How do I apply the look of one item to another item?

I have heard that it is possible in Guild Wars 2 to apply the look of one item to another item. In World of Warcraft this is caused transmogrification, but from what I've heard this behaves more like 'Casting' in The Secret World in that the original item is destroyed in the process.

I want to transfer the look of an Avenger's Short Bow (which in my case is a level 45 item, but it shares an appearance with an exotic bow with a different name) to a level 80 bow I have crafted.

What steps do I have to take to transfer the look of one item to another, and does it destroy the original item (the one whose image you are transferring)?

Additional, what is this called in Guild Wars 2?