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Commercial Card

Author: Hadise Motlagh, Qom, Iran 🇮🇷, Persian t.me/hadisemotlagh

 

Introduction

All individuals have concerns about having a commercial card and how to send goods to different countries when starting their exports.

Having a commercial card is very important in export affairs.

Even if some countries do not have comprehensive laws for its use.

This article will examine the commercial card system in several countries.

 

Review of Commercial Card

A commercial card is a financial tool issued by banks or financial institutions for companies and businesses to use for managing expenses, purchases, and improving cash flow.

In Iran, the commercial card has its own specific concepts, which are explained below.

In Iran, a commercial card is a document issued by the Chamber of Commerce, Industries, Mines, and Agriculture, allowing the holder to engage in commercial activities such as importing and exporting goods.

This card is issued to individuals and legal entities and serves as a sort of license for international transactions.

The conditions for renewal and revocation are such that the commercial card is valid for one year and then requires renewal.

To renew, the necessary documents must be submitted to the Chamber of Commerce.

Additionally, the revocation of the commercial card may occur due to reasons such as lack of commercial activity, outstanding debts, or commercial violations by the Chamber of Commerce.

The laws and regulations governing the commercial card are regulated by the Ministry of Industry, Mine, and Trade and the Chamber of Commerce.

These regulations include the requirements for obtaining, renewing, and revoking the card, as well as the duties and rights of the holders of the commercial card.

Therefore, we understand that obtaining a commercial card is not difficult, but the conditions for maintaining it may pose some challenges.

In other words, you can obtain it based on your business transactions, but if you do not understand and follow the proper usage conditions, it may result in serious consequences for you.

 

Commercial card in different countries

Countries such as Turkey, China, India, the United States, the European Union, Canada, Australia, Japan, South Korea, Brazil, and Saudi Arabia issue and use commercial cards.

Holders of these cards can participate in business programs, networking events, and trade shows.

Commercial cards play an important role in facilitating foreign trade and expanding international markets in these countries, contributing to economic growth.

However, it is important to note that obtaining a commercial card comes with some challenges.

In many countries, obtaining a commercial card involves complex and time-consuming administrative processes, and this bureaucracy can lead to delays in starting business activities and impose additional costs on traders.

Even in countries like the United States, the process of issuing a commercial card is often associated with administrative corruption, where some officials may use this process to receive bribes or engage in unfair practices.

This can also lead to inequality and discrimination in accessing these cards.

If you live in Europe and have a small business, a commercial card may not be suitable for you.

The costs associated with obtaining and maintaining a commercial card can be burdensome for small and medium-sized businesses.

Other costs such as administrative fees and taxes can impose a heavy financial burden on traders.

Moreover, in some advanced countries like South Korea, commercial cards impose many restrictions on commercial activities.

These restrictions may include limitations on the volume and type of tradable goods, which in turn can hinder the development of international trade.

While trade cards are an important and necessary tool for international trade, they also come with many challenges and issues that require reforms and improvements in processes and regulations at a global level.

Ultimately, even if we look at the laws of our own country, there may be even worse conditions.

In the whole world, the benefits of these cards, such as participation in international trade shows and facilitating banking transactions, are greater than in Iran.

This is because we are under sanctions in Iran and cannot take advantage of these opportunities.

 

Rent-seeking activities

Commercial card rents in Iran are considered one of the complex and challenging issues in the field of trade and economy.

A commercial card is a license that allows companies and individuals to engage in importing and exporting goods.

However, in practice, there are many abuses of these cards that have led to the emergence of rent-seeking and economic corruption.

If we were to examine the history of commercial cards, we would not find positive results.

This is because in the past, many individuals could obtain commercial cards using other people's names (such as low-income or illiterate individuals).

They would then use these cards for imports and exports, leading to rent-seeking activities.

This would result in the financial and legal responsibility falling on the individual whose name the card was issued under, allowing the main beneficiaries to escape from responsibilities.

In some cases, individuals had no knowledge of the commercial cards and their functionality, and did not know that heavy transactions were being made with them, ultimately leading to a travel ban.

For an elderly woman or man in a remote village, being unable to leave the country is not a big issue, so the person using the commercial card to evade taxes has increased their profits.

It is worth mentioning that in recent years, steps have been taken to prevent some of these incidents, but many individuals have still engaged in illegal activities through these commercial card rents.

Furthermore, some companies and individuals import goods at low tariffs using commercial cards and then sell them in the domestic market at higher prices without paying the actual taxes and duties.

Some individuals and companies receive commercial cards through special connections and relationships, benefiting from special privileges and facilities that are not accessible to the public.

Rent-seeking activities resulting from commercial cards in Iran are a serious economic problem that requires attention and serious action.

