Iran’s Comprehensive Trade System (SCTI) is designed as a key tool for the government to integrate and oversee commercial processes in Iran. Operating under the supervision of the Ministry of Industry, Mine and Trade and the Center for the Development of Electronic Commerce, the system aims to facilitate trade processes, reduce smuggling, increase transparency in transactions, and monitor the supply chain. According to laws and regulations, including Article 6 and 13 of the Anti-Smuggling Law approved in 2013 and Article 8 of the Business Environment Improvement Law approved in 2011, all economic actors involved in domestic and foreign trade must register their information in this system. Non-compliance with these requirements can lead to severe legal and financial repercussions for businesses, including financial penalties, confiscation of goods, and even allegations of smuggling. This article examines the requirements and necessities of the Comprehensive Trade System for businesses, its role in improving the business environment, and the consequences of non-compliance with related registration laws. Additionally, key points that businesses should consider when using this system will be outlined.

What is the Comprehensive Trade System?
The Iran Comprehensive Trade System (located at ntsw.ir) is an integrated electronic platform designed to manage and monitor commercial processes from order registration to customs clearance and distribution in the supply chain. Officially launched on July 27, 2016, it has served as one of the main tools of e-government in the trade sector. The Comprehensive Trade System simplifies and clarifies commercial processes by creating a centralized platform that facilitates information exchange among various entities, including customs, the central bank, the tax authority, and the Ministry of Industry.

Main Objectives of the Comprehensive Trade System
Based on available sources, the main objectives of this system include:

Facilitating Trade Processes: Reducing administrative bureaucracy and expediting order registration, obtaining permits, and customs clearance.

Increasing Transparency: Accurately registering trade information to prevent economic corruption and discrimination.

Reducing Smuggling and Hoarding: Monitoring the supply chain and tracking the entry and exit of goods.

Integrating Information: Establishing connections between regulatory bodies and economic actors.

Improving Market Management: Providing statistical and analytical tools for better decision-making by businesses and governmental entities.

Subsystems of the Comprehensive Trade System
The Comprehensive Trade System consists of several subsystems, each with specific responsibilities:

Domestic Trade System: Manages processes related to the transfer of ownership, location, and storage of target goods (highly trafficked goods, those related to public health, or strategic reserves).

Foreign Trade System: Manages processes related to imports, exports, and transit, including order registration and obtaining permits.

Warehouse Management System: Records the entry and exit of goods from warehouses to prevent hoarding.

Product Identification System: Allocates a unique code to goods for tracking in the supply chain.

NIMA System: Manages currency transactions to meet the foreign currency needs of importers.

Credit Validation and Rating System: Evaluates the creditworthiness of economic actors to reduce transaction risks.

Customs Affairs System: Accelerates customs processes and goods clearance.

Legal Requirements of the Comprehensive Trade System for Businesses
The Comprehensive Trade System is established based on various laws and regulations that impose specific obligations on businesses. These requirements are particularly significant in the areas of domestic and foreign trade, warehousing, and goods registration. The main legal requirements of this system are as follows:

Mandatory Registration in the System: According to Article 6 of the Anti-Smuggling Law and the decisions of the Market Regulation Working Group, all economic actors in the following areas must register in the Comprehensive Trade System:

• Importers and exporters: Individuals and legal entities engaged in foreign trade.
• Production units: Producers of target goods, such as agricultural products, petrochemicals, home appliances, and tires.
• Distribution companies and retailers: Suppliers of goods, including chain stores and online businesses.
• Warehouse operators: Individuals responsible for the storage and maintenance of goods.
• Holders of commercial cards: For verification and management of commercial cards.
• Purchasers of goods: To verify purchase invoices and ensure their authenticity.

Failure to register in this system can prevent legal trade activities and may lead to the confiscation of goods or financial penalties.

Recording Entry and Exit of Goods: One of the most important requirements of the Comprehensive Trade System is the registration of entry and exit data for goods in the supply chain. According to Article 13 of the Anti-Smuggling Law, failing to record goods in the Warehouse System or the Domestic Trade System is considered smuggling. This requirement is especially crucial for target goods such as agricultural products, tobacco, tires, and home appliances.

Verification of Purchase Invoices: Businesses are required to register and verify their purchase and sale invoices in the Comprehensive Trade System. This process is essential to ensure the authenticity of transactions and to prevent tax evasion and smuggling. Buyers must review and confirm invoices registered by sellers; otherwise, the transaction may be considered an off-the-books sale.

Obtaining a Business Role Code: Economic actors must obtain a Business Role Code to conduct trade activities in the system. This code is issued based on the type of activity (individual or legal entity) and the qualifications registered in the system. Without this code, it is not possible to register orders, verify invoices, or conduct other trade activities.

Coordination with Other Government Systems: The Comprehensive Trade System is coordinated with systems such as the Taxpayer System, Customs, and Civil Registration. Businesses must enter their information in a way that is consistent with these systems. Any discrepancies may lead to delays or errors in commercial processes.

Necessities of the Comprehensive Trade System for Businesses
The Comprehensive Trade System is not only a legal requirement but also acts as a tool to improve business performance and reduce trade risks. The key necessities of this system for businesses include:

Transparency in Transactions: The Comprehensive Trade System increases transparency in commercial transactions by recording all information related to production, import, export, and distribution of goods. This transparency helps businesses prevent tax violations, hoarding, and smuggling, and fosters trust with customers and regulatory bodies.

