Iran Customs Broker Exam cheat sheet

The Customs Law governs import, export, transit, and temporary admission of goods and establishes the Customs Administration as the competent authority.

Implementing Regulations (Executive By-laws) operationalize the Law; where a conflict exists, the Law prevails over the Regulations.

Customs territory is the geographic area in which customs law applies fully; free zones and special economic zones sit outside or have modified application.

Customs procedures are declarant-initiated: goods are cleared only upon a lodged declaration and payment or securing of duties and taxes.

Rights of the declarant include prior tariff classification information, appeal against decisions, and access to the customs value determination basis.

Obligations of the declarant include truth and accuracy of the declaration, timely submission, and retention of supporting documents.

Customs decisions must be issued in writing and communicated; appeal deadlines run from the date of notification.

Regulatory instruments such as tariff schedules, valuation rules, and origin rules are issued under delegated authority of the Law.

The customs tariff is a schedule listing goods with their applicable duty rates, typically organized by HS heading and national subheading.

Duty rates may be ad valorem (percentage of value), specific (per unit), or compound (combination of both).

Preferential tariff rates apply to goods originating in countries with a trade agreement; MFN rates apply to WTO members absent preference.

The tariff schedule distinguishes fiscal duties (revenue) from protective duties (protecting domestic production).

Tariff-rate quotas apply a lower in-quota rate to a limited quantity and a higher out-of-quota rate beyond that quantity.

Classification determines the subheading and therefore the applicable tariff rate; a misclassification changes the duty payable.

Tariff amendments are published officially and apply from their stated effective date, generally not retroactively unless specified.

Duty calculation: ad valorem duty = customs value × rate; specific duty = quantity × unit rate.

The HS comprises 21 sections, 97 chapters (chapter 77 reserved), headings (4 digits), and subheadings (6 digits).

GIR 1: classification is determined by heading terms and section/chapter notes; only if heading text is ambiguous do later rules apply.

GIR 2(a): incomplete or unassembled goods are classified as the complete article if they have the essential character of the finished good.

GIR 3(a): the most specific description prevails over a more general one; 3(b) essential character; 3(c) last in numerical order.

GIR 4: goods not classifiable under 1–3 are classified under the heading for goods most akin to them.

GIR 5 covers packing: cases and containers specially shaped for the article are classified with it; packing materials with the goods.

GIR 6 extends classification to subheadings by applying rules mutatis mutandis at the subheading level.

Section and chapter notes are legally binding and can exclude goods from a heading regardless of the heading's wording.

Primary basis of customs value is the transaction value: price actually paid or payable, adjusted under Article 8-type additions.

Additions to price paid or payable include commissions (except buying commissions), royalties related to the goods, and packing costs.

Costs of transport, insurance, and related charges to the place of importation are added if the valuation basis includes CIF.

The six sequential methods: transaction value, identical goods, similar goods, deductive value, computed value, and fallback.

Methods must be applied in order; a later method may be used only when the earlier method cannot be applied.

Deductive value starts from the resale price in the importing country and deducts post-importation costs and normal profit.

Computed value is built from cost of production, profit and general expenses, and transport to the place of importation.

Related-party transactions are acceptable if the relationship did not influence the price; otherwise another method applies.

Import procedure sequence: manifest/entry, declaration registration, documentary and physical inspection, duty assessment, payment, and release.

Transit procedure allows goods to move under customs control from one customs office to another without payment of duties, subject to guarantee.

Temporary admission permits goods to enter for a defined purpose and period with conditional relief from duties, subject to re-export.

Bonded warehouses store imported goods with duties suspended until the goods enter the domestic market or are re-exported.

Export procedures may require export declaration, verification of goods, and proof of export for duty drawback or VAT relief.

Inspection may be documentary, physical, or risk-based selective; risk management determines the channel (green, yellow, red).

Release of goods occurs after assessment and payment or after acceptance of a guarantee where permitted.

Transit and temporary admission require a guarantee or deposit covering potential duties and taxes.

Customs duty = customs value × applicable tariff rate (ad valorem) or quantity × specific rate.

Value-added tax on imports is generally computed on customs value plus duty plus other applicable charges.

Other charges may include customs service fees, stamp duties, and specific levies stated in the tariff or budget laws.

Preferential rates reduce duty only where origin is proven by a valid certificate of origin or equivalent evidence.

Duty drawback refunds duties paid on imported inputs that are subsequently exported in finished goods, subject to conditions.

Guarantees (bank or cash deposit) secure deferred or conditional duty liability until the obligation is fulfilled.

Late payment of duties and taxes typically triggers a delay penalty calculated as a percentage per period of delay.

Rounding and currency conversion rules are set by regulation; conversion uses the official rate applicable on the assessment date.

A customs declaration is a legally binding statement by the declarant of the goods, procedure requested, and particulars required.

Core documents: commercial invoice, packing list, bill of lading or airway bill, certificate of origin, and the customs declaration form.

The declarant is responsible for the accuracy of the declaration; the broker acts on behalf of the importer under a mandate.

