Diagonal cumulation
From Wikipedia, the free encyclopedia
Diagonal cumulation is a rules of origin (RoO) provision in international trade whereby products from one country of origin can have value added to it in another as if it were native to that country. It includes the provisions from bilateral cumulation and exists between countries with identical cumulation provisions, even if they are in separate free trade agreements (FTAs).[1][2]
The pan-Euro-Mediterranean cumulation system was introduced in the European Union in 1997 and allows for countries to cumulate stages of production without sacrificing their preferential access to EU markets.[3] As with all preferential regimes, firms are thus able to utilise intermediate goods from countries with the same rules of origin and cumulation. This is understood to have fundamentally reorganised procurement strategies in peripheral countries.[2]
The EU defines originating products by where it is wholly obtained or produced, or where they were sufficiently worked.[4][5] 'Sufficiently worked' means having been processed or manufactured to an extent which allows for the retention of originating status: for instance, sweetened or flavoured water must have all fruit juice, except grapefruit, lime or pineapple, originate from the EU.[6] Products which do not fulfil these definitions or have an unknown origin are not subject to the provisioned preferential treatment or tariffs.[7]
Proof of origin status is proved by a EUR-MED or EUR.1 movement certificate from the exporting country or an invoice declaration by an approved exporter for products under €6000 in value.
EU
Countries party to the pan-Euro-Mediterranean system are EU member states and the European Free Trade Association (EFTA) states, Turkey, members of the Union for the Mediterranean, the Western Balkans (parties to the EU's Stabilisation and Association Process; Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia) and the Faroe Islands (an autonomous territory of EU member Denmark).[3][8][9] The entire area is covered by bilateral cumulation, but not necessarily diagonal cumulation (see below).
The World Trade Organization lists the EU (EBA) as the sole member offering diagonal cumulation; parties to the African Growth and Opportunity Act, Canada, the Eurasian Customs Union, Japan and the United States offer the more liberal free cumulation, while China, India and South Korea do not offer any cumulation.[10]
Cumulation is one of the common provisions of the European Union Customs Union. Bilateral cumulation is defined as a product originating in one country being processed in another, and then adopting the origin of the second country. Crucially, they do not have to be considered 'sufficiently worked' in order to retain originating status. Diagonal cumulation can include products from more than two preferential countries.[1]
Some products in Andorra and San Marino are also under diagonal cumulation. Furthermore, full cumulation is in place between the European Economic Area, which includes Iceland, Liechtenstein and Norway, and Algeria, Morocco and Tunisia.[3] Full cumulation only requires products be 'sufficiently worked' before becoming originating, even for products which were initially non-originating.[1]
