What is cumulation in rules of origin?
Cumulation means materials from a partner country count as if they were your own. Without it, a component from your neighbour across the border would be just another imported material.
An example
A US company makes jackets from fabric bought in Mexico. If that fabric qualifies as originating in Mexico, USMCA treats it as originating in the US too, so it doesn't have to meet the jacket's rule.
How far it reaches
The basic version covers the two partners. Diagonal cumulation goes further and takes in other countries that use the same rules, which is how the Pan-Euro-Mediterranean system works. Full cumulation goes furthest and also counts work done in a partner country, even when that work didn't make the material originating on its own.
The catch
You need proof the partner's material really does originate, usually a declaration from the supplier. Diagonal cumulation also only works when the right agreements between all the countries are in force.
Where you'll find it. The article it's in, agreement by agreement.
- USMCACumulation, Article 4.11, as accumulation
- CAFTA-DRCumulation, Article 4.5
- CPTPPCumulation, Article 3.10, as accumulation
- RCEPCumulation, Article 3.4
- ATIGACumulation, Article 30
- ACFTACumulation, Article 6
- PEM ConventionCumulation, Article 7
- CETABilateral cumulation, Article 3Full cumulation, Article 3
- EU–Japan EPABilateral cumulation, Article 3.5Full cumulation, Article 3.5
- EU–Korea FTACumulation, Article 3
- EU–Mercosur iTABilateral cumulation, Article 3.3
- EU–SADC EPABilateral cumulation, Article 3Diagonal cumulation, Article 4Cumulation of MFN duty-free inputs, Article 5
- EU–UK TCABilateral cumulation, Article 40Full cumulation, Article 40
- EU–Vietnam FTACumulation, Article 3Cumulation with fabrics originating in Korea, Article 3
- UK–Canada TCABilateral cumulation, Article 3Full cumulation, Article 3
- UK–Japan CEPABilateral cumulation, Article 3.5Full cumulation, Article 3.5
- UK–SACUM EPABilateral cumulation, Article 3Diagonal cumulation, Article 4Cumulation with EU materials, Article 4A
- UK–Vietnam FTACumulation, Article 3Cumulation with fabrics originating in Korea, Article 3
- US–Australia FTACumulation, Article 5.3
- KORUSCumulation, Article 6.5
- US–Singapore FTACumulation, Article 3.4
- Canada–Colombia FTACumulation, Article 306
- Canada–Indonesia CEPACumulation, Article 3.4
- Canada–Korea FTACumulation, Article 3.7
- Canada–Ukraine FTACumulation, Article 3.3
- EU GSPCumulation, Article 53Cumulation with Norway, Switzerland and Türkiye, Article 54Regional cumulation, Article 55
- UK DCTSCumulation, Regulation 17Intra-regional cumulation, Regulation 18Extended cumulation for least developed countries, Regulation 21
- Canada GPTCumulation, Section 3(2)