Iran Customs Broker Exam key terms

The geographic area within which a country's customs law and tariff apply in full. In Iran it generally covers the national land, territorial waters, and related zones, excluding designated free zones.

The set of measures customs authorities apply to ensure compliance with customs law, including supervision of goods, means of transport, and persons at borders and within the customs territory.

Continuous observation by customs over goods and vehicles to prevent unauthorized movement, including tracking transit consignments and monitoring bonded areas until duties are settled or goods leave the territory.

A person who lodges a customs declaration in their own name or through a representative. The declarant is responsible for the accuracy of the declaration and the payment of assessed duties.

A licensed professional who prepares and submits customs declarations and clearance documents on behalf of importers and exporters, and who is accountable to customs for the accuracy of that work.

A written authorization by which an importer or exporter appoints a broker or representative to act before customs. It defines the scope of authority and must be filed with the declaration.

The formal statement, usually electronic, in which the declarant identifies the goods, their classification, origin, value, and the procedure requested, and by which liability for duties is established.

A risk-management clearance path for low-risk consignments allowing release with minimal documentary or physical inspection. Selection depends on trader history, goods type, and risk scoring.

A clearance path assigned to higher-risk consignments, requiring documentary review and physical inspection of the goods before release. Misdeclaration or unusual consignments commonly trigger it.

The systematic method customs uses to identify, assess, and prioritize consignments and traders presenting compliance or revenue risk, so that inspection resources are directed where they are most needed.

The physical or documentary examination of goods by customs to verify the declaration's accuracy as to nature, quantity, origin, and value. Findings may lead to reassessment or penalties.

The internationally standardized nomenclature of goods maintained by the World Customs Organization, organized into sections, chapters, headings, and subheadings, and used as the basis for national tariffs.

A four-digit code in the HS nomenclature identifying a group of related goods. It sits above six-digit subheadings and is the level at which many classification rules and legal notes operate.

A six-digit (or longer national) code beneath an HS heading that narrows the product scope. National tariff lines may extend to eight or more digits for duty-rate purposes.

The six legally binding rules governing classification under the HS, applied in order. They resolve classification when goods are composite, incomplete, unassembled, or prima facie classifiable under more than one heading.

The criterion in GIR 3(b) used to classify mixtures and composite goods by the component that gives the goods their fundamental nature, considering bulk, value, or role.

The process of assigning a good to the correct tariff code by applying the HS nomenclature, section and chapter notes, and the General Interpretative Rules to the facts of the product.

An official advance decision by customs on the tariff classification (or origin or valuation method) of specific goods, binding on customs for a stated period if the facts presented remain accurate.

The most detailed level of a national customs tariff, combining the HS subheading with additional national digits and carrying the applicable duty rate and any specific conditions.

A charge levied on imported (and sometimes exported) goods according to the customs tariff, expressed as a percentage of value or a specific amount per unit of quantity.

A customs duty calculated as a percentage of the customs value of the goods, so the amount payable rises and falls with the declared and accepted value.

A customs duty fixed as a set amount per unit of weight, volume, or number of the goods, independent of their monetary value. It is often used for agricultural or bulk commodities.

The monetary base on which ad valorem duties and certain taxes are assessed, determined under the valuation rules rather than simply taken from the invoice price.

The primary valuation method: the price actually paid or payable for the goods when sold for export, adjusted by prescribed additions and deductions, provided the buyer and seller are unrelated or the relationship did not affect price.

Buyer and seller linked by ownership, control, family, or employment ties. A transaction between them may still be accepted for valuation if the relationship did not influence the price.

Mandatory additions to or deductions from the price paid or payable to reach customs value, such as freight, insurance, commissions, royalties, and the cost of assists, depending on the valuation basis used.

Goods, services, or engineering work supplied free or at reduced cost by the buyer for use in producing the imported goods, whose value must be added to the transaction value where applicable.

The value of goods comprising cost, insurance, and freight up to the port of importation. Many countries, including Iran, use a CIF-type basis as the starting point for customs value.

The value of goods free on board at the port of export, excluding international freight and insurance. It is the common invoice term from which CIF-based customs value is built.

The final value figure on which duty and covered taxes are computed after the customs value is established and any adjustments, exemptions, or reductions are applied.

The criteria used to determine the country in which goods were wholly obtained or sufficiently transformed, which decides eligibility for preferential tariff treatment under trade agreements.

The test for conferring origin when goods are not wholly obtained in one country: the processing must change the product's essential character, tariff classification, or value sufficiently.

A document certified by an authorized body identifying the country of origin of goods, required to claim preferential tariff rates or to satisfy import-control requirements.

A reduced or zero duty rate granted to goods originating in countries with which a trade agreement exists, subject to proof of origin and compliance with the agreement's rules.

An authorization issued by a competent authority permitting the import of specified goods. Its absence where required makes the goods restricted and can block clearance or trigger penalties.

Goods whose import or export is banned outright or allowed only under conditions such as permits, standards, or quotas. Clearance depends on satisfying the controlling authority's requirements.

A quantitative limit on the quantity or value of a good that may be imported or exported during a period. Shipments beyond the quota may be refused or charged a higher rate.

The customs procedure under which goods move from one customs office to another, or across the territory, under customs control without payment of duties, provided conditions and guarantees are met.

A financial security, such as a deposit or bank guarantee, lodged to cover potential duties on goods moving under transit, released when the procedure is properly discharged.

A storage facility under customs supervision where imported goods may be held without payment of duties until they are re-exported, entered for home use, or otherwise disposed of under the applicable procedure.

A procedure allowing goods to be brought into the territory for a defined purpose and period with conditional relief from duties, provided they are re-exported or otherwise regularized.

A designated area treated as outside the customs territory for duty purposes, where goods may be stored, processed, or traded with simplified controls before entering the domestic market.

A mismatch between the declared particulars and the goods or documents examined by customs, such as wrong quantity, value, or classification, which may lead to reassessment or penalties.

The unlawful import, export, or movement of goods across the customs border, or the deliberate evasion of customs duties and prohibitions, and among the most serious customs offenses.

Any act or omission that breaches customs law, ranging from documentary irregularities and late declaration to undervaluation, misdeclaration, and smuggling, each carrying defined consequences.

A sanction imposed by customs authorities through administrative proceedings rather than criminal prosecution, typically a fine, additional duty, or suspension of privileges.

The taking into custody by customs of goods involved in an offense, pending a decision on forfeiture, return, or other disposition under the applicable legal procedure.

The formal process by which a trader contests a customs decision such as valuation, classification, or a penalty, through administrative review and, if needed, referral to a competent judicial body.

The process of determining the customs value of imported goods by applying the prescribed methods in sequence, starting with transaction value and moving to fallback methods only when necessary.

The requirement that an importer settle or repatriate the foreign currency used for an import through authorized banking channels, evidenced by documents submitted to customs and the central bank.

The computer-to-computer exchange of structured customs messages, such as declarations and responses, between traders or brokers and the customs system, replacing paper-based processing.

A standardized multi-part customs form (or its electronic equivalent) used to declare goods for import, export, or transit, combining the data needed by customs and other agencies.

The standards of honesty, confidentiality, competence, and avoidance of conflicts of interest that a customs broker must uphold when acting for clients and dealing with customs authorities.

A situation where a broker's personal, financial, or other interests could improperly influence their professional judgment or actions for a client, requiring disclosure or withdrawal.