Guidelines for Exporters & Importers
Introduction
According to Iranian Import & Export Regulations a number of goods have to be inspected
by third party independent inspectors approved by The Institute of Standards and
Industrial Research of Iran (ISIRI) and Central Bank of Iran (CBI). These regulations may
have been generated by ISIRI and/or CBI and in any case are binding upon the
inspectors.
Upon successful inspection and testing of the consignment if applicable, BIS will issue a
Certificate of Inspection (COI) or Inspection Certificate (IC) based on exporter’s Letter of
Credit (L/C) terms and conditions to facilitate negotiation of shipping documents at the
counter of Negotiating Bank.
Overview of Services Provided
1-Inspection Certificate (Quality, Quantity and Packing)
Importer receives proforma invoice and nominates an inspection company guided by
exporter's request (as possibly indicated in the proforma invoice) and his own preference.
a) Buyer applies for opening of a Letter of Credit (L/C) at his bank, or,
b) In case of Collection Transactions that L/C is not required and documents will be
delivered either against payment (D/P) or against acceptance (D/A), and importer
registers the intended import at his bank.
a) Opening bank issues the L/C and sends it by telex or SWIFT message to the
advising bank located in the country of the exporter, or
b) In case of Collection Operations, i.e. either Documents against Payment (D/P), or
Documents against Acceptance (D/A), importer's bank issues a registration letter
indicating the related Import Registration Number.
The bank sends a copy of L/C or Import Registration Letter to the importer, together with a
letter instructing the importer to send a copy of the L/C or registration letter to the inspection
company.
Upon receipt of the L/C or Import Registration Letter and the Proforma Invoice, or one of
these documents, BIS PSI Dept. allocates a File Number called BFN and sends documents
and inspection assignment order to the executing office. In case documents are missing,
BIS PSI Dept. contacts the importer in order to obtain them.
The Executing Office in Exporter’s country will send a Notification to Exporter requesting
information required to carry out the site inspection. Once this has been received, a visual
inspection will then be performed. Upon satisfactory inspection and receipt of acceptable
final documents a Inspection Certificate will be issued to the exporter.
Random Inspection
Unless the importer requests otherwise, a pre-shipment inspection is:
- Check presence of 100% of packages
- Select a number of packages at random
- Check 100 % of the contents of the randomly selected packages
verify nature / description
verify quantity
verify if it is brand new / apparently sound etc.
take samples, if applicable
take pictures
The basic rule for establishing the number of items or packages to be checked at random is
the square root of N, where N is the number of items or packages. For example if we have
100 packages of the same item , 10 packages have to be drawn and we can start with the
first one available then count and pick every 10th packages.
Reference documents
The reference documents for PSI are:
1. Importer’s copy of the Letter of Credit + amendments (if any)
2. Importer's copy of the proforma invoice + amendments (if any)
3. Exporters /supplier's packing list. This is the declaration of what exporter declares to
ship. This should correspond with the Letter of Credit and the proforma invoice.
4. Any other document such as specification, analysis sheet, drawings etc. supplied
by the buyer.
Satisfactory inspection results
If the inspection showed the goods are in accordance with the Letter of Credit, proforma
invoice and other relevant documents, and also in the satisfactory condition the inspector
will issue a Release Note.
The Release Note will have a maximum validity of one month or less, to be determined by
the executing office, depending on the intended storage of the goods. If the goods are not
shipped within one month the executing office should ensure that the goods are still in the
same condition as they were at the time of inspection. Supplier's written statement in this
respect is acceptable, however in case of any doubts, for example on the basis of
experience with the storage place or extremely long storage period, re-inspection should
take place.
Requirements for issuance of the Inspection Certificate
The Inspection Certificate can only be issued on the basis of the following
information/documents:
1. Copy of the L/C including the requirement for an Inspection Certificate issued by
BIS, or authorisation from BIS PSI Dept. to waive this requirement
2. Importer's copy of the proforma invoice, or authorisation from BIS PSI Dept. to
waive this requirement.
