Pursuant to Article 138 of the Constitution of the Islamic Republic of Iran and Article 97 of the Electronic Commerce Law adopted in 2003, the Ministry of Commerce is obliged to establish a national system for classifying goods and services, identifying goods and services (including supply and development of supply chain information platform). National Goods, standards, methods, tools and instructions for classification and coding of goods to achieve a common language of national goods and central database information, as well as providing the necessary mechanism for classification and coding of services to reach the portal – National information on goods and services) to act.
The draft national code submitted to the Council of Ministers by the National Center for Numbering of Goods and Services of Iran was approved in letter No. 116225 / T / 35818 dated 12/9/2006 and its implementation has been notified to the National Center for Numbering of Goods and Services of Iran.
Definition of national code
The National Commodity Classification and Coding System is a system that controls the basic information of the supply chain in the field of goods and injects it into the elements of the system.
This system, using expert tools for classifying and coding goods, creates a common language and common concepts at the national level, and provides all the credit information of the product, such as supplier references, technical specifications, and national and international standards, etc. It registers and stores itself.
The purpose of launching the national code
This project is implemented with the aim of helping to form a transparent, smooth and efficient market, creating the possibility of direct supply of goods, meeting the maximum needs of domestic sources, creating economic transparency, economic health and solving the problem of smuggling goods in the country.
The task of the National Center for Numbering of Goods and Services of Iran
Policy-making, support, scientific and practical implementation of the national code enactment in due time and monitoring how to implement the national code production contract
Iran Code Objectives:
Irancode, as a system for identifying goods and services at the national level, pursues the following major goals:
Creating and developing a common language at the level of the national supply chain
Creating an information platform for companies and products at the national level
Facilitate various processes in the supply chain
Creating the ground for the development and facilitation of processes within the organization
Creating infrastructure for developing new business methods
Location of Iran Code
Irancode as a national system of classification and goods identification services can be used as an information platform and facilitator of communication between the main components of the country’s supply chain, namely government, suppliers and consumers, and each of these components using appropriate tools and facilities of Irancode in the field of authority. And decide on the goods themselves.
Advantages of having a national code
Creating a common language in identifying goods and facilitating communication at the level of enterprises and markets
Grounding to create social memory and information platform in order to integrate the elements of supply chain management of goods and services
Grounds for presence in the field of e-commerce
Ability to communicate with international coding systems
Introducing and identifying sources of manufacturing and distribution of goods
Widespread distribution for manufacturers and distributors
Grounds for the introduction and widespread promotion of regional and global goods
Reduce distribution, sales and operations costs
Increase the productivity of organizations
The benefits of joining the national numbering system of Iran’s goods and services can be examined from the following two perspectives:
Corporate Product Information Coverage (Subscribe to Product Coding)
According to the interests of organizations supplying and purchasing goods, suppliers by introducing Irancode, introduce themselves and their products in a permanent virtual exhibition (National Product Information Portal). They also announce national codes related to their manufactured goods as the key to receiving the order to the buyers.
