At the turn of the year 2024/2025, far-reaching changes are planned in the area of origin of goods and preferences. These require adaptations of the AEB Origin & Preferences software as well as the cooperation of those responsible in the companies that use this software. The changes affect companies in the EU and Switzerland. Companies in the UK are not affected.
This article is the central location for all currently known and forthcoming specialist information, instructions, and calls to action.
What are PEM and the Regional Convention?
When will the change come into force?
Effects on the AEB software and your processes
Which preparations do you need to take?
Technical information and instructions
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What are PEM and the Regional Convention?
The Pan-European Mediterranean zone of origin (short: Pan-Euro-Med or PEM zone) is a group of countries that have concluded numerous bilateral free trade agreements with each other since 2005, using the same rules of origin and thus creating the basis for the Pan-Euro-Mediterranean cumulation.
It turned out to be difficult to amend a large number of agreements at the same time. The aim was not to jeopardize the system of identical rules of origin. For this reason, the rules of origin were combined into a separate set of rules in 2013 – the so-called Regional Convention. From then on, the free trade agreements referred only to the rules of the Regional Convention for the origin protocol, which sets out the rules for the preferential origin of goods. In order to change the rules of origin, the change only needs to be made in the Regional Convention and no longer needs to be implemented in all bilateral preferential agreements.
The contracting parties have agreed on such a change to the rules of origin from January 1, 2025. The Pan-Euro-Med matrix describes which countries from the PEM zone have concluded agreements with each other and are therefore allowed to cumulate. The application of the Regional Convention is indicated by a date with the suffix "(C)". The change in the rules from January 1, 2025 is marked with an "(R)".
Not all free trade agreements have yet been converted to the Regional Convention. It is to be expected that free trade agreements will continue to switch to the new rules beyond January 1, 2025 and that information will be published on how to proceed until then.
What will change?
Viewed in isolation, the new rules are easier to comply with. The main long-term simplifications coming into force are the following:
- Increase in general tolerance from 10% to 15%
- Changes to the content and structure of the list rules, in particular through:
- Increase in the proportion of permitted non-originating materials depending on the ex-works price; ergo higher percentage
- Reduction of combination rules
- Introduction of weight rules
- Simplifications for the textile and chemical sectors through special procedures, additional textual rules that may apply
- Many header rules are summarized in the chapter rules; i.e. omission of many ex-rules for HS heading or HS sub-heading
- Movement certificate EUR-MED and declaration of origin on the invoice EUR-MED are no longer required
As a result of these changes, existing rule assignments must be dissolved and rules reassigned. Accordingly, the calculations and assessments must be carried out again.
When will the rule change come into force?
This rule change will come into force on January 1, 2025. This means that agreements marked with an “(R)” in the matrix will only apply the new rules of origin without an alternative from this date.
Effects on the AEB software and your processes
AEB will provide a service pack for Origin & Preferences in good time, which will guide you step by step through the necessary adjustments using a widget.
In addition, the cooperation of those responsible in the affected companies is required during and after the changeover.
Which preparations do you need to take?
- Allocate specialist resources for the turn of the year 2024/2025, e.g. for rule assignment and, if necessary, the creation of manual list rules.
- Block the necessary capacities and also take into account any customer-specific changes, e.g. customized forms, in your budget.
Technical information and instructions
Information on what will change and how you should proceed will be available here from the fall. This will be accompanied by seminars we offer, which you can book here from the fall.
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Please note:
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