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Spain is the 16th largest export economy in the world. Main exports include cars and auto accessories – nine out of ten cars manufactured in Spain are exported to over 130 countries. Some of the major pharmaceutical companies remain big exporters, and olive oil is one of the country’s leading agricultural export. There are over 500 companies exporting olive oil with the majority of production coming from the Andalucía region.

Exporting is the next step for a successful business as it lets you reach a more extensive market, resulting in greater profits. Preparation is the key as there will be a need to research and analyse your intended clientele, investigate the competition, and study logistics, regulations, and if your product is actually designed for the export market.

See how to export from Spain here…

Why move towards exporting?

When starting an export business, you must enlist as a taxpayer with the Spanish Tax Agency. Separate rules and regulations are applied to specific products, and you’ll need to use a unique Economic Operator Registration and Identification (EORI) reference number in all communications with Customs and other government agencies involved in export operations.

Once the formalities have been completed you can enjoy many benefits of exporting which include:

  • Not having to depend on the domestic market – selling outside Spain can make your business stronger
  • New business opportunities – global appeal can boost sales and lead to many more openings with additional clients and different markets
  • The experience of working with foreign suppliers and customers – providing an understanding of business multiculturism resulting in a competitive edge
  • Growth – of business size, profits, and company brand recognition – extending your market and boosting your turnover
  • The rewards – justifying any expenses, investments, and risks as your export plan really works

Key issues for selling and distribution

Exportar desde espanaA sure way to improve the success of exports from Spain is to study a few vital topics. These include the decision to sell directly, trade over the internet, attend trade shows or partner up with an experienced local who knows the market.

You could consider employing a distributor able to sell on a local or national level, or a sales agent willing to sell products on your behalf and introduce you to potential new clients and customers. Bear in mind when drawing up contracts with agents or distributors it’s vital to define obligations including delivery and payment options.

Spain exports require you to pay particular attention to laws, VAT rules, legislation, and regulations. You’ll need to find out if any products need an export license, and it’s advisable to get advice from specialist overseas development and trading programmes for support.

Foreign trade transactions

On order to export to a foreign country, you need the services of a freight forwarder to negotiate the logistics of the operation. This includes organising transportation of the goods from the warehouse to the final destination, carrying out customs procedures, and giving helpful advice throughout.

Ensuring then goods get the destination as planned is another responsibility of the freight forwarder. The shipment will be closely tracked so that you know exactly where it is at any time. And you’ll be advised of any changes ongoing.

Negotiation between buyer and seller requires a means of payment to be chosen. This can vary significantly, but upfront payment is always the best option. Alternatives include a letter of credit or documentary remittance from the bank.

Cost, insurance and freight(CIF) is an expense paid by the seller to cover the costs of a buyers order whilst in transit. Once the freight unloads the buyer becomes responsible for all other costs.

Cost and freight (CFR) is an international trade term that requires the seller to transport goods by sea to a named port and provide the buyer with documents necessary to get the items from the carrier. Selling under CIF and CFR conditions is ideal for exporting from Spain.

Documents required to export from Spain

internacional exportacion desde espanaThese are the documents required to export from Spain:

Commercial documents – includes the sales invoice and the packing list alongside the certificates of origin.

Customs documents – SAD – the Single Administrative Document – is the form that needs to be presented to customs for clearance. It’s essential that goods are precisely identified and classified with proper tariff headings and the amounts to be declared as this acts as a tax declaration.

Other documents may include transit documents or an Export Accompanying Document, and a declaration linking the goods to a customs warehouse for example. Speak to a customs agent for advice on the customs documentation required and needed for the process.

Specific documents – covering health or vet’s certificates, export licences, or quality control certificates (SOIVRE).

Transport documents – these basically are the bills related to the mode of transport – air, land, or multimodal and are issued by the shipping company or airline