Products under CN code 3811 90 00 are subject to Hydrocarbon Tax

The tariff classification of a product determines its tax treatment regarding excise duties. Recently, the Directorate General of Taxes (DGT) has clarified the scope of the Hydrocarbon Tax regarding certain chemical products.

What the DGT has resolved

The inquiry focused on determining whether a specific product, classified under CN code 3811 90 00, fell within the objective scope of the Hydrocarbon Tax and whether it could qualify for any non-taxable scenarios. After analyzing the regulations, the binding body has resolved that:

• Products included in CN code 3811 fall within the scope of application of this tax.
• The manufacture, importation, or irregular entry of these products are subject to the tax obligation.
• The requirements to apply the non-taxable scenarios provided for in Law 38/1992 on Excise Duties are not met.

What this means for you

If your company markets, manufactures, or imports products that fall under tariff heading CN 3811, you must assume that these are taxed with Hydrocarbon Tax. This resolution implies that the chemical nature or technical classification of the product is sufficient to trigger the tax obligation, without the purpose of the product exempting it from this payment, unless a specific legal exception is demonstrated that does not apply in this case.

What you should do

Following this confirmation from the tax authority, it is necessary to take the following actions:

• Verify the exact tariff classification of your products to confirm if they fall under CN code 3811.
• Check the correct settlement of the tax during manufacturing and importation processes.
• Evaluate whether there are other non-taxable scenarios that may apply to your specific activity, given that the DGT has denied the application of general scenarios for this specific product.

Each operational situation requires a detailed analysis of the current regulations to ensure compliance with tax obligations.