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Clearance in Two Hours

For the first time, Customs officers would inspect commodities at the owners’ warehouse or factory instead of the Customs site

Apart from figures and statistics, another indicator for the success of an organization is the customer satisfaction. To achieve this, Mehdi Karbassian, head of the Iranian Customs Administration, announced a few good news in a recent interview:

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Traditionally, government employees used to feel that they were above their visitors, who had to wait behind closed doors until the employee permitted them to enter the room. This has imposed itself on our culture for a long time. Even after the Islamic Revolution, despite the reiterations of officials to respect people, this culture was not given up.
Aware of this issue, the management of Customs Administration with the cooperation of other colleagues, has chosen this motto for itself: “Customs: Trusted by the Government, Servant of the Nation”. We have been endeavoring to establish this motto among all the Customs staff. Now all around the country, in 140 Customs Offices, you can see how this concept has been materialized. Based on our beliefs, no one has committed an offense unless it is proved otherwise.
Like other countries, we have also prepared a computerized list of those who are “suspected” to be violators, but not yet offenders. For example, there are certain countries which produce illegal drugs and passengers from those nations are checked more carefully than others.
As another strategy, we have put employees in positions which fit their capabilities and characters best. For example, if a person who knows regulations very well, cannot establish good relations with people, he will be working in a capacity not directly in contact with people. Contrarily, an employee who is patient and tolerant is employed to deal with passengers directly.
Moreover, there is an incentive system established in the Customs, which helps us to differentiate between hardworking employees and less active ones. This is despite the fact that government managers are not empowered to offer incentives to or punish their employees. One of the examples of such a lack of power is that if an employee is involved in bribery in front of others, his manager cannot do anything but to suspend him/her from work for a period of three months. Then the case will be dealt with by Administrative Offenses Board and if the employee is convicted by the Board, the case will go to the Appeals Court and Administrative Tribunal, and if no valid evidence is offered there, the primary conviction can be nullified. Then the offensive employee is able to return to his work against the will of his manager. In spite of all these shortcomings, we have tried to reward exemplary employees in order to encourage others to work better.
The most significant practical result of such methods is the minimizing of the time needed to perform customs formalities. For example, for exporting non-oil commodities the time was reduced to one day first and then it was further decreased to just two hours. Now two hours is the maximum time spent by exporters in the “Red Line”. If a commodity remains in a Customs Office for more than two hours, the management and the staff of that office will be held accountable for that, to the extent that the manager may be dismissed for incompetence.
We have been able to achieve this through the elimination of unnecessary formalities, revising regulations and solving the problem of bureaucracy within the Customs Administration. This could be considered as a great achievement for the Customs Administration, because previously the same procedure took 2-3 days to complete.
The next success the organization has achieved is that by minimizing the customs formalities, the shortcomings of other organizations in charge of standards, quarantine and banking became apparent. While before that the lengthy formalities at Customs office was used as a pretext by these organizations for hiding their own shortcomings. They started to correct and improve their procedures afterwards.
One important measure by the Customs has been listing the names of those legal and real entities that are credible and trustworthy. These were the ones that have done their obligations quite well and on time. They receive special facilities at the Customs. With the application of ASICUDA system in the “Green Line,” only 10% and in the Yellow Line only 20% of commodities and documents are inspected. Traders can declare their goods before coming to Customs and receive customs clearance immediately.
In two months such a facility will be offered to ships carrying cargoes to the Iranian ports. Once a ship departs for Iranian ports, the cargo owner can report to a Customs Office, in Bandar Abbas for example, and declare the cargo manifest and get the clearance. So that as soon as the ship lands at the destination port, the cargo can be carried to any spot within the country. Through this system, there is no need for commodities to be stored in warehouses.
Another considerable measure by the Customs Administration has been the implementation of a rule which was formerly ratified, but never translated into action. The rule was related to inspecting the commodities at the private warehouse of the owner. Customs officers go to inspect goods on site without the need to transfer them to the Customs. The direct impact of this measure was to reduce costs, accelerating the trade activities, preserving liquidity and preventing any damage which might otherwise be incurred on the goods.
Another change is related to the mission of Customs Administration, which is based upon not just making income for the government, but on such objectives as being at the service of manufacturing and exports activities and preserving the interests of consumers – through checking the quality of goods and standards.
Moreover, the draft copy of new Iranian Customs regulations is at the final stage of preparation now and will be released by mid-September in order to collect the suggestions of experts and officials. In two months time, the Customs will finalize the regulations and will submit it to the Cabinet. The main objectives behind the revision is the transparency of economic affairs, respecting and trusting people and promotion of law abiding.