# PAN-EURO-MED Origin System

*Last updated: 2026-06-26*

> When goods move between the EU and its partner countries across Europe and the Mediterranean, the PAN-EURO-MED origin system determines whether preferential tariff treatment applies.

When goods move between the EU and its partner countries across Europe and the Mediterranean, the PAN-EURO-MED origin system determines whether preferential tariff treatment applies. It connects a network of bilateral free trade agreements through shared rules of origin and permits diagonal cumulation: inputs originating in different contracting parties can be combined to meet the origin threshold for a finished product. In practice, this allows supply chains spanning multiple partner countries to remain preference-eligible, provided each processing step complies with the relevant protocol. Freight forwarders and customs teams consult those protocols to establish which proof of origin is required — typically an EUR.1 movement certificate or an origin declaration on the invoice. The system is distinct from the Generalised Scheme of Preferences (GSP), which is a unilateral concession extended to developing countries; PAN-EURO-MED rests on reciprocal agreements between parties on equal footing.

**Source:** [https://taxation-customs.ec.europa.eu/customs-4/rules-origin/origin-eu-trade-agreements/paneuromediterranean-cumulation-pem-convention_en](https://taxation-customs.ec.europa.eu/customs-4/rules-origin/origin-eu-trade-agreements/paneuromediterranean-cumulation-pem-convention_en)

## Quick Facts

| Property | Value |
|---|---|
| Term | PAN-EURO-MED Origin System |
| Language | EN |
| Word count | 142 |
| Last updated | 2026-06-26 |
| Source | https://taxation-customs.ec.europa.eu/customs-4/rules-origin/origin-eu-trade-agreements/paneuromediterranean-cumulation-pem-convention_en |

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*Logistics Glossary — Freight Academy: [https://www.freight-academy.com/en/glossary/pan-euro-med-origin-system](https://www.freight-academy.com/en/glossary/pan-euro-med-origin-system)*

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