Electronic data interchange (EDI) systems transmit declarations to customs and return assessment and release messages.

A declaration may be amended or withdrawn before clearance, subject to customs approval and any applicable conditions.

A Single Administrative Document (SAD)-style form captures consignor/consignee, goods description, value, and procedure codes.

Electronic signatures and digital certificates authenticate the declarant's identity in the electronic system.

Records supporting a declaration must be retained for the period prescribed by law and produced on request.

Import and export of goods may be subject to licensing, prohibitions, or restrictions set by trade regulations.

Foreign exchange rules require registration of the import transaction and matching of the payment with the declared customs value.

Goods may be subject to standards, health, phytosanitary, or environmental approvals before customs release.

Prohibited goods cannot be imported or exported; restricted goods require prior authorization from the competent authority.

Origin rules determine eligibility for preferential treatment and may require substantial transformation or value-added thresholds.

Sanctions and embargoes restrict trade with designated countries, entities, or goods; brokers must screen parties.

Trade statistics and reporting obligations require accurate commodity codes and values in declarations.

Currency controls may require surrender of export proceeds or documentation of the source of import funds.

Smuggling is the unlawful introduction or removal of goods across the border without declaration or with false declaration.

Administrative offenses include misdeclaration, undervaluation, and failure to comply with procedural requirements.

Penalties may be monetary (fines as multiples of duty evaded), confiscation of goods, or both, and may include license suspension.

Intent (mens rea) distinguishes fraud-based offenses from negligent errors in some legal systems.

The declarant has a right to appeal an assessment or penalty decision to the competent administrative review body.

Appeals must be filed within statutory deadlines; late appeals may be dismissed as inadmissible.

Judicial review of customs decisions is available after exhaustion of administrative remedies where required.

Voluntary disclosure of errors before detection may mitigate penalties under some regulations.

A broker must act with integrity, accuracy, and due diligence in preparing and lodging declarations.

The broker must not knowingly submit false or misleading information and must correct errors promptly.

Confidentiality: client information obtained in the course of brokerage must not be disclosed except as required by law.

Conflict of interest must be avoided or disclosed; the broker's duty is to the client within the limits of the law.

The broker must maintain competence in classification, valuation, and regulatory changes and keep adequate records.

The broker is responsible for verifying the identity and authority of the client and the accuracy of supporting documents.

Facilitating smuggling or undervaluation exposes the broker to penalties, license revocation, and criminal liability.

Professional conduct requires cooperation with customs audits and truthful responses to customs inquiries.

The Customs Law governs import, export, transit, and temporary admission of goods and establishes the Customs Administration as the competent authority.

Implementing Regulations operationalize the Law; where a conflict exists, the Law prevails over the Regulations.

Customs territory is the area in which customs law applies fully; free zones and special economic zones have modified application.

Customs procedures are declarant-initiated: goods are cleared only upon a lodged declaration and payment or securing of duties and taxes.

Rights of the declarant include prior tariff classification information, appeal against decisions, and access to the valuation basis.

Obligations of the declarant include truth and accuracy of the declaration, timely submission, and retention of supporting documents.

Customs decisions must be issued in writing and communicated; appeal deadlines run from the date of notification.

Regulatory instruments such as tariff schedules, valuation rules, and origin rules are issued under delegated authority of the Law.

The customs tariff is a schedule listing goods with applicable duty rates, typically organized by HS heading and national subheading.

Duty rates may be ad valorem (percentage of value), specific (per unit), or compound (combination of both).

Preferential tariff rates apply to goods originating in countries with a trade agreement; MFN rates apply to WTO members absent preference.

The tariff schedule distinguishes fiscal duties (revenue) from protective duties (protecting domestic production).

Tariff-rate quotas apply a lower in-quota rate to a limited quantity and a higher out-of-quota rate beyond that quantity.

Classification determines the subheading and therefore the applicable tariff rate; a misclassification changes the duty payable.

Tariff amendments are published officially and apply from their stated effective date, generally not retroactively unless specified.

Duty calculation: ad valorem duty = customs value × rate; specific duty = quantity × unit rate.

The HS comprises 21 sections, 97 chapters (chapter 77 reserved), headings (4 digits), and subheadings (6 digits).

GIR 1: classification is determined by heading terms and section/chapter notes; only if heading text is ambiguous do later rules apply.

GIR 2(a): incomplete or unassembled goods are classified as the complete article if they have the essential character of the finished good.

GIR 3(a): the most specific description prevails over a more general one; 3(b) essential character; 3(c) last in numerical order.

GIR 4: goods not classifiable under 1–3 are classified under the heading for goods most akin to them.

GIR 5 covers packing: cases and containers specially shaped for the article are classified with it; packing materials with the goods.

GIR 6 extends classification to subheadings by applying rules mutatis mutandis at the subheading level.

Section and chapter notes are legally binding and can exclude goods from a heading regardless of the heading's wording.

