Proposal for a Council Regulation amending Council Regulation (EC) No 1207/2001 as regards the consequences of the introduction of the system of Pan–Euro-Mediterranean cumulation of origin
Date: 2006-07-05
Institutions: European Commission
Subjects: EU customs procedure, customs document, customs regulations, movement certificate, originating product, tariff preference

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 5.7.2006 
COM(2006) 361 final 

2006/0119 (ACC) 

Proposal for a 

COUNCIL REGULATION 

amending Council Regulation (EC) No 1207/2001 as regards the consequences of the 
introduction of the system of Pan–Euro-Mediterranean cumulation of origin 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1) 

Context of the proposal 

•  Grounds for and objectives of the proposal 

Council  Regulation  (EC)  No  1207/2001  lays  down  provisions  and  procedures  to  allow 
exporters  establishing  the  originating  status  of  products,  which  they  received  from  their 
suppliers  in  the  Community,  before  exporting  them  from  the  EC  under  preferential 
arrangements, in the same state or after further processing. 

For that purpose, Community suppliers shall provide Community exporters with declarations 
informing them about the status of the products with regard to the rules of origin laid down in 
the  preferential  arrangement(s)  concerned.  This  'supplier's  declaration'  shall  be  used  as  a 
supporting document with a view to establishing the proofs of preferential origin. 

The introduction of Pan-Euro-Med cumulation implies to show in the 'supplier's declarations 
for products having preferential originating status' (Annexes I and II of the Regulation) - as 
far  as  preferential  relations  within  the  Pan-Euro-Med  zone  are  concerned  -  whether  the 
products supplied acquired this status thanks to this system of diagonal cumulation. 

•  General context 

At the Palermo Conference  in March 2002, the Euromed Trade Ministers had agreed to the 
extension  of  the  pan-European  system  of  cumulation  of  origin  to  all  the  Mediterranean 
partners, subject to intensive efforts being undertaken at expert level to elaborate the measures 
required and to ensure smooth implementation of the extension. 

Further  to  the  outcome  of  the  EC  –  Faroe  Islands/Denmark  Joint  Committee  of  the  28 
November 2003, it has been agreed to also include the Faeroe Islands in the system of pan-
Euro-Mediterranean cumulation of origin. 

This extension basically required a network of Free Trade Agreements (FTAs) with identical 
rules  of  origin  between,  on  the  one  hand,  the  Mediterranean  partners  and  the  pan-European 
countries,  and  on  the  other  hand,  between  the  Mediterranean  partners  themselves,  thus 
promoting  regional  co-operation  and  economic  integration  between  all  countries  concerned. 
For the application of this Pan-Euro-Mediterranean cumulation, a flexible approach (referred 
to as "variable geometry") was agreed, meaning that the system can be applied between three 
countries as soon as the condition with regard to the FTA containing identical rules of origin 
is fulfilled between the countries concerned.  

The  application  of  this  system  of  diagonal  cumulation  of  origin  and  of  'variable  geometry' 
implies using new types of proof of preferential origin, movement certificates EUR-MED and 
invoice declarations EUR-MED, showing whether diagonal cumulation has been applied and 
with what countries of the zone. 

On 11 October 2005, the EU adopted the text of the new Pan-Euro-Mediterranean protocols, 
and  all  legal  acts  required  for  their  formal  adoption  by  either  the  respective  Association 
Council or the Joint Committee have been submitted to the approval of the partner countries. 
In  the  meantime,  some  partner  countries  have  responded  positively,  which  has  allowed  the 
formal adoption of the new Pan-Euro-Med protocols on rules of origin with these countries. 

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At  present,  the  Community  applies  these  new  rules  with  Morocco,  Israel,  Egypt,  the  EFTA 
States (including the EEA – European Economic Area) and the Faroe Islands. These countries 
will thus be in position to actually implement Pan-Euro-Mediterranean cumulation of origin 
in their trade relations with the Community and to retrieve the benefits from it, provided they 
have  put  in  place  identical  rules  of  origin  in  their  relations  with  the  partner  countries 
concerned. 

To  achieve  this,  the  Community  exporters  shall  be  in  a  position  to  determine  whether  the 
goods  they  have  bought  from  suppliers  in  the  Community  meet  or  not  the  conditions  to  be 
considered as originating, in order to support the establishment of a proof of origin. They are 
using  for  that  purpose  a  'supplier's  declarations'  as  defined  by  Council  Regulation  (EC)  No 
1207/2001,  showing  the  originating  status  of  the  goods  supplied.  However,  because  of 
'variable geometry', this document shall also show, for goods to be exported in the context of 
pan-Euro-Mediterranean cumulation, if such cumulation was applied and with what countries 
of the zone. 

