Image by Jakob Braun

rules of origin 

New Rules applicable in the pan-Euro-Mediterranean (PEM) area

RECORDING NOW AVAILABLE

On December 7, 2020, the Council of the EU adopted a package of 21 decisions to increase trade between the European Union and neighbouring countries in the pan-Euro-Mediterranean region. These decisions mean that the EU and 20 trading partners in the region will update their free trade agreement by modernizing the rules of origin to make them more flexible and business-friendly. The entry into force was September 1, 2021.

Join customs advisor and global trade expert, Arne Mielken, for a special free webinar that was originally delivered on 14 September 2021.  You can now watch it anywhere and from any device.
 

MAIN CHANGES

The top 7 improvements are:

  1. Flexibility of the regional cumulation of origin (introduction of the "full" cumulation for most products)

  2. Abolition of the draw-back ban for most products

  3. More flexible and simpler rules of origin, e.g. B. Abolition of cumulative requirements, lower thresholds for local value creation, new rules for textiles (certain finishing processes give the origin), multiple choice rule for chemicals (chemical reactions give the origin)

  4. Increase in tolerance (threshold values ​​for non-originating materials) from 10% to 15%

  5. Replacement of the “direct transport rule” by a “no manipulation” rule

  6. More flexible rules for accounting separation

  7. Possibility to replace formal preference certificates with declarations of origin from registered exporters and to issue electronic preference certificates

Which countries can benefit?

These proposals affect the bilateral agreements of the EU with the following countries: Iceland, Liechtenstein, Norway, Switzerland, Faroe Islands, Turkey, Egypt, Israel, Jordan, Lebanon, Palestinian territories, Georgia, Republic of Moldova, Ukraine, Albania, Bosnia and Herzegovina, North Macedonia, Montenegro, Serbia and Kosovo.

OPTIONAL USE

The new rules are intended to serve as alternative rules to those of the Regional Agreement on Pan-Euro-Mediterranean Preferential Rules of Origin (PEM Agreement) until its revision is completed. Their use will therefore be optional.

WHAT DID the WEBINAR COVER

Jurisdiction:

It covered

1.    What are Rules of Origin? 
2.    What is the PEM convention and which countries have joined the Convention?
3.    How can businesses claim zero or reduced duty when trading amongst PEM members?
4.    What are the "old" Rules of Origin, and why are they no longer fit for purpose?
5.    What are the new alternative Rules of Origin?
6.    How to select between "old" and "new" Rules of Origin
7.    Proof of Origin
8.    The benefits of Diagonal Cumulation

 

MORE INFORMATION: EXPERT BLOG ENTRY 

More details and an exclusive explainer blog entry written by leading import export consultants and global trade experts here:

https://www.customsmanager.org/post/eu-pem-new-alternative-rules-of-origin-from-september-21

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