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Textiles and clothing revision of PEM list rules

Textiles and clothing revision of PEM list rules. TAXUD – Unit B3 Rules of origin. 30-31 October 2012. Textile and clothing – old PEM rules. Based on ' double-transformation'  two significant processes of production undergone in the EU or other PEM Members (provide higher value added)

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Textiles and clothing revision of PEM list rules

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  1. Textiles and clothingrevision of PEM list rules TAXUD – Unit B3 Rules of origin 30-31 October 2012

  2. Textile and clothing – old PEM rules • Based on 'double-transformation' two significant processes of production undergone in the EU or other PEM Members (provide higher value added) • Complementary nature and integrated production chain across pan-Euro-Med area • Double transformation generated a number of benefits for PEM area due to cumulation with the EU • Estimates: about 5 mio textiles and clothing workers employed throughout the area

  3. Old PEM rules textiles clothing weaving accompanied by making–up (including cutting), or making–up preceded by printing accompanied by at least of two preparatory or finishing operations(such as scouring, bleaching, mercerising, heat setting, raising, calendaring, shrink resistance processing, permament finishing, decatising, impregnating, mending and burling), conditioned to a value-added criteria for the incorporated non EU input – 47.5% (e.g. grey fabrics) • extrusion of man-made fibers accompanies by spinning for synthetic yarns, or • spinning of natural or man-made fibers accompanies by weaving, or • a substantial printing operation accompanies with two preparatory or finishing operations • (such as scouring, bleaching, mercerising, heat setting, raising, calendaring, shrink resistance processing, permament finishing, decatising, impregnating, mending and burling), conditioned to a value-added criteria for the incorporated non EU input – 47.5%

  4. New challenges in textile and clothing sector • New business and industrial reality in the sector • Increasingly complex supply chains/diversity of production processes • Changing production techniques and production patterns (e.g. finishing sector with innovative technologies ) • Limited supply of originating fibres/yarns in terms of needed types, quantities, qualities • Fierce competition from many Asian countries • Time factor - rules now discussed will apply in few years time

  5. EU proposal for the revision  to retain 'double transformation' as a principle on which PEM area should be built, in some specific cases more flexible rules, e.g. finishing rule for certain technical applications  to incorporate a number of flexibilities that allow to start production at higher transformation level • enlarged list of substantial operations responding to new technological developments: extrusion, spinning, twisting, texturing, weaving, knitting, crocheting, tufting, flocking, non-woven techniques, weaving or knitting or crocheting combined with dyeing or with printing or with coating, or with laminating, printing alone, embroidery, fully fashion knitting (knit-to-shape) and cutting accompanying with making up. - new definition of the printing rule:1)clear on what does not qualify as printing, 2) allows for some new techniques (digital or transfer printing)

  6. Example 1. Qualifying operations for headings 5204 to 5207

  7. Example 2. Qualifying operations for headings 5208 to 5212

  8. Printing rule Old PEM EU proposal - printing (as standalone operation), which is defined as a technique by which an objectively assessed function, like colour, design, technical performance, is given to a textile substrate with a permanent character, using screen, roller, digital or transfer techniques combined with at least two preparatory or finishing operations(such as scouring, bleaching, mercerizing, heat setting, raising, calendaring, shrink resistance processing, permanent finishing, decatising, impregnating, mending and burling), provided that the value of all the materials used does not exceed 50% of the ex-works price of the product. - printing combined with weaving, knitting/ crocheting, tufting or flocking - printing accompanied with two preparatory or finishing operations • (such as scouring, bleaching, mercerising, heat setting, raising, calendaring, shrink resistance processing, permanent finishing, decatising, impregnating, mending and burling), provided that the value of unprinted fabric used does not exceed 47.5% of the ex-works price of the product.

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