Update on PEM Convention

24/01/24

On 7 December 2023, the Pan-Euro-Mediterranean (PEM) Joint Committee adopted the revised rules of origin between the European Union and the other countries of the PEM region. These revised rules of origin will be implemented as of 1 January 2025.

What does this mean for your business?

The revised rules of origin are more flexible and business-friendly. As such we advise to evaluate what the new rules will bring for your company. Maybe it will become possible to claim a lower or zero import duty rate, due to the changes/more flexibility in the rules.

In addition, it will not only be important to be aware of the opportunities the revised rules might bring, but also be aware of any changes in the required compliance. Or changes to be made to your IT systems in which your customs administration is administered.

Background

The revised rules include many improvements/opportunities, amongst other including the possibility of duty drawback and full cumulation for most products as well as increased tolerance levels for non-originating material.

Please note that certain parties to the PEM Convention already apply these revised rules on a bilateral level. However, companies at the moment also still have the option to apply the ‘old’ rules currently in place under the PEM Convention.

To read more on the background, click here for one of our previous articles on the revised rules of origin under the PEM Convention.

How can we help?

We can help you understand what the changes entail and to assess whether your company can profit from the revised rules of origin.

Furthermore, we can help in setting up processes/procedures to ensure your company is compliant and that the rules of origin are applied correctly. Enabling your company to provide the correct evidence to issue origin certificates/statements or the correct evidence to claim the lower/zero rates import duties rates.