Product-specific rules and tariff shift analysis
What the exam tests
This domain tests precise reading of product-specific rules and tariff-shift analysis. You must classify the output and inputs in the correct HS edition, identify non-originating materials, and apply shift, RVC, or process tests in the required sequence.
Reading a PSR
A rule such as CTH requires a change of heading at 4-digit level; CTSH requires a change of subheading at 6-digit level; CC requires a change of chapter at 2-digit level. The shift applies only to non-originating materials. Originating materials do not need to shift. Some PSRs add exclusions, such as except from heading X, or require a specific chemical reaction or assembly process; those conditions control. Where alternatives are allowed, such as CTH or RVC 40%, satisfying one is enough.
Worked example
Plastic articles of HS 3926 are made from imported polypropylene pellets of HS 3902. The PSR is CTH. The input moves from heading 3902 to heading 3926, so the shift is met. If the imported input were 3926 scrap, the heading would not change and CTH would fail; check whether a subheading exception or RVC alternative applies before denying the claim.
Traps
Applying the shift to originating materials as well as non-originating ones; using 8-digit or 10-digit national codes without checking the 6-digit HS; ignoring chapter notes or exclusions; assuming the certificate classification is correct; forgetting de minimis.