Cumulation

Cumulation for customs purposes may be included as a provision in trade agreements. It allows materials sourced from other countries within the agreement to be used in the production process, while the final product can still qualify as having preferential origin.

There are several types of cumulation:

 

Bilateral cumulation: Applies between two parties, allowing materials originating in one to be used in the other without affecting the preferential origin of the final product.

 

Diagonal cumulation: Involves three or more partners that share identical rules of origin. Materials from any participating country can be used in production.

 

Regional/Full cumulation: Allows for broader application within a designated region and may cover all stages of production, enabling each step to contribute toward achieving preferential origin.