Customs Valuation Services for Imports and Exports in Iran
Most pages about "customs value" settle for one simple formula: customs value equals the purchase price plus freight and insurance (CIF). That formula is correct, but it doesn't answer the more important question: if customs clearance in Iran rejects your invoice, how is the value of the goods determined, and on what basis? And is the customs appraiser free to pick whatever method they see fit?
How Import Customs Value Is Calculated in Iran
Under Article 14 of Iran's Customs Affairs Law, the customs value of imported goods includes the purchase price at origin, plus insurance and freight costs (together known as the CIF method), plus any other costs incurred up to the point the goods reach Iranian customs territory.
This value is determined based on the purchase invoice or other documents submitted by the cargo owner, and converted to Iranian rials using the exchange rate announced by the Central Bank on the day the customs declaration is registered.
Iran's customs valuation system is built on the World Trade Organization's Valuation Agreement and Article VII of the General Agreement on Tariffs and Trade (GATT).
When Your Invoice Isn't Accepted: Five Alternative Methods, in Order of Priority
If the cargo owner cannot provide a purchase invoice, or the value stated in their documents is not accepted by customs clearance in Iran for valid, documented reasons, the law sets out a specific and mandatory sequence for determining the value of the goods:
- Clearance records of identical goods, from the same period and the same country of origin
- Clearance records of similar goods (not necessarily identical), from the same period and country of origin
- The domestic resale price of the same goods, after applying the necessary adjustments
- A computed value based on the goods' cost components (materials, manufacturing, reasonable profit, and so on)
- Valuation based on available documents and information, with flexibility in applying the previous methods
A detail rarely explained is that following this order is legally mandatory: customs cannot jump straight to the fourth or fifth method without reason while the first or second method is still applicable.
The only exception is that, at the importer's own request, the order of the third and fourth methods can be swapped — but even this must be requested by the importer, not decided unilaterally by the valuation appraiser.
The TSC Code: An Identifier That Sets Your Goods' Reference Value Before Declaration
For a wide range of goods, Iranian Customs has defined an eight-digit identification code in the TSC system that specifies the exact nature of the goods and their reference value range. Alongside the HS code, this is one of two benchmarks a valuation appraiser uses to assess whether the declared value is reasonable.
A declared value that deviates significantly from the reference range registered in TSC usually triggers further review and inquiry.
For this reason, checking a product's TSC code before final declaration can prevent surprises at the customs clearance in Iran stage.
Additions and Deductions: What Gets Added to or Subtracted from the Invoice Value
Customs value is not simply the figure shown on the sales invoice.
Costs such as freight to the border, insurance premiums (typically around 0.5% of the goods' value in practice), royalties or license fees related to the goods, and sales commissions are generally added to the invoice value.
On the other hand, documented, provable discounts can be deducted from the final value.
Forgetting to account for these items when first estimating import costs is one of the most common reasons for a discrepancy between a cargo owner's estimate and the final value determined by customs clearance in Iran.
When Customs Goes Beyond the Legal Process
In practice, some customs offices — particularly at high-traffic terminals — sometimes rely on methods such as internet price searches as the primary basis for valuation, instead of strictly following the five-step legal sequence; this practice is not consistent with the explicit text of Iran's Customs Affairs Law.
An importer who encounters this kind of treatment has the right to insist on the legal order of methods, and, if customs persists with a non-legal basis, to pursue a formal valuation appeal through Iran's customs appeal authorities.
Knowing this legal sequence is the importer's main tool for making that appeal.
Customs Value for Exported Goods
The customs value of exported goods is determined similarly to imports, based on the invoice and documents submitted by the exporter — but this time, the basis is the goods' export sale price, plus insurance, handling, and freight costs, plus any other costs incurred up to the point the goods leave Iranian customs territory.
A finding that the declared export value is disproportionate does not, by itself, block the goods from leaving the country; customs clearance in Iran can accept a commitment from the exporter and postpone final review of the value until after export, except in cases where export is conditional on paying export duties based on that same value.
Practical Tips Before Declaring Goods
- 01Before declaration, check your goods' TSC code and reference value range so your figures align more closely with customs' own estimate.
- 02Factor in additive items such as royalties, commissions, and insurance from the cost-estimation stage, not just the raw invoice price.
- 03If your invoice is rejected, know the five-step legal valuation sequence and, if necessary, insist on it being followed in order.
- 04Back up any real discounts with provable documentation (contracts, official correspondence) so they're accepted in the final calculation.
- 05If you encounter an unusual valuation method — such as relying solely on internet prices — pursue a formal valuation appeal through Iran's customs appeal authorities.
Frequently Asked Questions About Customs Valuation
If customs rejects my invoice, how is the value of the goods determined?
Based on the five-step legal sequence: records of identical goods, then similar goods, then domestic resale price, then a computed value based on cost components, and finally valuation based on available documents and information. Following this order is mandatory.
Can customs use internet prices directly for valuation?
This practice is not consistent with the text of Iran's Customs Affairs Law. Valuation must follow the five-step legal sequence, and the importer has the right to appeal methods applied outside this framework.
What role does the TSC code play in valuation?
This eight-digit code defines the nature and reference value range of the goods in the customs system, and is one of the benchmarks a valuation appraiser uses to assess whether the declared value is reasonable.
Customs valuation, when approached with a clear understanding of its legal basis, the sequence of alternative methods, and the additive and deductible items involved, turns from an ambiguous, disputable step into a transparent, defensible stage of customs clearance in Iran. To review and coordinate customs valuation for your shipment, contact the Shahan Kalaban team.