Docstoc

Guidelines_for_Exporters___Importers

Document Sample
Guidelines_for_Exporters___Importers Powered By Docstoc
					                     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, Daimler-
Chrisler, 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                     :   THE IMPORTER
                                  THE PERSON OR THE COMPANY AS INDICATED IN THE PROFORMA
                                  INVOICE / LETTER OF CREDIT, WHICH HAS GIVEN ORDER TO THE
                                  EXPORTER
BENEFICIARY                   :   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
BILL OF LADING                :   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
BIS                           :   BEKHRAD INTERNATIONAL INSPECTION SERVICES, TEHRAN, IRAN
BIS PSI DEPT.                     :   PRESHIPMENT INSPECTION DEPARTMENT OF BIS FOR IMPORTATION
CBI                               :   CENTRAL BANK OF IRAN
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.
CERTIFICATE OF INSPECTION (COI)   :   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.
COMMERCIAL INVOICE                :   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                  :   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.
EXPIRY DATE                       :   THE LATEST DATE FOR THE EXPORTER TO SUBMIT THE DOCUMENTS AS
                                      REQUIRED IN THE LETTER OF CREDIT TO THE NEGOTIATING BANK FOR
                                      PAYMENT.
EXPORTER                          :   THE COMPANY SELLING GOODS TO THE IRANIAN IMPORTER
FLIGHT ENDORCED                   :   AN AIRWAY BILL HAVING ACTUAL FLIGHT DATE
FBL                               :   NEGOTIABLE FIATA MULTIMODAL TRANSPORT BILL OF LADING
FIATA                             :   INTERNATIONAL FEDERATION OF FREIGHT FORWARDERS
                                      ASSOCIATION
FIATA MULTIMODAL                  :   A RECEIPT LISTING GOODS WHICH HAVE BEEN DISPATCHED, TAKEN IN
TRANSPORT BILL OF LADING              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
BILL OF LADING                    :   AN OLD VERSION OF FIATA MULTIMODAL TRANSPORT BILL OF LADING
                                      WHICH IS STILL USED IN SOME CASES
ICC UCP                           :   INTERNATIONAL CHAMBER OF COMMERCE UNIFORM CUSTOMS AND
                                      PRACTICE FOR DOCUMENTERY CREDITS.
IMPORTER                          :   THE IRANIAN COMPANY, BUYING THE GOODS FROM THE EXPORTER,
                                      AND MENTIONED IN THE LETTER OF CREDIT OR REGISTRATION LETTER
                                      AS BUYER/IMPORTER.
ISIRI                             :   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
ISSUING OFFICE                    :   THE OFICE THAT ISSUES THE FINAL CERTIFICATES AND MOST OF THE
                                      TIME IS THE SAME AS EXECUTING OFFICE.
LETTER OF CREDIT                  :   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
M/D                               :   MANUFACTURER'S DECLARATION
NEGOTIATING BANK         :   THE BANK WHICH IS AUTHORIZED TO NEGOTIATE AND EFFECTS
                             PAYMENT BASED ON L/C TERMS AND CONDITIONS
NOTICE OF DISCREPANCY    :   THE DOCUMENT ISSUED BY THE INSPECTOR UPON COMPLETION OF AN
                             INSPECTION WHERE DISCREPANCY (IES) BETWEEN ACTUAL GOODS AND
                             REQUIRED SPECIFICATIONS ARE FOUND
opening bank             :   The bank which issues the letter of credit
PROFORMA INVOICE         :   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.
RELEASE NOTE             :   THE DOCUMENT WHICH IS ISSUED BY THE INSPECTOR UPON
                             SATISFACTORY COMPLETION OF THE PRE-SHIPMENT INSPECTION.
SUPPLIER                 :   THE COMPANY SELLING THE GOODS TO THE EXPORTER OR TO
                             ANOTHER SUPPLIER.
SWIFT                    :   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
S/D                      :   SUPPLIER'S DECLARATION
TEST REPORT              :   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.
TT/R                     :   TYPICAL TEST 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.
THROUGH BILL OF LADING   :   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.

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:22
posted:9/3/2011
language:English
pages:8