Export Ban and Money-Making Solution in Temporary Passage through it and Capitalizing on a Threat

Author: Mohammad Raouf Mohajeri, Commercial Consultant

Mohammad Raouf Mohajeri, Commercial Consultant

First and foremost, it is necessary to provide a brief explanation of what an export ban is and why we face prohibitions on exporting certain goods.

What is an export ban, and which products are prohibited for export?

Sometimes products like sugar, powdered milk, margarine, or similar items face export bans, and taking them out of the country and selling them to other nations is declared prohibited and illegal.

However, the main reason for this is that the raw materials for producing these products are imported, and hence, we have witnessed difficulties in exporting such products in recent years.

But when we look at the intention behind this action, we realize that it is to prevent market imbalances.

It means that the amount of imported raw materials must be proportionate to the domestic consumption, indicating that if we import surplus quantities and then produce, there is no problem.

Therefore, we can consider this issue as a "temporary passage" solution, a permanent solution.

How to produce export goods by importing raw materials?

As a solution to overcome the problem of export bans on some goods, we can manage the import of raw materials to produce prohibited items.

This is done to maintain market regulation relative to surplus production for domestic markets and merely for export purposes.

In other words, temporarily importing raw materials into the country allows us to re-export the finished product by utilizing the country's workforce, equipment, and domestic technology, adding value to the product.

This means that the import, which will stimulate production, employment, and foreign exchange earnings, is in favor of the country.

The legislator considers this matter legal and a highly beneficial initiative.

How to export a product that we don't produce?

Some traders may claim that we are not producers, so what should we do?

Our response to this group of traders is that you need to find factories and production units that import raw materials from abroad for their products and contact them to establish interaction and collaboration for exporting their products.

Fortunately, currently, with the changes that have taken place, some manufacturers are willing to do this because they can export the raw materials they import and the products they produce, not only domestically but also internationally.

In this way, raw materials also enter the cycle, and the only remaining point is that the duration of purchasing raw materials until entry into Iran will sometimes take up to 3 months.

In this regard, to avoid any issues in exporting the desired product, we need to calculate the time for delivering the cargo between the order receipt and delivery.

Here, two options remain:

Negotiate with our export customer and declare the time, which they often do not accept.

Coordinate with a group of manufacturers who are constantly importing and have a license for this to supply raw materials, which I personally recommend based on personal experience.

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Comments (35 Comments)

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mohsen jabbri

"Hello! It was interesting and relatively specialized. For proper implementation, it definitely requires thorough research on the specific product and specific conditions."

Razie Rezai

even an exportation ban cannot stop a professional merchant. we must do our best and find an alternative way to overcome the difficulties.

Reza Karimi

Greetings
This question has always been raised for me, why some products are banned for export?
Mr. Mohajeri explained it well that the country's needs for products and regulation of the domestic market is a priority. And as a solution, they pointed to proper and authorized imports, which will boost production and earn currency for the country.

Mohammad Reza Shafaie

In case there is a need for the importation of raw materials for production and the possibility of exports of the products, it is a good opportunity to create added value.

saba sadeghikia

working on some products like sugar, flour, or some petroleum products, is a bit difficult as the suppliers aren't easily available.

Mahdi Alavi

it is important to know about the export ban and prohibited products which is something related to law and you have to check it quite often not to face problems, because when it comes to law it is not something fixed and they change during time.

Mahdi Rezaie

It is very hard to enter the markets without having any information.
If you work with willingly, you can understand the market better and enter the market.
It is better to use the Arad team for guidance

Seyyed Mojtaba

there is lots of banned and restriction each trader have to know about it before start working and negotiation and spending time on that products deals
its about taxes also which determine by the country and play a key roles on the prices and trade offer

Sharife Nateghi

It is indeed a practical solution. Importing raw materials and then exporting the produced goods and products, not only satisfy the domestic needs, but also by exporting the products to other parts of the world, great advantages can be taken through this business.

Javad, Gh.

Good day to you all

the point is that if manufacturers import an abundance quantity of raw materials and produce final products, we can use the amount that the country needs. The rest can be exported. it results in creating more jobs for our people and inject also more money to the country.

Mehdi Eshghi

Business recommendations
1. **Make a Plan:** Determining the target, creating strategies.

2. **Be Customer Oriented:** Focus on customer satisfaction.

3. **Manage Risks:** Anticipate uncertainties, control risks.

4. **Be Innovative:** Follow technology, make your business shine.

5. **Communicate Good:** Communicate with teams and cultures.

