In the world of international trade, customs and tariff costs have a significant impact on the final price of goods and profitability. To maintain competition in international markets, traders must adopt strategies to reduce export and import costs. In this article, practical methods are examined to reduce customs and tariff costs so that companies and traders can optimize their costs and increase their trade efficiency.

1.Correct Selection of Tariff Code (HS Code) and Accurate Goods Valuation

The tariff code (HS Code) is a global classification system for goods that has a direct impact on the number of tariffs and customs costs. Incorrect selection of this code can lead to increased customs costs or fines. According to data from Iran Customs, improper use of HS code produces more than 30% customs duty, giving additional punishment.

Solutions

• Referring to official systems such as Iran Customs website (irica.ir) for accurate and proper selection of tariff codes
• Receiving consultation from customs experts to prevent potential errors in valuation
• Comparative review of goods value with similar samples in the international market

2.Use of Preferential Trade Agreements

Iran has signed preferential trade agreements with some countries, which reduce customs tariffs for some goods. For example, Iran’s agreement with the Eurasian Economic Union involves tariff cuts for more than 800 items, resulting in a reduction of customs costs by 10 to 50%.

Solutions

• Reviewing the list of goods covered by preferential tariffs on the ministry of industry website and Iran Chamber of Commerce
• To interact with business partners to benefit from these discounts in commercial contracts

3.Customs exemption and encouragement

Some discounts and customs facilities can help reduce import and export costs. For example:

• Free trade zone: The import of goods in these areas is free from customs tariff. In 2023, more than 20% of Iran’s imports were made through free zones, resulting in an average of 15% reduction in customs costs.
• Temporary admission of goods: Import of raw materials for processing and re-export without paying customs duties

Solutions

• Reviewing conditions and regulations of free trade zones on the Free Zones Organization website (freezones.ir)
• Utilizing the temporary admission scheme for goods to reduce production costs

4. Optimizing logistics and selecting cheap transport routes

Choosing cost -effective transport routes can have significant effects on reducing the final cost. Studies have shown that using sea transport compared to air transport can reduce the cost by up to 35%.

Solutions

• Comparing sea, land and air transport costs and selecting the most cost -effective option
• Cooperation with reputed transport companies that specialize in management of transit costs

5. Using Digital Technologies in Customs Processes

Using electronic customs systems and document digitization accelerates the clearance process and reduces costs from delays. According to the World Bank report, using digital customs systems can reduce goods clearance time by up to 30% and halve administrative costs.

Solutions

• Using Iran Customs EPL system for electronic registration of customs declarations
• Digitizing internal company processes to reduce human errors and additional costs

How to Reduce Customs Costs?

To reduce customs costs, accurate selection of tariff codes and correct goods valuation is essential. The use of preferential trade agreements can reduce customs tariffs and create more economic benefits for traders. Additionally, using customs exemptions and incentives such as free trade zones and temporary admission of goods are among the most effective strategies for optimization of customs costs.

In addition, the optimal management of transport and logistics helps reduce the extra costs and facilitates the import and export process. Finally, using electronic customs systems and digitizing business processes can increase efficiency and reduce additional costs.

Collaboration with Mahta Vista Kish for Reducing Customs Costs

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