Here’s a breakdown of Decision No 1/2025 of the EU-Morocco Association Council:
**1. Essence of the Act:**
This decision amends Protocol 4 of the Euro-Mediterranean Agreement between the EU and Morocco, which concerns the rules of origin for products traded between the two parties. The amendment introduces an alternative set of rules of origin that can be used until the end of 2027, establishes a quota system for certain vegetable oils and tobacco products, and updates the reference to the Regional Convention on pan-Euro-Mediterranean preferential rules of origin to ensure it always refers to the most current version.
**2. Structure and Main Provisions:**
* **Replacement of Titles and Annexes:** The core of the decision replaces Titles I to VII of Protocol 4, along with Annexes I to VI and Joint Declarations, with a new set of provisions.
* **Title I: General Provisions**
* Article 1: Specifies that Appendix I and relevant provisions of Appendix II to the Regional Convention on pan-Euro-Mediterranean preferential rules of origin apply for implementing the Agreement.
* Article 2: Introduces alternative applicable rules of origin, outlined in Appendix A (“transitional rules”), valid until December 31, 2027, or until the Convention is published in Morocco’s Official Gazette, whichever comes first.
* Article 3: Establishes quotas for specific products listed in Appendix B, where only the provisions of Appendix B apply for five years from the Protocol’s entry into force.
* Article 4: Allows for retrospective issuance of proofs of origin for exports between January 1, 2025, and the date of the Protocol’s entry into force.
* **Title II: Final Provisions**
* Article 5: Affirms the Association Council’s power to amend the Protocol.
* Article 6: Sets up a process for settling disputes related to verification procedures.
* Article 7: Addresses the scenario where either the EU or Morocco withdraws from the Convention, mandating negotiations on new rules of origin.
* **Appendices:**
* Appendix A: Contains the “alternative applicable rules of origin” (transitional rules), detailing definitions, general requirements for originating products, territorial requirements, rules for drawback or exemption, proof of origin procedures, and administrative cooperation.
* Appendix B: Lists products subject to quotas and specifies the applicable rules of origin within those quotas.
* **Amendments to Title VIII:** Title VIII is amended to become Title II, containing final provisions regarding amendments to the Protocol and dispute settlement.
**3. Main Provisions for Practical Use:**
* **Alternative Rules of Origin (Appendix A):** Businesses have the option to use these rules instead of the standard pan-Euro-Mediterranean rules for a limited time. This could offer more flexibility in meeting origin requirements.
* **Quota System (Appendix B):** For specific vegetable oils and tobacco products, preferential treatment is limited to the quantities defined in Appendix B. Businesses exporting these products need to be aware of these quotas and how they are managed.
* **Transitional Period:** The alternative rules of origin are temporary, expiring at the end of 2027. Businesses should monitor the situation and be prepared to comply with the standard pan-Euro-Mediterranean rules after this date.
* **Cumulation of Origin:** The decision allows for cumulation of origin with other applying Contracting Parties, meaning that materials originating in those countries can be considered as originating in the exporting country when determining the origin of the final product.
* **Proof of Origin:** The decision specifies the requirements for proof of origin, including the use of movement certificates EUR.1 and origin declarations.
: This act may have implications for Ukrainian businesses that have trade relations with the EU and Morocco, as it changes the rules of origin for products traded between these countries. Ukrainians residing in EU may be involved in the trade between EU and Morocco.
