What are the stages of export in Iran and what documents will be needed?
Exporting offers many potential investment opportunities. Even considering the current situation, this part of the international trade marketing still attracts a lot of attention. In Iran, exporting to other countries all over the world follows a series of special rules that you will encounter in several different steps. In the following parts of this article of Sindbad you will be acquainted with the different steps of the export procedure and the required documents.
Different steps of export
As mentioned earlier, exports are done based on a long, unique procedure that can be as a nightmare for some people. Regardless of the difficulties lied in this procedure, its steps can be summarized as follows.
- Export marketing
- Obtaining export license for the product
- Determining the customs value of the product
- Issuance of pre-invoice or proforma
- Preparing and packing the product
- Concluding a contract of carriage and insurance of commodity
- Obtaining product inspection certificate
- Invoicing and receiving certificate of origin
- Declaring commodity to the customs
Marketing is the most important step in export, recognizing foreign markets and ways to penetrating them, recognizing the nuclei of power, recognizing competitors in the country of destination are the most important parts that require having information about the quality of the commodity, the prices and amount of consumption in buyer’s market.
Different ways to get proper information in order to communicate with the buyers are possible by:
- Direct negotiations with buyers
- Using official information and statistics
- Participating in international exhibitions
- Referring to previous transaction records
- Contacting with Iranian agencies and embassies
- Inquiring from international institutions and communication centers
It is worth to mention that with the advancement of technology, it is possible to access information through Internet sites in the fastest possible way. One of the significant issues in export is advertising. The advertisements should fits to the ethics, consumption culture of the buyers of the commodity and the country of destination; otherwise the advertisements may have their negative reflection.
Obtaining export license for the product
After marketing and finding the right customer, the exporter of the desired product should enter the cycle and process of obtaining the necessary license for export; in this regard, the product exporter should obtain the license of commodity exportation from related organizations such as the Ministry of Industry, Mines and Trade, Ministry of Agriculture, Ministry of Health, and NISO.
Determining the customs value of the product
One of the main steps in exporting any commodity is determining its custom value. Accordingly, at first, the producers send their request to the General Directorate of Exports as a letter; after necessary reviews and expertise, the required rate is determined and submitted to the Export Development Center's valuation commission for approval. After the approval of the desired amount, the Securities and Exchange Commission shall inform the Customs Administration in a letter to export the commodity.
Issuance of pre-invoice or proforma
When the value of product is determined by the customs, exporter of commodity issues pre-invoice for the buyer. The pre-invoice includes complete information about product’s specification, prices and etc. this step is necessary when selling commodity to foreign customers is done by opening documentary credits.
Product preparation and packaging
In this step the exporter is required to prepare the commodity during agreed schedule and according to resulting conditions. The exporter should prepare the commodity according to the required conditions and characteristics by the buyer and provide proper packing for them. Packing should be commensurate with the type of product, the type of shipping and the conditions of the consumer market to not only prevent damage and waste during transportation but also attract the buyer.
Concluding a contract of carriage and insurance of commodity
The debate over international insurance is very broad and includes different topics and cases. Generally, commodity exporter should sign a contract with a reliable international shipping company and insure the commodity until they reach their destination. For further information about international insurance, it is recommended to read the article about different types of international insurance.
Obtaining product inspection certificate
One of the other steps of long difficult procedure of exporting is issuing the inspection certificate of the desired product. Product inspection certificate that is usually requested by the buyer is issued by the institutions agreed upon by the parties.
Invoicing and receiving certificate of origin
The commodity exporter should issue the invoice of their commodity‘s sales according to the contained conditions in proforma. The invoice should be confirmed by Chamber of Commerce and Industries and Mines of its region. Chamber of Commerce will issue the commodity certificate of origin in exchange for a picture of the customs license, the bill of lading and the provided sales invoice. Nowadays, issuing the certificate of origin is done electrically by Certificate of Origin system of the Iranian Chamber of Commerce.
Declaring the commodity to customs
The exporter of commodity goes to the customs with his documents (such as business card, issuance licenses, and etc.) and adjusts the export declaration. The declaration can be adjusted by the owner of the commodity or the lawyer of the owner of the commodity. Some of the contents of the declaration are as follows:
- Names and addresses of exporters
- Name and address of the declarant
- Issuance permit number
- The name of the country of origin
- The name of the country of destination ( buyer of the commodity)
After completing the export declaration, the declaration and its attached documents in the field of customs documents will be examined in terms of controlling the exporter's competence with the declarant, the accuracy of the documents and the contents of the declaration.
Since examining and adopting the shipment specifications with the declaration, and matching content with declaration and matching contents with declaration by customs assessors and paying customs fees (such as warehousing, freight, port costs and etc.) shipping will be available according to the type of shipping that has been contracted with the buyer.
Required documents to export
Required documents during the export process to issue the relevant licenses will largely depend on the export product but generally they can be classified as follows:
- Obtaining a valid business card in the name of the exporter
- Obtaining an export license, in the condition that the Ministry of Commerce has not announced a general agreement for the export of the desired commodity
- Obtaining a health and quarantine certificate (livestock, vegetable)
- Standard certificate, if the commodity is subject to the mandatory export regulations
- Atomic Energy Certificate that also is called as conventional certificates
- Preparing packing form if there are various commodities
- Carpet ID (only for handmade carpets)
The last word
Export is very difficult process full of different twists and turns. This process can have its own steps and difficulties in every country based on the country’s condition. In this article we are trying to explain different steps of export, the required documents for each part, and how to go through all the steps in a simple way. We will be happy if you share your own experiences of going through these steps.
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