CALL FOR EVIDENCE

FOR AN EVALUATION / FITNESS CHECK

This document aims to inform the public and stakeholders about the Commission's work, so they can provide feedback and participate effectively in consultation activities.

We ask these groups to provide views on the Commission's understanding of the problem and possible solutions and to share any relevant information that they may have.

Title of the evaluation

EU rules of origin – evaluation

Lead DG – responsible unit

DG TAXUD – A6 Rules of Origin and Customs Valuation

Indicative timetable

(planned start date and completion date)

Q4 -2025

Additional information

https://taxation-customs.ec.europa.eu/customs-4/international-affairs/origin-goods_en 

This document is for information purposes only. It does not prejudge the final decision of the Commission on whether this initiative will be pursued or on its final content. All elements of the initiative described by the document, including its timing, are subject to change.

A. Political context, purpose and scope of the evaluation

Political context

EU Rules of Origin (RoO) are essential aspects of customs legislation, defining the origin or 'economic nationality' of goods for the purpose, together with tariff classification and customs valuation, of determining customs tariff treatment upon import. The origin of goods also governs the application of trade defence measures and quantitative restrictions or tariff quotas. In her mission letter to Commissioner Šefčovič, President von der Leyen tasked him with checking to what extent the RoO framework is still fit for purpose. This task is now all the more pressing given recent geopolitical tensions and changes to the multilateral landscape, with all their ramifications for trade.

Over the years, the EU has established a comprehensive set of RoO based on the international framework developed by the World Trade Organization (WTO) and the World Customs Organization (WCO). These rules are outlined in the Union Customs Code (UCC) I  (Articles 59 to 68), which governs both non-preferential and preferential trade regimes, and in the preferential trade agreements concluded with different trade partners.

Preferential rules of origin determine whether a good qualifies as originating from a certain country, under the preferential arrangement in question. If all requirements are met, such goods are eligible to be imported with lower duty rates or even at a zero rate, depending on the preferential arrangement in question.

Non-preferential rules of origin are used to determine the country of origin of goods for the application of the most-favoured nation (MFN) treatment. It is also used for trade statistics, public tenders and origin marking.

Over the years, the EU has developed and introduced new policies, where the concept of RoO is used to identify the origin of the goods in their scope, in some cases after the entry into force of the UCC in 2016. This is particularly true in the case of non-preferential origin, with initiatives targeting specific products or countries, such as the Carbon Border Adjustment Mechanism II (CBAM), the proposal for the Net Zero Industry Act III , or the Deforestation-free Products Regulation IV  among others.

The most relevant reviews of EU RoO to date have been the 2003 `Green Paper on the future of Rules of Origin in preferential trade arrangements’, which led to the reform of the Generalised Scheme of Preferences (GSP) in 2011 and the 2014 ECAS Special Report ‘Are preferential trade arrangements appropriately managed?’. This evaluation is the first full Commission evaluation of RoO.

Purpose and scope

The main objective is to do a comprehensive evaluation of the EU’s non-preferential RoO, applicable across a broad range of policies, using preferential RoO as a benchmark. This will make it possible to get a comprehensive picture of the interplay between the two types of rules and their impact on global trade. The evaluation of RoO is crucial for assessing whether the policy objectives of EU RoO have been achieved, whether there are any gaps between those objectives and, or misalignments of the objectives with, current and future policy priorities, given the ever-changing nature of global trade. The evaluation should help identify where there is room for improvement in EU RoO.

The evaluation, covering the period from the application of the UCC in 2016 to the present and will focus on the following three aspects: the definition of the country of origin; the mechanisms for proving a good’s country of origin; verification systems (taking into account new trade patterns, commercial techniques, and production methods). The evaluation will provide an evidence-based assessment of RoO according to these five evaluation criteria:

I)Effectiveness: The evaluation will consider to what extent RoO have achieved their objectives by way of a qualitative and quantitative assessment of their impact on Member States and EU businesses. It will also cover the challenges that have arisen in applying them.

