IMPORT

Imported Goods, Duties & Evaluation:

All goods & commodities entering the customs areas in Iran are considered as “entering” goods & commodities. Of these entering goods & commodities only those are subject to customs tax and duties which their entrance to the country is made definite. Other goods & commodities entering the customs areas in such modes as internal transit, external transit, temporary entrance, etc. are exempted from customs tax and duties.

According to customs laws & regulations the value of goods and commodities entering Iranian customs is calculated on the basis of the CIF value plus registration fees plus all other expenses and charges applicable to goods and commodities in question until their arrival to the first port of entry. Furthermore, this calculation is done on the basis of the documents submitted by the owner of the goods and commodities and on a floating rate of exchange basis. Some important exemptions and limitations concerning clearance of goods from Iranian customs is mentioned below.

Support of Domestic Production :

Where domestic production for a particular product dose not meet the market needs within the country, special permits are granted for limited importation of certain goods. In fact this permit is a way of putting ration on importation of goods where a specified ceiling is set on the value, weight and quantity of imported goods and commodities. 

As indicated in the tables annexed to the Import and Export Regulations, the import of certain goods and materials to the country is permitted on condition that there is no domestic production for the goods and materials in question. In such cases obtaining the required certificate of “No Domestic Production” for importation of the said goods is necessary. The conditions applicable to imported goods are based on Harmonized System Tariffs.

Exemptions:

Customs exemptions are in fact exemption from partial or full payment of customs tax and duties on imported goods & commodities. These exemptions are determined according to special rules and regulations. The cases where customs exemption is permitted mainly include: 

1. Export packing equipments temporarily imported into the country are exempted from customs tax and duties on condition that the packed goods are actually exported out of the country. 

2. All machineries imported for the purpose of agricultural husbandry, industrial, mining and packing are exempted from customs tax and duties. 

3. All agricultural equipments and machineries and their spare parts are exempted from customs tax and commercial benefit tax if a) they have been imported to the country according to general regulations prevailing export - import activities b) they are not manufactured domestically and c) the Ministry of Agriculture assesses and confirms their importation. 

4. All producing machineries which have been imported by eligible producing, industrial and miningunits and upon the approval of the Ministry of Industries are exempted from customs duties andcommercial benefit tax upon confirmation of the aforementioned ministry. 

6. Upon suggestion of the producing ministry and the approval of the government, discount or general exemption will be given on customs tax & duties and commercial benefit tax relevant to raw materials and spare parts of industrial and agricultural machinery, electric & electronicequipments, and transportation vehicles which have been imported by domestic factories and completed, assembled or manufactured in the same. 

7. The raw materials and packing equipments which are imported into the country for producing drugs, and by factories which are/will be established with the permission of The Ministry of Health, Treatment & Medical Education or the General Department Veterinary, and produced in the name of the same factories, with regard to the relevant rules and regulations, will be liable to the same tariff as those medicines which are manufactured outside the country, unless, a lower customs tax is appreciated in the tariff table and the matter is approved by the concerned ministries and organizations. 

8. Raw materials including chemical productions, ordinary metals, parts and equipments of the textile, road, agriculture and mining industry, and production machineries in different fields ofindustry and mining, and laboratory, scientific, technical and research instruments are eligible to enjoy certain exemptions as determined by the Harmonized System of Coding.

Customs Tariffs:

The customs tariffs and duties, and commercial duties of commodities are as follows: 
 
 

Restrictions (Import)

Restrictions on the importation of goods and commodities to the country are divided into three broad categories: 

(a) Religious restrictions concerning those goods and commodities which are forbidden by Islamic laws. 

(b) Legal retractions concerning the importation of guns, ammunition, drugs, non - standard and unhealthy goods or goods contaminated with radio- active materials. 

(c) Economic restrictions supporting domestic industries and productions including : 

(1) restrictions on materials and goods for which there is adequate domestic production. 

(2) restrictions on unnecessary and luxurious goods and commodities. 

EXPORT

In line with its policy concerning the promotion of exports and expanded presence of domestic manufacturers in the international markets, the government of the Islamic Republic of Iran has prescribed special incentives and exemptions on the export of goods and commodities. According to Article 33 of Implementing Regulations (1994) of the Export - Import Law, the assessment of export tariffs is carried out by the Pricing Committee. Exporters should fill the relevant customs clearance forms accordingly. However, it is evident that exporters have the right to express their views on the pricing of their goods and commodities. 

