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Country Commercial Guides for FY 2000: Spain Report prepared by U.S. Embassy Madrid, Released July, 1999   Note*

VI. TRADE REGULATIONS AND STANDARDS

Trade Barriers, Tariffs, Non-Tariff Barriers and Import Taxes

Spain has not charged tariffs to the E.U. countries since January 1, 1993, while third-country goods, including those from the United States and Japan, are charged the E.U.'s Common External Tariff. Since 1988, Spain has used the Harmonized System of tariff nomenclature for applying duties. U.S. goods are taxed according to the standard E.U. duty rate.

Spain has adhered to the GATT code since 1963. In December 1994, Spain ratified adherence to the Marrakesh accord, which concluded the Uruguay Round of international trade negotiations and established the World Trade Organization.

For agricultural products, import documentation and tariffs are exactly the same as for other E.U. countries. While some agricultural commodities are duty free or subject to minimal duties, such as soybeans, sunflower seed, corn by-product, and lumber, the great majority of agricultural products covered by the E.U.'s Common Agricultural Policy (CAP) and food products are subject to high duties or variable import levies which significantly restrict access to the Spanish market.

In 1993, during the Uruguay Round negotiations, the E.U. committed to continue the compensation it had been providing to the United States since 1987 for Spain's accession to the E.U. The E.U. had owed the United States compensation due to Spain's breach of its GATT tariff binding on imports of corn and sorghum when Spain joined the CAP. The compensation came in the form of minimum import commitments for corn and sorghum, as well as tariff reductions on about 25 products.

Non-tariff barriers have been identified in the audiovisual and intellectual property areas. Spain has a system of screen quotas and "dubbing licenses" which increase costs and limit access of U.S. film distributors. However, recently approved regulations to Spain's film law have limited the adverse impact of these regulations. Piracy of audiovisual products, principally through unregulated "community video" cable television networks, and of computer software are of concern here.

Customs Regulations/Tariff Rates/Import Taxes

Spanish customs values shipments at C.I.F. prices. For U.S. products, the tariff rate averages five percent. All shipments must be cleared through Customs by a registered customs agent. Usually, total costs to clear customs are between 20-30 percent of the shipment's C.I.F. value. This includes tariffs, value added tax (16 percent), custom agent, and handling fees.

Import Licenses

The E.U. accession agreement requires that Spain transform its structure of formal and informal import restrictions for industrial products into a formal system of import licenses and quotas. While Spain does not enforce any quotas on U.S.-origin manufactured products; it still requires import documents, which are described below. Neither of the following documents constitute a trade barrier for U.S.-origin goods.

Import Authorization: (Autorizacion Administrativa de Importacion, AAI) is used to control imports which are subject to quotas. Although there are no quotas against U.S. goods, this document may still be required if part of the shipment contains products or goods produced or manufactured in a third country. In essence, for U.S.-origin goods, the document is used solely for statistical purposes or for national security reasons.

Prior notice of imports: (Notificacion previa de importacion) is used for merchandise that circulates in the E.U. Customs Union Area, but is controlled for statistical purposes only. The importer must obtain the document and present it to the General Register.

Importers apply for import licenses at the Spanish General Register of Spain's Secretariat of Commerce or at any of its regional offices. A commercial invoice that includes freight and insurance, the C.I.F. price, net and gross weight, and an invoice number must accompany the license application. Customs accepts commercial invoices by fax. The license, once granted, is normally valid for six months but may be extended if adequate justification is provided.

Goods that are shipped to a Spanish customs area without proper import licenses or declarations are usually subject to considerable delay and may run up substantial demurrage charges. Prior to making shipments, U.S. exporters should ensure that the necessary licenses have been obtained by the importing party. Also, U.S. exporters should have their importer confirm with Spanish customs whether any product approvals or other special certificates will be required for the shipment to pass customs.

Export Controls

Spain was a member of COCOM from 1985 on and is now a participant in the "Wassenaar Arrangement" that replaced COCOM. Spain is also a member of the Australian Group for Chemical Products Controls and a signatory of the Chemical Weapons Convention which became effective in 1995.

Export controls are regulated by Organic Law 3/1992 and Royal Decree 824/1993. The Royal Decree is still in effect and establishes that both the regulations and the COCOM lists are applicable, as well as the procedures that follow.

