The EU grants unilateral trade preferences to a group of territories known as the Overseas Countries and Territories (OCTs). These territories have historical links to 3 EU countries (Denmark, France and the Netherlands). The OCTs are not part of the EU – they have ‘associate’ status.
List of OCTs
Kingdom of Denmark
Greenland
French Republic
New Caledonia and Dependencies
French Polynesia
French Southern and Antarctic Territories
Wallis and Futuna Islands
Saint-Barthélemy
Saint Pierre and Miquelon
Mayotte
Kingdom of the Netherlands
Aruba
Bonaire
Curaçao
Saba
Sint Eustatius
Sint Maarten
Aims and eligibility
The association between the EU and Overseas Countries and Territories (OCTs) aims to:
support the OCTs’ sustainable development
establish close economic relations between them and the EU as a whole
This partnership focuses on enhancing competitiveness, strengthening resilience, reducing vulnerability and fostering cooperation and integration between OCTs and other regions, supported by EU financial assistance.
The EU grants unilateral trade preferences to all products originating in the EU’s OCTs. To enjoy this preferential access, these goods must comply with the rules of origin set down in Annex II of Council Decision (EU) 2021/1764 (the so-called ‘Decision on the Overseas Association, including Greenland’ (DOAG)).
For general information on OCTs, visit the International Partnerships page on Overseas Countries and Territories.
For the trade preferences that OCTs grant to products originating in the EU, consult the table on preferential tariffs for exports of EU products to OCTs.
Legal framework
Annex II, Council Decision (EU) 2021/1764 (DOAG)
Common and specific provisions
To get a complete picture of whether OCT goods can enjoy preferential access, both the common provisions and specific provisions must be consulted.
Common provisions
Visit our page on common provisions.
Specific provisions
Specific provisions are applied where the rules of the particular arrangement (DOAG) differ from the common provisions, or where the common provisions need to be complemented.
Originating status
In terms of origin, OCTs are considered as one single territory. If products are processed in two or more OCTs, they will be considered as originating in the OCT where the last sufficient working or processing operations took place.
Cumulation
Under certain conditions, the principle of cumulation allows for materials originating in third countries to be considered as originating in OCTs. This facilitates the acquisition of a product’s originating status.
Cumulation can only be applied between countries operating with identical origin rules. This means that a manufacturer in one OCT can cumulate materials originating in one or more other OCTs. If a manufacturer in an OCT uses materials from one or more other OCTs, these materials are treated no differently from those the manufacturer obtains from the OCT where their products are manufactured.
Bilateral cumulation is also possible between OCTs and the EU (Article 7, Annex II to DOAG). This means that EU materials can be considered as originating in OCTs if they were fully worked or processed in an OCT and vice-versa, if the operation carried out in the OCT goes beyond what is considered as insufficient operation to confer origin.
Example
Materials originating in France can be further processed or added to products being manufactured in Saint Barthelemy, just like if the material originates in Saint Barthelemy. This facilitates acquisition of originating status of the final product, which thus qualifies for preferential tariff treatment when exported from Saint Barthelemy to the EU under the DOAG.
Working or processing carried out in the EU shall be considered to have been carried out in an OCT when the materials undergo subsequent working or processing.
Cumulation with EPA and GSP countries
As per Annex II, bilateral, diagonal or full cumulation between an OCT and a country enjoying an Economic Partnership Agreement (EPA)* with the EU or that is part of the EU’s Generalised Scheme of Preferences (GSP)** may be applied, but only under certain conditions:
only if OCTs and EPA countries* have concluded an agreement on administrative cooperation which ensures compliance with Annex II of the DOAG, and
if OCTs notified the Commission of the agreement
The administrative conditions are not yet in place to implement any type of cumulation between OCTs and EPA countries which whom cumulation may be applicable.
* Cumulation with EPA countries does not apply to materials originating in South Africa that do not benefit from duty-free, quota-free access under the Southern African Development Community (SADC) EPA.
** Cumulation with GSP countries benefiting from duty-free, quota-free access to the EU under the Generalised Scheme of Preferences.
This cumulation must not apply to:
materials from countries subject to anti-dumping duties or countervailing duties
certain tuna products classified under Harmonized System Chapters 3 and 16
materials to which safeguard measures or surveillance measures apply
The administrative conditions are not yet in place to implement any type of cumulation between OCTs and GSP countries.
Extended cumulation with FTA partner countries
Cumulation may be applied between an OCT and a country with which the EU has a free trade agreement (FTA), but only under certain conditions:
only if OCTs and FTA countries have concluded an agreement on administrative cooperation which ensures compliance with Annex II to the DOAG
and if an OCT notifies the Commission
Minimal operations
Some operations are considered as insufficient working or processing to confer the status of originating products. For a list of such operations, see Article 5 of Annex II to Council Decision (EU) 2021/1764 (DOAG).
General tolerance rule
Non-originating materials can be used provided that their total value or net weight does not exceed 15% of the weight of the products or 15% of the ex-works price of the product. See Article 6 of Annex II to Council Decision (EU) 2021/1764 (DOAG).
Duty drawback rule
Drawback – a refund of initially collected customs duties, etc. – is possible for products exported by OCTs.
Proof of origin
To benefit from preferential treatment, goods exported by an OCT must be accompanied by:
a statement on origin made out by a registered exporter, or
if the total value of the products is less than €10 000, a statement on origin made out by any exporter
This proof of origin is then valid for 12 months.
Exemption from proof of origin is possible for:
small packages with a total value not exceeding €500
products included in personal luggage worth up to €1 200
Derogations
A derogation is a temporary lessening or relaxation of the rules, allowing preferential treatment to be granted to products that may not strictly satisfy the criteria for ‘originating products’.
To obtain a derogation, the EU country or relevant authorities in the OCTs must make an official request to the EU, stating why the product qualifies for the derogation. The final decision is taken by the Commission.
Derogations are normally valid for 5 years.