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PEM Convention rules of origin

The Regional Convention on Pan-Euro-Mediterranean Preferential Rules of Origin (PEM Convention) sets the rules of origin used in the trade agreements between the European Union, Albania, Bosnia and Herzegovina, Egypt, the Faroe Islands, Georgia, Iceland, Israel, Jordan, Kosovo, Liechtenstein, Moldova, Montenegro, Morocco, North Macedonia, Norway, Palestine, Serbia, Switzerland, Tunisia, Türkiye and Ukraine.

Inferred runs your bill of materials through these rules, input by input, and checks your suppliers' declarations against them. You approve every result.

PartiesEuropean UnionAlbaniaBosnia and HerzegovinaEgyptFaroe IslandsGeorgiaIcelandSee all 2222 parties
De minimis15%of the ex-works price, in non-originating materialsArticle 5CumulationCumulationMaterials from partner countries count as your own.Article 7Claimed withOrigin declarationOr EUR.1 movement certificateArticle 17

The rules, one by one. Each with the article it comes from.

How a product originates

The ways it can qualify, and how value is measured.

  • Wholly obtained goods

    Things grown, mined or caught in the area qualify with no further test.

    Article 3

  • Product-specific rules

    The rule your product has to meet, looked up by its tariff code.

    Article 4

  • Valuation

    How value is measured for the agreement's value tests.

    Article 1

Allowances and limits

What helps a product qualify, and what doesn't count.

  • De minimis

    A small share of materials can miss the rule and the product still qualifies.

    Article 5 · called tolerance in the agreement

  • Cumulation

    Materials from partner countries count as if they were your own.

    Article 7

  • Insufficient processing

    Simple work like repacking or labelling doesn't count, even if the code changes.

    Article 6 · called insufficient operations in the agreement

  • Accessories, spare parts and tools

    Spare parts and tools shipped with the product are treated as part of it.

    Article 9

  • Retail packaging

    The packaging it's sold in goes with the product.

    Article 9

  • Sets

    How products sold together as a set qualify.

    Article 10

  • Indirect materials

    Fuel, tools and other things used up in production are ignored.

    Article 11 · called neutral elements in the agreement

  • Fungible materials

    Identical materials from different sources can be tracked by inventory method.

    Article 12

  • Intermediate materials

    Parts you make yourself, and that qualify, count as originating.

    Article 4

  • Shipping packing

    Boxes and containers used only for shipping are ignored.

    Article 9

  • Textile tolerance

    For textiles the allowance is worked out by weight.

    Annex I

Shipping and claiming

Where the work happens, how the goods travel and how you claim.

  • Territoriality

    Where the work has to happen, and how much can happen elsewhere.

    Article 13

  • Proof of origin

    The document you need to claim the lower rate.

    Article 17

  • Duty drawback

    Limits on getting back the duty paid on imported materials.

    Article 16

Parties.

  • European Union
  • Albania
  • Bosnia and Herzegovina
  • Egypt
  • Faroe Islands
  • Georgia
  • Iceland
  • Israel
  • Jordan
  • Kosovo
  • Liechtenstein
  • Moldova
  • Montenegro
  • Morocco
  • North Macedonia
  • Norway
  • Palestine
  • Serbia
  • Switzerland
  • Tunisia
  • Türkiye
  • Ukraine

Other regional agreements. See them all on the globe.