| European Union | Switzerland and Liechtenstein | Iceland | Norway | Faroe Islands (Denmark) | Algeria | Egypt | Israel | Jordan | Lebanon | Morocco | West Bank and Gaza Strip | Syria | Tunisia | Turkey | Albania | Bosnia and Herzegovina | Kosovo | Montenegro | North Macedonia | Serbia | Moldova | Georgia | Ukraine | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EU | N/A | Yes, from 1/1/06 | Yes, from 1/1/06 | Yes, from 1/1/06 | Yes, from 1/12/05 | Yes, from 1/11/07 | Yes, from 1/3/06 | Yes, from 1/1/06 | Yes, from 1/7/06 | No | Yes, from 1/12/05 | Yes, from 1/7/09 | No | Yes, from 1/8/06 | Partially | Yes, from 1/1/07 | Yes, from 1/7/08 | Yes, from 1/4/16 | Yes, from 1/1/08 | Yes, from 1/1/07 | Yes, from 8/12/09 | Yes, from 1/12/16 | Yes, from 1/6/18 | Yes, from 1/1/19 |
| Switzerland, Liechtenstein | Yes, from 1/1/06 | N/A | Yes, from 1/8/05 | Yes, from 1/8/05 | Yes, from 1/1/06 | No | Yes, from 1/8/07 | Yes, from 1/7/05 | Yes, from 17/7/07 | Yes, from 1/1/07 | Yes, from 1/3/05 | Yes, from 1/5/16 | No | Yes, from 1/6/05 | Yes, from 1/9/07 | Yes, from 1/5/15 | Yes, from 1/1/15 | No | Yes, from 1/9/12 | Yes, from 1/2/16 | Yes, from 1/5/15 | No | Yes, from 1/5/18 | Yes, from 1/6/12 |
| Iceland | Yes, from 1/1/06 | Yes, from 1/8/05 | N/A | Yes, from 1/8/05 | Yes, from 1/11/05 | No | Yes, from 1/8/07 | Yes, from 1/7/05 | Yes, from 17/7/07 | Yes, from 1/1/07 | Yes, from 1/3/05 | Yes, from 1/5/16 | No | Yes, from 1/3/06 | Yes, from 1/9/07 | Yes, from 1/5/15 | Yes, from 1/1/15 | No | Yes, from 1/10/12 | Yes, from 1/5/15 | Yes, from 1/5/15 | No | Yes, from 1/9/17 | Yes, from 1/6/12 |
| Norway | Yes, from 1/1/06 | Yes, from 1/8/05 | Yes, from 1/8/05 | N/A | Yes, from 1/12/05 | No | Yes, from 1/8/07 | Yes, from 1/7/05 | Yes, from 17/7/07 | Yes, from 1/1/07 | Yes, from 1/3/05 | Yes, from 1/5/16 | No | Yes, from 1/8/05 | Yes, from 1/9/07 | Yes, from 1/5/15 | Yes, from 1/1/15 | No | Yes, from 1/11/12 | Yes, from 1/5/15 | Yes, from 1/5/15 | No | Yes, from 1/9/17 | Yes, from 1/6/12 |
| Faroe Islands (Denmark) | Yes, from 1/12/05 | Yes, from 1/1/06 | Yes, from 1/11/05 | Yes, from 1/12/05 | N/A | No | No | No | No | No | No | No | No | No | Yes, from 1/9/07 | No | No | No | No | No | No | No | No | No |
| Algeria | Yes, from 1/11/07 | No | No | No | No | N/A | No | No | No | No | No | No | No | No | No | No | No | No | No | No | No | No | No | No |
| Egypt | Yes, from 1/3/06 | Yes, from 1/8/07 | Yes, from 1/8/07 | Yes, from 1/8/07 | No | No | N/A | No | Yes, from 6/7/06 | No | Yes, from 6/7/06 | No | No | Yes, from 6/7/06 | Yes, from 1/3/07 | No | No | No | No | No | No | No | No | No |
| Israel | Yes, from 1/1/06 | Yes, from 1/7/05 | Yes, from 1/7/05 | Yes, from 1/7/05 | No | No | No | N/A | Yes, from 9/2/06 | No | No | No | No | No | Yes, from 1/3/06 | No | No | No | No | No | No | No | No | No |
| Jordan | Yes, from 1/7/06 | Yes, from 17/7/07 | Yes, from 17/7/07 | Yes, from 17/7/07 | No | No | No | No | N/A | No | Yes, from 6/7/06 | No | No | Yes, from 6/7/06 | No | No | No | No | No | No | No | No | No | No |
| Lebanon | No | Yes, from 1/1/07 | Yes, from 1/1/07 | Yes, from 1/1/07 | No | No | No | No | No | N/A | No | No | No | No | No | No | No | No | No | No | No | No | No | No |
| Morocco | Yes, from 1/12/05 | Yes, from 1/3/05 | Yes, from 1/3/05 | Yes, from 1/3/05 | No | No | Yes, from 6/7/06 | No | Yes, from 6/7/06 | No | N/A | No | No | Yes, from 6/7/06 | Yes, from 1/12/06 | No | No | No | No | No | No | No | No | No |
