The key role of professional intermediary companies in ensuring the success of international purchases
In this era, when production, trade and supply of goods have gone beyond the local level and have become global, companies are forced to meet their needs from foreign markets. From the purchase of industrial machinery to raw materials, technical equipment or even engineering and knowledge-based services, any business relationship with a foreign country requires precision, experience and specialized knowledge.
But in practice, a company’s direct entry into the foreign purchasing process is always accompanied by several risks:
- Insufficient knowledge of foreign suppliers
- Unfamiliarity with the export laws of the seller’s country
- Complexities of the domestic import and customs system
- Communication and language difficulties
- Risks from fraud, incomplete delivery or substandard goods
- Currency and banking restrictions due to sanctions
This is where foreign purchasing intermediary companies, or more precisely, international trading companies specializing in imports, enter the field as a professional, reliable and efficient solution. By acting as a bridge between the Iranian buyer and the foreign seller, these companies both protect the buyer’s interests and manage the administrative complexities.
In the remainder of this article, we will examine in detail the technical, legal and economic reasons for the need to use intermediary companies in the foreign purchasing process.
1. Familiarity with the laws of the target country and export regulations
Each country has specific laws and requirements for exporting its goods or services.
Including:
- Export or exit permit
- Specific restrictions on special or dual-use equipment
- Product standard regulations (CE, UL, CCC, etc.)
- Export packaging and labeling requirements
- Special export taxes or tariffs
A brokerage company that has a history of working with suppliers in that country knows these requirements and, before purchasing, coordinates all the necessary points with the seller and includes them in the contract.
Advantage: Avoiding delays in preparation, blocking of goods at the exit border, or issuing incorrect documents.
2. Mastery of import laws and domestic customs regulations
- In Iran, importing goods also has a detailed administrative-legal process that includes the following steps:
- Registering an order in the comprehensive trade system
- Obtaining permits from legal authorities (standards, health, atomic energy, industry, etc.)
- Allocation of currency by the Central Bank (if necessary)
- Compatibility of product specifications with customs tariff code
- Obtaining and preparing documents for final clearance
A professional intermediary company usually deals with these routes on a daily basis and knows exactly how to go through these steps faster and at a lower cost. The final buyer, who usually does not have specialized knowledge or direct access to these systems, benefits from this expertise.
3. Providing technical advice and selecting the right supplier
Intermediary companies are not just an agent for transferring money or documents; they also play the role of technical, commercial, and even strategic advisors.
Their services include:
- Review and analysis of pre-invoices from a technical and legal perspective
- Provide an alternative brand proposal in the event of a higher price or greater risk
- Evaluate the seller’s creditworthiness (in terms of sales history, production capacity, warranty, after-sales service)
- Analyze the price, delivery terms (Incoterms), hidden taxes and currency risk
Result: more efficient purchase, with higher quality, from a reliable seller.
4. Physical presence or branch in the target country
Many intermediary companies have a representative or even an official office in exporting countries (such as China, Turkey, Germany, the UAE, etc.). This advantage allows:
- To be able to inspect the goods before purchasing in person
- In negotiation meetings or technical tests, the intermediary company plays the role of the buyer’s representative
- In case of a problem, there is the possibility of judicial or legal action
- Inspection of the goods before shipment is carried out with precision and at a lower cost
- In practice: the presence of the intermediary at the seller’s location is the eyes and ears of the buyer.
5. Using practical experience of similar purchases
Unlike the final buyer who may encounter a type of product, brand or seller for the first time, the intermediary company usually has a history of interacting with the same brand or supplier.
Among the advantages:
- Knowing the technical strengths and weaknesses of the product
- Knowing the degree of compliance of the product with domestic standards
- Recognizing previous problems in shipping or clearance
- Experience in installation, warranty or after-sales service of the product in Iran
- This experience helps the buyer make a more confident decision.
6. Providing complete shipping, clearance and logistics services
One of the most complex and sensitive stages of foreign purchasing is the stage of transporting the goods from the seller’s country to the final destination.
Wasit companies often provide the following services:
- Sea freight (FCL/LCL), air or land freight
- Valid international shipping insurance (ICC A, B, C)
- Coordination of clearance from Iranian customs (Shahryar, Bandar Abbas, Bushehr, etc.)
- Delivery of goods to the factory or project door
- Tracking of shipping documents (BL, AWB, Packing List, Invoice…)
Result: Reducing hidden costs, accelerating the arrival of goods, and preventing capital from sleeping.
7. Conducting professional correspondence, careful follow-up and implementation of the contract provisions
In foreign purchases, conducting correct and documented correspondence with the seller is of utmost importance. Intermediate companies:
- Check the proforma invoice and amend its terms
- Conduct technical correspondence in appropriate language and legal terminology
- Follow up and report on the implementation of the contract step by step
- If necessary, amend the contract, adjust the schedule or payment terms
- Prepare official documents for inspection, shipment, payment and clearance without defects
In general, intermediate companies in foreign purchases act not only as a simple purchase executor, but also as a professional technical, legal, commercial and logistical consultant. In the current situation in Iran, where many international supply routes are accompanied by restrictions and sanctions, using such intermediaries is a necessity rather than an option.
Experience has shown that the small costs of the intermediary company’s commission are very insignificant compared to the possible losses resulting from direct purchases without experience.
