How to Reduce Import Costs: Deferred VAT, Tariffs and Customs Regimes You Should Know

If your company imports goods, raw materials or semi-finished products, there's a reality you know well: importing doesn't just mean taking on logistics and transport costs, it also means facing a significant financial impact arising from customs formalities. 


In an import operation, it's the importer who must pay the taxes associated with the goods before they can be cleared by customs. That's why correctly anticipating these costs isn't a minor administrative matter: it can make the difference between a profitable operation and one that erodes the product's margin. 


Planning an import properly means understanding which taxes apply, when they must be paid and what mechanisms exist to ease the financial burden. The good news is that there are ways to optimize this process and reduce pressure on treasury. 

 

The real impact of importing on the cost structure

Whenever a production chain includes the import of products, raw materials, components or semi-processed items, the final product's cost breakdown must account for all costs associated with international trade. 


It's not just about the purchase price or transport. You also need to assess: 

- The applicable tariffs  

- The VAT treatment on import  

- Customs handling costs  

- Whether the operation is temporary or permanent in nature  

- The final destination of the goods  

- Whether there is subsequent processing, repair or improvement  


Analyzing these factors before launching a product onto the market helps protect margins, calculate prices more accurately and avoid unexpected extra costs. 

 

VAT on imports: how to ease the financial pressure 

One of the main pain points for many importing companies is import VAT. In Spain, there is a particularly useful tool for facilitating international trade: deferred VAT on imports. 


This system allows the VAT impact associated with goods entering the country to be postponed, so the company doesn't have to pay that amount at the moment of customs clearance. In practice, this improves liquidity and reduces the immediate financial pressure on the operation. 


For companies with a significant volume of imports, this mechanism can be key to gaining treasury flexibility and operating more efficiently. 

 

Tariffs: the cost that can't be deferred 

Unlike VAT, tariffs must be paid at the time of import. That's why it's essential to know them in advance. 


Every product has an associated TARIC code, which determines the tariff rate applied to the value of the goods. Correctly identifying this code before importing is essential, not only to calculate the real cost of the operation, but also to assess whether there are alternatives to optimize the tax burden. 


In some cases, a small change in the origin, treatment or degree of processing of the product can change its tariff classification and lead to significant savings. That's why reviewing how the goods fit into the customs framework before moving them internationally isn't a technical detail: it's a strategic decision. 

 

Not all imports should be taxed the same way

Some import operations, due to their nature or purpose, shouldn't bear the same tax burden as a permanent import. 


The key is to correctly declare to customs what the final intent of the goods is. In other words: it's not enough to import a product; you also need to explain why it's entering the country and what will happen to it afterward.


This is especially relevant in cases such as: 

- Commercial samples  

- Sample sets for trade fairs  

- Items intended for presentation to clients  

- Temporarily imported goods  

- Goods that will be processed or repaired before being re-exported


Choosing the right customs arrangement can avoid unnecessary payments and significantly improve the financial efficiency of the operation. 

 

ATA Carnet: a useful solution for temporary imports 

When goods are going to enter a country temporarily and then return to their origin, the ATA Carnet can be the most suitable option. 


It's a document that works as a detailed inventory of the items traveling, and it allows goods to be imported temporarily without carrying out a permanent import. It's especially useful, for example, for shipping sample sets, exhibition pieces or products intended for international trade fairs. 

 

 

When does it make sense to use an ATA Carnet? 

An ATA Carnet is particularly worthwhile when: 

-  The goods will only remain in Spain temporarily  

- Each item can be precisely identified  

- The material will return to its country of origin  

- It involves samples, prototypes or exhibition items  


It's important to note that the carnet must be issued at origin for a specific country and that the goods included in it must return. If any of the items ultimately remain in the country, that situation must be regularized through the corresponding permanent import. 


Another key point is that the original document must physically accompany the goods during transit. 

 

Temporary import: another way to avoid unnecessary costs

Another alternative is temporary import, a customs arrangement that's especially useful when a company needs to bring an item into Spain to show it to a potential buyer, without initially taking on the costs of a permanent import. 


In this case, it's usually the customs agent handling the operation who takes on the risk and the guarantee, although that cost ends up being passed on, one way or another, to the end client. 

What advantages can it offer? 

The logic is simple: 

- The item enters the country temporarily  

- It is presented to the interested client  

- If the sale goes through, the permanent import is cleared in the buyer's name  

- If the deal doesn't materialize, the goods return to their origin without having borne the tariff costs of a permanent import  



This model can be especially interesting in sectors where the unit value of the goods is high and where physically showing the product is part of the sales process. 

 

Inward and outward processing: when the goods are transformed

There are also specific regimes for operations where import isn't the end of the process, but the beginning of a transformation, repair or improvement of the product. 


In these cases, inward or outward processing becomes especially relevant, since it allows customs to be informed of the treatment the goods will undergo and their subsequent destination. 


Consider, for example, a company that imports pearls to set them in Spain and then export them to other markets. If the operation is properly structured under an inward processing regime, taxes are not levied on the full value of the final product, but on the value added in Spain by that service or transformation. 


This makes it possible to better adjust the tax burden and prevent the import from bearing a cost that doesn't match the actual economic reality of the operation. 

 

Customs planning is also profitability 

Often, the biggest mistake isn't paying taxes, but paying them incorrectly, too early or unnecessarily. 


For an importing company, understanding customs variables isn't just a matter of compliance. It's a way to: 

- Protect treasury  

- Reduce avoidable costs  

- Optimize margins  

- Better plan the final price of the product  

- Gain international competitiveness  



That's why, before closing an import operation, it's worth carefully reviewing the type of goods, their classification, the final destination, the most suitable customs regime and the financial impact of each decision. 

 

Importing involves much more than moving goods from one country to another. It also means making tax, customs and operational decisions that directly affect the business's profitability. 



Knowing mechanisms such as deferred VAT, tariff classification via the TARIC code, the ATA Carnet, temporary import or processing regimes can help you reduce costs and operate more intelligently. 



In international trade, good customs planning doesn't just avoid problems: it also creates opportunities. 

 

If you'd like more information, you can request it through our client form or by contacting Macarena Palma Moreno (D&J Transport Advisor)