Import/Export Documentation

Several different forms of documentation may be required for shipments to Spain. Exporters are required to present one commercial invoice, one bill of lading, and three copies of a certificate of origin for all shipments. Other certificates are necessary for exporting pharmaceutical goods, perishable foods, live animals and some medical goods.

Sanitary Certificates:

U.S. Animal and Plant Health Inspections certificates are required from the U.S. Animal and Plant Health Inspection Service (APHIS) for the importation of living plant material, including plants, plant products, and seeds, into Spain. Health inspection requirements also govern the importation of animals and parts of animals, including meat products, skins, hides, and similar products, marine mammals, fish, crustaceans, or mollusks and parts thereof.

Spanish regulations are subject to the provisions of the Spanish Ministry of Agriculture. Inspections are usually carried out in local offices of the APHIS, which are located in major U.S. ports and airports. Export agents or brokers may present products for inspection. Airlines may handle the inspection of air shipments.

Pharmaceutical Certificates:

These certificates are required by Spanish Customs for drugs and certain sanitary items. A standard analysis bulletin issued by the manufacturer, listing the product composition, is acceptable for customs purposes.

Other certificates:

Sea vessels require a certificate of compliance from the Marine Authority (Ministry of Transport) to bring ships into Spain. In order to acquire this certificate, the manufacturer has to demonstrate the sea-worthiness of the vessels. The National Marine Manufacturers Association issues a sea-worthiness affidavit that is accepted by the Spanish authorities for the certificate of compliance.

Fines and Penalties:

Regulations establish fines for whatever actions delay the normal customs procedure. Fines are not very large, usually around USD 30 or USD 40. These, in and of themselves, do not include fraudulent actions.

Anti-Dumping and Countervailing Duties:

As a signatory to the Anti-Dumping and Countervailing Duty Codes of the GATT, Spain, through the E.U. Anti-Dumping Committee, penalizes products imported at less than their normal value, which cause injury to domestic industry. The anti-dumping duty will be the difference between the dumped price and the comparable domestic price of the exported product. The duration of the countervailing duty imposition varies from case to case and the duty imposed currently ranges from five to 33 percent.

Temporary Entry

The Spanish re-export system is regulated by Order of July 24, 1987, conforming to E.U. regulations. Re-export inquiries must be addressed to the Port's Customs Director. Re-exports of U.S. goods from Spain follow the same procedures as the exportation of Spanish products. Goods re-exported to other E.U. member states are subject to statistical surveillance.

Re-exports outside the E.U. which are not covered by specific E.U. regulations are exported with an accompanying Customs Export Declaration at the exit point. A limited number of goods require a Prior Notice of Export.

Exporters of high-technology goods subject to U.S. export control procedures must ensure that Spanish clients and subsidiaries are aware of U.S. export controls requirements.

There are four types of procedures for handling the re-export of goods:

1) Temporary Imports: Goods imported for a limited time period under an ATA carnet. A bank guarantee in the form of a bond equivalent to duties owed must be provided to Customs, which will be refunded once the goods leave the country.

2) Temporary Admission: Goods which will be incorporated into a final product for export. Prior approval by the State Secretariat of Commerce is necessary. The same procedure used for temporary imports applies for re-export.

3) Replacement Goods: Companies with continuing needs for primary materials, commodities, or intermediates can request prior approval from the State Secretariat of Commerce for replacement goods after the second year of operation. They must deposit a bond with Customs on the compensatory tax only. Replacements for defective goods destroyed under Customs supervision are also admitted duty-free, but require extensive supporting documentation.

4) Drawback: Duties are paid simultaneously with a presentation of a list of products to be re-exported in the future. Later, a rebate is given upon customs clearance out of Spain. This procedure also requires prior approval by the State Secretariat of Commerce.

Companies are advised to use the carnet procedure to temporarily bring goods into Spain for demonstration purposes without paying duties or posting bond. The carnet must be presented to the customs authorities whenever entering or leaving the country. Consumable items and give-away samples are not included under carnet procedures. ATA carnets are predominantly used for commercial samples, tools of trade, advertising material or cinematographic, audio-visual, medical, scientific, or other professional equipment that will be imported for a period of less than a year. The advantage of the ATA carnet is that it allows exporters to avoid normal customs clearance formalities. The carnet also provides a financial guarantee to foreign customs officials so that, if the goods are not re-exported, the duty will be paid. A bond equivalent to the duty is charged.

