If you are going to export goods to other countries, you need to be well informed about the collection of tariffs since they will request it when the good arrives in a customs territory different from the country of origin of the merchandise.
The customs duties These are taxes that must be paid by products that enter Spain and that come from a country that does not belong to the European Community. The percentage of this tax is collected in an official publication that includes all possible cases of goods that they can be imported or exported.
so keep reading this post so that you do not miss any detail about everything related to the duty.
What are tariffs?
The duty They are a type of special tax that is imposed on a good or service when it crosses the border of a country, therefore it serves to regulate the International Trade.
The duty have two purposes:
- Protective purpose: He tariff It aims to protect the goods produced in the country itself that may be affected by the importation of certain similar products. The obligation to pay said tariff is intended to increase the price of imported products so that they are less competitive in relation to national products.
- Collection purpose: The collection of duty represents an increase in state revenue.
- To know the tariff that must be paid for a specific good, you must consult the TARIC of said good, that is, the TCommunity Integrated arifa, which makes it possible to determine what tariff rate should be applied.
- Depending on where the tariff we can distinguish between import and export tariffs:
- Import tariffs: Tax that applies to everyone goods entering Spain from countries that do not belong to the European Union. Its objective is to encourage the purchase of national products and thus protect jobs and nascent industries.
- Export tariffs: Fees imposed on products that are exported to other countries. These types of tariffs are less common and are usually applied to primary products to increase revenue or influence the global price of such products.
There are several tariff classes:
- Value-added or ad valorem tariff: Fixed percentage on the customs value of the product. It must be taken into account that the customs value includes the cost, the price of insurance and transport (eg: 5% on the value of the merchandise).
- Specific tariff: Fixed amount of money per imported or exported physical unit (eg: €30 for every 1000kg of merchandise).
- Mixed tariff: Combination of ad valorem tariff and the specific tariff. This tariff is rare and is usually used in times of crisis to increase state revenue or when you want to encourage the production of a certain product.
- Zero tariff: It's about a tariff rate that is applied after an agreement between two or more countries to favor the movement of goods and merchandise between them (eg free trade agreements).
Effects caused by the payment of tariffs
The duty they run the risk of making the domestic industry less efficient as they reduce competition. The imposition of tariffs and customs may provoke reciprocity from the other country, leading to a trade war between exporting countries. The imposition of tariffs is known as customs barriers.
Therefore, if you set a tariff, goods from other countries have to pay a tax when passing through the customs, with which the price at which these goods enter the interior will be equal to the previous price plus the tariff.
He tariff ends up producing basically three effects:
- Consumption effect: He tariff it makes the price of the imported product more expensive, thus harming the national consumer.
- production effect: The imposition of the tariff it benefits the national industry, that is, the national companies, in terms of competition.
- Income effect: The government of the country imposing the tariff receives income from the tariff, so the State's tax revenue increases.
if you are a company or natural person who is thinking of memport or export products abroad, first of all you have to inform yourself about the tariffs and customs that you will have to pay to be able to market your product.
If you need professional help, in Alter Finance, a leading consulting firm that has specialized in Trade Finance and Working Capital Finance, we will help you manage your paperwork on tariffs.
Do not doubt contact us by way of totally free. We will wait for you!