In Detail
The class-or-kind determination is the essential first step in chief-use analysis. Chief use is assessed across goods of the same class or kind — and the scope of that class directly determines what evidence is relevant and what use predominates. A narrow class definition produces a focused use determination; an overly broad class may obscure the predominant use.
CBP has articulated a ten-factor test for defining the class or kind, which courts have applied: (1) the general physical characteristics of the merchandise; (2) the expectation of the ultimate purchaser; (3) the channels of trade; (4) the environment of sale; (5) the usage; (6) the economic practicality of the article as sold; (7) the recognition in the trade and commerce; (8) the advertising; (9) the manner and cost of manufacture; and (10) whether trade literature or professional journals treat the article as a member of a particular class.
No single factor is determinative. The ten-factor analysis is holistic — it identifies the commercial universe of goods that are sufficiently similar to the imported article to be grouped together for use analysis. Once the class is defined, the chief use of all goods in that class is assessed.
The class-or-kind determination is particularly contested for new and novel goods that span traditional product categories, and for goods sold into multiple market segments with materially different uses.
Classification Significance
An incorrect class-or-kind definition invalidates the entire chief-use analysis that follows. If the class is defined too broadly, a niche use of the imported article is overwhelmed by the dominant use of dissimilar goods. If defined too narrowly, an artificially specialized class may appear to have a different chief use than the broader market. The class-or-kind determination must be documented and defensible.
How Kanon Handles This
Kanon applies the class-or-kind framework when evaluating use-based headings, using product attribute data to identify the relevant commercial category. The classification analysis documents the class definition applied and the evidence supporting it, allowing the determination to be evaluated against CBP's ten-factor standard.
Frequently Asked Questions
How many factors are used to define 'class or kind'?
CBP applies a ten-factor test, considering physical characteristics, buyer expectations, channels of trade, environment of sale, usage, economic practicality, trade recognition, advertising, manufacturing, and trade literature treatment.
Does the class-or-kind definition ever change for the same product?
It can evolve as markets change, new uses emerge, or the product enters different distribution channels. Classification based on a class-or-kind definition from a decade-old ruling may need to be revisited.