Tobacco Export Regulations
Good morning everyone! Today, from Venerable Capital, we are going to talk about tobacco export regulations, and new regulations, here in Spain, in Germany or in Great Britain. The regulation of tobacco exports varies between countries, so we will also talk about the requirements and data generated by tobacco exports. Do not miss it!
Tobacco regulations when exporting
Tobacco production has allowed the diversification of the market to commercialize other products such as cigarettes, cigars and pipe tobacco mixes. Worldwide, the industry generates almost 4 million tons of tobacco annually and about 42 million jobs directly.
However, tobacco consumption, as required by the World Health Organization, has generated a series of restrictive measures to control smoking. In addition, the prohibition of smoking in certain places, the application of taxes and tax rates, which translate into a significant increase in prices throughout the marketing chain, up to the consumer. The health ministry is looking for smoke-free spaces apart from smoking prevention and control.
It is necessary that the countries and competent organizations support the search for new alternatives and follow up on the commitments acquired by the countries, to adhere to the regulations when exporting tobacco.
Origin of the European Community Tobacco New Regulations
Export products that are marketed in the European Union must comply with the laws established by the member countries, since they must adhere to the product’s own regulations, as well as all the required requirements.
Exports made from the EU are governed by a community law that applies to all member states, but there are also national laws that apply only in the country involved.
It is intended to harmonize both laws to simplify the marketing processes, costs and ensure the protection of citizens. Exporters can benefit from this synchrony, since 27 laws could be replaced by just one.
New regulatory procedure to export tobacco
The law that regulates documentation and customs procedures is the Council Regulation (EEC) and is known as the Community Customs Code (CAC), exporters must keep informed about updates. It establishes the procedures, dispatches, transit, customs warehousing and admission.
The internal market of the EU has a common external tariff, applying the same rates throughout the customs system for member countries, depending on the product and the country from which the export is made.
The tax in accordance with EEC Directive 92/12, is applied to certain products such as alcoholic beverages and tobacco, since they affect public health and the environment, therefore, they are directly reflected on the consumer.
Tobacco market operators
The National Regulatory Authority (ANR) has designed an instruction manual for the various wholesale operators in the Spanish tobacco market. Here you can find all the information about the different standards, forms and procedures for marketing. As well as changes in tobacco export regulations.
To export tobacco from Spain, it is essential to comply with all the regulations, first of all, the mandatory registration will be made in the Registry of Operators of the Commissioner. This enables the exporter function.
Registration is made with the model of responsible declaration provided in the Annex of the Royal Decree of July 9, 1199/1999. Without this authorization in place, the registration to export tobacco is likely to be suspended or revoked.
Tobacco export data
Currently, Spain is considered the third largest tobacco producer in the EU. With an annual production of more than 40 thousand tons, contributing 15% of the total production of the European market.
The tobacco market is almost 100% centralized in 8 tobacco associations and most of the cultivation comes from Extremadura. To a lesser extent in Granada and Ávila.
So the national production of tobacco is an interesting market for export, based on the quality and distinction of the product. In addition, it is a regulated market that implies the payment of taxes and duties when exporting, which favor production and the national economy.
Requirements for the export of tobacco
To carry out the export, it is necessary to carry out a series of procedures before the ICEX Spain export of the Ministry of Economy and Competitiveness. Submit documentation, registration forms and type of transport for logistics operations in the internationalization of products.
First, registration will be made in the Exporters Registry. There a code will be assigned as an exporter, additionally the VAT refund will be requested at the State Tax Administration Agency.
Then the regulatory documentation for the export of tobacco will be issued, which could vary, depending on the country of destination and the type of transport required for logistics. The basic documents required are:
- Declaration for export registration and control (DEPREX)
- Export declaration before customs authorities, Single Customs Declaration (SAD)
- Statistical report of merchandise departure in the European Union, INTRASTAT declaration.
As tobacco is a product that is under a special regime, additional procedures will be carried out for international logistics. Subsequently, the tax requirements are issued and verify that the company in charge of logistics services presents the necessary documents for transportation.
New regulations tobacco export towards Germany
In 2014, new tobacco export regulations appear to Germany. The new regulations are established, in addition to VAT, with taxes on the entry of tobacco into its territory called “Tabaksteuer”. Both taxes must be borne by the receiving company, once the merchandise is received. The application of special taxes and VAT, are paid at the time of dispatch for consumption.
In Spain, special export taxes are not applied in Ceuta and Melilla as they are special territories and a particular regime is applied to the Canary Islands. Additionally, the 3 Spanish territories mentioned above are excluded from the application of VAT.
New regulations tobacco export towards Great Britain
As of January 1, 2021, new tobacco export regulations appear to Great Britain. The new customs control measures that apply to products exported from the EU to them came into force. They are considered special taxes that apply, among others, to tobacco products and tobacco product manufacturing machines.
For them, a Customs declaration must be completed online, through the CHIEF system. The exporter requests access and must send the declarations, where the merchandise movement codes, the registration of European operators and the verification of the payment of taxes were validated.
Commercial operations to export tobacco that are carried out between the member countries of the EU are not considered exports. These are called intra-community operations, so VAT is levied in the country to which the merchandise is shipped.
The rest of the Spanish territories are subject to considerations of special taxes and VAT. They must comply with all the tobacco export processing requirements, together with the customs documentation required by each country of destination.