It has to be highlighted that provisions similar to the ones subject to this proposal will also be 
introduced in the context of the customs union between the Community and Turkey. In that 
context, supplier's declarations are also used to support the establishment of proofs of origin 
in  the  Community  or  in  Turkey,  with  a  view  to  allowing  each  party  to  apply  pan-Euro-
Mediterranean cumulation of origin with their common trade partners. A new Decision of the 
EC-Turkey  Customs  Co-operation  Committee  ('Bridging-Legislation')  will  incorporate  the 
provisions on supplier's declaration, currently laid down in Decision 1/1999 of the EC-Turkey 
Customs Co-operation Committee of 28 May 1999 (OJ L 204 of 4.8.1999, p. 43) and adapt 
them for the purpose of pan-Euro-Mediterranean cumulation. The Commission will propose 
that the Council adopts a Community position on this draft new Decision of the EC-Turkey 
Customs Co-operation Committee. 

•  Existing provisions in the area of the proposal 

Council Regulation (EC) No 1207/2001 of 11 June 2001 on procedures to facilitate the issue 
of  movement  certificates  EUR.1,  the  making-out  of  invoice  declarations  and  forms  EUR.2 
and  the  issue  of  certain  approved  exporter  authorisations  under  the  provisions  governing 
preferential  trade  between  the  European  Community  and  certain  countries  and  repealing 
Regulation No 3351/83 (OJ L 165, 21.6.2001, p. 1 - corrigendum in OJ L 170, 29.6.2002, p. 
88). 

•  Consistency with the other policies and objectives of the Union 

The proposal aims at supporting the preferential trade relations between the Community and 
its partners in the system of pan-Euro-Mediterranean cumulation of origin. 

2) 

Consultation of interested parties and impact assessment 

•  Consultation of interested parties 

None 

None 

•  Collection and use of expertise 

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•  Impact assessment 

The  amendment  proposed  is  a  legal  instrument necessary  for  the  implementation  within  the 
Community  of  the  system  of  pan-Euro-Mediterranean  cumulation  of  origin,  which  results 
from  a  commitment  of  the  Community  in  the  context  of  the  Euro-Mediterranean  Barcelona 
process. The setting up of this system is widely supported and claimed by the Member States, 
the partner countries and the trade community. 

3) 

Legal elements of the proposal 

•  Summary of the proposed action 

The  application  of  a  system  of  diagonal  cumulation  of  origin  with  the  Faroe  Islands  or  any 
country which is a participant in the Euro-Mediterranean partnership, based on the Barcelona 
Declaration  adopted  at  the  Euro-Mediterranean  Conference  held  on  27  and  28  November 
1995, other than Turkey, implies to use new types of proof of preferential origin, movement 
certificates EUR-MED and invoice declarations EUR-MED. 

Regulation (EC) No 1207/2001 shall therefore be amended in order to cover all kind of proofs 
of preferential origin. 

To allow a correct determination of the originating status of products and properly support the 
establishment  of  the  proofs  of  origin  in  that  new  context,  the  supplier's  declaration  for 
products  having  preferential  originating  status  shall  incorporate  an  additional  statement 
showing whether diagonal cumulation has been applied and with which countries 

•  Legal basis 

Article 133 EC 

•  Subsidiarity principle 

Not relevant. Community exclusive competence. 

•  Proportionality principle 

The measure proposed is necessary and adequate for the proper implementation of pan-Euro-
Mediterranean cumulation. 

•  Choice of instruments 

The proposal concerns the amendment of an existing instrument 

4) 

Budgetary implication 

No implication 

5) 

Additional information 

•  Simulation, pilot phase and transitory period 

Not relevant 

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•  Recasting 

The  amendment  is  not  so  deep  that  it  may  justify  recasting  Council  Regulation  (EC) 
1207/2001. 

