Customs Clearance of Machine-Made Carpets

Machine-made Carpet Customs Clearance in Iran (HS Code + Documents & Conditions)

1) Applications of Machine-made Carpets in Iran & Worldwide

Due to their diverse features, machine-made carpets are widely used in various interior decoration sectors. These carpets are used in residential homes, hotels, office buildings, and even large retail stores. Thanks to their high durability, competitive price, and ease of production, they are considered a suitable alternative to handmade carpets. Moreover, machine-made carpets are one of Iran’s key export products, highly demanded in countries such as Iraq, Turkey, GCC states, Europe, and the USA.

2) HS Code of Machine-made Carpets

• For the import and export of machine-made carpets, identifying the product’s HS Code is highly important. Tariff codes 5702 and 5703 specifically refer to machine-made carpets:
  Code 5702: This code applies to machine-made carpets made from synthetic raw materials such as nylon, polypropylene, or polyester. These carpets, due to the use of synthetic fibers, are usually more affordable.
  
  Code 5703: This tariff code relates to machine-made carpets made from natural materials such as wool. These carpets, due to more expensive raw materials, usually have a higher customs value.
  When importing or exporting machine-made carpets, awareness of customs tariffs is essential. Customs duty rates depend on the country of origin and the type of raw materials used. In Iran, these tariffs generally range between 20% and 30%.

3) Import Conditions for Machine-made Carpets into Iran

1. Importing machine-made carpets into Iran involves a set of regulations that importers must carefully follow to ensure a smooth and fast clearance process. Key steps include:
   Order registration in the Integrated Trade System: One of the first steps in importing machine-made carpets is registering the order in the national trade system, confirming the necessity of import and its alignment with domestic needs.
   
   Obtaining necessary permits: Some imported machine-made carpets, especially those with special features or materials, may require permits from organizations such as the Iranian National Standards Organization. These permits demonstrate compliance with national and international standards.
   
   Submitting commercial and customs documents: To clear machine-made carpets, accurate and complete documentation is essential. These include:
   Bill of Lading: as the transport document.
   Commercial Invoice: specifying the value of the imported goods.
   Certificate of Origin: identifying the producing country.
   Packing List: showing the number, weight, and technical specifications of items in each package.
   Valuation by customs: a key step where customs experts assess the value of goods based on documents, determining customs duties and taxes.

4) Export Conditions for Machine-made Carpets from Iran

• As one of the largest producers of machine-made carpets in the world, Iran annually exports a large volume of these products to different countries. Exporting machine-made carpets requires complying with several conditions and regulations, including:
  Obtaining export permits: Exporters must receive necessary permits from organizations such as the Trade Promotion Organization of Iran and the Chamber of Commerce.
  
  Meeting export standards: Export carpets must comply with international standards, which may vary depending on the destination country, including raw material quality, production methods, and even packaging.
  
  Providing customs and commercial documents: Similar to imports, complete documentation including Bill of Lading, Certificate of Origin, and Sales Invoice is required for exports.
  
  Review of tariffs and destination customs laws: Importers in destination countries must be familiar with relevant customs laws and tariffs to avoid clearance issues abroad.

5) Importing & Exporting Countries of Machine-made Carpets

Iran, Turkey, China, and India are among the largest producers and exporters of machine-made carpets worldwide. Due to strong industrial infrastructure and access to raw materials, these countries control a large share of the global market. On the other hand, GCC states, USA, Canada, and many European countries are among the main importers of machine-made carpets from Iran and other producers.

6) Import & Export Volume of Iran’s Machine-made Carpets

Due to Iran’s strong domestic production, imports of machine-made carpets are relatively low. However, exports are significant, with millions of square meters exported annually to international markets, reaching billions of dollars in value.

7) Best & Simplest Method for Machine-made Carpet Clearance

To speed up the clearance process of machine-made carpets, cooperation with a reputable customs broker can be highly beneficial. Experienced brokers, familiar with regulations and documentation, streamline the process and prevent unnecessary delays.

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