By implementing proposed solutions, effective steps can be taken to reduce these rents and improve the business environment in the country.

Transparency, strict monitoring, and legal actions against violators are measures that can help reduce abuses and increase economic justice.

To address these problems, there is a need to strengthen monitoring systems, amend relevant laws, and increase transparency in the issuance and use of commercial cards.

 

Advantages and Disadvantages of Commercial Card

A commercial card, as an international commercial license, can have many benefits for business owners and merchants.

A commercial card enables the import and export of goods, which can help expand markets and increase profitability for businesses.

Having a commercial card allows for membership in a chamber of commerce, providing access to business networks and collaboration opportunities.

Having a commercial card can help increase credibility and trust in international markets, which can lead to attracting new business partners and customers.

Additionally, a commercial card can facilitate banking and financial transactions related to international trade and improve access to financial facilities and services.

Alongside the numerous advantages of using a commercial card in Iran, there may also be some challenges and disadvantages that need to be considered.

Some disadvantages of commercial cards include:

  • Bureaucracy and administrative complexities: The process of obtaining and renewing a commercial card can be time-consuming and complicated, requiring various administrative steps.
  • High costs: The costs associated with obtaining, renewing, and maintaining a commercial card can be high, including registration fees, chamber of commerce membership, insurance, and taxes.
  • Tax responsibilities: Commercial card holders have heavy tax responsibilities and must pay various taxes and levies, which can be challenging for small businesses.
  • Legal and regulatory risks: Commercial card holders may face legal and regulatory risks, including compliance with complex commercial and tax laws and regulations.
  • Issues arising from violations: In the event of tax or commercial violations, severe penalties are imposed on commercial card holders, including financial penalties or even revocation of the commercial card.
  • Export and import restrictions: Commercial card holders may face strict restrictions and regulations on the export and import of goods, making their commercial processes more difficult. Therefore, before obtaining a commercial card, we must consider its aspects so that we do not encounter these problems.

 

Alternative Solutions to Commercial Cards 

In recent years, the discussion of replacing commercial cards in Iran has emerged as an important topic in the field of commerce and economy.

Commercial cards, which are issued as licenses for business activities inside and outside the country, have always faced challenges and problems.

You can seek help from companies active in customs clearance services, and these companies can act on your behalf in export or import activities through agency agreements.

It is important to note that customs clearance activities can be legally carried out by these companies in this field, and you should review and verify their legal documents before collaborating with them. 

A customs clearance agent can legally operate in this field under the following conditions:

- Passing the customs clearance exam and obtaining an activity permit.

- Holding Iranian citizenship and not being employed by the government.

- No criminal record or involvement in smuggling activities.

- Passing the customs law exam.

Ultimately, for commercial activities and if you do not meet the conditions to obtain a commercial card and necessary permits, you can start your activities by employing a customs clearance agent and signing a formal contract with these companies.

Furthermore, after gaining the necessary experience, you can apply for your personal commercial card.

My recommendation is to not directly hold a commercial card and instead use the two solutions mentioned.

In my opinion, if you want to engage in export activities, you can benefit from companies operating in customs clearance services.

These companies can act on your behalf in export or import activities through agency agreements.

Also, for commercial activities, if you do not meet the conditions to obtain a commercial card and necessary permits, you can start your activities by employing a customs clearance agent and signing a formal contract with these companies.

Therefore, after gaining the necessary experience, apply for your personal commercial card.

Ultimately, replacing commercial cards with a new and efficient system can be an effective step towards improving business conditions in Iran.

By using innovative technologies and establishing transparent and efficient systems, we can reduce corruption, increase transparency, and facilitate trade in the country.

These changes require cooperation and coordination among all relevant institutions, as well as active support from economic and commercial stakeholders.

How useful is this article to you?

Average Score 5 / Number of votes: 7

Comments (18 Comments)

M Amir Eftekhari

Commercial ID is an important document used in every country for exportation. Knowing how to grant it is essential and reading the article, one can easily learn how to grant it and in what cases they should take advantage of.

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Musa P Momo -Monrovia - Liberia

Is a great idea to have a commercial card as a businessmen.