Restrictions (Export):

Restrictions on the export of goods are as follows: 

1. Religious restriction on the export of goods which are forbidden according to Islamic Laws. 

2. Legal restrictions which are implemented based on the prevailing situation. 

Support of Domestic Production:

The limitations placed on certain export goods in the country are mainly for the protection of domestic consumers and include those consumer goods or domestic industries for which there is inadequate domestic production. 

Exemptions:

According to the Law on Drawback of customs tax & duties on machine made productions of domestic factories (1966), Article 14 of the Export - Import Law (1993) and Article 25 of the Implementing Regulations (1994) of the same, all taxes and duties collected by the Organization for the Protection of Consumers & Producers, on all goods, materials and parts used in the production of exported goods will be paid back to the exporter. It should be noted that the Drawback rate is based on the tariff and value of materials and parts at the time when export is made.
 

EXPORT IMPORT REGULATIONS ACT

Article 1

Regulations in respect of the exportation and importation of goods and the delivery of related services to all exporters and importers and also to those that the application of the law requires their naming, shall be governed by this law, and all laws which are inconsistent with it, are hereby annulled.

Article 2

Exportable and importable goods are classified into the following three categories:

1. Permissible goods: with the observance of the relevant criteria, the exportation or importation of these goods shall not require a license.
2. Conditional goods: the exportation or importation of these goods is possible by obtaining a license.
3. Prohibited goods: the exportation or importation of these goods (purchase, sale or consumption) is forbidden under the sacred Islamic Shari’a and or by law.

Note 2
The types and specifications of goods falling under any one of the aforesaid three categories shall be set forth by an ordinance to be drawn up by the Ministry of Commerce and approved by the Council of Minister.

Article 3

Engaging in the business of exportation and importation of goods for commercial purposes, requires a commercial card which shall be issued by Iran Chamber of Commerce, Industries and Mines and approved by the Ministry of Commerce.

Note 1
The criterion of determining the commercial nature of goods, as well as the manner of issuing, extending and cancellation of the commercial card shall be in accordance with an ordinance approved by the Council of Ministers.

Note 2
Any dispute which may arise between the applicant of a commercial card and Iran Chamber of Commerce, Industries and Mines shall be referred to the Ministry of Commerce for consideration and final decision.

Note 3
Co-operatives of frontier zone inhabitants; Iranian mariners; hawkers; and workers residing abroad and holding employment records issued by the Ministry of Labour and Social Affairs, shall be exempted from obtaining commercial card.

Article 4

Prior to the end of each year, the Ministry of Commerce, in consultation with the respective organizations and with the Chamber of Commerce, Industries and Mines, shall prepare the general modifications which are to be made to the executive ordinance of this law and to the schedules annexed to the export-import regulations, for the subsequent year as well as specific modifications made in the course of the current year, while incorporating therein the acquired rights, and shall promulgate them for the public knowledge, after the approval of the Council of Ministers. 

Note 1 
All circular letters and directives to the relevant executing organizations concerning the exportation and importation of goods, shall be communicated exclusively through the Ministry ofCommerce. 

Article 5

All productive ministries are required to forward to the Ministry of Commerce, not later than the 4th of February (15th of Bahman) of each year, their proposals for the following year concerning the export and import conditions in respect of goods similar to those produced domestically, having taken into account the internal requirements and exigencies of the country. 

Note1

Other relevant organizations and the Chamber of Commerce, Industries and Mines may send in to the Ministry of Commerce, not later than the 4th of February (15th of Bahman) of each year, their proposals in respect of the relevant items, having taken into account the internal requirements and exigencies of the country. 

Article 6

Iranian means of transport shall have priority to transport all goods imported into the country. However, the directive pertaining to the use of foreign means of transport whether sea, air, road and rail-way carriers shall be drawn up by the High Council for the Co-ordination of National Transportation, in conformity with the ordinance approved by the Council of Ministers. 

Article 7

The Government is required to allocate special premises for the provisional storage of goods needed to repair and equip the country's commercial marine and aircraft fleet. 

Note 1 
The transit of goods falling under this article from one port of entry to another shall be permissible, with the observance of transit regulations. 

Note 2 
Such goods shall be exempted from customs duties, commercial benefit tax and any other charges. 

