Customs Taxation and Consulting

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The correct instrument chosen by the operator which would enable it to obtain tax advantages and facilities in its foreign trade operations.

ABQ is a benchmark in the market through the processes we analysis and the determination of the correct solution on applying the advanced tools in the customs management for financial gain in the area of income tax law.

We can define these tools as business customs regimes, their use, and even more so in times of crisis, which improve competitiveness and enterprise development.

The new C.A.U. (Customs Code of the Union) substantially amends the current customs regimes, having them in three:

  • Dispatch for free circulation and consumption
  • Export
  • Special Schemes
    • Transit (External/Internal)
    • Storage (Customs Warehouses/Free Zones)
    • Final Destination
    • Refinement (Active/Passive)

(Loss, therefore, the destination warehouse and regimes of a particular destination and customs processing)

OAS Consulting:

Our Group is responsible for analyzing, managing and handling the entire process of granting the OAS certificate.

  1.  Initial Diagnostic Audit
  2. Compliance by Work Center
  3. Drafting of the Procedures
  4. Documentary System
  5. Internal Audit
  6. Corrective Actions
  7. OAS Request, Questionnaire
  8. Assistance in the Certification

The figure of the OAS:

Today the security in international trade has become a strategic factor. In order to join security and trade facilitation together, the figure of the OAS Authorised business Operator has been created.

It is a mark of quality recognized at the international level, certifying that the role of companies in the international supply chain is more secure and that its controls and procedures conform to the customs regulations. These operators are distinguished in a positive way through the granting of facilities related to the production of certain simplified procedures and the fastest customs controls.

General advantages:

  • Facilitation in solutions of simplified customs regimes.
  • Lower number of physical checks and documentaries.
  • Priority in the controls.
  • Possibility to choose the place of inspection.
  • Summary declarations of entry and exit with reduced data.
  • Prior notification on physical examination.
  • Recognition as “trusted partner” before the administration that ensures safety and protection.

National advantages:

  • Reducing VAT warranty (Art. 102) up to 50%.
  • National Centralized Dispatch.
  • EDI file scanning.
  • Priority in binding resolutions, resources, etc.
  • Automatic granting of extensions of value or origin.

 

Competitive advantages:

  • It allows clearly to establish a working methodology and internal organization.
  • It facilitates the improvement of the efficiency and effectiveness by allowing lower costs and to be more competitive.
  • The big companies will choose to work only with trusted suppliers to ensure a secure international chain.
  • Indirect improvements and international recognition of the figures in their business relations.

The new C.A.U. introduces a significant amount of facilities, procedures, authorisations…etc. That demand the fulfillment of the OAS requirements. Therefore, the figure of the OAS achieves a much higher relevance from the new C.A.U.

An advantage for operators in Foreign Trade.

What are they?:

  • Customs Warehouses: A place recognized and controlled by the customs office where goods that can be stored under certain conditions.
  • Warehouses Regime: It allows the indefinite storage of non-community goods placed under a suspensive procedure or community goods benefitting export (pre-financing).

 

Advantages:

  • Unlimited length of stay of the goods in its interior.
  • Tariff suspension and VAT, until the completion of the regime.
  • Advance payment of export refunds.
  • Non-application of commercial policy measures.

 

Benefits:

  • Financial instrument that improves the treasury on settling encumbrances ONLY when necessary.
  • It facilitates the maintenance of security stocks; delivery times are reduced.
  • Possibility of return or destruction of damaged goods avoiding the payment of taxes.
  • It optimizes the purchasing policy on allowing import in the most appropriate moments without liquidating taxes.

 

The C.A.U. restructures the designation of customs warehouses in two types:

  • Public Warehouses – Type I, II and III
  • Private Warehouses
Since January 1, 2016, this customs regime has undergone a series of restrictions, with the aim of avoiding tax fraud.

