Territoriality principle

 

Article 11 (“Principle of territoriality”) of the rules of origin protocol of the PEM Convention

Territoriality principle means that goods with a preferential origin must be produced within the territory of the parties to a free trade agreement, however processing outside of those territories is allowed provided the total value added does not exceed 10% of the ex-works price of the final product.

  • To get originating status, the production must take place in the territory of the EU or in the territory of the country or countries covered by the preferential trade arrangement. However processing outside of those territories is allowed provided the total value added does not exceed 10% of the ex-works price of the final product.

The Pan-Euro Mediterranean (PEM) Convention make it possible for goods originating in a partner country and exported to a third country to keep their originating status if reimported in the partner country of export after working or processing in the territory of the third country.

The conditions required are:

  • the materials are wholly obtained or have undergone working or processing beyond insufficient operations in a partner country prior to export (see Chapter B.3 on Insufficient Operations);
  • it is shown that the re-imported goods are the result of working or processing carried out in the third country on the previously exported materials;
  • the total added value acquired outside the territory of the partner countries does not exceed 10% of the ex-works price of the final product for which preference is being sought;
  • the working or processing done outside the exporting partner country shall be done under the outward processing arrangements or similar arrangements.
  • the products are not classified under Chapters 50 to 63 of the HS.

If any of the above conditions cannot be complied with the re-imported goods will be treated as non-originating.

Example 4:

Shoes (classified in HS chapter 64 and value of EUR 100/pair) originating in the European Union are exported under the outward processing procedure to Belarus for finishing operations. The shoes are re-imported in the EU where the outward processing procedure is discharged. The value of the shoes is EUR 108/pair. The European Union exporter intends to send the shoes to Switzerland. A proof of preferential origin may be issued or made out in the European Union for these goods in accordance with the provisions of the Pan-Euro-Mediterranean Convention, as the added value in Belarus is less than 10%.

If the final product obtains originating status by applying the general tolerance rule for non-originating materials, the territorial tolerance permitted under this provision cannot additionally be applied. Both tolerance rules cannot be applied together when determining the origin of the final product.

Brze poveznice

  1. Korisne poveznice
  2. Novosti

Najčešća pitanja

  1. Kada se tarifa odnosi na težinu, je li ona bruto težina ili neto masa?
  2. Kako mogu pronaći uvoznu carinu koja se primjenjuje na moj proizvod?
  3. Ako želim prodati svoj proizvod u nekoliko država članica EU-a, postoje li uvozne pristojbe za svaki put kada moj proizvod uđe u drugu državu?
  4. Mogu li dobiti popis proizvoda za koje se naplaćuje uvozna carina od 0%?
  5. Primjenjuju li se trošarine na razini EU-a ili na nacionalnoj razini?
  6. Kako se PDV naplaćuje u EU-u?
  7. Kako mogu dobiti odobrenje za izvoz ribe u EU?
  8. Mora li hrana koja se izvozi u EU dolaziti iz objekta koji je odobrio EU?
  9. Moram li angažirati svojeg pomoćnika za trgovinu za usluge i ulaganja?
  10. Na kojim je jezicima dostupan moj trgovinski asistent za usluge i ulaganja?