DECISION NO 1/2024 OF THE EU-EGYPT ASSOCIATION COUNCIL

Date of Adoption: 1 October 2024

Amendment to the Euro-Mediterranean Agreement

This decision amends the Euro-Mediterranean Agreement establishing an association between the European Communities and their Member States, and the Arab Republic of Egypt. Specifically, it replaces Protocol 4, which concerns the definition of ‘originating products’ and methods of administrative cooperation, with a new protocol outlined in the annex.

Key Provisions

Article 1: Replacement of Protocol 4

Protocol 4 to the Euro-Mediterranean Agreement is replaced by the text provided in the Annex to this Decision. The new protocol introduces an alternative set of rules of origin based on the Transitional rules of origin pending the amendment of the Regional Convention on pan-Euro-Mediterranean preferential rules of origin.

Article 2: Entry into Force

This Decision becomes effective immediately upon its adoption and is applicable from that date onward.

Protocol 4 – Definition of ‘Originating Products’ and Administrative Cooperation

Article 1: Applicable Rules of Origin

Applies Appendix I and relevant parts of Appendix II of the Regional Convention on pan-Euro-Mediterranean preferential rules of origin.
All references to the “relevant agreement” in these appendices are to be construed as referring to the Euro-Mediterranean Association Agreement.

Article 2: Alternative Applicable Rules of Origin

Introduces Transitional rules of origin as an alternative to the Convention’s rules.
These Transitional rules are applicable until the amendment of the Convention comes into force.

Article 3: Dispute Settlement

Disputes regarding verification procedures under Articles 32 and 34 are submitted to the Association Council if unresolved between customs authorities.
Disputes between importers and importing customs authorities are settled under the national legislation of the importing country.

Article 4: Amendments to the Protocol

The Association Council holds the authority to amend the provisions of the Protocol.

Article 5: Withdrawal from the Convention

If either the EU or Egypt intends to withdraw from the Convention, negotiations on new rules of origin commence immediately.
Existing rules of origin remain in effect bilaterally until new rules are adopted.
Post-withdrawal, cumulation is limited to bilateral relationships between the EU and Egypt.

Annex: Protocol 4 Detailed Provisions

Title I: General Provisions

Definitions: Clarifies terms such as “applying Contracting Party,” “Harmonised System,” “manufacture,” “material,” “value added,” among others.

Title II: Definition of ‘Originating Products’

General Requirements: Products are considered originating if wholly obtained or sufficiently worked/processed as per Annex II.
Wholly Obtained Products: Detailed list including mineral products, plants, live animals, products from hunting/fishing, etc.
Sufficient Working or Processing: Criteria based on Annex II to confer originating status on products not wholly obtained.
Tolerance Rule: Allows limited use (15%) of non-originating materials under specific conditions.
Insufficient Working or Processing: Enumerates operations that do not qualify as sufficient for originating status.
Cumulation of Origin: Rules allowing incorporation of materials from any applying Contracting Party, promoting cumulative trade relationships.
Unit of Qualification: Defines how products are classified and assessed for origin determination.

Title III: Territorial Requirements

Principle of Territoriality: Origin status must be continuously fulfilled within the territory.
Non-Alteration: Products must remain unchanged except for preservation or authorized markings.
Exhibitions: Provisions for products sent for exhibitions to be eligible for preferential treatment upon sale post-exhibition.

Title IV: Drawback or Exemption from Customs Duties

Non-originating materials for certain products (Chapters 50-63) cannot qualify for customs duty exemptions.

Title V: Proof of Origin

Defines acceptable proofs of origin: Movement certificate EUR.1 or origin declarations.
Details conditions for making origin declarations, including issuer specifications and validity periods.
Outlines procedures for issuing, issuing retrospectively, and duplicating movement certificates EUR.1.
Sets validity of proofs to 10 months from issuance.

Title VI: Principles of Cooperation and Documentary Evidence

Requires exporters to preserve proofs of origin and supporting documents for three years.

Title VII: Administrative Cooperation

Mandates sharing of specimen stamps, authorization models, and addresses between customs authorities.
Encourages mutual assistance in verifying authenticity and correctness of origin documents.

Title VIII: Application of Appendix A

Specifies how rules apply to the European Economic Area, Liechtenstein, San Marino, Andorra, Ceuta, and Melilla.
Details special conditions and incorporation of territories like Ceuta and Melilla into origin determinations.

Annexes Overview

Annex I: Introductory Notes to List in Annex II

Provides general guidelines and examples for applying the rules of origin.

Annex II: List of Working or Processing Required on Non-Originating Materials

Details specific manufacturing and processing requirements across various Harmonised System chapters to confer originating status.
Covers a wide range of products from live animals, plants, chemicals, textiles, metals, machinery, to manufactured goods.

Annex III: Text of the Origin Declaration

Provides multilingual templates for exporters to declare the origin of their products.
Includes instructions on how to fill out the declaration, specifying origin and handling multiple product types.

Annex IV: Specimens of Movement Certificate EUR.1 and Application Form

Includes physical examples and instructions for completing the EUR.1 movement certificate.
Specifies formatting requirements to ensure authenticity and prevent falsification.

Annex V: Special Conditions for Ceuta and Melilla

Defines how products from Ceuta and Melilla are treated under the origin rules.
Ensures that these territories are considered a single unit for origin determination purposes.

Annex VI: Supplier’s Declaration

Template for suppliers to declare the use of non-originating materials in their products.
Includes sections for product description, materials used, and added value from processing outside the exporting party.

Annex VII: Long-Term Supplier’s Declaration

Provides a template for suppliers to make long-term declarations covering multiple consignments.
Streamlines the declaration process for regular supply chains.

Conclusion

DECISION NO 1/2024 introduces significant amendments to the existing Framework Agreement between the EU and Egypt, particularly in defining originating products and facilitating administrative cooperation. By replacing Protocol 4 with a new protocol and integrating Transitional rules, the Decision aims to streamline and enhance trade relations, ensuring that products qualify for preferential treatment based on clearly defined origin criteria.

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