Note 3 
Those parts of requirements of the aforesaid fleet which can be supplied by domestic sources within the country, shall be exempted from any obligation and export licensing. 

Article 8

Importers of various goods, whether governmental or not shall refer exclusively to the Ministry of Commerce, for licensing their imports and registration of their orders.

Note 1 
The import license shall serve also as a clearance permit , and no separate Permit shall be required.

Note 2
Households inhabiting in the frontier zones or their co-operatives, mariners, hawkers and vessel crews importing goods for their personal consumption shall be excluded from the provisions of this Article.

Article 9

The Central Bank of the Islamic Republic of Iran and Iran Customs Administration are required to send to the Ministry of Commerce and other relevant organizations and Iran Chamber of Commerce, Industries and Mines, at least once every three month, statistical statements concerning the letters of credit which have been opened and goods which have been cleared.

Article 10

The government is required to specify the following matters in the executive ordinance concerning border trade exchanges:

1. Localities or the depth of border tracts, residents of which are authorized to engage in border trade business.
2. Types and quantities of goods which may be exported or imported by households residing in border regions or their co-operatives, authorized Iranian workers employed abroad, hawkers residing in frontier zones, mariners and crew members of vessels commuting between the shores of the Islamic Republic of Iran and other countries.

The requirements to be met by the aforesaid persons of groups.
3. Conditions for exportation and importation of goods and fulfillment of obligations.

Note 2
Iranian workers and nationals permissibly employed abroad may import industrial machinery, tools and primary materials needed in the country, within the quantitative thresholds, and taking advantage of such percentage exemptions from commercial benefit tax as may be jointly set by the Ministry of Commerce, the Ministry of Labour and Social Affairs and the relevant industrial ministry, and approved by the Council of Ministers.

Article 11

The government is authorized to set up border marketplace in any of the frontier zones as may be deemed beneficial, having taken into consideration such priorities as local potentiality, employment generation requirements and the expansion of commercial relation with the respective neighbouring country.

Article 12

The pre-exportation entry of materials and goods as temporary admission, to be incorporated in the production, finishing, processing and packaging of export goods are exempted from all import duties, except those designated as expenses or fees, provided that valid security or promisory note be deposited with the Customs Administration.

Note 1 
If the goods which are made of the imported materials and goods under this Article, are not exported within a prescribed period of time, it shall be the duty of the Customs Administration to prosecute the importer, in order to recover the government's rights. 

Note 2 
Goods subject to this Article are exempted from licenses set forth in the schedules annexed to the Export- Import Regulations.

Note 3 
The importer shall not be necessarily bound to export pro se, rather the relevant export certificate issued by the Customs Administration shall be

Article 13 *

All exported goods (except crude oil and downstream products thereof which are subject to special regulations) shall be exempted from any obligation or foreign exchange repatriation bond. 

*In Compliance with a subsequent amendment to this Article, exportable goods are currently subject to foreign exchange repatriation bond. 

Article 14

The sum "difference" collected by the Organization for Consumer and Producer Protection and all funds, except those designated as expenditures and fees, collected by the Customs Administration in respect of any foreign goods, materials, components and parts incorporated in the manufacture, finishing, processing and packaging of export goods, shall be refunded to the exporter in accordance with a directive set forth in the ordinance. 

Note 1
If any dispute arises between the exporter and the Customs Administration, the matter shall be referred to a committee composed of representatives from the Ministry of Commerce, the Chamber of Commerce, Industries and Mines, the relevant ministry, the Customs Administration of Iran and the Export Promotion Centre, for final decision. 

Note2
It shall be the duty of the Ministry of Economic Affairs and Finance to open a [treasury] account in the names of the Organization for Consumer and Producer Protection and the Customs Administration of Iran, from which to finance payments herein provided for. The Ministry shall refund the payments herein referred to, against presentation, by the exporter, of export certificate or the receipt issued by the Organization for Consumer and Producer Protection, after the confirmation of the aforesaid authorities. 

Note3
Funds paid in respect of outright customs clearance of materials and goods, which have been imported for use in the manufacture of export goods, shall be refundable after the exportation of the product, at rates ruling at the time of exportation.

Note4
If goods incorporated in the manufacture of export products are locally produced by using imported materials, only the funds collected in respect of the imported materials shall be refundable. 

