CEFTA: MAXIMIZING THE FACILITATION OF FREE FLOW OF GOODS:
Starting from February 1, 2023, within the preferential trade with CEFTA parties (Albania, Bosnia and Herzegovina, North Macedonia, Republic of Moldova, Montenegro, Serbia, and Kosovo), transitional rules of origin for preferential origin of goods can be applied in parallel with the provisions of the regional Convention on Pan-Euro-Mediterranean (PEM) rules of origin, as communicated by the Customs Service of the Republic of Moldova (RM).
The decision was taken after the completion of internal procedures by all CEFTA parties. Pending the revision of the PEM Convention, the majority of PEM contracting parties, including the CEFTA, EU, and EFTA, have decided to apply transitional rules bilaterally. The new rules are more flexible and aim to reduce administrative burden on customs authorities, simplify trade, provide more opportunities and flexibility for exporters to become more competitive in other markets.
The Customs Service reiterates that the PEM Convention is an international agreement aimed at establishing a uniform set of rules on the origin of goods. PEM Contracting Parties initiated discussions on the revision of the Convention in 2013, aiming to align it with the economic reality. Since the unanimous adoption of the revised Convention was not achieved in 2019, the majority of PEM contracting parties decided to apply the revised rules in advance, at the bilateral level. Currently, both sets of rules (the original PEM rules of origin and transitional rules) will be applied in parallel, and economic operators will have the choice of which rules of origin to apply.
This new phase of preferential trade within CEFTA aims to facilitate the free flow of goods to the maximum extent by reducing administrative bureaucracy and increasing trade volume. The national customs authority reaffirms the benefits of applying transitional rules, which can be examined in the informative press release titled "Modernized, Simplified, and More Flexible Rules of Origin for Economic Operators".
Note: The possibilities of customs duty refund and total cumulation of origin as benefits of transitional rules have been implemented within CEFTA since 2019.
Source: Periodical Publication "Monitorul Fiscal FISC.MD" www.monitorul.fisc.md