Melilla does not participate into the European Union Customs Union (EUCU). There is no VAT (IVA) tax, but a local reduced-rate tax called IPSI. Preserving the status of free port, imports are free of tariffs and the only tax concerning them is the IPSI. Exports to the Customs Union (including Peninsular Spain) are however subject to the correspondent customs tariff and are taxed with the correspondent VAT. There are some special manufacturing taxes regarding electricity and transport, as well as complementary charges on tobacco and oil and fuel products.