The main benefits are:
Placement in a comprehensive and integrated virtual exhibition of product supply
Certification of relevant goods and services
Complete and wide-ranging information on the web
Creating a common key and communication language with buyers
Increase the possibility of sales to institutions
Controlling product information and their catalogs
Succeed in competitive sourcing and enable better sales
Coverage of commodity information in circulation of companies
According to the interests of suppliers and buyers of goods, suppliers by membership in Irancode, can use the facilities of Irancode to code their goods and parts and in general their “circulating items”. In other words, by receiving and installing package 2 and implementing it at the level of all items of the company or institution, the following revenues will be obtained:
Macroeconomic savings through optimal management of current goods
Certification of the covered goods
Creating a common key and language of communication with internal and external elements of the company
Controlling product information and their catalogs
Enabling hierarchical analysis of purchases and expenditures
Facilitate inventory and inventory management
Reduce final costs and have efficient and integrated logistics
Creating an information platform for items to use structured information at the company’s operational levels
4- Manufacturing license (food, pharmaceutical and cosmetic companies)
5- Business card (for importers and exporters)
6- Identity card and national card of the CEO
7- Receipt of registration fees to the center’s account
8- Trademark registration advertisement (brand)
Documents related to natural persons:
1- Business license (for union members)
2- Exploitation license (for producers members of the Ministry of Industry)
3- Identity card and national card of the holder of a business license or exploitation license
4- Business card (for importers and exporters)
5- Manufacturing license (manufacturers of food, medicine and cosmetics)
6- Receipt of registration fees to the center’s account
7- Trademark registration advertisement (brand)
The national commodity code consists of 16 digits, the first 7 digits of which are about the nature of the commodity information and are extracted from the national classification structure of items and it is called the general commodity code or key code and is common to a specific product throughout the country. And is produced by the National Center for Numbering of Goods and Services of Iran (indicates the technical structure of the product), the second 5 digits of the company membership code, which the center assigns a code to each company (indicates the membership code of the product provider Which is unique in the whole country), the last 4 digits of the company information includes the goods according to the variety of a particular type of goods and according to the patterns and specifications of the goods by the representative company is assigned to it Provides the entire product counter and micro-technical specifications of the products)
The national numbering system of Iran’s goods and services today is called Iran Code for short. This national system, with the preparation and approval of legal regulations by the Council of Ministers, began its work in the form of the National Center for Numbering of Goods and Services of Iran as one of the subdivisions of the Ministry of Commerce and Deputy Minister of Economic Affairs in December 1985. .
The constituent elements of this national system are divided into two categories:
Elements of the National Numbering System for Goods and Services:
A: National Commodity Code
B: National Commodity Portal
1) National Commodity Code: Perhaps the most famous product of Iran, the code can be considered a 16-digit product code. This code consists of three parts: the first part is seven digits and states what kind of product is and what group of types of products belongs to the national product classification system. The second part is five digits and states who offers this product. The third part is four digits and states the specifications of the supplier to describe and label the product, which is based on standard templates for product description. In fact, Irancode creates and develops a standard for identifying, describing and registering goods at the national level.
2) National Commodity Portal: The National Commodity Portal is a comprehensive virtual and electronic portal on which all goods and services in the country will be gradually visible. In fact, all goods that receive the National Commodity Code (Iran Code) also receive an electronic booth on the National Commodity Portal where they can display their goods. Each type of product is divided into main groups and specialized subgroups according to what it is. Can access that product. In this case, he can see all the manufacturers or suppliers, for example, a screw that offers the desired product in the country, compare price, quality, geographical distribution and other parameters and in Finally, communicate with suppliers of goods with the least time and cost.
In short, joining the entire production, distribution and commercial community of the country (both exporters and importers of goods) to Iran has the following advantages:
Reduces the cost of production, purchase, transportation, warehousing, marketing, sales, etc.
Allows Iranian goods to enter some inaccessible target markets.
The country’s economic system is transparent and prevents fraud in the production, sale and trade of goods and services.
Provides the necessary ground for the realization of consumer rights.
It makes all the goods and services produced in the country have a common language and thus prevents tasteful interpretations of the current usual administrative laws and procedures.
Facilitates trade and promotes e-commerce.
It prevents the smuggling of goods easily and by identifying the authorized goods from the illegal ones with the criterion of “having a code in Iran”.
Prevents unnecessary purchases, especially in the public sector, and prevents the outflow of currency.
Allows the use of maximum internal power in the production or sale of goods. It has happened a lot that sometimes a product was produced in the country but he needed to buy that product without knowing about this production.
Eliminates intermediaries and reduces transaction costs and …
A study of the legal regulations of Iran Code shows that since 2009 the government has set restrictions and requirements for the country’s economic community to join the national numbering system of goods and services – Iran Code.
Therefore, it is recommended to study the content of this regulation in full.
However, it should be noted that according to this regulation, it will not be possible to extend or issue a business card, receive export incentives, place orders and purchase large and medium-sized purchases of all government agencies from individuals or legal entities that Iran has not received a code from 2009.
