Instructions on how to operate the foreign representatives of the clothing supplier were announced
How foreign representatives of clothing suppliers work: Organizing foreign clothing brands in the country has started. The mushrooming of foreign brands in the country and the impossibility of monitoring this product caused that since last year, in order to support domestic producers and consumers, two projects “Identification of imported goods based on code (GS1) and identification of clothing brands throughout the country” are on the agenda. One year after the start of this project, the Ministry of Industry, Mines and Trade has prepared and announced for implementation the “Instructions on how to issue certificates of activity of representatives and branches of foreign companies supplying clothing in Iran.” According to the statistics announced by the Center for Trade Unions and Merchants of Iran, until May of this year, when the file for reviewing applicants for tracking codes was closed, a total of 55 companies with documents and contracts from the country of origin were issued tracking codes for registration in Iran. And 145 brands were introduced to seals.
Now, according to the instructions issued by the Ministry of Industry, Mines and Trade, in addition to importing goods, foreign companies are required to order part of the import within a certain schedule to domestic producers, which can lead to production growth in this sector and from On the other hand, it makes it possible for manufacturers to be equipped with new technology.
According to the issued instructions, in addition to having a license from a foreign company as a sales representative, the applicant must also receive a certificate of activity issued by the Guilds and Merchants Center. On the other hand, for this section, a system at www.gatc.ir has been considered that applicants can register their application by visiting this site. In addition to the above, applicants are required to submit a written request and complete the relevant forms in accordance with the format in the center system, the original contract or license of the applicant from a foreign company (for matching documents) in English or with its official translation in Persian. There are other languages. The contract with the applicant’s license must include the period (start and end), product name, brand name, termination conditions, representative name, name and nature of the foreign company. An image equal to the original articles of association, the establishment announcement and changes of the company registered with the relevant authorities and published in the official newspaper and the submission of the applicant’s tax file number in the Tax Affairs Organization are required to issue a certificate of activity. According to this instruction, a foreign company or its representative is obliged to order part of the import within a specified time to domestic producers or to establish production facilities independently or to cooperate with a domestic investor and export part of the goods produced in Iran; So that during the first 2 years, at least 20% of the imported value is produced and at least 50% of it is exported, and from the third year, at least 5% should be added to the share of domestic production annually. On the other hand, the validity period of the agency activity certificate is two years, subject to the validity period of the contract or license, and in the absence of violation equal to the request of the foreign company, this period will be extended.
Applicants for the activity certificate must also register and complete the relevant forms through the center’s system, to send the required documents by mail to the address of the Guilds and Merchants Center of Iran so that after reviewing the documents in accordance with this instruction, within 10 days after Receipt of documents, issuance of a certificate and sending it to the applicant’s address. This point is also considered in the instructions of the Ministry of Industry, Mines and Trade that all documents issued by a foreign company, in addition to the seal and signature of the exporter, must be approved by the Chamber of Commerce (or the Ministry of Foreign Affairs or the judiciary) and the representative of the Islamic Republic of Iran ( Whether embassy, consulate or interest protection office) in the country of origin. On the other hand, according to this instruction, the holders of activity certificates are required to obtain a business license in accordance with the provisions of the Trade Union Law, and suppliers of smuggled goods will be dealt with in accordance with the law, and there are two notes for this section. According to the note, a garment sale should be done only in retail stores equipped with a mechanized sales fund connected to the portal of the country’s tax affairs organization and a subdivision holding a certificate of activity; Therefore, the performance of the mentioned stores is the responsibility of the holder of the activity certificate. According to the second note, the holder of the activity certificate is required to create a clothing system, so that the entire chain of goods until the final sale for importers, customs and other relevant devices (including the Tax Affairs Organization and the Center of Trade Unions and Merchants of Iran) can be monitored and Be intercepted. Regarding the customs declaration of import of clothing, the declaration must be in the name of the holder of the activity certificate and its declared value is based on the official price list of the parent company and must be considered as the basis for calculating customs duties by the Customs of the Islamic Republic of Iran. In the documents submitted to the customs, the specifications of the imported clothing and the clothing brand must also be mentioned. On the other hand, holders of activity certificates are required to affix the product ID and tracking code (GTIN code) by sewing on all imported clothing items and entering the country of production by typing in the product ID. Product ID and tracking code for the following socks and similar clothing can be affixed to the packing carton. According to this instruction, it is mandatory to observe the rules of product identification and tracking code according to the relevant regulations when registering the order and entering the goods to the country’s customs. According to the instructions, the holder of the activity certificate is responsible for using the license, trademark and name of the foreign company, as well as the material and intellectual rights of the foreign company, and in case of legal termination or cancellation of the contract by either party, While informing about this issue in public, at the same time inform the Iranian Guilds and Merchants Center for the revocation of the certificate. In case of being informed of the legal termination or cancellation of the contract or the inaccuracy of the applicant’s documents by the legal or administrative authorities, the center is obliged to cancel the issued certificate after allocating a period of one month to the activity certificate holder.
Observance of all policies and instructions of the Ministry of Industry, Mines and Trade regarding import, production, trade, joint venture, use of production capacities, export from Iran, etc. is mandatory for applicants and holders of agency activity certificates, otherwise agency license Will be canceled. Also, the representatives and branches of foreign companies are obliged to observe Article (7) of the Consumer Protection Law and its executive regulations regarding the promotion of their goods. Pursuant to Article 7 of the Consumer Protection Law, in the event of a final verdict (subject to false propaganda and providing false information), the Government Penitentiary Organization will send a copy of the verdict to the Ministry of Culture and Islamic Guidance in order to prevent publication. The ad took the necessary action. According to this instruction, in case of disagreement in interpreting the provisions of this instruction, they have 3 months to comply with their conditions and documents with the provisions of this instruction and receive a new activity certificate. After the due date, all previously issued certificates will be revoked. Any import of clothing into the country commercially is also allowed only by receiving a certificate of activity, in accordance with the provisions of this instruction. Otherwise, it will be considered smuggling and will be dealt with in accordance with the regulations. Obviously, the holder of the activity certificate is responsible for controlling and supervising the illegal import of goods under his own brand name. Also, according to the developed instructions, the import of clothes for non-commercial purposes, such as participating in the exhibition, will be excluded from the scope of this instruction.