6. Financial control

7. **Training and Development:** Continuously learn, develop yourself and your team.

8. **Adhere to Ethics:** Be trustworthy and ethical.

9. **Strategic Relationships:** Establish business partnerships, form networks.

10. **Continuously Learn:** Stay up to date on the current market, become an expert.

Hasan

Businessmen should always stay updated on the limitations of exporting certain products so that they don't face any issues in their business.

Amene Abbasi

Hello.
Knowing about the details of the rules for import and export is really important. Before doing any business, you need to consider these points and search about it.

Azin Fakhr

There are also some cases that due to the false strategies of a country, the productivity will be only in a certain amount that can only meet the needs of the domestic market so there will be a ban for exportation. It is better to also have extra production capacity specifically for exportation.

M. Amir Eftekhari

Reading all this passage, we can also claim that not only importing raw materials can be financially beneficial but also contribute to the economy of the country.

mohsen jabbri

Thanks to the ruthless sanctions today many countries including Iran are much stronger and their economy is ready in terms of infrastructure to resilience so the point is they countries who imposed the sanctions can see they are far behind of their targets.

Mohsen Imam

With a secure base of satisfied customers, your business is free to pursue new product development. This opens the doors for a little experimentation with your marketing and branding on a willing audience. Just take care not to change things around too much; find out what your existing customers appreciate most and make sure their preferred services remain available. A high number of changes at once could scare loyal customers away.

Marzieh Olamaei

Finding Iranian manufacturers and factory owners and then communicating with them to export their products can be very effective.
A manufacturer may be looking for an exporter who will find this opportunity and help him in the export direction of his product.
For this reason, try do cooperate with new exporters and don't miss the chance.

Zahra Alavi

As stated in the article, to have effective cooperation with different countries and cultures, it is necessary to know all the regulations and prohibitions.

fateme hosseinkhani

Undoubtedly, export will be the only way to get rid of the country's poverty and most importantly, the prosperity of production and employment
Most people think that I must be a producer and factory owner to be able to become a trader and exporter, while our country has a great capacity to produce various products.

syed alavi

hi, great points for export ban things thanks to share this point

mohammad mousavi

temporarily importing raw materials into the country allows us to re-export the finished product by utilizing the country's workforce, equipment, and domestic technology, adding value to the product.

Muhammad Fazeli

if we want to export a product that we don't produce we need to be a mediator and have some other factors like how to negotiate, have an acceptable goods supply also in this case the benefit is more than a typical business.

Hani Rostami

By creating added value to the imported product, we can export that product at a higher price, which will increase the currency, a point that many importer friends can pay attention to, and it is profitable for both them and the country.

Mahya Soleimaniun

The aforementioned bans may be temporary and be removed after some time.

Rahele Nateqi

Hi there
Those who want to start a business can create opportunities and income for themselves by using the capacity of factories and producers.
Because a producer cannot do two things: sell and produce
So it is economical for him to make his product available to you
Many famous brands are doing this process

Fatima Radmanesh

Hi there,
I read some really interesting points here in this post.
Everyone who is in the business field should know about these points.
You should check the list of banned products for export and import before any negotiation process.
Also, it's a great idea to work in the raw materials business. It can bring you a good high income.
We have so many people that we are in touch with and we know if we encourage them to work internationally, it can boost their business and income.
I enjoyed updating my knowledge about business subjects.

Ahmad Ashkian

Useful information for all who wants to activate in export section

Mohammad Sadeqi

Exportation of some products are banned in almost all countries and that is for many reasons on of which could be the demand for the very product inside that country

Fatemeh Afrad

When we wanna start doing business for a longtime, we should update ourselves. So sometimes there would be limitations for sending some special products from A country to B country, if you know about the solution so your problem will be solved.

Seyyed Mojtaba

If you want to do deals you have to be aware about all banned and restrictions on the products you want to work
Even taxes is important and effect on your deals
So don't lose your clients with lake of knowledge about your products and deals

Marie

There have always been some prohibitions against the importation and exportation of specific items all over the world due to some political, economical, and social issues.
But most of these regulations have been temporary and were cancelled by the governments due to the conditions of the countries.
What is good about doing business with AradBranding Company is that it exports everything and many things so there are always some items for every region that one might want to work on in his particular market.

Marzieh olamaei

You should be careful that what are rhose prohibited products.

You should identify them and gather a complete data about their rules.

Mariya Salim

Zeynab Ghasemi

Another way to export goods that are banned is international trade by having a supplier in another country that does not have a ban on the export of those goods.