3. Satisfactory inspection results
4. Copy of clean transport document i.e. on board Bill of Lading / flight endorsed
5. Packing list
6. Final, commercial invoice
Banking regulations after issuance of the Inspection Certificate
Exporter sends the Inspection Certificate to the negotiating bank together with the other
required documents.
The negotiating bank
a) In case of L/C payment checks the Inspection Certificate and other shipping
documents against the L/C within 5 banking days after receipt of the documents
a.1)
If O.K.
The exporter will be paid within 5 banking days (L/C at sight) or will be paid
after deduction of issuance charges`
a.2)
If not O.K.
The exporter will be notified and is given the possibility to take
corrective action.
a.3)
If still not O.K.
The exporter will not be paid. The negotiating bank sends the
documents to the opening bank on collection basis.
b) In case of collection operation:
b.1)
D/P (Documents against Payment) the negotiating bank will send the
Documents to the opening bank for collection of the proceeds.
b..2
D/A (Documents against Acceptance) the negotiating bank will send
the documents to the opening bank for acceptance and collection of
the proceeds.
The opening bank in Iran
a) In case of L/C payment, checks the Inspection Certificate and other shipping
documents against the L/C within 5 banking days after receipt of the documents
a.1)
If O.K.
Importer is notified and requested to pay the amount of exporter's
invoice. Upon receipt of the payment the opening bank submits all
documents to the importer.
a.2)
If not O.K.(minor discrepancies)
The importer may accept the discrepancies and proceed as mentioned
under a.1)
a.3)
If not O.K. (major discrepancies)
In case the negotiating bank has already paid the exporter, he is
instructed to withdraw the payment. The importer is instructed to
present the goods for inspection to one of the authorized Iranian
inspection companies. After inspection and receipt of inspection
certificate, the importer submits this certificate to the bank together with a
copy of invoice. The bank checks the certificate against the L/C, and if o.k.
the importer is notified and requested to pay the amount of exporter's
invoice, after deducting the amount of inspection fees. The remaining
amount is remitted to the exporter through the negotiating bank.
b) In case of collection:
b.1) In case of D/P (Documents against Payment) the opening bank
delivers the documents to the importer against payment.
b.2)
In case of D/A (Documents against Acceptance), the bank delivers
the documents against acceptance by the importer.
The importer submits the documents to Customs Authorities and the latter inspect the
goods in order to determine the import duties. The goods are released against payment of
the import duties.
2- Certificate of Inspection (COI)
In addition to visual inspection, all products listed on ISIRI’s mandatory verification of
conformity list will be required to undergo standards verification. An applicable ISIRI
approved standard is stipulated on the L/C, P/I by the importer before the documentation is
submitted by the bank to our office in Tehran.
The products to be shipped are tested at an accredited laboratory.
The exporter provides declaration to BIS which verifies that the product(s) complies with the
product standard(s) stipulated on the L/C and/or P/I.
Upon successful completion of these elements and the site inspection, the exporter then
sends the required final documents, and a Certificate of Inspection (COI) is subsequently
issued by BIS.
Each (COI) must be attached with:
A. Original MD / SD (Manufacturer’s or Supplier’s Declaration issued on their
letterhead signed and stamped by them and stamped by BIS agent).
B. Original Test Report issued on the accredited lab. Letterhead. In some cases
and if an accredited laboratory is not available or Manufacturer’s Laboratory is
ISO certified , by authorization of BIS PSI Dept., the tests can be performed in
manufacturer’s lab. and witnessed by our inspector. In such cases the test
report must be issued on the manufacturer’s letterhead and it must be signed
and stamped by manufacturer’s lab authorities , countersigned and stamped
by the inspector.
Acceptable Standards
ISIRI – Iranian National Standards
ISO (Except ISO 9000 series & ISO 14000)
IEC
ITU
EU Standards
CODEX
EN,DINEN,BSEN, BSI, DIN, AFNOR ( both France and Spain), NNI, IPQ, IBN, ON, DS,
SIS, NSAI, ELOT
American Standards (ANSI, ASTM, ASME, UL, API, AGI, etc.)
