On 23 May 2025, the Law No. 4414-IX on the ratification of Decision No. 2/2024 of the Joint Committee of the Regional Convention on Pan-Euro-Mediterranean Preferential Rules of Origin (PEM Convention) came into force. Accession to the updated PEM Convention provides advanced prospects for Ukrainian exporters, i.e. duty-free access to the EU market and presence in the international value chain of EU enterprises.
Basics of the Decision No. 2/2024 for Ukrainian Exporters
- a one-year transition period until 1 January 2026. During this period, EUR.1 certificates and declarations of origin issued before 1 January 2025 under the previous version of the rules may be used.
- adaptation to the new rules, allowing to export goods pursuant to the updated requirements.
- certificates issued before the beginning of 2025 or 2026 (depending on the country) remain valid if the goods are still in transit or under customs control;
- a special marking – "REVISED RULES" for the documents issued under the new rules
- obligation for participating countries to exchange information on changes in their certification systems.
Conclusion
The Decision No.2/2024 simplifies customs procedures and provide the opportunities to enhance the competitiveness of Ukrainian presence on European and Pan-Euro-Med markets. The application of the PEM Convention will facilitate the benefits for national exporters by using the principle of diagonal commutation of origin of goods. Practically, Ukrainian producers have the option to procure raw materials/components from one of the parties to Convention with further export of final goods to another party with no customs duties or at reduced rates.
Currently, there are twenty five parties to the PEM Convention, among which is Türkiye. It means, that along with the PEM Convnetion and a previous mutual appoval of the Free Trade Agreement between Ukraine and Türkiye, the countries may profit in launching of new production capacities and their potential, attracting global value chains
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