*Note 5
If locally produced goods are sold to organizations and persons who enjoy exemption in respect of respect of importaton of similar foreign goods, the payments made on the import of goods, materials, components and parts shall be refundable to the producer, in accordance with the provisions of this Article.

sufficient to relieve the obligation. 

Article 15

In order to simplify the calculation of collectable funds in respect of any imported goods, the Ministries of Commerce and Economic Affairs and Finance, having regard to the protection of domestic production, are bound to consolidate into a unified heading called “Commercial Benefit”, such collectable levies as commercial benefit tax; the “difference” payable to the organization for Consumer and Producer Protection; order registration fee; monopoly right dues; municipal dues; local municipal dues (Co-operation); Red Crescent dues; asphalt dues; airport taxes; port charges; health dues; etc., except sums collectable under customs duties, charges and fees, in respect of each tariff line, at reasonable rates, and to communicate it to the Customs Administration for collection.

Article 16

The manner in which import prices are to be examined for order registration purpose, shall be laid down in an executive ordinance to be approved by the Council of Ministers.

Article 17

In addition to personal effects, an incoming passenger may bring in goods free of customs duties and commercial benefit tax up to such ceiling as may be approved by the Council of Ministers. The clearance of goods falling under this Article shall be permissible, provided that they are of non-commercial nature.

Note 1
The list of goods accompanying incoming passengers shall be prepared and promulgated by the Ministry of Commerce.

Note 2
The provisions of this Article shall be applicable also to passengers arriving in free-trade zones.

Note 3
In addition to personal effects, an outgoing passenger (whether Iranian or foreign national) may take domestic manufactures and products without any restriction, provided, however, that they are not intended for commercial purposes. Outgoing passengers may also take foreign goods up to the ad valorem threshold specified under this Article.

Article 18

The imposition and collection, by provincial and local authorities, of any dues in respect of any export goods and items are prohibited and the perpetrators shall be pursued for legal offense.

Article 19

The government may allocate funds in the annual budgets for the encouragement of export. Such funds shall be dispensed to exporters to enable them to benefit from financial facilities, on the Ministry of Commerce and approval of the Council of Ministers.

Article 20

As of the beginning of the year 1373 (21 March 1994), the government shall be required to collect from importers in non-governmental sectors who import goods for commercial purposes, an additional levy of I per cent of the total customs duties and commercial benefit tax as an "especial charge", in respect of any imported goods. Funds collected thereby shall be credited to the country's general revenue account. Each year 100 per cent of funds so credited to the general revenue account shall be included in the annual budget law and allocated to the relevant executive organizations, with the approval of the Council of Ministers, to be used for the encouragement and expansion of non-oil exports, commissioning of the Export Guarantee Fund, organizing business training and promotional programmes, in accordance with the executive ordinance of this law. 

Article 21

In order to support domestic products and to formulate the country's trade policy, the Council of Ministers, having regard to the interests of consumers, shall draw up the legislative bill on customs duties in respect of any imported goods, and on the amendment of Article 37 of the Customs Affairs Law, and shall submit them, within two months from the approval date of this law, to the Islamic Consultative Assembly for approval. 

Article 22

In order to safeguard the Iranian carpet industry and to provide an, appropriate ground for its protection on the world markets, the Ministry of Commerce is required to prevent, as of the beginning of the year 1374 (21 March 1995), carpets of over 30 knot count from being exported without an identification card. As of the above if I mentioned date, the Chambers of Commerce, industries and Mines shall be required, upon the request of the exporter, to issue Identification card as a mandatory requirement, and prior to the said date as an encouragement. 

Article 23

It shall be the duty of the Ministry of Commerce to draw up the executive ordinance of this law within one month from the date of its communication, and to have it approved by the Council of Ministers.

Article 24

The Ministry of Commerce shall be responsible for the orderly enforcement of this law and the executive ordinance thereof. 

The above Act, composed of twenty-four Articles and twenty-five Notes, was enacted in the open sitting of the Islamic Consultative Assembly on Sunday 26 September 1993 (4th of Mehr, 1372) and ratified by the Council of Guardians on 3 October 1993 (11 th of Mehr 1372).
 

REGULATIONS ON EXPORTS,IMPORTS AND CUSTOMS AFFAIRS IN FREE TRADE-INDUSTRUSTRIAL ZONES

Article 1
In these Regulations, the following terms are used in lieu of the respective phrases: 

Zone: Each of the Free Trade--Industrial Zones as established by law. 

