Actual Use is a classification provision that requires the importer to prove the merchandise is actually used as specified in the tariff language. Under Additional U.S. Rule of Interpretation 1(b), actual-use classifications differ from principal use because they look to the specific use of the imported goods rather than the use of the class or kind.
Actual-use provisions are common where Congress has granted a duty reduction for specific end uses — for example, parts used in articles for the handicapped, materials for use in religious worship, or items for noncommercial scientific or educational use.
To claim an actual-use classification, the importer must:
- Use the goods (or have them used) as specified
- Maintain records proving the actual use
- File the entry with the actual-use HTS number and meet any applicable certification or bond requirements
If the goods are not actually used as declared, CBP can liquidate the entry at the most favored nation rate and assess penalties under 19 U.S.C. § 1592.