An overview of the joint rules of origin for the associated free trade agreements in Europe, Middle East, and North Africa. It is sometimes referred to as the PEM Convention.
The rules of origin state how a product shall be manufactured in order to obtain preferential status. If the product has preferential status, it may be entitled to reduced or zero duty.
The following countries, that Norway through EFTA has signed free trade agreements with, have joined to convention: EU, EFTA, Albania, Algergia, Bosnia and Herzegovina, Egypt, Faroe Islands, Georgia, Israel, Jordan, Lebanon, Morocco, Montenegro, North Macedonia, Serbia, Tunisia, Türkiye, Ukraine and Palestine.
The convention has two set of rules, "the old rules" and "the transitional rules". The reason for this is that not all contracting parties of the parties to the convention have agreed to accept the transitional and more liberal rules of origin.
Read more on how to obtain origin with the old rules
- Read more on how to obtain origin with the transitional rules
With the transitional and more liberal rules, it is, in most cases, easier to obtain origin status. They entail:
- an increase of the percentage of third material that may be used in production
- an increase of the rule of tolerance from 10 to 15 percent
- the deletion of the demands of the nationality for captain, officers and crew for fishing vessels.
Alternative rules
If the liberal rules do not give origin status, you may use the alternative rules of origin. These rules demand a manufacture that used some specific processes, i.e., hydrolysis, oxidation and reaction with water. This applies only to goods of Chapter 27-40 in the Customs Tariff. You may use the alternative rules when you apply the liberal rules.
Export of fish with the transitional and more liberal rules
As the demands of the nationality for captain, officers and crew are deleted, exporters of fish may benefit from using the transitional and more liberal rules of origin. The EEA agreement, the bilateral quotas and the compensation agreements may all use these rules.
Please note that with the "Fish letter" you may not use the transitional rules as this still has demands regarding the nationality of the captain, officers and crew.
Proofs of origin
If the transitional rules are applied, the following must be written in box 7 on the Movement Certificate EUR.1: “transitional rules”. Yoy may not use Certificate EUR-MED.
If an Origin Declaration is used, it shall have the following wording:
“The exporter of the products covered by this document (customs authorization No………) declares that, except where otherwise clearly indicated, these products are of …………….. preferential origin according to the transitional Rules of origin." You may not use Origin Declaration EUR-MED.
The transitional rules of origin have been implemented in the following agreements:
Agreements |
Implementation |
EFTA–Albania |
1 January 2022 |
EFTA–Bosnia-Herzegovina |
1 September 2023 |
EFTA–Montenegro |
1 April 2022 |
EFTA–North Macedonia |
1 April 2022 |
EFTA–Serbia |
1 January 2022 |
The bilateral agreement Norway–EC |
1 September 2021 |
The EEA agreement |
30 April 2022 with retrospective effect from 1 September 2021 |
The EFTA convention |
1 November 2021 |
EFTA-Georgia |
1 December 2023 |