EU to enhance preferential trade with PEM countries

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From 1 September transitional rules or PEM rules, this is the dilemma

The EU is in the process of amending 21 origin protocols within the pan-Euro-Mediterranean (PEM) area, by implementing an alternative set of rules of origin applicable alongside with the rules of the PEM Convention, on a bilateral basis pending the adoption of the revised Convention. These new rules, which were endorsed by a large majority of PEM Contracting Parties, contain a significant number of improvements and simplifications as compared with the current PEM Convention.

The target application date of the new set of rules is 1 September 2021. More information can be found on the official website of DG Taxud.

The application of transitional rules will be optional and alternative to PEM Convention rules.

Exporters have therefore the choice to use either rules of origin:

  • The rules of origin of the PEM convention;
  • The revised rules of origin of the PEM Convention (so called “Transitional Rules”) with the PEM Contracting Parties that apply them.

As of 1 September 2021, the new rules will become applicable, in an initial stage, between the EU and each of the following partners: Albania, Faroe Islands, Georgia, Iceland, Jordan, Palestine1, Norway and Switzerland.

The process of adoption of the amendments to the bilateral origin protocols on rules of origin with all the other partners (Bosnia and Herzegovina, Egypt, Israel, Kosovo*, Lebanon, Montenegro, North Macedonia, Republic of Moldova, Serbia, Turkey and Ukraine) is ongoing and at different stages of progress.

PRACTICABILITIES

Origin declaration within the framework of the transitional rules of origin

Economic operators using “origin declarations” (by an approved exporter within the meaning of Article 19 of the transitional rules, or by any exporter for any consignment consisting of one or more packages containing originating products the total value of which does not exceed EUR 6 000) need to indicate “according to the transitional rules of origin” in the origin declaration.

 

Movement certificates EUR.1 within the framework of the transitional rules

Economic operators requesting the issuance of a movement certificate under the transitional PEM rules of origin need to indicate “TRANSITIONAL RULES” (in English) in box 7.

Supplier’s declaration

In the context of the pan-Euro-Mediterranean zone, economic operators issuing a supplier’s declaration at the request of the exporter may indicate what are the rules fulfilled by their products.

 

Codes to be used in the customs declarations

For the application of the transitional rules two new codes have been created in TARIC:
U075 = Movement certificate EUR. 1 (under the condition that in box 7 the remark “Transitional Rules” is inserted) in the context of the Pan euro Mediterranean transitional rules of origin
U076 = Origin declaration (under the condition that the declaration mentions “origin according to the transitional rules”) in the context of the Pan euro Mediterranean transitional rules of origin
The code for origin declaration shall be used regardless of the amount of the consingment or the type of the exporter.

By using transitional rules, the period of validity of any proof of origin extends from 4 to 10 months. That means the EUR.1 certificate or the origin declaration can be issued within that period.

 

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