Pan-Euro-Mediterranean preferential rules of origin

SUMMARY OF:

Decision 2013/94/EU — conclusion of the Regional Convention on pan-Euro-Mediterranean preferential rules of origin

WHAT IS THE AIM OF THE DECISION?

It finalises the Regional Convention on pan-Euro-Mediterranean preferential rules of origin*.
This convention enables countries of the pan-Euro-Mediterranean zone (listed in key points below) to benefit from common rules and preferential customs treatment.
It aims to promote deeper economic integration and stronger trade links in the area.

KEY POINTS

A regional convention on the origin of goods traded in the pan-Euro-Mediterranean zone was signed on behalf of the EU in April 2011. The convention brings together in a single legal instrument all the rules regarding the origin of goods traded in the context of approximately 60 bilateral free-trade agreements (FTAs) between countries of the pan-Euro-Mediterranean area including the EU’s Stabilisation and Association process (SAP).

Contracting parties

Besides the EU, the contracting parties to this convention are:

the European Free Trade Association (EFTA) States: Iceland, Liechtenstein, Norway and Switzerland;
signatories to the Barcelona declaration: Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, the Palestinian Authority, Syria, Tunisia and Turkey;
the Faroes;
participants in the SAP process: Bosnia-Herzegovina, Croatia, the former Yugoslav Republic of Macedonia, Albania, Montenegro and Serbia, as well as Kosovo (¹);
the Republic of Moldova, Georgia and Ukraine.

Originating products

For tariff preferences to be applied, the origin of goods has to be established. Goods are considered as products originating in the pan-Euro-Mediterranean cumulation zone if they are:

wholly obtained (e.g. mined, harvested or, in the case of live animals, born and raised) in the territory of a contracting party;
composed of materials originating in countries that are not signatories to the convention (non-originating materials), but which have been sufficiently worked or processed in the territory of a contracting party (Annex II of Appendix I);
imported from the European Economic Area (EEA) and exported to another contracting party.

Pan-Euro-Mediterranean cumulation zone

The convention operates on the basis of an accumulation system whereby contracting parties can use originating products from each other as though they were domestically produced. Under the pan-Euro-Mediterranean cumulation of origin system, a system of diagonal cumulation operates between the EU and many of the countries in question.

Proof of origin

Customs authorities of the exporting country issue movement certificates EUR.1 or EUR-MED as proof of claims of origin. This allows importers in other contracting parties to benefit from the preferential tariff arrangements.
An origin declaration or an origin declaration EUR-MED may also be given by an approved exporter.

Arrangements for administrative cooperation

The parties’ customs authorities will coordinate with one another (e.g. by sharing specimen impressions of stamps used for the issue of movement certificates EUR.1 and EUR-MED or for verifying proofs of origin.)

Management and implementation

A joint committee made up of representatives of all the contracting parties ensures the management and implementation of the convention.

(¹) This designation is without prejudice to positions on status and is in line with United Nations Security Council Resolution 1244 and the International Court of Justice Opinion on the Kosovo Declaration of Independence.

FROM WHEN DOES THE DECISION APPLY?

It has applied since 26 March 2012.

BACKGROUND

For more information, see:

Pan-Euro-Mediterranean cumulation and the PEM Convention (European Commission).

KEY TERMS

Rules of origin: effectively the ‘economic’ nationality of goods traded which has to be determined in order to decide how they are treated in terms of customs duties. Preferential origin is conferred on goods from particular countries that have met certain criteria such as undergoing more working or processing than is required to obtain non-preferential origin.

MAIN DOCUMENT

Council Decision 2013/94/EU of 26 March 2012 on the conclusion of the Regional Convention on pan-Euro-Mediterranean preferential rules of origin (OJ L 54, 26.2.2013, pp. 3-158)