Japanese standards (JIS)
Main Auto Manufacturers’ standards ( These standards are just applicable for importers
who are car manufacturers)
Pegeout, KIA Motors, Nissan, Citroen, Mazda, Daewoo, Landrover, Santana, DaimlerChrisler, Hyundai, Volvo, Ivico, Renault, MAN, ZF, Libher, Voith, etc.
The above standards are acceptable by ISIRI. However, in order to facilitate testing
process, the applicable standard as well as the typical test report will be sent to the
executive office by BIS PSI Dept. separately for each order. The tests must be run as per
the typical test report.
Requirements for issuance of COI
1. Copy of the L/C including the requirement for an Inspection Certificate issued by
BIS, or authorisation from BIS PSI Dept. to waive this requirement.
2. Importer's copy of the proforma invoice.
3. Satisfactory inspection results
4. Original copy of test report either on manufacturer’s or accredited laboratory’s
letterhead
5. Original copy of signed and stamped manufacturer’s / seller’s declaration
6. Copy of clean transport document i.e. on board Bill of Lading / flight endorsed
7. Packing list
8. Final, commercial invoice
Important Points
Shipment without inspection
In cases that the goods are shipped without pre-shipment inspection, according to the
regulations of the Central Bank of Iran the goods are to be inspected at destination by an
Iranian Inspection Company BIS being one of them. In short BIS will do inspection at
destination if possible, at the request of buyer or the issuing bank.
Non – Conformity Inspection Report
If discrepancy observed and not removed based on the instruction received from BIS PSI
Dept. the NON – CONFORMITY INSPECTION REPORT must be issued.
Chamber of Commerce certification
As per special regulation of the Central Bank of Iran the Inspection Certificates issued by
Iranian inspection companies, including BIS do not need to be certified by the local
Chamber of Commerce, if requested by the importer, but some importers do not care this
point and therefore the opening bank do not delete this requirement from their standard L/C
text.
The executing office should recommend exporter to ask importer for LC amendment, and if
for any reason LC is not amended the inspection certificate should be attested by the
Chamber of Commerce at exporter's cost.
Inspection Fee
Inspection fee will be quoted to Buyer/ Seller as follows:
Fee payable by importer
:
BIS quotes the fee to the importer
Invoices to the importers are issued by the BIS Accounting Dept.
Fee payable by exporter
:
Executing / Issuing office quotes directly to the exporter
Invoices to the exporters are issued by the executing office.
Glossary of terms
AIRWAY BILL
:
A RECEIPT LISTING GOODS SHIPPED ON BOARD AN AIRPLANE ISSUED BY
A CARRIER OR NAMED AGENT FOR OR ON BEHALF OF THE CARRIER
ACCREDITED LAB
:
A LABORATORY THAT IS ACCREDITED BY AN INTERNATIONAL OR NATIONAL
ACCREDITATION BODY, OR RECOGNIZED BY A GOVERNMENTAL
AUTHORITY, OR CERTIFIED ACCORDING TO ISO 17025.
APPLICANT
:
BENEFICIARY
:
BILL OF LADING
:
BIS
:
THE IMPORTER
THE PERSON OR THE COMPANY AS INDICATED IN THE PROFORMA
INVOICE / LETTER OF CREDIT, WHICH HAS GIVEN ORDER TO THE
EXPORTER
THE EXPORTER
THE COMPANY AS INDICATED IN THE PROFORMA INVOICE / LETTER OF
CREDIT, WHICH IS ENTITLED TO RECEIVE PAYMENT AGAINST THE
DOCUMENTS AS INDICATED IN THE LETTER OF CREDIT
A RECEIPT LISTING GOODS SHIPPED ON BOARD A VESSEL OR LOADED
ON THE TRUCK, SIGNED BY THE MASTER, HIS NAMED AGENT, OR
CARRIER OR HIS NAMED AGENT
BEKHRAD INTERNATIONAL INSPECTION SERVICES, TEHRAN, IRAN
BIS PSI DEPT.
