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Pan-Euro-Mediterranean system of cumulation of origin

Goods traded in the pan-Euro-Mediterranean zone benefit from preferential customs treatment. This is aimed at accelerating the economic integration of partner countries by creating a common economic area.

PROPOSAL

Proposal for a Council Decision on the signature of the regional convention on pan-Euro-Mediterranean preferential rules of origin [COM(2010) 168 final - Not published in the Official Journal].

Proposal for a Council Decision on the conclusion of the regional convention on pan-Euro-Mediterranean preferential rules of origin [COM(2010) 172 final - Not published in the Official Journal].

SUMMARY

The draft convention lays down rules allowing the origin of goods traded under free trade agreements in the pan-Euro-Mediterranean zone to be determined. It is necessary to ascertain the origin of goods in order to apply tariff preferences, i.e. reducing or removing customs duties or taxes of equivalent effect.

The contracting parties to this Convention are the following:

  • the European Union;
  • the European Free Trade Association (EFTA) States, which are Iceland, Norway, Switzerland and Liechtenstein;
  • signatories to the Barcelona declaration, namely Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, Syria, Tunisia, Turkey, and Palestine;
  • the Faroe Islands;
  • the participants in the European Union Stabilization and Association Process.

Originating products

Goods are considered as products originating in the pan-Euro-Mediterranean cumulation zone if they are:

  • wholly obtained in the territory of a Contracting Party to the Convention;
  • composed of materials originating in countries that are not signatories to the Convention (non-originating materials), but which have been sufficiently processed in the territory of a Contracting Party to the Convention. Annex II of Appendix I to the Convention presents the criteria for sufficient processing for each product category;
  • imported from the European Economic Area (EEA) and exported to another Contracting Party to the Convention.

Pan-Euro-Mediterranean cumulation of origin

If three Contracting Parties to the Convention are bound by a Free Trade Agreement (FTA), they may apply a system of diagonal cumulation of origin. Products that have obtained originating status in one of the countries in the pan-euro-Mediterranean cumulation zone may be added to products originating from any other country in the zone without losing their originating status within that zone.

Cumulation of origin is subject to certain conditions:

  • the existence of a preferential trade agreement in accordance with the GATT;
  • compliance with the rules of the Convention;
  • publication of a notice in the Official Journal of the EU (C series) on compliance with the implementing conditions for cumulation.

Furthermore, a total cumulation of origin may be applied within the EEA (i.e. EU countries, Iceland, Liechtenstein and Norway) and for trade between the EU, Algeria, Morocco and Tunisia. As regards the EEA, products traded between these countries shall be considered to have originated from the same territory.

Products originating in third countries

In order to manufacture * their products, the Contracting Parties to the Convention may use non-originating materials, which shall generally be subject to customs duties.

Proof of origin

Exporters must be able to present movement certificates EUR.1 or EUR-MED to the customs authorities of the importing countries. Such certificates shall be issued by the customs authorities of the exporting country.

Approved exporters may also issue an invoice declaration or an invoice declaration EUR-MED.

If goods are in transit in a free zone and they are handled for reasons other than those designed to prevent their deterioration, a new movement certificate must be issued.

Joint Committee

The management and implementation of the Convention shall be overseen by a Committee composed of representatives of all of the Contracting Parties.

Key terms
  • Manufacture: any kind of working or processing, including assembly or specific operations.

REFERENCES AND PROCEDURE

ProposalOfficial JournalProcedure

COM(2010) 168

-

Non-legislative NLE(2010) 0092

COM(2010) 172

-

Non-legislative NLE(2010) 0093

Last updated: 03.11.2010

See also

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