified by considering how the majority of its intended users typically use it, rather than focusing on specialized or individual applications. This collective understanding helps assign the product to the appropriate category for duties, tariffs, or other regulations.

  • Example 1: A Multi-Purpose Tool

    Imagine a company imports a shipment of compact, battery-powered drills. While a professional carpenter might use such a drill daily for construction, and a hobbyist might use it for occasional home repairs, a small number of specialized users might adapt it for tasks like mixing paint or even for certain artistic endeavors. When customs officials apply the "chief use" principle, they would look at the overall market and how most purchasers use these drills. Since the overwhelming majority of users purchase and operate these tools for drilling holes and driving screws in construction or DIY projects, the drills would be classified as power tools for general construction or household use, not as specialized artistic equipment.

  • Example 2: Specialized Medical Equipment

    Consider a new type of high-resolution imaging device. Its primary design and marketing are focused on medical diagnostics, such as scanning for specific health conditions. However, a university research lab might acquire one to study the internal structures of ancient artifacts, or a high-tech manufacturing company might use it for quality control inspections of intricate components. Despite these alternative, highly specialized uses, the "chief use" principle would lead customs to classify the device as medical diagnostic equipment because its design, features, and the vast majority of its intended applications and sales are within the healthcare sector.

  • Example 3: Outdoor Apparel

    A manufacturer imports a large quantity of durable, waterproof jackets with numerous pockets and reinforced seams. These jackets are designed and marketed for outdoor activities like hiking, camping, and fishing. While some individuals might purchase these jackets for everyday casual wear in a city, or even for specific work environments that require robust outerwear, the "chief use" principle would dictate their classification. Because the jackets' features (waterproofing, breathability, specific pocket configurations) and the general consumer base indicate their primary purpose is for outdoor recreational use, they would be classified as outdoor or sporting apparel, reflecting their most common application by the broader user community.

Simple Definition

Chief use is a standard for determining the correct tariff classification of a commodity. It involves assessing the primary purpose or function of an item by considering how it is generally used by its intended users as a whole, rather than focusing on individual applications.