CBI
CENTRAL BANK OF IRAN
:
:
:
CERTIFICATE OF INSPECTION (COI)
:
COMMERCIAL INVOICE
:
PRESHIPMENT INSPECTION DEPARTMENT OF BIS FOR IMPORTATION
CENTRAL BANK OF IRAN
THE CENTRAL BANK, WHICH HAS ISSUED THE IMPORT REGULATIONS,
AMONGST WHICH IS THE REQUIREMENT TO HAVE GOODS INSPECTED
BEFORE SHIPMENT TO IRAN, AND TO HAVE AN INSPECTION CERTIFICATE
COVERING THE GOODS INSPECTED.
A CERTIFICATE ISSUED BY THE INSPECTOR CERTIFYING THAT THE
GOODS ARE IN CONFORMITY WITH A RELEVANT INTERNATIONAL
PRODUCT STANDARD BASED ON SAMPLING OF THE GOODS AND
TESTING THEM AT AN ACCREDITED LABORATORY
IT SHOULD BE NOTED THAT ISSUING VOC/COI CERTIFICATE IS
WORTHLESS WITHOUT THE ACCOMPANYING TEST REPORT.
A FINAL INVOICE ISSUED BY THE EXPORTER TO THE IMPORTER, LISTING
THE GOODS WHICH HAVE BEEN SOLD TOGETHER WITH THEIR PRICES .
THIS IS THE DOCUMENT WHICH IS THE BASIS FOR PAYMENT BY THE
IMPORTER
COORDINATING OFFICE
:
:
THE OFFICE RESPONSIBLE TO COORDINATE INSPECTION
OPERTAION WITH INSPECTING OFFICE
EXECUTING OFFICE
:
EXPIRY DATE
:
EXPORTER
:
:
:
:
THE OFFICE LOCATED IN THE COUNTRY OF THE SUPPLIER THIS IS THE
ONLY OFFICE HAVING CONTACTS WITH THE SUPPLIER THIS OFFICE
PERFORMS THE PHYSICAL INSPECTION AND ISSUES THE FINAL
DOCUMENTS MOST OF THE TIME IS THE SAME AS THE ISSUING OFFICE.
EXCEPTIONS WILL BE ADVISED BY COORDINGATING OFFICE.
THE LATEST DATE FOR THE EXPORTER TO SUBMIT THE DOCUMENTS AS
REQUIRED IN THE LETTER OF CREDIT TO THE NEGOTIATING BANK FOR
PAYMENT.
THE COMPANY SELLING GOODS TO THE IRANIAN IMPORTER
FLIGHT ENDORCED
FBL
FIATA
FIATA MULTIMODAL
TRANSPORT BILL OF LADING
:
BILL OF LADING
:
ICC UCP
:
IMPORTER
:
ISIRI
:
ISSUING OFFICE
:
LETTER OF CREDIT
:
M/D
:
AN AIRWAY BILL HAVING ACTUAL FLIGHT DATE
NEGOTIABLE FIATA MULTIMODAL TRANSPORT BILL OF LADING
INTERNATIONAL FEDERATION OF FREIGHT FORWARDERS
ASSOCIATION
A RECEIPT LISTING GOODS WHICH HAVE BEEN DISPATCHED, TAKEN IN
CHARGE OR LOADED ON BOARD, ISSUED BY A CARRIER OR NAMED
AGENT, MULTIMODAL TRANSPORT OPERATOR OR NAMED AGENT, OR
MASTER OR NAMED AGENT. FIATA HAS DESIGNED THIS DOCUMENT
FOR FORWARDERS’ USE
AN OLD VERSION OF FIATA MULTIMODAL TRANSPORT BILL OF LADING
WHICH IS STILL USED IN SOME CASES
INTERNATIONAL CHAMBER OF COMMERCE UNIFORM CUSTOMS AND
PRACTICE FOR DOCUMENTERY CREDITS.
