When it comes to starting an import/export business, there are a few different models that can be followed, each with a varying amount of risk, responsibility and reward. In this Spain export guide, we’ll briefly discuss the three main types of import/export business, with a focus on the type that is most commonly used as a sort of foreign investment.
The first model is the one with the most responsibility: the export management company, or EMC for short. This type of company manages all aspects of exporting for some company that wants to sell its goods internationally and is usually paid by commission or on salary.
The second model is essentially the reverse of the EMC. An export trading company, or ETC, first determines what products foreign consumers want, and then goes on a search for companies in their own country that make those products. This type of company sometimes works on commission but may also take legal ownership of the goods. Both EMCs and ETCs usually specialize in a specific foreign market or type of product.
Finally, there is the export and import merchant. This model is most similar to other types of investments, almost like a more tangible version of commodities trading. Because the merchant in this case buys product directly from a manufacturer in one country and then resells it to someone in another country, they assume all of the risk involved, but also stand to make the biggest profit on a successful transaction because there are no middlemen involved.
ICEX Spain export and investment
The pubic corporation ICEX Spain Export and Investments (Instituto Español de Comercio Exterior) was created in order to promote internationalization of the Spanish economy and Spanish companies and to improve the nation’s competitivity in a global marketplace. One of its main goals is to attract foreign investments to Spain. ICEX’s website and portals provide a wealth of useful information to people involved in Spain export and import businesses; unfortunately, the site’s information is only available in Spanish at the moment. To help you understand Spain’s export and import market and ensure you are meeting all legal and tax requirements, a bilingual legal team in Spain is a worthy investment.
Spain export and import: invest & export in Spain
One of Spain’s strengths as a country for foreign companies to operate in is its role as a gateway to the Central and South American markets. When you combine all the countries that make up the Latin American market, it constitutes Spain’s second largest receiver of exports.
As a merchant import/exporter/investor in Spain, you will need to be familiar with the Spanish market and the international markets you plan on trading in. When choosing your markets, you need to be cognizant of not just the supply and demand in each country, but also applicable tariffs and logistical issues such as transporting your goods. Remember that, because it is a member of the European Union, importing and exporting with other EU countries will involve the least amount of legal red tape, taxes and duties.