The Law: The Law on Administration of Free Trade-Industrial Zones of the Islamic Republic of Iran, enacted in 1373, and other laws to be enacted in this respect in the future. 

Customs Territory: The state of the Islamic Republic of Iran, its territorial waters and air space where the customs export and import laws of the country are fully enforced. 

High Council: The High Council of Free Trade-Industrial Zones of the Islamic Republic of Iran. 

Authority: The organization of each Free Trade-Industrial Zone. 

Port and Airport charges: The amount which an Authority collects from owners of goods and or air freight forwarders for the provision of port and airport facilities for the purpose of maritime and air transport and aircraft traffic. 

Service charges: The amounts which the Authority of each Zone collect for operations, extraordinary testing and tariff classification, issuance of the certificate of origin and other services rendered at the time of provisional exportation or importation, transit, transshipment and returning the goods abroad. 

Value Added: The difference between the price of the goods and the value of the material used in their production. 

Value: With respect to the goods imported to Free Zones, it is the C.I.F. price of the goods. 

Regulations on Exports, Imports and Customs Affairs of the Free Zones: 
Regulation enforced within framework of the Law on Administration of Free Zones by an Authority, upon approval by High Council. 

Authority customs: A division of the organization of the Zone Authority which is responsible for enforcement of Export-Import Regulation in each Zone. 

Customs office stationed in a Zone: A division of the organization of the Iranian customs which is responsible for enforcement of the export-import regulations. 

A. The importation of goods into Free Trade-Industrial Zones of  the Islamic Republic of Iran. 

Article 2
The importation of any kind of goods to each of Zones is permitted with the exception of the goods which are prohibited in accordance to Islamic laws or the laws of the country in which the Zones names are stepulated or are unauthorized in accordance with special regulations of a Zone. 

Note
The importation of goods originally produced in Israel is prohibited. 

Article 3 
The Authority is required to communicate to the Ministry of Commerce and Iranian Customs monthly statistics of all the goods imported into the Zone for keeping customs statistics, records. 

Article 4
The procedure for the importation of goods into a Zone, entailing minimum formalities shall be drawn up by the Authority of a Zone, but in all cases observance of the rules and regulations pertaining to hygiene, security, culture and standards, in accordance with the prevailing norms in the Zone, shall be mandatory. 

Note
Human hygiene standards shall be set by the Authority in coordination with the Ministry of Health, Treatment and Medical Education. 

Article 5
Importation of goods into a Zone is authorized in the following manners and shall be governed by these Regulations: 

1. Goods such as construction materials, tools and construction implements for building, manufacturing, commercial services, housing and infrastructural purposes (excluding decorative items and furniture) that enter a Zone from abroad or other parts of the country are, at the discretion of the Zone Authority and in quantities needed, exempt from payment of port and airport changes but are subject to service charges.
2. Machinery, raw materials, components, and parts required for production, productive equipment and implements, spare parts for producing machinery for capital transportation vehicles (excluding passenger cars and leisure boats) are exempt from payment of port and import changes but are subject to service charges.
3. Goods that enter Zone from abroad or from other Free Zones (excluding goods specified in paragraph (1) and (2) of this Article) and are conclusively cleared from customs shall be subject to the payment of port and airport charge, in the event that the said good are re-exported solely the port and airport changes shall be reimbursed.
4. Entry of goods for safekeeping in bonded warehouses for specified period is authorized. The transfer of such goods to the said warehouses is subject to internal transit formalities of the Zone concerned and the use and transport of goods from the said warehouses without the knowledge and authorization of procedures of the Authority shall be considered a violation of the Regulations.
5. Excepting the cases where the Authority of a Zone may decide other arrangements, temporary importation of goods from abroad, other Free Zones of the country or from the customs territory, for display at fairs and exhibitions, re-export, re-packaging, separating, grading and sorting, clearing, mixing and similar purposes is authorized, subject to the payment of service charges, under the supervision of the Authority of each Zone. The use or sale of such goods in the Zone which is imported from abroad, shall be subject to port and airport charges, based on the value of the goods at the value date of their entry into the Zones, and the customs formalities are finalizes.

