China is one of the oldest countries in the world, which is one of the most important countries in the world economically, politically and commercially due to having several wide water and land borders along with access to seas and open waters from several points and has extensive commercial relations with many countries of the world. In this regard, one of the most important trade partners of Iran in recent years is China. A large part of the import of goods to Iran belongs to imports from China; So that China has allocated more than a quarter of imported goods to Iran. According to published statistics, the amount of goods imported from China to Iran until October 2023 was nearly 800 thousand dollars, equivalent to a figure of nearly 20 billion tomans. Due to the reasonable price of Chinese goods, a very good profit can be made from importing goods from China. For this reason, many merchants have focused on importing goods from China. On this basis, it is necessary for businessmen and traders to have sufficient familiarity with compliance with requirements, customs laws and the security of purchasing from suppliers.
According to Total News, in this article, we will explain the guide to importing goods from China, along with concrete tips on the methods of identifying suppliers, transportation, and clearance procedures from China.
The steps for importing goods from China
To import goods from China to Iran, the following 9 steps are required:
First step: product selection
First of all, you should choose products that are allowed to import to Iran, taking into account the conditions and laws of Iran. For example, it is prohibited to import firearms. Choose your desired product and see if it meets the needs of your target audience in Iran or not. In the second step, the chosen product should have low taxes and customs duties to reduce the costs and thirdly, there is a high demand for that product in the market. After choosing the product, do research on the desired product market in Iran and identify your competitors in this field so that you can perform better in this market.
Second step: choosing a supplier
To choose a supplier, you need to research and make sure that it has the ability to supply your goods. For example, if you decide to import raw materials, it is better to choose a large and experienced company to order this product. You can find manufacturers and sellers of goods in China by searching the Internet and find their products in the site’s product list.
Third step: technical specifications and price list
After passing the mentioned two steps, you should receive the technical specifications and price list from the seller. Don’t forget to get quotes from several sellers so that you can negotiate and bargain. It is best to ask the supplier for a sample before ordering so that it matches your criteria.
Fourth step: Signing a contract with the supplier
In order to cooperate and buy goods, you must conclude a contract with the supplier and mention the price of the goods, shipping method, payment method, obligations of the parties to each other and many other details in it.
Fifth step: order registration from the supplier
After agreeing with the seller, you need to receive the contract, proforma invoice and final invoice. Obtaining a certificate of origin from the seller is mandatory and verifies the authenticity of your item. At this stage, you will budget all the import from China and make the final payment for your order.
Sixth step: Shipping cargo from China to Iran
Choosing a suitable shipping method can end all your worries for the goods to reach their destination. If your goods are not heavy and time is important to you, choose air transportation. But the most economical way is shipping from China. The two customs of Bandar Abbas and Bandar Bushehr are among the important customs of Iran for transportation from China and with competitive prices and up-to-date logistics services, they clear your goods with complete safety.
Seventh step: Allocation of currency and purchase of goods
After registering the order and obtaining the necessary permits, the government will allocate you one of the types of government currency, nimai, currency from the place of export and free currency, based on the type of imported goods, and you can remit the pre-invoice amount to your supplier through bank exchanges. It is better to consider the cost of transporting goods from China to Iran and other costs before taking any action. When your goods arrive at customs, you must pay the following to clear them:
Customs duties and merchants’ interest (4%)
Insurance
Warehouse bill and storage fee
Complications of the Red Crescent (1%)
Municipal taxes (3%)
Tax on account (4%)
Value added tax (6% to 9%)
The customs tariff of each product is defined depending on its type and the international code of the product. In addition, consider the cost of shipping from China, loading and unloading, and possible excess costs so that you can import from China with more confidence.
Eighth step: transport goods and insurance policy
After you have purchased the goods from the supplier, it is time to ship the goods. Note that before moving the goods from the origin, you must insure your goods because the provision of an insurance policy is required for goods clearance. You transport your goods by one of the methods mentioned above, and after entering one of the country’s customs, the clearance process begins.
Ninth step: Customs clearance
In order to get the goods out of customs, you must clear them. At this stage, there are rules that are different for each product, and you must be aware of the customs rules of the goods you intend to import before doing all these steps.
To clear the goods from customs, you hand over documents such as bill of lading, invoice, certificate of origin, packing list (baling list), insurance policy, special permits for the goods from the country of origin and other shipping documents and start the goods clearance process. It is better to entrust the clearance of your goods to one of the trading companies that specialize in this work because customs clearance has complications that must be done by an expert. Finally, you pay the clearance fees, taxes, and customs duties and get your goods out of customs.
To transport goods from China and start the customs clearance process in Iran, you need the following documents:
Business Cards
Delivery order or clearance document
Warehouse Receipt
bill of lading
packing list
Proforma invoice and invoice
Certificate of Origin
Standard certificate (for some goods)
Customs declaration
Authorization to place an order
Receive international commodity code (HS Code)
After your goods arrive in Iran, the customs will check your documents and if the documents are complete and your goods are eligible for entry, the clearance process will begin with three routes, red, yellow and green.
The green track means that your documents and imported goods can be verified in every way and the clearance is done quickly.
The yellow track means your product needs a standard certificate and more detailed checks need to be done to match the documents you provided.
The red track means that the goods you have imported from China must go through the customs laboratory inspection stage and obtain a standard certificate, and physical inspection of the goods will be carried out. This track depends on the type of goods and usually those who have just started importing are placed in the customs red track.
What is the best product to import from China?
Imported goods from China are divided into two general categories: industrial and consumer. As it is known, industrial goods are to meet the needs of the production line of factories and manufacturers in order to produce the final product, while consumer goods are directly entered into the market and sold as final goods.
The wide range of goods imported from China to Iran makes us need to categorize them in order to prepare a comprehensive list of the best Chinese imported products. The best imported Chinese goods including home appliances, electronics, sporting goods, clothing, auto parts (parking equipment, tracking cameras, travel equipment, car radios and car safety systems), cosmetics, imported products, toys, stationery, agricultural products (corn, rice, barley, wheat, vegetables, etc.), construction products, alloy steel, iron, medicinal plants, all kinds of passenger cars, heavy vehicles, industrial machinery. Some goods are imported from China in a small and small scale, which can refer to wallpaper, chandeliers and lamps, all kinds of clothes, mobile phones, laptops and their accessories, plastic items, all kinds of fabrics and textiles, bolts and nuts, etc.
Some of the most profitable products to import from China are cosmetics, kitchen appliances, mobile parts, sporting goods, toys, virtual reality or VR. Of course, it is important to pay attention to several points in import; which goods imported from China are profitable depends on your purpose of importing goods from China.