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2006/0119 (ACC) 

Proposal for a 

COUNCIL REGULATION 

amending Council Regulation (EC) No 1207/2001 as regards the consequences of the 
introduction of the system of Pan–Euro-Mediterranean cumulation of origin 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Article 133 thereof, 

Having regard to the proposal from the Commission1, 

Whereas: 

(1) 

(2) 

(3) 

Council Regulation (EC) No 1207/2001 of 11 June 2001 on procedures to facilitate the 
issue  of  movement  certificates  EUR.1,  the  making-out  of  invoice  declarations  and 
forms  EUR.2  and  the  issue  of  certain  approved  exporter  authorisations  under  the 
provisions governing preferential trade between the European Community and certain 
countries and repealing Regulation No 3351/832, lays down provisions to support the 
correct issue or making out of proofs of origin in relation to exports of products from 
the  Community  in  the  context  of  its  preferential  trade  relations  with  certain  third 
countries. 

A pan-European system of diagonal cumulation of origin has been put in place in 1997 
between the Community, Bulgaria, Poland, Hungary, the Czech Republic, the Slovak 
Republic,  Romania,  Lithuania,  Latvia,  Estonia,  Slovenia,  Iceland,  Norway  and 
Switzerland  (including  Liechtenstein)  and  extended 
to  Turkey.  On 
1 May 2004,  Poland,  Hungary,  the  Czech  Republic,  the  Slovak  Republic,  Lithuania, 
Latvia, Estonia and Slovenia have acceded to the European Union. 

in  1999 

At  the  Euro-med  Trade  Ministerial  Meeting  in  Toledo  of  March  2002,  Ministers 
agreed upon the extension of this system of pan-European cumulation of origin to the 
Mediterranean  countries,  other  than  Turkey,  which  participate  in  the  Euro-
Mediterranean  partnership,  based  on  the  Barcelona  Declaration  adopted  at  the  Euro-
Mediterranean Conference held on 27 and 28 November 1995. At the Euro-med Trade 
Ministerial Meeting in Palermo, on 7 July 2003, the Ministers, with a view to allowing 
such an extension, endorsed a new pan-Euro-Mediterranean model of Protocol to the 
Euro-Mediterranean  Agreements,  concerning  the  definition  of  the  concept  of 
'originating  products'  and  methods  of  administrative  co-operation.  Further  to  the 
outcome  of  the  EC  –  Faroe  Islands/Denmark  Joint  Committee  of  the  28  November 

1 
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OJ C , , p. . 
OJ L 165, 21.6.2001, p. 1. 

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2003, it has been agreed to also include the Faroe Islands in the system of pan-Euro-
Mediterranean cumulation of origin. 

(4) 

(5) 

(6) 

Decisions  of  the  respective  Association  Council  or  Joint  Committee  introducing  the 
new pan-Euro-Mediterranean Protocol in the Euro-Mediterranean Agreements and in 
the Agreement between the EC and the Faroe Islands/Denmark have already been or 
will be adopted. 

The application of that new system of diagonal cumulation implies to use new types of 
proof  of  preferential  origin,  consisting  in  movement  certificates  EUR-MED  and 
invoice  declarations  EUR-MED.  Regulation  (EC)  No  1207/2001  should  therefore 
cover also those types of proofs of preferential origin. 

To  allow  a  correct  determination  of  the  originating  status  of  products  and  properly 
support  the  establishment  of  the  proofs  of  origin  in  that  new  context,  the  supplier's 
declaration  for  products  having  preferential  originating  status  should  incorporate  an 
additional statement showing whether diagonal cumulation has been applied and with 
what countries. 

(7) 

Regulation (EC) No 1207/2001 should therefore be amended accordingly, 

HAS ADOPTED THIS REGULATION: 

Article 1 

Regulation (EC) No 1207/2001 is amended as follows: 

(1) 

The title is replaced by the following: 

'Council Regulation (EC) No 1207/2001 of 11 June 2001 on procedures to facilitate 
the  issue  or  the  making  out  in  the  Community  of  proofs  of  origin  and  the  issue  of 
certain approved exporter authorisations under the provisions governing preferential 
trade between the European Community and certain countries' 

(2) 

In Article 1, point (a) is replaced by the following: 

'(a) 
the  issue  or  the  making  out  in  the  Community  of  proofs  of  origin  under  the 
provisions  governing  preferential  trade  between  the  Community  and  certain 
countries;' 

(3) 

Article 2(2) is replaced by the following: 

'2. 
Supplier's declarations shall be used by exporters as evidence, in particular in 
support of applications for the issue or the making out in the Community of proofs of 
origin under the provisions governing preferential trade between the Community and 
certain countries;' 

(4) 

Article 10(5) is replaced by the following: 

'5.  Where  there  is  no  reply  within  five  months  of  the  date  of  the  verification 
request or where the reply does not contain sufficient information to demonstrate the 

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real  origin  of  the  products,  the  customs  authorities  of  the  country  of  export  shall 
declare  invalid  the  proof  of  origin  established  on  the  basis  of  the  documents  in 
question.' 

