Updates on Dual-Use Technologies and Defence Equipments
On 30 May 2026, Order ECM/536/2026 of 29 May was published in the Spanish Official State Gazette (BOE), updating ten annexes to the Regulation on the control of foreign trade in defence equipment, other equipment and dual-use products and technologies, approved by Royal Decree 679/2014 of 1 August, which came into force on 5 June 2026.
The main purpose of this Ministerial Order is to bring the Spanish export control regime into line with the latest amendments to European Union legislation, international export control and non-proliferation regimes, and international bodies and treaties. In particular, it transposes Delegated Directive (EU) 2026/325, which updates the list of defence-related products in line with the European Union Common Military List.
The Order amends Annexes I.1, I.2, II.1, II.2, III.1, III.2, III.5, IV, V.1 and, furthermore, the appendix of definitions in the Regulation. In particular, the lists relating to defence equipment, dual-use items and technologies, weapons of war, other controlled materials, as well as the technical definitions necessary for their correct interpretation, are updated.
Through this Ministerial Order, Spanish legislation is brought into line with Regulation (EU) 2021/821, which constitutes the European reference framework for the control of exports, brokering, technical assistance, transit and transfer of dual-use items.
The Order maintains certain national controls in those areas not yet fully covered by European legislation. This provision is particularly relevant with regard to sensitive technologies, software and technical knowledge that may have both civilian and military applications, and is intended to strengthen the capacity to respond to risks arising from the current international security context.
Furthermore, the Order introduces improvements in clarity and legal certainty through the standardisation of terminology, the clarification of classification criteria, a better presentation of the annexes and the updating of certain definitions. These improvements aim to reduce potential misinterpretations by the operators concerned and the competent public authorities.
From a practical point of view, the Order mainly affects:
- Companies exporting defence equipment.
- Manufacturers and distributors of dual-use products.
- Foreign trade operators.
- Public authorities responsible for export controls.
These operators will need to review the classification of their products, technologies, software and technical documentation. They will also need to check whether they are included in the new control lists and, where necessary, adapt their internal export control procedures. Furthermore, the relevant public authorities will have to apply the new technical criteria when processing, reviewing and assessing applications for authorisation.
How can we assist you?
At Salinas & Partners, we recommend that all operators who manufacture, trade, import and/or export defence equipment and dual-use technologies (civil and military) carry out a review of their products and technical and control documentation to ensure full compliance with the obligations arising from the relevant regulations in general and this Ministerial Order in particular.
With over 30 years’ experience in legal consultancy, we at Salinas & Partners are at your disposal for any queries or comments you may have.
- Published in Customs, International Trade
GCEU Case T-691/24 Customs Classification and Excise Duties
On 4 March, the General Court of the European Union (GCEU) published the judgment of the Case T-691/24, ruling on preliminary rulings concerning the interpretation of the Combined Nomenclature and in the field of excise duties (wine and fermented beverages).
The GCEU examines the tariff classification of certain alcoholic beverages produced partly from fermented apple juice and whether these can be classified as cider, despite the fact that a significant proportion of their alcohol content derives from the fermentation of other plants.
The dispute pitted Heineken România SA against the National Agency for Fiscal Administration (ANAF) and the General Directorate for the Administration of Large Taxpayers in Romania. Heineken had purchased and imported into Romania ‘Strongbow’-style alcoholic beverages, packaged in cans and bottles, which it subsequently marketed on the Romanian market. The dispute arose when the Romanian authorities questioned the tariff classification used by the company.
The General Court of the European Union (TGUE) had to determine whether these beverages, consisting of fermented concentrated apple juice, water, glucose-fructose syrup, malic acid, carbon dioxide, potassium metabisulphite and flavourings, could be classified as ‘cider and perry’ under subheadings 2206 00 31, 2206 00 51 or 2206 00 81, despite the fact that between 48% and 53% of the alcohol present in the product derived from plants other than apples, or whether, on the contrary, they should be reclassified under subheadings 2206 00 39 or 2206 00 59, relating to ‘other fermented beverages’. In other words, the main issue was to clarify whether the quantity of alcohol not derived from the fermentation of apples prevented the drink from being classified as cider, even though it possessed identical characteristics.
This issue was particularly relevant as Heineken România had classified the beverages under subheading 2206 00 51, for which the excise duty rate in Romania was zero. However, the Romanian authorities considered that the products should be reclassified under subheadings 2206 00 39 or 2206 00 59, due to the high percentage of alcohol derived from the fermentation of other plants. These subheadings were subject to excise duties of €41.88/hl and €9.31/hl respectively in 2015, the year in which the inspection began.
The TGUE concludes that the fact that the drink contains a considerable proportion of alcohol derived from other plants is not sufficient to exclude its classification as cider, as the regulations do not stipulate any minimum percentage of alcohol derived from the fermentation of apples for it to be classified as cider.
For the correct classification, the TGUE applies general interpretative rule 3(b) of the Harmonised System, focusing on the essential character of the product. Thus, it is understood that the high percentage of alcohol derived from other plants did not alter the nature of the cider, as it continued to retain its organoleptic characteristics and was intended to be consumed as cider. Consequently, the classification made by Heineken România S.A. under the subheading ‘cider and perry’ was correct.
