Commercial Goods, Types, and Related Regulations
Trade is a vast world of terms and regulations that anyone intending to enter this field must become familiar with. Imports, exports, customs duties, and commercial and non-commercial goods are among the terms that traders deal with. But what are commercial and non-commercial goods, and what distinguishes them from one another? Here, we intend to familiarize you with both types of goods and the processes of importing and exporting them.
What is Meant by Commercial Goods?
Commercial goods refer to those items that are imported or exported with the intention of selling. These goods may be sold in their original form, repackaged for sale, or used as raw materials for producing other goods.
Exporters are typically manufacturers or trading companies that export products produced in Iran abroad. Similarly, importing companies can purchase the goods they need from foreign traders, international fairs, and foreign markets to bring into the Iranian market.
The most important factor that qualifies an item as a commercial good is the payment of customs duties (upon departure from or entry into the country). Additionally, commercial goods require a customs declaration, and any company or trader intending to import or export these goods must pay customs duties. Otherwise, the goods will be considered smuggled.
Necessary Documents for Exporting Commercial Goods:
Every trading or commercial company wishing to import or export commercial goods needs the following documents:
- Health certificate for commercial goods (for food and pharmaceutical products);
- A trading card;
- A standard certificate for commercial goods (for certain items);
- Submission of a sample of the commercial good;
- Provision of a packing list;
- Analysis document of the goods (if required);
Non-Commercial Goods
Non-commercial goods refer to items that are not intended for market sale and personal use. Therefore, the quantity or number of non-commercial goods is limited. Moreover, some other items used for production units are not classified as commercial goods by the Iranian Customs and the Ministry of Industry, Mine, and Trade. These include:
- Machinery, industrial parts, and equipment used for production units.
- Goods sent as samples for laboratories before entering the country.
- Equipment needed for laboratory, scientific, educational, and research purposes, as well as brochures, technical and trade booklets, and technical drawings.
Commercial and non-commercial goods are differentiated because of different import and export governing regulations. Inspection permits, trading card, and paying customs duties is crucial for commercial goods. In fact, without these documents, importing or exporting is considered illegal.
Owner of Commercial Goods
The individual whose name appears on the original purchase and shipping documents is referred to as the “owner of the commercial goods,” and the clearance and other documents are issued and endorsed in their name. The owner of the commercial goods can either personally conduct the import or export process or delegate this to another individual (their legal representative). In this case, providing a legal power of attorney for this individual is necessary during the import or export process of the commercial goods.