The ATA carnet is used internationally and should be distinguished from the E.U. carnet, sometimes referred to as the ESC carnet. Introduced in July 1985, the E.U. carnet is used for the temporary movement of certain types of goods, usually equipment and working materials, between E.U. countries. Unlike the ATA carnet, it does not require the posting of a bond.

Carnet applications are available from all district offices of the U.S. Department of Commerce, most U.S. chambers of commerce, and authorized export insurance companies. They are also issued by the U.S. Council of the International Chamber of Commerce in New York.

Advertising material, catalogs, price lists, and similar printed items are admitted duty free. However, to avoid any problems such items should always be labeled, "no value". Otherwise, a customs duty is likely to be levied on the sample.

As a signatory to the International Convention to Facilitate the Importation of Commercial Samples and Advertising Matter, Spain admits samples of negligible value duty free. Those items that are of commercial value and not covered under carnet procedures may be imported for up to a year by business people upon payment of a bond. Upon presentation of the customs receipt and at re-export, the deposit is refunded.

Qualifying business people entering with commercial samples should come equipped with a letter from his or her principals attesting to their status, identifying the samples, and certifying that the samples are not for sale. The letter should be certified by the nearest Spanish Consulate.

Labeling, Marking Requirements

In view of the complexity and rapid change in marking, labeling, and testing requirements in Spain, U.S. exporters should request pertinent instructions from their importers prior to shipment.

The following are specific categories of goods, for which marking, labeling, and/or testing requirements are applicable:

Foodstuffs: The Directorate General of Health sets human consumption standards for the preparation, residual content, and storage media for virtually all classes of foodstuffs. The labels on the container must include the product designation, a list of ingredients, the weight or volume, dates (manufacturing, packing, minimum shelf life, and expiration dates), directions for food preservation (if applicable), identification of the firm involved (manufacturer, packer, or importer), and the country of origin. If the original label is not in Spanish, a similar one must be prepared in Spanish, firmly affixed to the container. Milk products, margarine, chocolate, and soaps have other, more technical labeling requirements. Wines and other alcoholic beverages must meet Spanish standards.

Textiles: Customs and point-of-sale regulations require that all textile goods and ready-made clothing have a Spanish label. Standard Spanish textile nomenclature and content requirements must be stated on the label. Requirements relating to textile content, labeling, and packaging are specific and extensive. They are regulated by Royal Decree 928/1987, dated June 5, 1987. Manufacturers' trademarks, duly registered, are permitted on textile products.

Drugs, Pharmaceutical, and Cosmetics: These goods are subject to technical inspection and registration by the Directorate General of Health prior to entry. There are also detailed marking and labeling requirements, somewhat similar to those for foodstuffs, but which include detailed chemical composition.

Fertilizers and Fungicides: Imported fertilizers must be registered with the local Agriculture Ministry Office. Inspection and analysis will be performed prior to customs clearance. All printed advertising and publicity materials must be approved by the Ministry of Agriculture, and labels must be in Spanish and include detailed precautions.

Firearms: All firearms must be cleared by the Spanish government and bear a stamp of certification.

Metals: The Spanish Guarantee Bureau provides assay services and affixes its hallmark for all imported precious metals.

Motor Vehicles: Each vehicle will be inspected for engraved serial numbers on both the engine and chassis. If one of these is not available, Spanish customs levies a special charge for stamping the number.

Tires and Tubes: All tires and inner tubes must be marked with a serial number.

For agricultural products, labeling requirements are fully harmonized with the E.U. labeling system, however, the labels must be in Spanish.

Eco-labels:

In March of 1992, the E.U. Council approved law 880/92, establishing a community-wide system for granting Eco-labels (green label) to products that voluntarily satisfy environmental standards.

The E.U.'s objectives for setting up a system for issuing green labels are twofold. The labels inform consumers of products that are environmentally safer than others in all aspects of a product's life-cycle. Furthermore, they improve the design, production, and marketing as well as increase the use of products that have low or non-adverse effects on the environment, and that use natural resources wisely.

The E.U. hopes that these objectives will increase the standards of health, security, and the condition of the environment of the E.U. countries. Products imported into the E.U. that wish to obtain a green label must follow the same strict criteria as E.U. members.

Spain's participation in the E.U. Eco-labeling program was established by Royal Decree in April 1994.

Prohibited Imports

Spanish regulations ban the import of illicit narcotics and drugs. They also set up very restrictive regulations for imports of explosives, fire weapons, defense equipment and material, tobacco, and gambling material. Furthermore, the government highly restricts the import of many types of pharmaceutical products.

