Principal Use is the use of the class or kind of goods to which an article belongs that exceeds any other single use. Under Additional U.S. Rule of Interpretation 1(a), a tariff classification controlled by use (other than actual use) is determined by principal use.
Importantly, principal use looks to the class or kind of goods — not the specific use of a particular shipment. CBP and the courts apply the Carborundum factors from United States v. Carborundum Co. to determine principal use, considering:
- General physical characteristics
- Expectations of the ultimate purchaser
- Channels of trade in which sold
- Environment of sale (advertising, marketing, display)
- Recognition in the trade
- Economic practicality
- Manner in which the goods are used
A use must exceed all other individual uses combined — but it need not be the majority use. A 40% use can be the principal use if no other single use exceeds 40%.