CTSH is the abbreviation of “Change of Tariff SubHeading”
A product is considered to be sufficiently worked or processed when it is
classified in a 6-digit level of the Harmonized System,
i.e. sub-heading, which is different from those in which all the non-originating
materials used in its manufacture are classified.
Example : CETA – Roasted coffee (HS sub-heading 0901.21)
The rule for roasted coffee (HS sub-heading 0901.21) requires:
“A change from any other subheading”
The manufacturer uses the following non-originating materials:
– coffee, not roasted (HS sub-heading 0901.11)
Coffee roasted in the EU is exported to Canada as EU originating since the
CTSH rule is fulfilled, namely, all materials used in the production of the final
product are classified under a tariff sub-heading different from the tariff
sub-heading of the roasted coffee.