E.U. regulations on hormones ban most U.S. beef and beef products from entry into the E.U. In addition, E.U. health regulations on live cattle ban U.S. high genetic cattle imports. These regulations have recently been successfully challenged by the U.S. at the World Trade Organization.

Standards

At present, there are no requirements for either ISO 9000 certification or its E.U. equivalent. Nonetheless, demand for products that meet these standards is growing.

Spain has established specific certification for certain products. This certification procedure is referred to as "homologation" and involves cumbersome product testing by approved laboratories. Although most of the local homologation requirements and testing standards are gradually disappearing as Spanish legislation conforms to E.U. directives, certain homologation and other special requirements remain for some products.

Generally, a product that meets the standards and certification requirements of any other E.U. country can be imported and sold in Spain without further testing. Spanish homologation requirements remain in force for computer keyboards and screens, dot matrix printers, teleprinters, medical equipment, electric typewriters, telecommunications equipment, motor vehicles, bicycles, pleasure boats, gas connectors, etc.

Applications for homologation are processed by the Ministry of Industry and Energy and by the Ministry of Development, which handles Transport and Telecommunications. These national standards will be phased out as E.U. norms take effect.

The Spanish Standards Certification Association (AENOR - Asociacion Espa–ola de Normalizacion y Certificacion) is responsible for developing voluntary standards and certification programs. It represents Spain in international standards institutions. The Spanish government publishes a list of approved laboratories for testing and certification each year.

Electrical products which operate in a range of 50 to 1,000 volts alternating current or 75 to 1,500 volts direct current have to meet the E.U. low voltage directive. There are three accepted forms of proofs of conformity with this regulation: a mark issued by an authorized E.U. agency; a certificate issued by an approved E.U. authority; or a declaration issued by the manufacturer. In the latter, the manufacturer self-certifies that the product, manufactured with good engineering practices, will not endanger the safety of persons, domestic animals, or property when properly installed and maintained and used in applications for which it was made.

Spain now allows the entry of used equipment, material, and goods. However, they are subject to the same standards concerning safety as apply to any new import. Additionally, there may exist regulations specific to the particular type of equipment, such as computers and peripherals, that is being imported.

Free Trade Zones/Warehouses

There are three different customs regulations in Spain. The E.U. common customs apply to the mainland and Balearic Isles. The Canary Islands, previously a customs-free area, is undergoing a transition period to meet E.U. customs regulations. There is a customs-free trade area in the two northern Africa enclaves of Ceuta and Melilla, which are under Spanish sovereignty.

Both in the mainland and islands there are numerous free trade zones (in most of Spanish airports and sea ports) where manufacturing, processing, sorting, packaging, exhibiting, sampling, and other commercial operations may be undertaken free of any Spanish duties or taxes. The largest free trade zones are in Barcelona, Cadiz and Vigo. Others vary in size from a simple warehouse to several square kilometers. Spanish customs legislation allows for companies to have their own free trade areas. Duties and taxes are payable only on those items imported for use in Spain.

Special Import Provisions

Goods are cleared by customs agents or brokers who handle the necessary formalities on behalf of the importing firm or individual. A bill of lading, an original invoice with a copy, a certificate of origin, and an import declaration are required for most clearances through Customs for products which will remain in Spain.

Import declarations are made at the State Secretariat of Commerce or its branch delegations in major port cities throughout the country. Declarations must use the exact terminology of the tariff classification under which the goods are being imported. A three-month grace period is allowed for U.S.-origin goods arriving without proper documentation, subject to a written guarantee by the customs agent.

Goods in transit need only be listed on the vessel or aircraft manifest and do not have to be unloaded. Transit goods may also be unloaded for shipment to a Customs-approved warehouse prior to reshipment from Spain or to another customs house in Spain for declaration or further reshipment.

Membership in Free Trade Arrangements

Spain has been a member of the European Union since 1986, allowing for free trade with fellow members: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Sweden, and the UK. The European Union's European Economic Area Agreement in turn provides a high level of mutual market access with the European Free Trade Association states (Iceland, Liechtenstein, Norway, and Switzerland).

Customs Contact Information

Agencia Estatal de Administracion Tributaria:
Departamento do Aduanas e Impuestos Especiales
Calle Guzman el Bueno, 137
28003 Madrid
Phone: 34-91-554-3200
Fax: 34-91-533-5242/553-6189
Website: http://www.aeat.es