Legal aspect of Iran Code
In the meeting dated 12/9/2006, according to the proposal of the Ministry of Commerce and based on Article 138 of the Constitution of the Islamic Republic and Article 79 of the Electronic Commerce Law approved in 2004, the Ministry of Commerce is obliged to create and develop a national classification system. Goods and services services include the provision and development of national supply chain information packaging, standards, methods, tools and instructions for classification and coding of goods to achieve a common national language of goods and central database information, as well as the mechanism It is necessary to classify and codify services in order to reach the national information portal of goods and services, and submit a progress report to the Cabinet every six months.
Ministries of Industries and Mines, Economic Affairs and Finance (Manufacturers of Taxation and Customs), Defense and Support of the Armed Forces, Agricultural Jihad, Management and Planning Organization, Central Bank and its affiliated institutions and centers such as the Standard Institute and the Statistics Center of Iran And other relevant executive bodies are obliged to cooperate in order to create and expand the mentioned system.
In order to implement the national system of classification and services for the identification of goods and services and to prepare its executive regulations, a working group consisting of the Ministers of Commerce (Chairman), Economic Affairs and Finance, Agricultural Jihad, Industries and Mines, Cooperation, Chairman of the Management Organization and Chairman of the Bank The center of the Islamic Republic of Iran was formed.
The criterion for deciding on the mentioned powers (powers of the Cabinet mentioned in Article 79 of the Electronic Commerce Law – approved in 2003, regarding the approval of the said by-laws has been delegated to the ministers of the working group) is the consent of most ministers of the said working group. The President and in compliance with Article (19) of the Rules of Procedure of the Cabinet, can be issued.
Iran Goods and Services Numbering Plan (Iran Code) as one of the most important infrastructure projects in regulating the market of goods distribution network and electronic commerce of the country, July 5, 1987 by the President and the Minister of Commerce and other senior officials of the country Took.
The Ministry of Commerce uses this code to organize information in the areas that deal with goods and services. This ministry is trying to create a common language in the field of data and information exchange and supply chain and circulation of the country’s goods by implementing the national system of classification and services of Iranian goods and services.
In this system, standards, guidelines, classification structure, tools, instructions and technical assistance provided by the Ministry of Commerce are provided to the production and distribution units of goods and services to classify and codify their products and their basic information. To produce in a coordinated and standard way.
The information generated is placed on the national information portal of goods and services of the country and is published in this way so that all users of information, including buyers of goods and services, researchers and government units and other stakeholders can easily and simply through Access and use the Internet.
The main problems due to the lack of a national product coding system are as follows
1- Lack of common language for internal and external communication and identical identification of goods at the level of all organizations in the country
2 – Lack of information about the potential capabilities of various sectors of industry and trade
3- Difficulty in collecting information and statistics on production, import, export, etc. for different goods
4- Lack of possibility to design and implement coordinated supply chain systems and information
5- Lack of possibility of designing comprehensive systems to solve distribution problems in different parts of the country
Considering that the management of the goods and services market is possible only by providing transparent and clear information, Iran Code is the link between the distribution system and the customs and tax system. In this system, the identification of goods and services is considered, through Iran Code. Goods and services have a legal framework so that they are introduced to customers with a specific identity.
The role of Iran Code regarding standard and non-standard goods
The role of Iran Code system in distinguishing standard goods from non-standard ones is another issue of interest in this regard. Iran Code system is actually defined for each type of product and its use will have desirable benefits for two reasons: making easy purchases and providing comprehensive information of each product to the consumer.
Therefore, any goods that can be sold and offered in the market will be able to use this system, and in the first stage, it is not mandatory in the standard or non-standard goods, and it can not be said that only goods with mandatory standards should receive a national barcode.
What is a barcode?
A barcode, also known as a bar code, bar code, and code in Persian, is a visual representation of information on surfaces whose information can be read by a machine.
There are currently several standards for the production and use of barcodes in the world, the most valid of which is the EAN / UCC standard, which is followed by 103 countries and covers about 90% of world trade.
