Special Supply System (REA)
REA, the Specific Supply System, is a special system applicable in the Canary Islands for the entry or import of certain agri-food products from the European Union or third countries, designed so that, by complying with a series of requirements and obligations, the operator can benefit from the introduction of aid or exemption from customs duties.
It is regulated by the following Regulations:
Regulation 228/2013 of the European Parliament and of the Council, of 13 March, laying down specific measures for agriculture in the outermost regions of the EU.
Commission Implementing Regulation (EU) 180/2014, of 20 February, setting out provisions for the application of Regulation 228/2013 of the European Parliament and of the Council, laying down specific measures for agriculture in the outermost regions of the EU
To benefit from REA, the operator must meet a number of initial requirements:
- Be registered in the REA Operators Registry:which administered by Economic Promotion of the Government of the Canary Islands.
- Application for a REA certificate at Economic Promotion of the Government of the Canary Islands or at the Regional Trade Department, enclosing the invoice, transport document and certificate of origin or T2LF.
- Submit the REA certificate together with the customs declaration to the customs authorities within, as a general rule, 15 working days of unloading the goods
- Comply with the obligations of the scheme:Financial result of the advantage granted (aid or duty exemption) to the end user
The products included in the forecast supply balance approved each year up to the quantities indicated therein.These products include meat, milk, cheeses, butter, wheat, rice, straw, among others.
For further information, consult gobiernodecanarias.org - Economic Promotion - Specific Supply System - Balances and Aid
The export or dispatch of unprocessed products or processed or packaged products containing products that have previously benefited from REA are subject to a series of conditions laid down in Article 13 of Regulation 180/2014, in particular:
- Quantities of products which have benefited from a duty exemption and are exported shall be re-entered in the forecast supply balance.
- Quantities of products which have been exempted from duty and are dispatched shall be entered again in the forecast supply balance and the amount of import duties corresponding to the imported goods shall be paid by the consignor at the latest when the goods are dispatched, and may not be dispatched until the duties have been paid.
- Quantities of products which have benefited from aid and are exported or dispatched shall be entered again in the forecast supply balance and the exporter or consignor shall reimburse the aid granted no later than the time of dispatch or export and may not be dispatched or exported until the aid has been reimbursed.
- The export or dispatch of processed products other than the ones mentioned above and not covered by traditional flows or regional trade shall require certification by the exporter that such products have not benefited from REA.
The certificates must be submitted to the customs authorities within 15 working days of the date of authorisation to unload the goods (activation of the temporary storage summary declaration).
However, in the case of goods in inward processing or customs warehousing in the Canary Islands which are subsequently released for free circulation, the maximum period of 15 days shall begin on the day on which the corresponding aid, import or exemption certificates are applied for.
No, certificates can only be used for a single operation when carrying out customs formalities.
The operator must mark box 36.2 code 85 or 86 (if tobacco), indicating the number of the REA certificate issued by the issuing body in box 44, and the REA product code in box 33.
(Appendix X, point A, of the Resolution of 11 July 2014, from the Customs and Excise Taxes Department of the Tax Agency, setting out the instructions for the formalisation of the Single Administrative Document (SAD)
Yes, processors declaring their intention to export processed products containing raw materials that have benefited from the REA upon introduction or import under traditional trade flows or regional trade, or to dispatch under traditional trade flows, may do so without reimbursement of the advantage granted on entry provided that the annual quantitative limits indicated in Appendices IV (traditional flows) and V (regional trade) of Regulation 180/2014 are not exceeded.
The exporter or consignor must enter code 805 or 806 in box 37.2 of the SAD.
Yes, dispatches or exports of these products must be declared specifically in the SAD by entering specific codes in box 37.2, depending on whether they are exports or dispatches of processed or unprocessed products containing goods which were eligible for aid, exemption or benefits on entry.
You must also declare certain data in boxes 44, 40 and 17.a) in accordance with the provisions of the SAD Resolution.