The archipelago of the Canary Islands, Spain, has been part of the Community customs territory since January 7, 1991, with the entry into force of EEC regulation no. 1911/91 on the application of Community law in the Canary Islands and in application of Decision 91/314/EEC, which establishes the Specific Options Program (PESEICAN), the application of Community policies and the integration of the Canary Islands into the customs territory of the EU.
Gradually reaching the redimen , applying CCT (Common Customs Tariff) to imports from third countries since 2001.
Likewise, on December 31, 2001, the Arbitrio Insular de Entrada de Mercancías (AIEM) was established for the import and exchange of goods, replacing the former Arbitrio Insular de Producción e Importación (APIC) and the Tarifa Especial del Árbitro Insular al Ingreso de Mercaderías (Special Tariff of the Insular Arbitrator for the Entry of Goods). Being renewed until 2027 after negotiation with the European Commission.
The main objective of this tax on transport to the Canary Islands is to protect the Canary Islands’ domestic production and, in turn, to promote and encourage the product and new industrial and production activities that may replace imported products in the future.
To further promote tricontinental imports and exports, the establishment of two Free Trade Zones in Tenerife and Gran Canarias was authorized. The Free Trade Zone is a customs area, segregated and physically well delimited, within which a series of activities can be carried out, such as the processing and transformation of products, semi-finished products and raw materials, storage, packaging and distribution of all goods. without the application of duties, charges or indirect taxes.
General Advantages of Free Trade Zones in the Canary Islands:
– Exemption from customs duties, IGIC (VAT), other indirect taxes (AIEM) and, if applicable, Special Taxes during the permanence of the goods in the zone.
– Advance collection of export refunds.
– Non-application of trade policy measures such as quotas or restrictions.
– Possibility of introducing any merchandise regardless of its nature, origin, provenance or destination, with no limitation on the duration of its stay.
– Simplification of customs procedures.
– Reduction of the financial cost of providing guarantees, in relation to other customs figures.
FREE ZONE OF GRAN CANARIA
The Gran Canaria Free Trade Zone currently has 300,000 m2 with infrastructure already built as well as space for investment projects. The land is located in two distinct areas: the port of Las Palmas and the industrial park of Arinaga.
In Las Palmas the Free Trade Zone has 50,000 square meters, in 2004 the Port Authority requested another 100,000 square meters. The new project also includes a basin within the free zone itself to facilitate logistics and thus the movement of goods.
In Arinaga, South of Gran Canaria, 250,000 square meters are available for industrial use.
Both lots are fully urbanized and equipped with all the necessary services, and both have access to various types of systems.
FREE TRADE ZONE OF TENERIFE
Tenerife’s Free Trade Zone is very particular and can only be compared in Europe to that of the port of Shannon (Ireland).
The peculiarity of the Tenerife Free Trade Zone is that it is not a specific territorial area segregated and delimited within the Customs area, but includes the entire port area of Santa Cruz and the port of Granadilla de Abona (Tenerife South) for a total of about 215,000 m2).
The Free Trade Zone is an infrastructure located within a segregated territory within the Customs Area; it usually has direct access from the outside and therefore for logistical reasons from a port or airport.
Within the Free Trade Zone it is possible to handle, transform and process raw materials and complete the processing of products, it is also possible to store goods and distribute them without being subject to the application of duties and/or indirect taxes.
– Activities: Any type of industrial, commercial or service activity may be carried out within the Free Zone.
– Total Exemption of Import Duties, Indirect Taxes and Excise Duties on imported goods with origin and destination in a third country outside the European Union. When the final destination of the imported merchandise is the European Union, the tariff and tax obligations will remain suspended until its departure from the Free Trade Zone.
– Indefinite storage: Goods in the FTZ may be stored without time limit, keeping in abeyance any obligation to pay duties or taxes on imported goods.
– Simplification of customs management: The control of incoming and outgoing goods will be carried out through a Stock Accounting System, a computer application that allows telematic control by customs and tax authorities, reducing paperwork and documentation. The simplification of customs formalities means that there is no need to submit a declaration prior to the entry of goods, thus speeding up customs clearance.
– Usual manipulations: Goods in the FTZ may be subjected to usual manipulations to ensure their preservation, improve their presentation or commercial quality, or prepare for distribution or resale, without the need for any type of customs authorization.
– Substantial Transformations: Goods in FTZs may undergo substantial transformations with the prior and express authorization of the customs authority, through their linkage to the Transformation regimes under Customs control when the destination of the resulting final product is the European Union, or through their linkage to an Inward Processing regime when the final destination of the product is re-export to a third country outside the European Union.
– ZF located in Port territory: It offers the logistical advantage of proximity to the container docking and arrival lines, as well as the proximity to the new Port Inspection Center, which expedites all inspection procedures by centralizing the corresponding services: SOIVRE (Official Service for Inspection, Surveillance and Regulation of Exports), Customs and Foreign, Animal and Plant Health.
The Canary Islands have a range of tax benefits, as well as geographical location, climate and security. If you want to study the strategy that best suits your sector, contact Advixy, internationalization professionals.
