In recent decades, the faucet manufacturing industry, especially sanitary faucets, has become one of the most important sectors in Iran’s non-oil exports. With increased domestic production capacity, the adoption of modern technologies, and the improvement of quality standards, Iranian producers have been able to export their products to regional and international markets. However, while Iranian faucets now boast global competitiveness in quality and diversity, legal and customs challenges facing exporters remain a substantial barrier to the expansion of exports in this sector.
The year 2025 can be considered one of the most critical years for exporters, as expectations of increased foreign exchange earnings from exports are rising, while at the same time, the complexity and restrictions of laws and regulations have also increased. Meanwhile, target countries—especially in the Middle East, Central Asia, and even European markets—have a high demand for quality faucet imports, and competition in these markets requires exporters to be agile and prepared legally, technically, and in terms of customs processes.
Legal instability, frequent changes in export regulations, weak logistics infrastructure, currency obstacles, customs complexities, and a lack of coordination among responsible authorities are among the factors that will seriously challenge faucet exporters in 2025. These issues not only increase the cost and time required for export operations but have also, in some cases, led to the loss of target markets.
This article provides a structured and analytical review of the most important legal and customs problems affecting faucet exports in 2025.
Problems in Faucet Tariff Classification
One major challenge for faucet exporters in 2025 is ambiguity and inconsistency in tariff classification (HS Code) of these products across different customs offices in the country. Faucets are composite products featuring metallic, plastic, and mechanical parts, which are classified in various categories under the Harmonized System Code. This leads to disagreements among customs experts, exporters, and importers.
For instance, some customs offices classify faucets as "sanitary building equipment," while others categorize them as "industrial components" or even "ready-made metal products." Such differences in classification not only cause variations in customs tariff rates but also result in delays with issuing declarations, clearance process interruptions, and even customs fines.
In many cases, exporters are forced to pay different tariffs for similar goods at various customs offices within the country, undermining economic logic for exports. Additionally, foreign buyers also face issues with tariff code matching upon customs clearance in the destination country, as the codes used in Iran either aren’t aligned with international standards or are incorrectly selected.
Another consequence of this confusion is the difficulty in obtaining a Certificate of Origin (CO) from the Chamber of Commerce. If the product’s tariff classification is not done correctly, this leads to delays in issuing the certificate or forces the exporter to amend documentation and incur additional costs.
To address this issue, the following solutions are recommended:
- The establishment of a unified, publicly accessible system for accurately classifying goods through consultation with industry experts.
- Holding tariff classification workshops for customs staff, exporters, and commercial experts from companies.
- With cooperation from the Trade Promotion Organization, Chamber of Commerce, and Customs, reviewing and updating standardized tariff codes specific to the faucet industry to ensure alignment with global markets.
Lengthy Process for Obtaining Export Licenses
Another key challenge for faucet exporters in 2025 is the lengthy and complex process for obtaining export licenses from various government agencies. While many competing countries issue export licenses within a few hours or at most a few days, in Iran, exporters must secure separate licenses from multiple agencies for each shipment, imposing significant time, effort, and cost burdens.
For faucet exports, permits are typically required from organizations such as:
- The National Standards Organization (to confirm quality and compliance with mandatory standards),
- The Trade Promotion Organization (to register export declarations and obtain related certifications),
- The Ministry of Industry, Mine and Trade (to check export ceilings or priorities),
- And sometimes the Environmental Protection Organization or the Food and Drug Administration (in cases where the faucet's material or use is specific),
Such a multiplicity of issuing bodies often leads to conflicts between agencies, duplicate requests for documents, and exhausting bureaucracy.
In some cases, lack of coordination or system integration among these organizations means that obtaining even a simple license can take weeks, despite the exporter being contractually obligated to deliver goods on a specific schedule. Delays in getting licenses can even cause the contract to be canceled, result in international fines, or cause the exporting company to lose business credibility.
Another noteworthy point is that many licenses must be obtained anew and on a case-by-case basis for each round of export; there is no mechanism for long-term permits or general licenses for a specific period.
Proposed solutions:
- Creation of a single-window export licensing system for faucets and other industrial goods.
- Issuance of general export licenses for companies with a positive record and approved standards.
- Elimination of redundant licenses from the export process, or their integration into the customs declaration process.
- Use of artificial intelligence or administrative automation systems to accelerate the review and approval of export documents.
Lack of Legal Support for Exporters in Target Markets
A serious problem for faucet exporters in 2025 is the lack of sufficient and effective legal support for them in target export markets. When exported goods arrive in the destination country, they may face sanctions, detentions, or legal disputes for various reasons, such as differing interpretations of import laws, local standards, or even political and trade issues. Unfortunately, Iranian exporters are left with a deficit of legal and diplomatic support in these situations.
This issue is aggravated by several factors:
- Absence of strong, official legal offices or representatives in target countries to quickly follow up on issues.
- Weak trade and economic diplomacy, leading to a lack of bilateral agreements for trade and investment protection between Iran and other countries.
- Absence of transparent and efficient mechanisms for following up on legal claims related to exports, forcing exporters to bear heavy legal costs or forfeit their rights.
- Delays or lack of proper response from responsible government entities in supporting the rights of exporters abroad.
