The Verkhovna Rada has ratified Decision No. 2/2024 of the Joint Committee of the Pan-Euro-Mediterranean Preferential Rules of Origin Convention, which was adopted on December 12, 2024. The law, registered as Draft No. 0307, was officially supported and announced by Tax Policy Committee Chairman Danylo Hetmantsev.
What This Means for Ukrainian Business
Effective January 1, 2025, Ukraine becomes a full participant in the revised Pan-Euro-Med Convention, allowing Ukrainian producers to:
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Import raw materials or components from any member country of the Convention;
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Export finished products to another participating country without customs duties or at reduced tariff rates, provided origin rules are met.
This change enhances Ukraine’s integration into European and Mediterranean value chains, creating new export opportunities and increased competitiveness for Ukrainian-made goods.
Transition Period Until 2026
The Convention introduces a transition period until January 1, 2026, during which:
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EUR.1 certificates or origin declarations issued under the old rules before January 1, 2025, will remain valid;
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Goods in transit or under customs supervision as of January 1, 2025, are still eligible for preferential treatment;
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These goods can also be used for cumulation (i.e., combining origin status) under Article 7 of the updated Convention — but only if all involved countries also adopt Decision No. 2/2024.
Quote from Ukrainian Officials
“In practice, this means a Ukrainian manufacturer can buy materials in one Pan-Euro-Med country and export the final product to another country in the zone without paying customs duties,” — said Danylo Hetmantsev, Chairman of the Verkhovna Rada Committee on Tax Policy.
Background: What Is the Pan-Euro-Med Convention?
The Pan-Euro-Mediterranean Convention is a multilateral trade agreement that simplifies rules of origin and encourages regional economic integration between the EU and 24 other partner countries across Europe, North Africa, and the Middle East.
Ukraine’s accession significantly boosts trade potential and opens doors for duty-free access to a vast network of partners.