– VAT Law (28/2014):

In these moments the DDA, is a free area authorized by the Administration, it allows for keeping the suspension regime of VAT on a series of assumptions that are cited here:

  • Goods subjected to excise duty.
  • Goods from the EC customs territory.
  • Certain products, identified by the VAT Directive (Art.24.1.3rd F and 65). These products are usually the focus of negotiation in international markets. (potatoes, olives, wool, rubber, tin, copper…).
  • Goods coming from parts of the territory in the union, on which the VAT Directive is not applied (Canary Islands, French Guiana…).
  • Goods destined for duty-free shops, at seaports, airports…, which under customs control, may have a determined final taxation system.

*The above Law 28/2014 has restricted its link to imports, as well as the exemption of services related to the same.

It incorporates the assumption of subsidiary liability, so that the holder of a DDA will be vicariously liable for the tax debt which might correspond to the output or abandonment of assets linked to the warehouse, with the exception of those subject to excise duty (5th Annex LIVA)

The ABQ Group is a pioneer in the installation and management of the computer control system with the AEAT (State Tax Administration Agency) to control and regulate the assumption of duty-free shops linked to this regime in accordance with the latest changes.

The right choice.

Definition:

It is a simplified customs procedure by which the company authorized to do so, may replace the normal import declarations by a book entry of the goods in the stock records and its summary declaration afterwards.

This process is usually associated to also obtain the figure “Receiver of Authorized Transits” and of a “Type D Private Warehouse”.

 

Advantages

  • Simplified procedure using accounting memo.
  • it allows the dispatch in the operator’s own facilities.
  • Significant savings in the cost of customs clearance.
  • Reduction or even the elimination of expenses for storage, delays, occupation… etc.
  • Possibility of delivery outside of the customs schedules.
  • Monthly payment to the Treasury, summary and later to the provision of the goods with the consequent administrative and financial savings.
  • A single Control Customs.

 

Criteria for eligibility:

  • To carry out regular annual transactions with third-party countries greater than 3 million euros.
  • That may refer to goods not subjected to import restrictions.
  • Computerized management and accounting system that allows the effective control of the activity.
  • To provide sufficient financial and tax guarantees.
  • Not having been sanctioned for serious or repeated customs or tax offenses.
  • To have authorization or to request simultaneously the authorization for the customs warehouses regime.
  • To be OAS certified or to surpass a measure with the requirements of this.

 

The C.A.U. gives a new name to this procedure, namely the Registration in the Declarant Registry. The Type C Private Warehouse is decommissioned is teamed with the rest of private warehouses.

In addition to the importers, the customs representatives may be holders of the authorization for the registration in the declarant registry.

There will be substantive changes in the management of this procedure.

business customs regime aimed at enhancing export.

What is it?

This customs regime (IPR), allows goods from third-party countries to enter in Spain without payment of import duties and VAT for submission to “Processing” being the products resulting from such transactions (compensating products), intended for export outside the customs territory.

 

IPR systems

Reimbursement: 

Firstly, the customs duties are met and subsequently can be reclaimed when export occurs.

Suspension:

      – Strict Suspension: The goods are imported without payment of duties, they are processed and the regime is finalized with the export.

      – Compensation for equivalence: It is allowed to use in improving community goods equivalent to those imported.

       – Advance Exports: Manufactured products are exported from equivalent goods prior to import.

 

Types of IPR operations

  • They can be from mere repairs or simple manipulation of goods that do not alter their nature.
  • Even operations of complicated industrial/chemical or technological processes.

The C.A.U. Establishes a single system for the IPR, and is the suspension, decommissioning as well as the drawback system. All this coming into force.

What is it?

This customs regime allows export of Community goods temporarily outside the territory of the EU in order to undergo processing operations and to dispatch for free circulation with total or partial relief from import duties, products resulting from these operations.

OPR systems

  • Normal System: Without prior importation.
  • Exceptional system of standard exchanges: It allows the replacement of a compensating product with imported goods (replacement product). There are two modalities:

– Normal Mode:  The replacement product is imported after the export.

– prior importation:   The replacement product is imported before export.