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11 July 2012

The above example shows the difference between diagonal and full cumulation. In the textile sector, European rules require a two stage production process, meaning that the manufacturing process must encompass two consequent manufacturing processes to confer origin, i.e. manufacture of fabrics from fibers by spinning of yarns and weaving the yarns into fabrics or when the manufacturing process starts with the yarn by weaving the fabric and the confection of the cloth or apparel.

Whereas in a diagonal cumulation settings, an individual manufacturing step never confers origin since a two stage production process is required to confer origin, the concept of full cumulation allows to aggregate the different manufacturing operations done in the different countries with the consequence that the two stage production requirement is fulfilled in country B and with the application of the full cumulation the obtained fabric is considered to be originating in country B.