Glossary
What is the Pan-Euro-Mediterranean (PEM) Convention?
The Pan-Euro-Mediterranean (PEM) Convention is a single set of preferential rules of origin shared across the EU, EFTA states, the Western Balkans, Turkey and Mediterranean partners. It lets materials from any participating country count toward origin in another. |
What is diagonal cumulation?
Cumulation lets inputs from one partner country count as originating when processed in another. Under PEM, a manufacturer can combine materials from several participating countries and still claim preferential origin provided every country in the chain has an agreement with the others applying the same rules.
Why it matters to exporters
- One rulebook replaces dozens of bilateral origin protocols across the zone
- Supply chains spanning several partner countries can still qualify for preference
- Origin can fail if one link in the chain sits outside the applicable agreements
The catch to watch
Cumulation only works where the agreements between every country involved are in force and apply the same origin rules. A single missing bilateral link breaks the chain, and the goods lose preference which is why origin claims across this zone need mapping before an order is placed, not after.
iCustoms checks origin and cumulation eligibility against your supply chain before a preference claim is made. |
