Ukraine became a full-fledged member of the regional convention on Pan-Euro-Mediterranean preferential rules of origin

07.02.2018

American Chamber of Commerce in Ukraine is glad to inform that Ukraine became a full-fledged member of the Regional Convention on Pan-Euro-Mediterranean Preferential Rules of Origin (Convention) starting February 1, so from now on Ukrainian manufacturers can use raw materials originating from the European Free Trade Association (EFTA) countries, and to ship finished products to the EU countries, where the goods would be the subject to preferential duty treatment. The Convention unifies origin rules for countries of the Pan-Euro-Mediterranean region, which includes 28 EU countries, the EFTA countries (Iceland, Liechtenstein, Norway and Switzerland), Turkey, Albania, Makedonia, Jordan, Montenegro, Serbia, Faroe Islands, Morocco, Algeria, Tunisia, Syria, Lebanon, Palestinian territory, Bosnia and Herzegovina, Egypt, Israel, Georgia and Moldova.

The key purpose of joining the Convention is the diagonal cumulation of origin. For instance, Ukraine may process EU-originating raw materials into finished goods, which would be exempt from customs duty upon import into European Free Trade Association (EFTA) Member States. Diagonal cumulation significantly increases opportunities for international trade, but would start working between Ukraine and the Pan-Euro-Mediterranean countries, which concluded Free Trade Agreements with Ukraine (e.g., EU and EFTA countries, etc.), after introduction of the respective amendments to these agreements. Application of diagonal cumulation between Ukraine and other Pan-Euro-Mediterranean countries (e.g., Israel, Turkey, etc.) would become possible after conclusion of Free Trade Agreements between Ukraine and these countries.

 

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