As a result, many exporters, when faced with such challenges, prefer to distance themselves from high-risk markets or reduce their export volumes, decreasing Iran's market share in regional and global competition.
Proposed solutions:
- Establishing and expanding specialized export legal and advisory networks in cooperation with the private sector and the Ministry of Foreign Affairs.
- Strengthening economic diplomacy and actively working to develop trade and investment protection agreements with target countries.
- Setting up a dedicated legal support committee for exporters within the Ministry of Industry, Mine, and Trade or the Trade Promotion Organization to actively handle export-related disputes.
- Training exporters in international trade law and strategies for handling legal issues in foreign markets.
Problems with Repatriation of Export Earnings
One of the fundamental and longstanding problems for faucet exporters in 2025 is the repatriation of export proceeds, which, under current economic conditions and currency rate fluctuations, has become especially significant. According to Central Bank regulations, exporters must return export earnings to the country's economic cycle within a specified period. However, in practice, this process is fraught with difficulties that not only disrupt exporters' liquidity but also create significant financial and commercial risks.
Main reasons for the repatriation issue:
- Decline in purchasing power of currency in foreign markets: Due to various issues such as sanctions, banking problems, and currency transfer restrictions, exporters are often unable to receive payments on time or in a suitable form.
- Delays in the return of funds to the country: Some foreign buyers, due to their own financial difficulties or restrictions, delay payments, forcing exporters to operate without liquidity for extended periods.
- Stringent Central Bank requirements for currency repatriation: At times, the Central Bank imposes complicated conditions for repatriation, pushing exporters toward informal and risky methods.
- Exchange rate discrepancies between the free market and NIMA system: Significant differences between the open market rate and the NIMA (Centralized System for Foreign Exchange Transactions) rate harm exporters and erode their incentive to return foreign currency through official channels.
Consequences of the repatriation problem:
- Reduced working capital for exporters, leading to decreased production and exports.
- Increased liquidity risk, further lowering competitiveness in international markets.
- Growing use of informal and illegal methods for currency transfers, with economic and legal repercussions.
- In some cases, exporters losing access to banking services and facing heightened financial difficulties.
Proposed solutions:
- Simplification of repatriation processes and reduction of red tape for exporters.
- Improved coordination between the Central Bank, Trade Promotion Organization, and exporters to develop clear and practical mechanisms.
- Increased exchange rate transparency and reduction of the gap between the open market and NIMA rates.
- Development of innovative financial tools such as electronic remittances and foreign currency contracts to facilitate international transactions.
- Creation of incentives for exporters to repatriate currency through official channels, such as tax breaks or priority for accessing financial facilities.
Lack of Specialized Training for Faucet Exporters
One of the major and less visible challenges for faucet exporters in 2025 is the lack of specialized and targeted training in international trade, export regulations, customs rules, and target markets. Despite their experience in production and domestic sales, many producers and exporters in this industry lack adequate expertise in export-related domains, leading to strategic mistakes, delays in export processes, and reduced international competitiveness.
Problems stemming from lack of specialized training:
- Lack of familiarity with new export and customs regulations: Exporters are often unaware of frequent legal changes or don’t know how to properly implement them, leading to clearance issues and even financial penalties.
- Weak understanding of target markets and foreign customers’ needs: Lack of sufficient information on market characteristics, customer preferences, and technical standards of destination countries results in reduced marketing and sales success.
- Insufficient skills in international negotiations and export contract management: Exporters may face unfamiliar legal and financial clauses in contracts and may be unable to properly defend their interests.
- Lack of knowledge in international transportation and supply chain management: This causes delays in delivering goods to customers or increases shipping costs.
- Weakness in using financial and export insurance tools: Without proper awareness of these facilities, exporters fail to effectively manage export-related financial risks.
Proposed solutions:
- Organize specialized faucet export training courses in collaboration with the Trade Promotion Organization, Chamber of Commerce, and industry associations.
- Develop and publish practical and up-to-date guides in the form of booklets, webinars, and online platforms for easy exporter access.
- Establish a specialized export advisory center in each province or industrial zone to answer exporters’ questions and resolve their problems.
- Encourage companies to benefit from international training and to attend global exhibitions and industry events.
- Develop export mentoring and support networks starring experienced export specialists.
Conclusion
Faucet exports in 2025 face numerous challenges in terms of law, customs regulations, complex licensing procedures, currency issues, and a lack of specialized training. These problems not only slow down exports but also erode the international competitiveness of Iranian exporters. To overcome these obstacles, policymakers and industry players need to collaborate more closely to smooth the path for exports, especially by improving educational, legal, and technological infrastructure.
Along this path, digital tools and online platforms can play a decisive role. One such tool is SharMarket, a comprehensive and specialized platform designed to facilitate commercial connections between various sectors, including faucet exporters, at the international level. SharMarket provides a secure and effective environment for showcasing products, establishing direct links with foreign customers and partners, and accessing updated information about global markets, thereby helping reduce export problems and increase competitiveness.
The use of such platforms is especially beneficial in environments where laws and regulations are evolving rapidly and are complex. They enable exporters to access global markets with better knowledge, greater speed, and lower costs, helping them secure a larger share of the faucet export market.
