Important Tips on importing from Iran – points to purchase from Iran
Suppliers and manufacturers around the globe offer a wide variety of goods that could suit your business. You might be able to find lower-priced supplies, giving you a competitive edge, or new supplies that allow you to sell a completely different product.
When importing from Iran, there are a number of things you will have to consider. This may range from managing long-distance relationships to organizing international transport and customs clearance.
If you are considering purchase from Iran, read our top ten tips to help you get started:
1) Plan your import objectives
Before you start importing, it is a good idea to be clear about what you are trying to achieve. You might be looking at Iran to find a cheaper source of supplies, or to import products that aren’t yet available in your country to sell to your customers. At the same time importing should fit in with your overall business strategy.
2) Identify a good, legitimate and reliable supplier
Check the supplier is creditworthy and can meet your quality standards. You should assess product quality and check that the goods you buy are suitable. You need to know whether the supplier outsources any work to subcontractors.
You will also need to understand the culture of the Iranian market to establish a successful relationship with your suppliers. Farsi is the official language in Iran which is spoken by over eighty million people. Making an effort to learn a few short phrases can help to establish mutual confidence.
3) Negotiate the right deal
Understanding your own strengths and weaknesses, and what your supplier’s priorities are, helps you negotiate the best deal. For example, if you have a healthy cash position, you could offer to pay more promptly in return for a more economical price.
The Iranian believe that prospective business partners should build a relationship and, if successful, commercial transactions will follow.
4) Reduce risk by having a clear contract
It is vital to have a clear contract setting out exactly what payment and delivery terms you have agreed. Using internationally agreed Incoterms (International Commercial Terms) helps reduce the risk of delivery problems or misunderstandings of purchase from Iran. The contract should also cover what payment is required, when and in what currency, and what payment method will be used.
5) Choose which method of transportation you are going to use
When making your choice as to how you are going to import, you will need to decide whether to handle logistics by yourself, or outsource the work to a freight forwarder.
When purchase from Iran your main options are air, land, train and sea. If your business needs to transport large quantities (such as petroleum products, chemicals, metals and minerals) but there is no pressure to deliver quickly, shipping by sea may be suitable. However, if you require your items quickly and with higher levels of security (such as handmade carpets, saffron, handicrafts), shipping by air might be more appropriate.
6) Familiarize yourself with your country Trade Tariff
The Integrated Tariff of each country, also known as the Tariff, is a guide that clarifies what you as an importer or exporter need to know and the rates of duty you should pay. You can use the Tariff to find the current duty and import VAT rates as well as to tell you whether your goods require a license.
7) Understand the importance of commodity codes
When trading with Iran, you will need to find the correct commodity code for your goods so you can fill out customs paperwork accurately. Once you know the commodity code, you can look up other important information such as duty rates and any import or export restrictions.
8) Check if you need an import license
You may need an import license to import goods from Iran into your country. There are import controls on a range of different goods.
9) Taxes and duties on imports
It is important that as a trader you know whether you have to pay import VAT and duty on your goods before they can be cleared for entry into your country. Imports may be liable to import duty, depending on the classification of the goods and where they come from.