Reduction of Administrative Bureaucracy: This system reduces time and costs associated with administrative procedures by eliminating paper processes and allowing online information registration. For example, order registration, obtaining permits, and verifying commercial cards are conducted electronically.

Tracking Goods in the Supply Chain: Utilizing the product identification and tracking systems, businesses can track their goods from production or import to final consumption. This capability aids in better inventory management and prevents hoarding.

Facilitation of International Trade: The Comprehensive Trade System simplifies processes related to currency provision, customs clearance, and obtaining export permits through coordination with systems like NIMA and Customs. This is essential for businesses engaged in foreign trade.

Provision of Analytical Tools: The Comprehensive Trade System provides businesses with statistical and analytical tools that help them identify their strengths and weaknesses and make decisions based on market conditions.

Key Points Businesses Should Consider
To optimize the use of the Comprehensive Trade System and avoid legal issues, businesses should pay attention to the following points:

Accurate and Timely Registration:

• Identity Information: The information entered in the system (such as national ID, mobile phone number, and postal code) must match the information registered in government systems like civil registration and postal service.
• Valid Phone Number: The mobile phone number must be registered in the name of the CEO or responsible person, as system notifications are sent via SMS.
• Information Updates: Any changes in identity or contact information should be updated in the system immediately.

Accurate Registration of Goods Information:

• Product ID: Each item must have a unique ID registered in the product identification system.
• Entry and Exit of Goods: All entry and exit of goods from warehouses must be registered systematically.
• Invoices: Purchase and sale invoices must be registered and verified accurately and in accordance with actual information.

Obtaining a Business Role Code: After registration, businesses must obtain a Business Role Code (individual or legal entity). This process may take between 15 minutes to 24 hours and requires uploading the necessary qualifications.

Using Appropriate Browsers: To avoid technical errors, it is recommended to use Google Chrome or Firefox for accessing the system.

Monitoring SMS and Notifications: The Comprehensive Trade System sends SMS notifications regarding invoices, bills of lading, and case statuses. Businesses should carefully monitor these messages.

Coordination with Tax Advisors: Given the complexities of the system, collaboration with tax advisors for accurate data registration and to avoid system errors is advisable.

Consequences of Non-Compliance with the Comprehensive Trade System Requirements
Failing to adhere to the requirements of the Comprehensive Trade System can have serious legal, financial, and operational repercussions for businesses. The most significant of these consequences include:

Classification as Smuggling: According to Article 13 of the Anti-Smuggling Law, failing to register entry and exit data for goods in the Warehouse System or the Domestic Trade System is considered smuggling. This violation can lead to confiscation of goods, heavy fines, and even legal prosecution.

Prohibition of Goods Sale: Selling goods without registration in the Comprehensive Trade System is illegal and can result in the inability to sell goods or their confiscation by regulatory authorities.

Financial and Administrative Penalties: Violators may be fined according to the laws of government penalties, the trade union system, and the Anti-Smuggling Law. These fines can be significant depending on the type of violation and the value of the goods.

Revocation of Licenses and Commercial Cards: Non-compliance with the system’s requirements can lead to the revocation of commercial cards or business licenses, negatively impacting their commercial activities.

Supply Chain Problems: Failure to accurately register information in the system can disrupt the supply chain, delay customs clearance, and increase operational costs.

Impact on Business Credibility: Businesses that receive low ratings in the credit validation and rating system may face restrictions in trade transactions and currency provision.

Challenges and Problems of the Comprehensive Trade System
Despite its numerous advantages, the Comprehensive Trade System faces challenges that businesses must consider:

Technical Issues: Some economic actors have reported technical disruptions in the system, such as slowness or temporary outages.

Complexity of Processes: The process of registering information and obtaining a role code can be complex for some users, especially small businesses.

Need for Training: Many users require specialized training to effectively use the system.

Insufficient Coordination Among Agencies: In some instances, lack of coordination between the Comprehensive Trade System and other government systems causes delays in processes.

Conclusion and Recommendations
The Comprehensive Trade System plays a crucial role as a key tool for clarifying and facilitating commercial processes in Iran. By reducing administrative bureaucracy, increasing transparency, and monitoring the supply chain, this system helps businesses conduct their activities legally and efficiently. However, the legal requirements of this system, including registration, obtaining a business role code, and accurately recording goods information, are mandatory for all economic actors, and non-compliance can lead to serious consequences such as fines, confiscation of goods, and smuggling allegations.

Recommendations for Businesses:

Training and Awareness: Businesses should familiarize themselves with the system’s processes through official documentation or consultations with experts.

Accuracy in Data Entry: Information entered must be precise and consistent with other government systems.

Continuous Monitoring: SMS notifications and system alerts should be regularly reviewed.

Consultation with Advisors: Collaborating with tax and legal advisors to mitigate legal risks is recommended.

Technology Upgrades: Using appropriate and up-to-date tools to access the system is essential.

Ultimately, despite existing challenges, the Comprehensive Trade System is a significant step towards modernizing trade in Iran. By adhering to its requirements, businesses can benefit from its advantages and avoid the legal and financial repercussions of violations. For more information, visiting the official system website (ntsw.ir) and utilizing reliable educational resources is recommended.