| West Bank, Gaza Strip | Yes, from 1/7/09 | Yes, from 1/5/16 | Yes, from 1/5/16 | Yes, from 1/5/16 | No | No | No | No | No | No | No | N/A | No | No | Yes, from 26/3/21 | No | No | No | No | No | No | No | No | No |
| Syria | No | No | No | No | No | No | No | No | No | No | No | No | N/A | No | Yes, from 1/1/07 | No | No | No | No | No | No | No | No | No |
| Tunisia | Yes, from 1/8/06 | Yes, from 1/6/05 | Yes, from 1/3/06 | Yes, from 1/8/05 | No | No | Yes, from 6/7/06 | No | Yes, from 6/7/06 | No | Yes, from 6/7/06 | No | No | N/A | Yes, from 1/7/05 | No | No | No | No | No | No | No | No | No |
| Turkey | Partially | Yes, from 1/9/07 | Yes, from 1/9/07 | Yes, from 1/9/07 | Yes, from 1/9/07 | No | Yes, from 1/3/07 | Yes, from 1/3/06 | No | No | Yes, from 1/12/06 | Yes, from 26/3/21 | Yes, from 1/1/07 | Yes, from 1/7/05 | N/A | Yes, from 1/8/11 | Yes, from 14/12/11 | Yes, from 1/9/19 | Yes, from 1/3/10 | Yes, from 1/7/09 | Yes, from 1/9/10 | Yes, from 1/10/17 | Yes, from 29/4/21 | No |
| Albania | Yes, from 1/1/07 | Yes, from 1/5/15 | Yes, from 1/5/15 | Yes, from 1/5/15 | No | No | No | No | No | No | No | No | No | No | Yes, from 1/8/11 | N/A | Yes, from 22/11/07 | Yes, from 1/4/14 | Yes, from 26/7/2007 | Yes, from 26/7/2007 | Yes, from 24/10/07 | Yes, from 1/4/14 | No | No |
| Bosnia & Herzegovina | Yes, from 1/7//08 | Yes, from 1/1/15 | Yes, from 1/1/15 | Yes, from 1/1/15 | No | No | No | No | No | No | No | No | No | No | Yes, from 14/12/11 | Yes, from 22/11/07 | N/A | Yes, from 1/4/14 | Yes, from 22/11/07 | Yes, from 22/11/07 | Yes, from 22/11/07 | Yes, from 1/4/14 | No | No |
| Kosovo | Yes, from 1/4/16 | No | No | No | No | No | No | No | No | No | No | No | No | Yes, from 1/9/19 | Yes, from 1/9/19 | Yes, from 1/4/14 | Yes, from 1/4/14 | N/A | Yes, from 1/4/14 | Yes, from 1/4/14 | Yes, from 1/4/14 | Yes, from 1/4/14 | No | No |
| Montenegro | Yes, from 1/1/08 | Yes, from 1/9/12 | Yes, from 1/10/12 | Yes, from 1/11/12 | No | No | No | No | No | No | No | No | No | No | Yes, from 1/3/10 | Yes, from 26/7/2007 | Yes, from 22/11/07 | Yes, from 1/4/14 | N/A | Yes, from 26/7/07 | Yes, from 24/10/07 | Yes, from 1/4/14 | No | No |
| North Macedonia | Yes, from 1/1/07 | Yes, from 1/2/16 | Yes, from 1/5/15 | Yes, from 1/5/15 | No | No | No | No | No | No | No | No | No | No | Yes, from 1/7/09 | Yes, from 26/7/2007 | Yes, from 22/11/07 | Yes, from 1/4/14 | Yes, from 26/7/07 | N/A | Yes, from 24/10/07 | Yes, from 1/4/14 | No | No |
| Serbia | Yes, from 8/12/09 | Yes, from 1/5/15 | Yes, from 1/5/15 | Yes, from 1/5/15 | No | No | No | No | No | No | No | No | No | No | Yes, from 1/9/10 | Yes, from 24/10/07 | Yes, from 22/11/07 | Yes, from 1/4/14 | Yes, from 24/10/07 | Yes, from 24/10/07 | N/A | Yes, from 1/4/14 | No | No |
| Moldova | Yes, from 1/12/16 | No | No | No | No | No | No | No | No | No | No | No | No | No | Yes, from 1/10/17 | Yes, from 1/4/14 | Yes, from 1/4/14 | Yes, from 1/4/14 | Yes, from 1/4/14 | Yes, from 1/4/14 | Yes, from 1/4/14 | N/A | No | No |
| Georgia | Yes, from 1/6/18 | Yes, from 1/5/18 | Yes, from 1/9/17 | Yes, from 1/9/17 | No | No | No | No | No | No | No | No | No | No | Yes, from 29/4/21 | No | No | No | No | No | No | No | N/A | Yes, from 26/3/20 |
| Ukraine | Yes, from 1/1/19 | Yes, from 1/6/12 | Yes, from 1/6/12 | Yes, from 1/6/12 | No | No | No | No | No | No | No | No | No | No | No | No | No | No | No | No | No | No | Yes, from 26/3/20 | N/A |