Today, the hidden economy and the smuggling of goods and currency are considered as one of the major obstacles to international trade and serious challenges to facilitate trade and competitiveness of goods around the world. This article seeks to discuss the interaction between commodity smuggling and trade facilitation and competitiveness. The purpose of this study is to identify the impact of smuggling on trade facilitation and the challenges in promoting its position and rank in international trade in order to remove existing barriers and improve Iran's trade situation at the international level. This research is descriptive-applied in terms of purpose and in terms of documentation method, which is based on the Global Competitiveness Index (GCI), Commercial Empowerment (ETI), Cross-Border Trade (TAB) and Logistics Index (LPI). As a result, there is a fluctuating trend in all four indicators and there is an unfavorable situation in international trade and the country's exports and imports. This disorder has increased or exacerbated the process of entry and exit of informal goods and smuggling. In this regard, trade facilitation through the complete organization of the systems recommended in the Law on Combating Commodity and Currency Smuggling. The obstacles ahead are listed and suggestions are made for some of the most important ones.