GlossaryEN1 min readUpdated: Jun 26, 2026
diagonal cumulation
Manufacturers and freight forwarders rely on diagonal cumulation when a finished product incorporates inputs from more than two countries that all fall within the same preferential regime.
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Source: https://ec.europa.eu/trade/policy/accessing-markets/origin-of-goods/rules-of-origin/
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Definition & Explanation
Manufacturers and freight forwarders rely on diagonal cumulation when a finished product incorporates inputs from more than two countries that all fall within the same preferential regime. Where bilateral cumulation covers only two contracting parties, diagonal cumulation allows originating materials from an entire network of linked partner countries to be combined. The Pan-Euro-Mediterranean (PEM) system is the prime example: inputs sourced from the EU, Turkey, Tunisia, or other participants may be cumulated, as long as compatible agreements are in place between every country involved. This opens up considerable flexibility in supply chain design – individual production stages can be spread across several countries without losing preferential tariff access. Full documentary evidence of the originating status of all inputs, typically a EUR.1 movement certificate or a supplier's declaration, is a strict prerequisite.
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