# Assessment of Change of Tariff Heading (CTH) Rule for HS Heading 2710 ## 1. Purpose The purpose of the Change of Tariff Heading (CTH) rule is to ensure that non-originating materials undergo sufficient processing or transformation before a product obtains preferential origin under the EU–UK Trade and Cooperation Agreement (TCA). The CTH rule prevents preferential origin from being granted where a product is merely assembled or blended from non-originating materials without a substantial change in tariff classification. The relevant legal framework is: - EU–UK Trade and Cooperation Agreement (TCA), Chapter 2 – Rules of Origin; - Annex ORIG-1 – Definitions; - Annex ORIG-2 – Product-Specific Rules of Origin. # # 2. Assessment principle The CTH assessment is performed only on **non-originating materials**. Originating materials are excluded from the CTH assessment because they already have preferential origin status. The assessment logic is: ![editor_310_5_9bcd4811-7408-4b72-9deb-32091e7b1c90_rte_image_276.png](https://www.bzctrl.com/bzctrl-core-api/api/v1/download/editor_310_5_9bcd4811-7408-4b72-9deb-32091e7b1c90_rte_image_276.png)
# 3. Practical example – Blended product classified under HS heading 2710 ## Final product
Product HS heading
Blended petroleum product 2710
The production process uses ten input components.
## ## Input material assessment
Component HS heading Origin status Evidence CTH assessment
Component 1 2707 Non-originating No preferential origin evidence CTH fulfilled (2707 → 2710)
Component 2 2707 Non-originating No preferential origin evidence CTH fulfilled (2707 → 2710)
Component 3 2707 Non-originating No preferential origin evidence CTH fulfilled (2707 → 2710)
Component 4 2710 EU originating Supplier declaration Excluded from CTH test
Component 5 2710 EU originating Supplier declaration Excluded from CTH test
Component 6 2710 EU originating Supplier declaration Excluded from CTH test
Component 7 2710 EU originating Supplier declaration Excluded from CTH test
Component 8 2710 EU originating Supplier declaration Excluded from CTH test
Component 9 2710 UK originating Statement on Origin Treated as originating material under EU–UK bilateral cumulation
Component 10 2710 Non-originating No preferential origin evidence Assess under applicable tolerance/value rule
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# 4. Key interpretation points ## 4.1 Non-originating materials from another HS heading Example: Input material: HS 2707 Final product: HS 2710 Result: 2707 ≠ 2710 → CTH requirement fulfilled The material does not prevent the final product from obtaining preferential origin.
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## 4.2 Originating materials with the same HS heading as the final product Example: Input material: HS 2710 Origin: UK Evidence: Valid Statement on Origin Result: Material is originating under EU–UK TCA → CTH assessment not required The fact that the material has the same HS heading as the final product is irrelevant because the CTH rule applies only to non-originating materials.
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## 4.3 Non-originating materials with the same HS heading as the final product Example: Input material: HS 2710 Origin: Non-originating Result: Same heading as final product → Additional assessment required The material must be assessed against any specific tolerance or maximum value rule included in the applicable product-specific rule.
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# 5. Decision tree for HS heading 2710 ![editor_310_5_0363e4c0-e755-426b-92f5-9b4e63f3721e_rte_image_286.png](https://www.bzctrl.com/bzctrl-core-api/api/v1/download/editor_310_5_0363e4c0-e755-426b-92f5-9b4e63f3721e_rte_image_286.png)
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# 6. Final conclusion For a blended product classified under HS heading 2710: 1. The CTH rule is applied only to non-originating materials. 2. Materials classified under HS heading 2707 can satisfy the CTH requirement because they undergo a change from heading 2707 to heading 2710. 3. Materials classified under HS heading 2710 do not automatically prevent preferential origin. 4. If a 2710 material has EU or UK preferential origin supported by valid documentation, it is treated as originating and is excluded from the CTH assessment. 5. Only non-originating 2710 materials require further review against the applicable tolerance/value provisions. This approach ensures that preferential origin is granted where sufficient processing has occurred while allowing originating materials from the EU and UK to be used within the bilateral cumulation framework.