CTH is the abbreviation of “Change of Tariff Heading”
A product is considered to be sufficiently worked or processed when it is classified in a
4-digit level of the Harmonized System, i.e. heading, which is different from those in
which all the non-originating materials used in its manufacture are classified.
Example: PEM Convention – Seats HS heading 94.01
A rule for the seats (HS heading 94.01) requires:
“Manufacture from materials of any heading, except that of the product”
The manufacturer uses the following non-originating materials:
– sawn wood (HS heading 44.07)
– fabrics (HS heading 52.08)
– foam/porolone (HS heading 39.03).
The seats are exported to Switzerland as EU originating since the CTH rule is fulfilled,
namely all non-originating materials used in the production of the final product are
classified under tariff headings different from the tariff heading of the seats.
