For example: "Production from materials other than from those of heading 2203" The focus would be on the transformation of the imported or non – originating inputs into the finished product. A substantial transformation is deemed to have occurred if there is a change in tariff classification.

Eg: Beer (2203) Water + Malt (imported) + Other inputs (imported) --> Beer 11 + 25, 32 --> 2203 (11, 24, 32, 2203 represent tariff classifications under the Harmonised System Nomenclature)

In this example, the imported or non – originating inputs undergo the requisite CTC Rule. The final product (beer) is therefore deemed substantially transformed in Singapore and is a Singaporean good. The Harmonised System of Classification categorises products into Chapters (2 – digit), headings, (4 – digit) and sub – headings (6 – digit). A Chapter change would require a change at the 2 – digit level, a heading change, at the 4 – digit level, and a sub – heading change, at the 6 – digit level.