How can we assist you?
Salinas & Partners, with over 30 years’ experience in customs and international trade matters, are at your disposal to assist you with the correct tariff classification of your products and the assessment of associated tax risks, as well as with the review and challenge of tax assessments that may arise from incorrect classification criteria.
- Published in Customs, Excise Duties, International Trade
The EU-Mercosur Trade Agreement comes into force
On 1 May 2026, the Trade Agreement between the European Union and Mercosur (Argentina, Brazil, Uruguay and Paraguay), signed on 17 January, will enter into force on a provisional basis. Its main objective is to create a free trade area between the two blocs through the gradual elimination of tariffs, thereby facilitating trade and investment between the regions.
The agreement will remove import duties on over 91% of products for both blocs. This removal will take place in stages over time, in accordance with the tariff reduction schedule set out in the Agreement.
Among the goods and sectors that will benefit from this agreement are the following:
Exports of products originating in the EU
- Motor vehicles
- Industrial machinery
- Chemicals
- Agri-food products
- Textiles
Exports of products originating in Mercosur
- Raw materials
- Agri-food products
- Meat products
In order to benefit from the Trade Agreement and the underlying preferential treatment, operators trading in goods must comply, amongst other conditions, with the Direct Transport clause (direct shipment between exporter and importer or under customs supervision) as well as with the Rules of Origin set out in the Agreement for goods subject to trade.
The preferential origin of the goods being traded may be substantiated by means of self-certification or a declaration of origin. During this transitional period, the proof of origin fully recognised by all parties (evidence of the preferential origin of goods traded with a value exceeding 6,000 euros) shall consist of a declaration of origin, issued on the invoice and drawn up by a REX-registered exporter (duly authorised by the customs authority of the exporting country).
How can we assist you?
We recommend operators conducting international trade with Mercosur countries to analyse, amongst other provisions, the Rules of Origin applicable to the goods being traded, and, where applicable, apply for the mandatory REX registered exporter authorisation, which will allow them to access the benefits provided for in this important trade agreement.
Salinas & Partners, with over 30 years’ experience in international trade and customs, are at your disposal for any queries or comments you may have.
- Published in Customs, International Trade
Spanish tax measures in response to the effects of the conflict in the Middle East
On 21 March 2026, Royal Decree-Law 7/2026 of 20 March (ratified on 26 March) was published in the Official State Gazette, approving the Comprehensive Plan to Address the Crisis in the Middle East, which includes, amongst other measures, various tax measures aimed at mitigating the impact of rising prices for energy and electricity products resulting from the international energy crisis.
The main measures approved in this Royal Decree in relation to the Excise Duty on Hydrocarbons, the Excise Duty on Electricity and Value Added Tax are detailed below.
- Reduction of Hydrocarbon Excise Duty rates
The Hydrocarbon Excise Duty rates applicable to the main energy products are reduced, bringing them to the minimum levels permitted by Directive 2003/96/EC restructuring the EU Community framework for the taxation of energy products and electricity.
This reduction applies, amongst others, to products such as leaded and unleaded petrol, general-purpose diesel, fuel oil, LPG, natural gas, kerosene and biofuels.
- Reduction in the rates of the Excise Duty on Electricity
The Royal Decree-Law establishes a reduction in the rate of the Excise Duty on Electricity, which is lowered from the general rate of 5.11269632% to 0.5%. However, minimum rates of €0.50 per megawatt-hour are set for industrial uses, agricultural irrigation, rail transport and certain vessels, and €1.00 per megawatt-hour for all other cases.
In addition, reductions are introduced in the tax base for the Tax on the Value of Electricity Production for the 2026 financial year, to offset the costs being borne by companies. These reductions will be implemented by reducing the tax base by a percentage of the revenue corresponding to the electricity fed into the system during the first two quarters of the year, with the aim of reducing electricity generation costs and promoting more competitive prices in the wholesale market, which are expected to result in lower electricity prices for the end consumer.
- Reduction in VAT rates on certain energy products
In the area of Value Added Tax, the VAT rate applicable to supplies, imports and intra-Community acquisitions of goods relating to electricity supplied to contract holders with a contracted power of less than 10 kW, electricity supplied to beneficiaries of the social tariff who are classified as severely vulnerable or severely vulnerable at risk of social exclusion, natural gas, briquettes and pellets derived from biomass, firewood, petrol, diesel and biofuels intended for use as motor fuels.
- Key dates
All these measures are temporary in nature and come into force from their publication in the Official State Gazette (21 March 2026) until 30 June 2026. However, as these are exceptional measures, their application is subject to the change in the CPI during the month of April; therefore, if the change in the CPI for these products does not exceed that of the same month of the previous year by more than 15%, the reduction will cease to apply in June 2026.
How can we assist you?
Our team of specialists in indirect taxation and excise duties can advise you on analysing the impact of these measures, the correct application of the new tax rates and compliance with the tax obligations arising from the new regulations.
Salinas & Partners, with over 30 years’ experience in excise duties and VAT, is at your disposal to answer any queries you may have.
- Published in Electricity Tax, Environmental Taxes, Excise Duties, VAT
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