In Iran, due to the necessity that arose due to the development of Iran’s non-oil exports to world markets, in 1995, an organization called the National Center for Numbering of Goods and Services was established under the auspices of the Institute of Business Studies and Research. Selecting the EAN / UCC standard Our country became a member of the INTERNATIONAL EAN International Institute. So far, more than 5,000 companies, most of which are food and chemical companies, have become members of this institute and have received barcodes for their goods and products.
The product barcode is 13 digits. The first three digits represent the country code. (For example, 626 is the code of Iran), the next 5 digits represent the manufacturer, the other 4 digits represent the relevant product code, and finally the last digit is the control code by the computer in order to check the accuracy of the code.
The general public has different opinions about the barcode, many people think that the barcode shows the price of the product, others consider the barcode as a standard mark and some consider the barcode as the license number of the product. If the barcode contains a series of numbers and a number of parallel black lines with different thicknesses on a white background, which can be read by a scanner by infrared waves and transmitted to a computer.
Each of these codes in the relevant database has complete information including description, detailed and technical specifications, inventory, entry and exit information for the relevant users. The use of barcodes is not limited to the products of companies, but in factories and manufacturing establishments in order to continuously track the information of manufactured goods in different production lines, consumable parts in warehouses, unique barcodes are created and tracked with this system. .
In fact, the barcode as an input terminal helps to change or record information transmitted to the computer with minimal information error. It is very important to use barcodes in large stores where a large number of small and large goods enter or leave daily, and the authorities always need inventory level information to control their inventory. Explain that the barcode is a tool to access the national code, so the national code is in the system from the time of birth of the goods to the time of leaving the network.
Accuracy of Iran Code information
The information recorded in this code is completely based on the statements of the manufacturer and supplier of the goods, and because it is recorded in accordance with the statements and according to the defined standards, it has a high accuracy. The use of the Iran code system will in fact create a change in the country’s distribution network, so that even importers of goods must receive a code for the distribution of their goods.
Monitoring Iran Code
The responsibility of supervision and inspection and how to use and how to implement the system is the responsibility of the guilds and the Ministry of Commerce. With the operation of this system, all goods that enter the country must receive a national code, although in some cases The standards of other countries are used and this system is able to coordinate the imported barcodes with the system.
Background of National Commodity Coding System
The National Center for Numbering of Goods and Services of Iran has started its activities in the field of numbering and use of cryptographic technology (barcode) in compliance with the international standards of EAN Institute (which was renamed GS1 International Institute in the beginning of 2005). The result of this ten-year activity has been the membership of 4,000 companies in various industries and the allocation of passwords to them. Since mid-2005, the policies of the Ministry of Commerce to review and upgrade the national product coding system and develop basic supply chain information have been on the agenda. The National Center for Numbering of Goods and Services of Iran was tasked with coordinating the production and distribution of information, creating a common language of goods, and developing a basic information platform for items.
Item information management at the base of the supply chain and coverage of logistics elements and components in all parts of the country entered the basic stage in line with this mission. In this regard, the study and study of information classification at the national level for all subjects such as goods, economic activities, people, jobs, plans and services, production units, etc. began. With the aim of more than a decade of experience and knowledge of the working group in charge of this issue, this center has put the design and development of the national product coding system on its agenda and is ready by adapting the system designed and implemented in the defense sector to national needs. Providing services to different parts of the country.
Range of items covered by this system
The National Commodity Coding System can include all raw materials and commercial goods that are supplied to the domestic market by suppliers, including manufacturers, importers, exporters and distributors.
In the logistics cycle of organizations, a factor is needed that can establish the necessary link between the national product codes. All national codes that use the same attributes are identified by a generic code. The national code is determined by the institutions and members of the national commodity coding system and the generic code is determined by the custodian of this system. Finally, national codes and
Generic with product information is available on the national product information portal on the web. Generic code as a bridge of information of institutions and with the mechanism of genericization reduces unnecessary variety of goods and economic savings in the field of public items.