A substantial transformation of a good always results in a change in its tariff classification.

Question

Quizplus · Accepted Answer

This is known as the "substantial transformation rule" and is applied by customs authorities to determine the appropriate tariff classification of goods. A substantial transformation occurs when the imported product undergoes a significant change in its essential character as a result of manufacturing or processing, which results in a new product with a different function or use. The new product will be classified under a different tariff heading than the original product.

A Substantial Transformation of a Good Always Results in a Change