(5) 

(6) 

Annex I is replaced by the text set out in Annex I to this Regulation. 

Annex II is replaced by the text set out in Annex II to this Regulation. 

This Regulation shall enter into force on the twentieth day following that of its publication in 
the Official Journal of the European Union. 

Article 2 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels,  

For the Council 
The President 

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ANNEX I 

“ANNEX I 

Supplier's declaration for products having preferential origin status 

The supplier's declaration, the text of which is given below, must be made out in accordance 
with the footnotes. However, the footnotes do not have to be reproduced. 

DECLARATION 

I,  the  undersigned,  declare  that  the  goods  listed  on  this  document  …..  …..  …..  ….. (1) 
originate  in  …..  …..  …..  ….. (2)  and  satisfy  the  rules  of  origin  governing  preferential  trade 
with ….. ….. ….. ….. (3): 

I declare that (4): 

(cid:133) 

(cid:133) 

Cumulation applied with ……..(name of the country/countries)  

No cumulation applied 

I  undertake  to  make  available  to  the  customs  authorities  any  further  supporting  documents 

they require: 

….. ….. ….. ….. ….. ..... (5) 

….. ….. ….. ….. ….. ..... (6) 

….. ….. ….. ….. ….. ..... (7) 

 
(1) 

If  only  some  of  the  goods  listed  on  the  document  are  concerned,  they  shall  be  clearly  indicated  or 
marked and this marking entered in the declaration as follows: 
"..... listed on this invoice and marked ..... originate in .....". 
The Community, country, group of countries or territory, from which the goods originate. 
Country, group of countries or territory concerned. 
To be completed only for goods having preferential origin status in the context of preferential trade 
relations with one of the countries referred to in Articles 3 and 4 of the relevant origin Protocol, with 
which pan-Euro-Mediterranean cumulation of origin is applicable. 
Place and date. 
Name and position in the company. 
Signature." 

(2) 
(3) 
(4) 

(5) 
(6) 
(7) 

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ANNEX II 

“ANNEX II 

Long-term supplier's declaration for products having preferential origin status 

The supplier's declaration, the text of which is given below, must be made out in accordance 
with the footnotes. However, the footnotes do not have to be reproduced. 

DECLARATION 

I, the undersigned, declare that the goods described below: 

…………………………….....…………………….… (1) 
...................................................................................... (2) 

which  are  regularly  supplied  to  …..  …..  …..  ….. (3),  originate  in  …..  …..  …..  ….. (4)  and 
satisfy the rules of origin governing preferential trade with ….. ….. ….. ….. ….. ….. ….. (5). 

I declare that (6): 

(cid:133) 

(cid:133) 

Cumulation applied with ……..(name of the country/countries)  

No cumulation applied 

This  declaration  is  valid  for  all  further  shipments  of  these  products  dispatched  from: 
….. ….. ….. ….. to ….. ….. ….. ….. (7). 

I undertake to inform ….. ….. ….. ….. immediately if this declaration is no longer valid. 

I  undertake  to  make  available  to  the  customs  authorities  any  further  supporting  documents 
they require.  

….. ….. ….. ….. ….. ….. ….. ….. (8) 
….. ….. ….. ….. ….. ….. ….. ….. (9) 
….. ….. ….. ….. ….. ….. ….. ….. (10) 

 
(1) 
Description. 
(2) 
Commercial designation as used on the invoices, e.g. model No. 
(3) 
Name of company to which goods are supplied. 
(4) 
The Community, country, group of countries or territory, from which the goods originate. 
(5) 
Country, group of countries or territory concerned. 
(6) 
To be completed only for goods having preferential origin status in the context of preferential trade 
relations with one of the countries referred to in Articles 3 and 4 of the relevant origin Protocol, with 
which pan-Euro-Mediterranean cumulation of origin is applicable. 
Give the dates. The period shall not exceed 12 months. 
Place and date. 
Name and position, name and address of company. 
Signature." 

(7) 
(8) 
(9) 
(10) 

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