Customs
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Customs formalities
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• Customs plays a key role in all
international trade operations and its main purpose is to monitor the flowing
goods across the border to conform to the multilateral trading rules. Nowadays,
a large number of rules are being applied to international trade of goods, for
both import and export. In order to expand their business, some traders are
interested to gain control over the customs rules or gain adequate knowledge
regarding the customs procedures being practiced. People who work in the field
of international trade must be familiar with the term customs formalities, but
what is meant by customs formalities? This is a basic question for anyone who
seeks entry into this business, which is address below:
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Customs Formalities
The World Customs Cooperation Council defines customs formalities as follows:
Customs formalities means a set of activities that must be performed by the trader or his legal representative and the customs, so that all customs laws and regulations be properly observed and implemented and the goods be cleared. These activities include matching the goods in the customs with the documents, licenses and certificates that the owner of the goods submits to the customs, in order to clear the goods. In addition, reviewing the relevant declarations and documents and ensuring the accuracy of the value of the goods declared to the customs are among the main activities of these procedures. To thoroughly understand the customs formalities, its implementation steps are explained below:
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A crucial step in customs procedures, is the preparation and submission of a customs declaration, to initiate the cargo clearance steps. As such, the declaring body should present the customs with all the necessary documents; such as the purchase list, certificate of origin, bank documents, required licenses etc. At the first step,
the owner of the goods or his legal representative prepares the appropriate customs declaration form and submits it along with the required documents – (trading) permits, certificates, licenses – to the customs compliance department, where it will be verified by the customs officers. Upon successful verification of declared goods (and their ownership), the value of the declared goods will be determined, based on the list provided by the export commission of the exporting country – assigned by the corresponding (row) number in the declaration form as well as the foreign exchange contract papers. The declaration document will be stamped and the cargo be sealed, afterwards.
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It should be noted that the owner of the goods must go to the Export Development Center before going to the customs and submitting the customs declaration of his goods, to make sure that the price of the desired goods has already been determined by the pricing department of the export goods. However, if there is no pre-approved price, the owner of the goods must submit a written request and also submit a sample to the Export Development Center, requesting the price to be determined by the commission.
In the final stage, customs license and discharge permit will be issued for those cargo with approved documents – declaration, permits, licenses, etc. – and for which export compliance is confirmed.
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Following a comprehensive program
– to reform its traditional style – the Customs department of the Islamic
Republic of Iran has upgraded its computer systems, in order to offer online
services regarding customs affairs, through which the procedures related to
import or export of goods will be facilitated substantially. The reduction in time as well as cost of
customs formalities have been two main goals of creating the novel customs
system. As a result, the obstacles related to the submission of customs
declaration forms have been obviated to a great extent, since the system for
remote filing of customs declaration has been launched. In this way, the owner
of the goods or his legal representative can fill out the customs deceleration
form and submit its corresponding documents, at
any time during the day.
Customs formalities include all
stages from the entry of declaration information into the computerized system
to the clearance of goods.
Clearance of goods from all
customs and conducting commercial and customs affairs with sufficient
facilities, including customs affairs experts, customs brokerage card,
representative offices and experienced personnel.
Supply: bitumen, petrochemicals,
cement, clinker, petroleum products, metals and metal products, grains,
cereals, animal feed and so on.