Navigating the EU’s updated Rules of Origin for Preferential Trade Agreements

One of the significant updates in the new guidance is the detailed overview of list rules. The list rules (also known as Product-Specific Rules of Origin, PSR) set out the working or processing that non-originating materials must undergo for the final product to obtain preferential originating status. These rules are essential for determining the origin of goods under different preferential trade agreements.

The guidance covers several critical aspects, such as wholly obtained requirements, change in tariff classification, value limits for non-originating materials, specific working or processing, or a combination of several rules. A correct understanding of these rules allows businesses to benefit from preferential origin and duty-free treatment. The guidance also elaborates on general and specific tolerance rules, particularly for textiles and textile articles. General tolerance rules explain how non-originating materials can be used within specified limits without affecting the originating status of the final product.

The use of non-originating materials that do not comply with the list rules for obtaining originating status is restricted to a certain percentage of the ex-works price or the weight of the final product. In the case of textiles, specific tolerance rules apply, and these rules are generally included in the introductory notes to the list of rules. This is crucial for industries that rely on a mix of originating and non-originating materials.

Verification processes and exporter statuses in the EU's updated Rules of Origin

Furthermore, the updated guidance outlines the verification process to ensure the proper application of preferential tariff treatment. This includes procedures for verification requests sent by third countries to EU Member States and vice versa. It covers the verification of importer knowledge, ensuring that the claims made by importers regarding the origin of goods are accurate and verifiable.

The updated document also outlines the procedures and requirements for becoming an Approved Exporter or a Registered Exporter. These statuses allow for self-certification of the preferential origin of goods, facilitating trade under certain EU preferential arrangements.

Ensuring authenticity and compliance in the EU's updated Rules of Origin

A detailed section on the verification of proof of origin has been included in the guidance. This section outlines the procedures for verifying the authenticity of documents and the originating status of goods. The verification process involves both documentary control and, where necessary, on-site visits to check the manufacturing process and confirm the preservation of originating materials.

Furthermore, this section addresses the processes for requests exchanged between EU Member States and third countries. It also provides clarifications on importer knowledge, allowing customs authorities to request additional information from importers to verify their claims based on their knowledge of the goods' origin.

Navigating the revised rules and their impact on trade

The document also contains updates and specific guidance for various preferential trade agreements, such as the EU-Canada Comprehensive Economic and Trade Agreement (CETA), EU-Japan Economic Partnership Agreement (EPA), EU-UK Trade and Cooperation Agreement (TCA), and others. Particularly important are references to the revised Pan-Euro-Mediterranean (PEM) Convention, which introduces updated rules of origin applicable on a bilateral basis.

The document provides detailed information on cumulation within the PEM system, including bilateral, diagonal, and full cumulation, as well as guidance on the transitional provisions concerning the shift towards the revised PEM Convention. Additionally, the guidance reflects revisions linked to the modernisation of the EU-Chile ITA, which entered into force on 1 February 2025. It includes explanatory notes to provide guidance on the interpretation and application of the rules of origin under the updated agreement.

The guidance also contains updated product-specific rules of origin and their impact on trade between the EU and Chile.

The updated guidance on the rules of origin for preferential trade agreements by the European Union is a significant step towards ensuring clarity and the proper application of these agreements. By providing a comprehensive overview of list rules, outlining the verification process, and detailing the verification of proof of origin, the EU aims to facilitate smoother and more transparent trade practices.

As these changes take effect in March 2025, businesses and customs authorities alike must familiarise themselves with the new guidelines to ensure compliance and fully benefit from preferential trade agreements. Once again, this demonstrates how important rules of origin and their correct application are.

Read more about the importance of origin in today’s challenging international trade environment.

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• Preferential origin management and customs duty optimisation: We assist in managing preferential origin to benefit from reduced duty rates under various trade agreements and identify opportunities to reduce overall import costs.
• Customs classification review: We support businesses in reviewing and ensuring the correct classification of goods according to Harmonised System (HS) codes, which are crucial for determining applicable duties and compliance with import regulations.
• Customs valuation consulting: We provide expert advice on accurately valuing goods to ensure compliance with customs regulations, avoid penalties, and ensure smooth customs clearance.