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Overview of Decision No 1/2024 of the EU-Egypt Association Council
On 1 October 2024, the EU-Egypt Association Council adopted Decision No 1/2024, which amends the Euro-Mediterranean Agreement establishing an association between the European Communities and their Member States and the Arab Republic of Egypt. This amendment replaces Protocol 4 concerning the definition of the concept of “originating products” and methods of administrative cooperation with a new protocol.
Replacement of Protocol 4
The Decision replaces the existing Protocol 4 with a new protocol that updates the rules of origin applicable between the European Union and Egypt. The new protocol aligns the rules with the Transitional Rules of Origin pending the amendment of the Regional Convention on pan-Euro-Mediterranean preferential rules of origin.
Incorporation of the Regional Convention
The new protocol makes reference to the Regional Convention on pan-Euro-Mediterranean preferential rules of origin (“the Convention”). The Convention aims to harmonize the rules of origin among its Contracting Parties by establishing a multilateral framework. Both the European Union and Egypt are Contracting Parties to the Convention.
Application of Transitional Rules of Origin
Pending the amendment of the Convention, the European Union and Egypt have agreed to apply an alternative set of rules of origin known as the “Transitional Rules of Origin.” These rules are based on the revised Convention and are included in Appendix A to the new protocol. They are applied bilaterally as an alternative to the existing rules of the Convention.
Key Provisions of the New Protocol
The new protocol contains the following key articles:
- Article 1: Specifies that Appendix I and the relevant provisions of Appendix II to the Convention shall apply for implementing the Agreement.
- Article 2: Introduces the Transitional Rules of Origin set out in Appendix A, which may be used bilaterally as alternative rules of origin.
- Article 3: Establishes procedures for dispute settlement related to verification of proofs of origin.
- Article 4: Allows the Association Council to amend the provisions of the protocol as necessary.
- Article 5: Sets out procedures if either the European Union or Egypt withdraws from the Convention.
Appendix A: Transitional Rules of Origin
Appendix A outlines the Transitional Rules of Origin, which include:
- Title I: General provisions, including definitions and objectives.
- Title II: Definition of the concept of “originating products,” specifying criteria for products to be considered originating in a Party.
- Title III: Territorial requirements, detailing conditions under which products maintain their originating status.
- Title IV: Provisions on drawback or exemption from customs duties.
- Title V: Requirements for proof of origin, including procedures for issuing movement certificates EUR.1 and making out origin declarations.
- Title VI: Principles of cooperation and documentary evidence, stipulating preservation and verification of proofs of origin.
- Title VII: Administrative cooperation, outlining verification procedures and penalties for violations.
- Title VIII: Application provisions, specifying how the protocol applies to territories like the European Economic Area, Liechtenstein, San Marino, Andorra, and Ceuta and Melilla.
Annexes to the Protocol
The protocol includes several annexes providing detailed information:
- Annex I: Introductory notes to the list in Annex II.
- Annex II: A list of working or processing required for products to obtain originating status.
- Annex III: Text of the origin declaration to be used by exporters.
- Annex IV: Specimens of movement certificate EUR.1 and the application form.
- Annex V: Special conditions concerning products originating in Ceuta and Melilla.
- Annex VI: Supplier’s declaration for goods that have undergone working or processing without obtaining preferential origin status.
- Annex VII: Long-term supplier’s declaration for goods that have undergone working or processing without obtaining preferential origin status.
Important Provisions in Appendix A
Appendix A provides detailed rules on various aspects of the rules of origin, including:
- Article 2: General requirements for products to be considered originating.
- Article 3: Definition of “wholly obtained products.”
- Article 4: Criteria for sufficient working or processing.
- Article 5: Tolerance rule allowing the use of non-originating materials under certain conditions.
- Article 7: Cumulation of origin, detailing how materials originating in other applying Contracting Parties can be considered.
- Article 16: Drawback or exemption from customs duties for specific products.
- Article 17: Requirements for proof of origin, including acceptable documents and declarations.
- Article 34: Procedures for verification of proofs of origin.
Entry into Force
The Decision enters into force and applies from the date of its adoption, 1 October 2024. The new protocol replaces the previous Protocol 4 and implements updated rules of origin between the European Union and Egypt.
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