Luggage trade refers to those travelers who continuously travel to neighboring countries and buy foreign goods, bringing them into their own country in the name of personal use. In fact, their main intention is to import such goods for sale. The smart strategy used by such people is limited import of goods due to not being required to pay duties.
In other words, it can be said that the business that these people are trying to start is in the form of a passenger and the size of a suitcase! Economists believe that the prevalence of luggage trade is due to commercial and commercial disturbances; Because the trade relations between the country of the traveler and the country from which the goods are imported are not favorable and friendly. For this reason, the possibility of importing goods from these countries with the intention of direct trade and sale will not be very profitable due to the customs duties that are imposed on it.
The Current Position of the Luggage Trade
This style of business constitutes a small area of the entire business of a country. In recent years, due to the increase in the cost of foreign trips and the removal of government currency for travelers, employment in such trips has decreased. However, we are still faced with travelers who cover all or part of their travel expenses in this way. Despite the illegal and underground nature of this type of business, it has never been the focus of experts due to its limited volume. However, the role of this business in the livelihood and life of border residents is undeniable.
The Government’s Reaction to the Luggage Trade
The prevalence of this type of business can be seen in almost all countries. Governments are not strict in this regard.
This tolerance can have two reasons:
1. Domestically produced goods can also be imported to other countries through luggage trade. This issue also has a positive impact on employment and domestic production.
2. It can also provide part of the expenses of the border dwellers.
Due to the lenient policies in this regard, governments have provided the possibility of employment in this type of business for their border dwellers. As a result, the luggage business will create employment and improve the living conditions of the border dwellers.
Since the beginning of the 70s, when it was possible to buy goods from the Kish Free Zone with green sheets, a business called global trade was formed. But over time and with the removal of the green sheet, the prices in the free zone and other cities coincided with each other.
In this situation, the business owner who intended to engage in the luggage trade, started importing goods from Turkey and the UAE. However, due to the limited price difference between imported goods from Turkey and UAE and domestic goods, Chinese goods were replaced. These traders exposed their imported goods for sale through unofficial means and illegal centers such as hair salons and private homes. Even today, we are faced with such sellers and goods that are sold at a lower price in places other than stores. These vendors comprise part of the extensive luggage trade.
The Position of Luggage Trade in Iran
The point that we should pay attention to in this regard is that the absence of codified laws regarding this type of business is not considered a legal vacuum in the literal sense of the word. In other words, this vacuum is intentional and due to the lack of government support for this chaotic economic and commercial situation.
Such commercial and economic behaviors that originate from welfare, economic and cultural weaknesses should not enter the legal culture.
The effects that the formalization and recognition of the luggage business bring with it include fraud, fraud, smuggling, and similar crimes. Since engaging in this type of business is done without the notification of the Ministry of Commerce, it will harm the rights of trade unions, consumers, etc. and become troublesome.
Up To Sum
The chaotic economic, social and cultural situation has provided the reasons for the creation and prosperity of luggage trade. Many people travel abroad and import goods from other countries in the name of personal use and with the intention of selling. These goods are usually sold underground and at a lower price. Despite the informal and illegal nature of this type of business, no strict laws have been applied by governments. In fact, governments also take advantage of this opportunity to export and sell their domestic goods. At the same time, the luggage business provides employment opportunities and improves the living conditions of the border dwellers.