What are the three criteria required for substantial transformation?

The three criteria for substantial transformation are encapsulated in the concept of a product undergoing a significant change that alters its identity. The correct answer emphasizes "new name, new character, new use," which aligns perfectly with the definition of substantial transformation in customs regulations.

When a product undergoes substantial transformation, it must emerge from the manufacturing or processing to have a new name, meaning it is significantly different from its original form. The "new character" aspect refers to the change in the product's nature or physical characteristics, making it distinct. Lastly, "new use" means the product is now intended for a different purpose than it was originally manufactured for, indicating a genuine transformation that merits a change in customs classification.

In contrast, the other options do not capture the essence of substantial transformation in a way that aligns with customs law. Different packaging and marketing strategies do not inherently change the fundamental attributes of the product itself. Increased weight might not signify a change in identity, and merely local assembly does not necessarily imply that the end product has changed substantially from its components.