Exporting industrial goods is considered one of the important pillars of economic development of countries. In developing countries, such as Iran, promoting exports of this group of goods not only helps diversify foreign exchange sources, but also promotes technological advancement, job creation, and greater linkages with global value chains. However, the process of exporting industrial goods is accompanied by numerous complexities and challenges that, if not managed properly, can lead to failure in foreign markets and financial losses. These challenges usually begin from the production stage and continue until the delivery of the goods to the foreign buyer and receipt of payment. Below, we will examine the most important operational obstacles facing exporters in this field.
One of the first and most tangible challenges is related to international transportation and logistics. Industrial goods are often heavy, large in size, or have specific technical sensitivities, requiring special equipment, careful packaging, and safe transportation. In many cases, the lack of direct shipping lines or limitations in rail and land transportation to target countries leads to increased costs and delivery times. For example, transporting an industrial machine from Iran to Central Asia may be accompanied by serious delays due to border problems, fluctuating freight rates, or lack of specialized fleet. In addition to these issues, the inefficiency of domestic infrastructure such as ports, warehouses, or roads also becomes a double factor in increasing risks.
The second important issue is customs and administrative complexities. The export process in Iran requires going through several steps, such as obtaining a business card, obtaining the necessary licenses, registering a customs declaration, and obtaining a certificate of origin and a standard certificate. In many cases, the lengthy licensing process, incoordination between relevant agencies, and frequent changes in regulations cause exporters to waste time and money. In addition, some companies’ unfamiliarity with the correct way to complete documents and regulations of the destination country can lead to the return of goods or heavy fines. This issue becomes more complicated when exporting to countries with strict regulations, such as European or East Asian countries.
The issue of technical compliance and international standards is also one of the other serious challenges in this field. Many industrial goods must be manufactured and packaged in accordance with the specific technical, safety, environmental, or energy standards of the importing country. In some cases, domestically produced goods lack international certifications such as CE, ISO, or UL, which prevents them from entering target markets. Also, constant changes in countries’ technical requirements, especially in areas such as electronics, medical devices or machinery, require exporters to constantly update technical knowledge and accompanying documentation. Failure to strictly comply with these requirements may result in the seizure of goods at the border or cancellation of the contract.
Other key challenges include financial issues and payment risks. Many foreign buyers prefer to purchase on a term basis or by letter of credit (LC); however, Iranian banks are unable to implement these methods smoothly and reliably due to sanctions, international restrictions, and weaknesses in the banking system. As a result, many exporters are forced to sell in cash or at high risk, which both negatively affects their competitiveness and increases the likelihood of default or late payment. Also, exchange rate fluctuations, restrictions on the return of foreign exchange from exports, and the lack of financial risk hedging systems are among the factors that put the profitability of industrial goods exports at risk.
In addition to structural and technical challenges, the instability of economic policymaking and the impact of sanctions also play an important role in reducing the motivation and operational capacity of exporters. Export-related laws in Iran are subject to change from time to time, from imposing export duties to requiring foreign exchange commitments and registration in various systems. This instability creates an atmosphere of uncertainty for economic actors. International sanctions have also prevented Iranian companies from using the services of international logistics, insurance, and financial companies and have forced them to work with intermediaries, which both increases costs and reduces the transparency of the process.
Lack of accurate knowledge of target markets is another hidden but effective challenge in the export process. Many companies export solely based on word of mouth or random contacts without sufficient research and without developing an entry strategy. This approach may lead to sales in the short term, but in the long term, without understanding competitors, prevailing prices, technical rules, and the cultural context of the market, the likelihood of failure increases. Lack of an official representative, lack of presence in specialized exhibitions, and weakness in digital marketing cause the exporter to remain unknown in the target market.
The shortage of human resources specialized in international trade and the lack of digital infrastructure are also considered software challenges. Many companies lack personnel who are fluent in English, familiar with the basics of international negotiations, or familiar with digital tools such as CRM, content marketing, or market data analysis. This issue causes communication and execution weaknesses to emerge in interactions with foreign customers. Also, not having a professional website, digital catalog, or not responding quickly to emails and requests puts the company out of the competition.
Finally, although the process of exporting industrial goods faces numerous challenges, this path can be made smoother by adopting a systematic approach, using export consultants, participating in industrial clusters, and utilizing supporting institutions such as the Export Guarantee Fund, joint chambers, and technical-commercial services. Continuous training of human resources, digitalization of processes, cooperation with reputable transportation companies, and upgrading technical standards are among the solutions that can help reduce risk and increase success in international markets.
