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Business > Calculation of Customs duties > Rules of Origin

PEM Convention

The pan-Euro-Mediterranean Regional Convention on preferential origin rules sets out the rules to be met by goods to obtain originating status in a certain country and enables the application of cumulation of the origin of goods between the member countries of this Convention.

In order to apply the rules of origin and the cumulation of origin based on the pan-Euro-Mediterranean preferential rules of origin, the protocols of origin in the free trade agreements in force have been replaced by the rules of origin of this Convention:

 The Stabilisation and Association Agreement between the European Community and its Member States, of the one part, and the Republic of Albania of the other part has been ratified by Law No. 9590 dated 27.07.2006. Decision No 1 of the EU-Albania Stabilisation and Assosiation Counsil of  11 May 2015, has replaced the Protocol 4 to the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and the Republic of Albania, of the other part, concerning the definition of the concept of ‘originating products’ and methods of administrative cooperation [2015/821] with the Regional Convention on pan-Euro-Mediterranean preferential rules of origin.

  The Agreement on the amendment and extension of the Central European Free Trade Agreement (CEFTA) Law No. 9696 dated 21.03 2007. Decision no. 3/2013 of the Joint Committee of the Central European Free Trade Agreement has replaced Annex IV concerning the definition of the concept of ‘originating products’ and methods of administrative cooperation with the Regional Convention on pan-Euro-Mediterranean preferential rules of origin. Decision no. 3/2015 of the Joint Committee, adopted on 26 November 2015, amended Decision 3/2013 of the FTA CEFTA. It provides the possibility of duty drawback and of full cumulation in the bilateral trade between CEFTA parties.

 Decision No 2/2017 of the Joint Committee of the Regional Convention on pan-Euro-Mediterranean preferential rules of origin of 16 May 2017 amending the provisions of Appendix II of the Regional Convention on pan-Euro-Mediterranean preferential rules of origin by introducing a possibility of duty drawback and of full cumulation in the trade covered by the Central European Free Trade Agreement (CEFTA) involving the Republic of Moldova and the participants in the European Union's Stabilisation and Association Process [2019/940].

Free Trade Agreement between the Republic of Albania and the Republic of Türkiye ratified by Law No. 9733 dated 14/05/2007. Decision No 1/2019 of the Joint Commettee of the Free Trade Agreement between the Republic of Albania and the Republic of Türkiye has replaced the Protocol II concerning the definition of the concept of ‘originating products’ and methods of administrative cooperation with the Regional Convention on pan-Euro-Mediterranean preferential rules of origin. Implementation date 3 May 2021 [2020/82].

Decision no. 1/2021 of the EFTA-Albania Joint Committee, approved on 24.6.2021, ratified by Law 99/2021, dated 07.07.2021, amending protocol B of the Free Trade Agreement between the EFTA countries and the Republic of Albania, regarding with the definition of the concept of "originating products" and methods of administrative cooperation, with the Regional Convention on pan-Euro-Mediterranean preferential rules of origin.

Auxiliary documents

  • PEM_diagonal_cumulation_1_august_2021 
  • Decision No 2 2017 of the JC of the PEM 
  • Regional Convention on pan-Euro-Mediterranean preferential rules of origin 
  • Decision No 2 2017 
  • Decision No 3 2015 
  • Decision No 1 of SAA 2015 
  • Decision No 3 2013 
  • SAA 2009 

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