Agreement in the form of an exchange of letters between the EU and Norway on applying similar rules of origin

SUMMARY OF:

Agreement in the form of an exchange of letters between the EU and Norway on the cumulation of origin between the EU, Switzerland, Norway and Turkey in the framework of the generalised system of preferences

WHAT IS THE AIM OF THE AGREEMENT?

It aims to increase the effectiveness of the generalised system of preferences and thus facilitate trade with developing countries by ensuring that the European Union (EU) and Norway apply similar rules of origin for the imports of goods from the EU, Switzerland, Norway and Turkey.

KEY POINTS

Generalised system of preferences (GSP)

The GSP is a system of tariff preferences granted to developing countries (‘beneficiary countries’). For the least developed countries, duty is removed for virtually all their exports.
The EU and Norway (along with Switzerland and Turkey) have very similar GSP systems and thus can be linked.

Rules of origin

To benefit from tariff preferences, products must be shown to originate from a beneficiary country.
Origin refers to where a product is produced or manufactured, not where it is shipped from.

Cumulation

‘Cumulation’ describes the system that allows products originating in country A to be further processed or added to products originating in country B, as if they had originated in country B. The resulting product would have the origin of country B. It can only be applied between countries operating with identical origin rules.

Agreement between EU and Norway

Under the EU GSP’s ‘extended cumulation’, materials originating in Norway, Switzerland or Turkey that undergo more than a minimal operation in a beneficiary country are considered to originate in that beneficiary country, and may benefit from preferences when imported to the EU, Norway, Switzerland or Turkey.
This agreement requires the EU and Norway to have similar rules of origin covering the following principles:
- a definition of ‘originating products’ based on the same criteria;
- rules for regional cumulation* of origin;
- rules for applying cumulation to materials that originate, within the meaning of their GSP rules of origin, in the EU, Switzerland, Norway or Turkey;
- rules for a general tolerance of non-originating materials;
- rules for non-alteration of products from the beneficiary country;
- rules for issuing or making out replacement proofs of origin;
- requirement for administrative cooperation with the authorities in the beneficiary countries on the matter of proofs of origin.
This agreement replaces a similar reciprocal agreement between the European Community and each of the European Free Trade Association countries that granted tariff preferences under the GSP, for goods originating in Norway or Switzerland.

DATE OF ENTRY INTO FORCE

It entered into force on 1 February 2019.

BACKGROUND

For further information, see:

Generalised system of preferences (European Commission).

KEY TERMS

Regional cumulation. Operation between the countries of one of the regional groups of beneficiary countries recognised by the EU’s GSP where materials originating in one country of the group that are further worked or processed in another beneficiary country of the same group are considered to originate in the latter country. Cumulation is also possible between individual countries of cumulation groups I III, upon request and under certain conditions.

MAIN DOCUMENT

Agreement in the form of an Exchange of Letters between the European Union and the Kingdom of Norway on the cumulation of origin between the European Union, the Swiss Confederation, the Kingdom of Norway and the Republic of Turkey in the framework of the Generalised System of Preferences (OJ L 24, 28.1.2019, pp. 3–11).