Primary basis of customs value is the transaction value: price actually paid or payable, adjusted under Article 8-type additions.

Additions to price paid or payable include commissions (except buying commissions), royalties related to the goods, and packing costs.

Costs of transport, insurance, and related charges to the place of importation are added if the valuation basis includes CIF.

The six sequential methods: transaction value, identical goods, similar goods, deductive value, computed value, and fallback.

Methods must be applied in order; a later method may be used only when the earlier method cannot be applied.

Deductive value starts from the resale price in the importing country and deducts post-importation costs and normal profit.

Computed value is built from cost of production, profit and general expenses, and transport to the place of importation.

Related-party transactions are acceptable if the relationship did not influence the price; otherwise another method applies.

Import procedure sequence: manifest/entry, declaration registration, documentary and physical inspection, duty assessment, payment, and release.

Transit procedure allows goods to move under customs control from one customs office to another without payment of duties, subject to guarantee.

Temporary admission permits goods to enter for a defined purpose and period with conditional relief from duties, subject to re-export.

Bonded warehouses store imported goods with duties suspended until the goods enter the domestic market or are re-exported.

Export procedures may require export declaration, verification of goods, and proof of export for duty drawback or VAT relief.

Inspection may be documentary, physical, or risk-based selective; risk management determines the channel (green, yellow, red).

Release of goods occurs after assessment and payment or after acceptance of a guarantee where permitted.

Transit and temporary admission require a guarantee or deposit covering potential duties and taxes.

Customs duty = customs value × applicable tariff rate (ad valorem) or quantity × specific rate.

Value-added tax on imports is generally computed on customs value plus duty plus other applicable charges.

Other charges may include customs service fees, stamp duties, and specific levies stated in the tariff or budget laws.

Preferential rates reduce duty only where origin is proven by a valid certificate of origin or equivalent evidence.

Duty drawback refunds duties paid on imported inputs that are subsequently exported in finished goods, subject to conditions.

Guarantees (bank or cash deposit) secure deferred or conditional duty liability until the obligation is fulfilled.

Late payment of duties and taxes typically triggers a delay penalty calculated as a percentage per period of delay.

Rounding and currency conversion rules are set by regulation; conversion uses the official rate applicable on the assessment date.

A customs declaration is a legally binding statement by the declarant of the goods, procedure requested, and particulars required.

Core documents: commercial invoice, packing list, bill of lading or airway bill, certificate of origin, and the customs declaration form.

The declarant is responsible for the accuracy of the declaration; the broker acts on behalf of the importer under a mandate.

Electronic data interchange (EDI) systems transmit declarations to customs and return assessment and release messages.

A declaration may be amended or withdrawn before clearance, subject to customs approval and any applicable conditions.

A Single Administrative Document (SAD)-style form captures consignor/consignee, goods description, value, and procedure codes.

Electronic signatures and digital certificates authenticate the declarant's identity in the electronic system.

Records supporting a declaration must be retained for the period prescribed by law and produced on request.

Import and export of goods may be subject to licensing, prohibitions, or restrictions set by trade regulations.

Foreign exchange rules require registration of the import transaction and matching of the payment with the declared customs value.

Goods may be subject to standards, health, phytosanitary, or environmental approvals before customs release.

Prohibited goods cannot be imported or exported; restricted goods require prior authorization from the competent authority.

Origin rules determine eligibility for preferential treatment and may require substantial transformation or value-added thresholds.

Sanctions and embargoes restrict trade with designated countries, entities, or goods; brokers must screen parties.

Trade statistics and reporting obligations require accurate commodity codes and values in declarations.

Currency controls may require surrender of export proceeds or documentation of the source of import funds.

Smuggling is the unlawful introduction or removal of goods across the border without declaration or with false declaration.

Administrative offenses include misdeclaration, undervaluation, and failure to comply with procedural requirements.

Penalties may be monetary (fines as multiples of duty evaded), confiscation of goods, or both, and may include license suspension.

Intent (mens rea) distinguishes fraud-based offenses from negligent errors in some legal systems.

The declarant has a right to appeal an assessment or penalty decision to the competent administrative review body.

Appeals must be filed within statutory deadlines; late appeals may be dismissed as inadmissible.

Judicial review of customs decisions is available after exhaustion of administrative remedies where required.

Voluntary disclosure of errors before detection may mitigate penalties under some regulations.

A broker must act with integrity, accuracy, and due diligence in preparing and lodging declarations.

The broker must not knowingly submit false or misleading information and must correct errors promptly.

Confidentiality: client information obtained in the course of brokerage must not be disclosed except as required by law.

Conflict of interest must be avoided or disclosed; the broker's duty is to the client within the limits of the law.

The broker must maintain competence in classification, valuation, and regulatory changes and keep adequate records.

The broker is responsible for verifying the identity and authority of the client and the accuracy of supporting documents.

Facilitating smuggling or undervaluation exposes the broker to penalties, license revocation, and criminal liability.

Professional conduct requires cooperation with customs audits and truthful responses to customs inquiries.