Basic export and import rules for the Canary Islands

The Spanish-Czech Chamber of Commerce has created a brief summary of the export and import options to the Canary Islands. Despite being a part of the European Union, the Canary Islands have their own economic and fiscal policies.

Documents needed

Goods brought to the Canary Islands are always accompanied by the following documents:

• Administrative document (DUA – Documento Único Administrativo)
• Commercial invoice
• Checklist for packing
• Transportation documentation

Furthermore, depending on the nature of the transit activity, the following is required:

• Origin certificate
• Specific documentation based on the product type

In some circumstances, the selling of products requires administrative approval from the appropriate government. If we are discussing cosmetic or pharmaceutical items, such approval must be obtained from the Spanish Agency for Pharmaceuticals and Cosmetics. Compliance with consumer standards is also required, as is the case with textile imports (for example, the importer’s details and instructions for cleaning and storing clothes must be given).

Export to the Canary Islands

Exports include commodities traded between the Canary Islands and the Spanish mainland (including the Balearic Islands) and the European Union. As a result, the procedure is the same as when selling items outside of the EU. Exports to the Canary Islands are free from VAT because the Canary Islands are free from this tax and have their own tax regime.

Exports to the Canary Islands are required to be accompanied by an administrative import document (DUA) and may be subject to additional taxes and fees imposed by both the buyer and the recipient. As an example, consider the following:

1. IGIC (Impuesto General Indirecto Canario) is an indirect general local tax that replaces VAT. The Canary Islands Revenue Agency accepts IGIC declarations electronically.

2. AIEM (Arbitrio Insular de Entrada de Mercancías) – island tax on goods. This is a charge on imported goods that are produced as well in the Canary Islands, aimed at protecting domestic products.

3. Customs duty (if the items are not from the EU)

4. Special taxes. These vary based on the type of product.

Import from the Canary Islands

Any movement of goods from the Canary Islands to mainland Spain (including the Balearic Islands) or into the European Union is considered an import. Goods exported from the Canary Islands to countries in the European Union must normally be subject to VAT in the destination country. Taxes are not levied on goods sent from the Canary Islands. However, the relevant taxes, such as VAT, will be imposed in the destination country (in the case of products delivered to the European Union’s mainland).

Administrative Document (DUA)

An administrative document (DUA) for importers and exporters must be completed and delivered to customs when importing or exporting to the Canary Islands.

For import, Annexes 6 and 8 must be completed. Importers must then pay IGIC and AIEM. Annexes 1, 3, and 4 must be submitted for export.

The DUA includes a sufficiently thorough description of the items (invoice value, content, consignee information, and so on). The DUA’s aim is to keep track of all transactions that pass through customs.

Since 2017, products with a value of less than 150 euros bound for the Canary Islands have been excluded from registering a DUA.

Indirect General Tax (IGIC)

This is a tax that applies to final consumption and replaces VAT (IVA – Impuesto sobre el Valor Añadido). Although IGIC is similar to VAT, the tax rates are lower.

The various IGIC indirect tax rates are as follows:

• 0% — for basic products.
• Reduced 3% – for glasses with diopters, contact lenses, etc.
• Basic 7% – this rate applies to all goods and services that are not subject to the zero, reduced, or increased IGIC rate.
• Increased 9.5% – applies to the provision of services aimed at the production of vehicles, ships, and other ships or aircraft.
• Increased by 15% – the rate for certain goods, such as jewelry, gems, or certain alcoholic beverages.
• Special 20% –  applies to tobacco products, excluding cigars.

Island tax on imported goods (AIEM – ARBITRIO INSULAR DE ENTRADA DE MERCANCÍAS)

This is a tax placed on all items imported into the Canary Islands, regardless of their origin. The tax’s goal is to encourage local production of products and services, to keep local industries competitive, and to limit imports. However, imports of vital items such as gasoline, energy, newspapers and periodicals, some beverages, and gluten-free meals are exempt from the MAEM tax. Similarly, goods like refined oil, wood, or stone.

The following are the AIEM tax rates:

• 5% rate – certain building materials like cement, mortar, or plaster, some chemical items like paints and varnishes, foodstuffs (juices, coffee concentrates), or cereal-based products.
  
• 10% rate – certain food products like ice cream or baked goods, paper products as cardboard or boxes, sacks, and paper bags.
  
• 15% rate – certain groceries and chemicals, paper products such as napkins and tablecloths.
  
• 25% rate – cigarettes, cigars and tobacco substitutes.

About the Spanish-Czech Chamber of Commerce

On the initiative of the Czech Embassy in Spain and the Spain Group, the Spanish-Czech Chamber of Commerce was established in 2013. It is a non-profit organization with offices in Madrid, Prague, Valencia, Barcelona, and Tenerife. The primary objective is to develop mutual trade between the Czech Republic and Spain.

As this study is only of a broad character, the Chamber recommends contacting lawyers, specialists, or public officials for more thorough information on imports and exports to the Canary Islands.

https://www.mzv.cz/public/63/2e/6f/4589504_2829180_Kana_ske__ostrovy_EXP_e_IMP.pdf