II)Efficiency: The evaluation will measure the compliance costs for competent authorities and businesses, to identify areas where the administrative burden of compliance could be reduced. It will also analyse the overall costs and benefits of the RoO framework. 

III)Relevance: The evaluation will assess whether the existing RoO can be adapted to new policy areas or further modernisation may be a good way of reaching evolving policy goals and handling global trade dynamics. This includes environmental policies and initiatives related to the circular economy, which require novel approaches to determining the origin of goods produced using recycled materials.

IV)Coherence: The evaluation will measure how consistent RoO are with the EU policies to which they are linked.

V)EU added value: The evaluation will provide insights into the functioning of EU RoO across the EU and in different sectors, focusing on non-preferential rules, with consideration of preferential rules where relevant.

B. Better regulation

Consultation strategy

The consultation strategy aims to collect evidence and views from a broad range of stakeholders, giving them the opportunity to provide relevant information on the implementation and effect of RoO. Through its consultation activities, the Commission wishes to deepen its understanding of whether the RoO framework has achieved its objectives and will continue to be able to do so.

An extensive targeted consultation and a set of interviews with all stakeholders concerned will be done as part of the evaluation. The Call for Evidence will be launched in parallel with the public consultation. It will be published on the Have your say portal in all 24 official EU languages for 8 weeks.

Planned consultation activities:

·Public consultation: for 12 weeks, available in all 24 official EU languages. Respondents will find it on Have Your Say.

·Targeted consultation: Before summer 2025 specific questionnaires and interviews tailored to different stakeholder categories, a workshop and a focus group.

The consultation activities will be promoted using social media, DG TAXUD's website, and relevant stakeholder networks. A factual summary report will be published 8 weeks after the closure of the public consultation, followed by a synopsis report summarising all the responses to the consultation (published as a Staff Working Document).

Why we are consulting? 

The aim of the consultation activities, which will include a public consultation, stakeholder surveys and specific events, is to gather evidence relating to, and views on, the following main aspects of the evaluation:

1. the implementation of RoO in the Member States;

2. the functioning of RoO, specifically a qualitative and quantitative assessment of their effectiveness and efficiency;

3. the future-proofing of the measures, in particular their fitness for purpose and continued relevance given recent geopolitical tensions and changes in international trade.

The consultation will also aim to:

a. identify the topics and issues covered by the evaluation;

b. gather information and data on the implementation of RoO, as well as information about the experience of implementing them;

c. gather stakeholders’ views and opinions on the extent to which RoO have achieved their objectives;

d. gather views on the RoO framework’s relevance.

Target audience

A broadly targeted consultation will be aimed at different stakeholders with knowledge of international trade and RoO, including national public authorities, international organisations and Chambers of Commerce; businesses, including small and medium-sized enterprises; NGOs and other civil society representatives; academia and research institutes; business and consumer organisations. The activities should be broad enough to cover a sufficiently diverse set of Member States to ensure that the views and information gathered are representative of different aspects of RoO, legislative frameworks and economic environments.

Data collection and methodology

The evaluation will be supported by a dedicated external study. It will draw on existing information that includes any previous impact assessments, monitoring data reports, evaluations and reviews, related studies, and reports. Additional evidence will be gathered through stakeholder consultations, case studies, focus groups, and workshops. The methodology will quantify regulatory benefits and costs, taking into account simplification and burden reductions.

The analysis aims to provide sufficient quantitative data and insights to analyse national and EU implementation of RoO, the effect of their implementation on Member States and businesses and, if possible, measure their cost-saving benefits.

Data collection will cover the period from the application of the UCC in 2016 to the present. The evaluation will cover the definition of the country of origin, the mechanisms for proving a good’s country of origin, and verification systems, considering new trade patterns, commercial techniques, and production methods.

The evaluation will meet the Commission's ‘Better Regulation’ requirements.