THE IRANIAN COMPANY, BUYING THE GOODS FROM THE EXPORTER,
AND MENTIONED IN THE LETTER OF CREDIT OR REGISTRATION LETTER
AS BUYER/IMPORTER.
INSTITUTE OF STANDARDS AND INDUSTRIAL RESEARCH OF IRAN THE
LEGAL AUTHORITY FOR ISSUING OPERATING PERMISSION IN IRAN TO
INSPECTION COMPANIES , THE FINAL AUTHORITY IN DECIDING THE
VALIDITY OF CLAIMS AGAINST INSPECTION COMPANIES AND THE
PARTY IN CHARGE OF MAKING THE REGULATIONS AND PROCEDURES
TO BE FOLLOWED BY INSPECTION COMPANIES FOR IMPORT OF GOODS
TO IRAN
THE OFICE THAT ISSUES THE FINAL CERTIFICATES AND MOST OF THE
TIME IS THE SAME AS EXECUTING OFFICE.
THE LETTER, ISSUED BY A BANK APPOINTED BY A BUYER (I.E. ISSUING
BANK OR OPENING BANK), TO ANOTHER BANK, OR BRANCH OF SAME
BANK, ( I.E. ADVISING OR NEGOTIATING BANK) AUTHORISING THE
NEGOTIATING BANK TO PAY A CERTAIN AMOUNT TO A SELLER
AGAINST PRESENTATION OF THE FULLY CONFORMED DOCUMENTS AS
INDICATED IN THE LETTER OF CREDIT
MANUFACTURER'S DECLARATION
NEGOTIATING BANK
:
NOTICE OF DISCREPANCY
:
opening bank
PROFORMA INVOICE
:
:
RELEASE NOTE
:
SUPPLIER
:
SWIFT
:
S/D
TEST REPORT
:
:
TT/R
TYPICAL TEST REPORT
:
:
THROUGH BILL OF LADING
:
THE BANK WHICH IS AUTHORIZED TO NEGOTIATE AND EFFECTS
PAYMENT BASED ON L/C TERMS AND CONDITIONS
THE DOCUMENT ISSUED BY THE INSPECTOR UPON COMPLETION OF AN
INSPECTION WHERE DISCREPANCY (IES) BETWEEN ACTUAL GOODS AND
REQUIRED SPECIFICATIONS ARE FOUND
The bank which issues the letter of credit
A PROVISIONAL INVOICE ISSUED BY THE EXPORTER TO THE IMPORTER,
LISTING THE GOODS WHICH ARE INTENDED TO BE TRADED, THE
OFFERED PRICE AND ANY OTHER CONDITIONS.
THE DOCUMENT WHICH IS ISSUED BY THE INSPECTOR UPON
SATISFACTORY COMPLETION OF THE PRE-SHIPMENT INSPECTION.
THE COMPANY SELLING THE GOODS TO THE EXPORTER OR TO
ANOTHER SUPPLIER.
SOCIETY FOR W ORLDWIDE INTER-BANK FINANCIAL
TELECOMMUNICATION, AN ORGANISATION BASED IN BRUSSELS WHICH
PROVIDE A SECURED AND FAST COMMUNICATION SYSTEM TO THE
MEMBER BANKS WORLDWIDE
SUPPLIER'S DECLARATION
A DOCUMENT PROVING THAT A COMMODITY HAS BEEN TESTED. THE
TEST DESCRIPTION, TEST METHODS, ACCEPTABLE LIMITS AND TEST
RESULTS SHOULD BE STATED IN THE REPORT.
TYPICAL TEST REPORT
AN EMPTY SAMPLE OF THE TEST REPORT, SHOWING THE RELATED
STANDARD AND THE REQUIRED TESTS AND THE FORMAT OF THE TEST
REPORT.
A RECEIPT LISTING GOODS WHICH HAVE BEEN DISPATCHED, TAKEN IN
CHARGE OR LOADED ON BOARD, ISSUED BY A CARRIER OR NAMED
AGENT, MASTER OR NAMED AGENT. IT IS NOT UNDER FIATA’S
REGULATIONS.