Wa.me/231775060019

Bertrand Urama

Highly educative, Ma, please can you can use it as a topic in our international meeting, so that most will understand it well. In every pain there is gain

https://t.me/bertrandurama

Azin Fakhr

Hello to all of you
And thanks to Mrs. Motlagh for fully explaining the contents related to the business card and more importantly the details related to the items after receiving it.
One of the main concerns of every businessman who is just starting out is the business card issue, how to get it and its many costs. Many businessmen may have this approach at the beginning of their work that getting a business card entails additional costs, and now I am not in a position to pay these costs on a routine basis.
And it can be concluded that considering the obligations that exist after obtaining a business card, there is not so much need to have this item at the very beginning of work.
It is possible to cooperate with other companies that carry out the transportation and clearance of goods and carry out these matters easily. And at this very important time of his activity, the businessman can focus on the negotiations and how to negotiate with these customers in order to achieve the best results.

t.me/Azin_fakhr

Saadatmand

A commercial card offers several advantages to businesses, including the ability to streamline expense management and improve cash flow by providing detailed tracking and reporting of business expenditures. It enhances credibility and trust with suppliers, as they feel more secure transacting with businesses that use recognized financial tools. Additionally, it allows businesses to establish accounts with banks and payment processors, facilitating smoother financial transactions and better cash flow management. Commercial cards also open up opportunities for accessing various financial services, such as business loans and lines of credit, and help ensure efficient and secure business operations with enhanced security features and fraud protection.

t.me/saadatmain

Fatemeh Zamani

A commercial card, often referred to as a business or corporate card, is a type of payment card issued to employees by their employer. These cards are designed to facilitate business-related purchases, allowing for streamlined expense management and accounting. They can be used for a variety of expenses, such as travel, office supplies, or client entertainment. Commercial cards often come with features like spending limits, detailed reporting, and the ability to categorize expenses, which can help businesses keep track of their expenditures and budget more effectively. Additionally, they may offer rewards or cashback on purchases, contributing to the company's savings. It's important for users of commercial cards to adhere to their company's policies and guidelines to ensure proper use.

t.me/Fatimazamani1992

Zahra Alavi

Thanks to my dear colleague, Ms Motlagh for elaborating on this matter.
There are many documents to issue internationally that permit you to do trade but then there are many company's that facilitate the process of imports, equally.
They can be of great help for those who don't have that much experience and want to start and then can become professional and have their own permissions and certifications.

t.me/Alavibusiness

Nassim Adabi

It was interesting to know all about commercial cards.
Increasing our knowledge is easy via Arad Branding website
I will share this on my LinkedIn to get others informed 😉

wa.me/447700308590

Mohsen Imam

When employees use their commercial cards, the purchase prices are subtracted from your account balance and will not add to your company's debt. The spending controls and expense management features also help small businesses by giving them a tighter rein on their expenses.

wa.me/447700308494

Javad Gh.

Hello

It is necessary to say one thing here, dear friends and businessmen who are active in business, at first it is not necessary for you to have a business card. You can get help and guidance using companies that are active in this field. Later, when you have developed your essay, you can take action to receive it, which of course has a very high reputation and you will be given points.

T.me/JavadManagmentRepresentative

Malik Emmanuel

commercial cards offer significant benefits for trade, addressing corruption and streamlining processes remain critical for enhancing transparency and efficiency in commerce.





commercial cards offer significant benefits for trade, addressing corruption and streamlining processes remain critical for enhancing transparency and efficiency in commerce.






commercial cards offer significant benefits for trade, addressing corruption and streamlining processes remain critical for enhancing transparency and efficiency in commerce.





commercial cards offer significant benefits for trade, addressing corruption and streamlining processes remain critical for enhancing transparency and efficiency in commerce

Wa.me/254742125889

Hauwa Yakubu

an excellent initiative, a very nice move kudos to aradbranding, That's why i so much love everything about aradbranding
am hauwa Yakubu arad representative in Kano state Nigeria🇳🇬
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Oyediran Oluwatobiloba Julianah

Wow this is really amazing. I appreciate the time and effort you put into creating this article Mrs Hadis.
It is well written and provides valuable information on the topic.
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Shafiu Dahiru Abdullahi

A commercial card is a credit card or virtual card that used by business to make purchases on behalf the company, purchases be may include ty business supplies, maintenance, repair, operational expenses of travel for example of commercial card, if your business has a fleet of vehicles that a no employee named his jounny has to drive, you can give him a card , you can give your office manager a card that allows her or he to order office supplies from specific vendors, and so and so on,
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Busari Aliyu

Comprehensive and vital information well delivered on the commercial card. No commercial card transaction or negotiation deal seal.
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Mohammed mukhtar Uthman

The author discusses commercial cards in Iran, highlighting their importance for import/export but also the challenges they pose. These challenges include complex procedures, high costs, and potential for misuse. The author proposes alternative solutions such as customs clearance companies to help navigate the complexities of international trade.
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Tshisola Francine

It is possible to cooperate with other companies that carry out the transportation and clearance of goods and carry out these matters easily. And at this very important time of his activity, the businessman can focus on the negotiations 265992363819

Busari Aliyu

Well delivered presentation, commercial card play a vital role in business transaction.
Busari Aliyu representative of aradbranding company in Nigeria WhatsApp number 2348128959020