Note
The goods that enter a Zone from abroad or from other Free Zones of from other parts of the country for the purpose of finishing or repair are authorized imports on a temporary basis and in accordance with the rules of the Zone and upon payment of service charges but are exempt from port and airport charges. 
The time limit for keeping such goods in a Zone on a temporary basis shall be a maximum of two years. 

6. The entry and unloading of goods in Zone ports as designated by the Authority for the purpose of transshipment and external transit are permitted, subject to the payment of service charges and the completion of required formalities.
7. All the goods transported from abroad destined for the Free Zones or from Free Zones destined for abroad passing through the mainland are subject to the regulations and procedures of foreign transit subject of Article (7) of the Regulations on Customs Affairs Law which shall be implemented with utmost simplicity and minimum formalities.

B. Exportation and Exit of Goods from the Free Trade-Industrial Zones of the Islamic Republic of Iran.

Article 6
Upon observance or respective Regulations, the Authority is authorized to issue certificates of origin for goods which leave the Zone. The respective official authorities within the Iranian territory are obliged to accept such certificate of origin. 

Article 7
The exportation of goods from the Free Zones are subject to the guidelines determined by the Authority within the framework of these Regulations which shall be implemented with utmost simplicity and minimum formalities. 

Note
The manifest of vehicles leaving a Zone for the destination of foreign countries, other Free Zones and or other parts of the country is valid, upon confirmation by the Authority. 

Article 8
The Authority is required to report to the Ministry of Commerce and Iranian customs monthly statistical recordings. 

Article 9
The exportation or exit of goods from a Zone is authorized in accordance with regulations and the following manner: 

1. The exportation of goods manufactured in the Zone to foreign countries of other Free Zones of the country, regardless of whether the raw materials used in their production are originated from inside the country, foreign countries or other Free Trade Zones of the country, is authorized but requires submission of export declaration form for statistical records keeping.
2. The importation of goods manufactured in the Zone into other parts of the country is exempt from customs duties and commercial benefit tax to the extent of their value added plus the value of the raw materials used therein, customs duties and commercial benefit tax shall be levied only on imported raw materials and parts used in such goods.
3. The importation of foreign good (including consumer goods, raw materials, machinery and other goods) which are shipped intact from a Zone to other parts of the country is permitted, but their clearance from customs is subject to observance of the general Export-Import Regulations and customs regulations of the country.
4. The exportation of domestic goods, if intact, from a Zone to foreign countries is subject to compliance with the general Export-Import Regulations of the country;
5. The temporary entry of goods to a Zone from other parts of the country for the purpose of repairs or finishing which are returned to the country after finishing or repairs, is authorized and is subject to the procedures set forth in the Customs Law, they are exempt from customs duties and commercial benefit tax with respect to the amount of the wages paid for such repairs and finishing, but replace or added parts and components and prices of foreign origin shall be subject to customs duties and commercial benefit tax on the basis of the general Export-import Regulations of the country;
6. The temporary exit of goods from a Zone to foreign destination or other parts of the country (excluding the goods that have entered into a Zone form other parts of the country) is permitted upon obtaining prior authorization from the authority, such goods are exempt from port and airport charges when returned to the Zone.

C. Regulations on Goods Accompanying Passengers

Article 11
Travellers, whether Iranian or foreigners, who directly enter a Zone through authorized airports or ports are allowed to bring along into a Zone goods (excluding the goods prohibited by religion or law) to the extent that they are not of commercial nature and clear them without payment of portand airport changes. 

Note
Natural or legal persons intending to reside in a Zone for more than one year and whose residence is approved by the Authority are allowed to import into Zone only once their household appliances and office equipment in reasonable quantities without payment of port and airport charges. 

Article 12
Travellers who depart directly to foreign destination from a Zone are allowed to take along all goods (excluding the goods prohibited by religion or Law) without obtaining authorization, provided that the goods are not of commercial nature. 

Note
Sending out antiques, handwritten books, original cultural objects and various coins is not permitted. 

Article 13
Goods accompanying travellers who intend to leave a Zone for other parts of the country shall be subject to the general Export-import Regulations of the country. 

D. Regulations on violations

Article 14
The Authority is required to refrain from clearance from customs the goods whose importation is prohibited or can not be cleared from customs in accordance with the Zone's regulations, excluding the religiously or legally prohibited goods, in which the names of the Free Zones are stipulated if such goods are declared with full name and complete particulars and specifications for the purpose of final importation, and must notify importation, and must notify in writing owner of the goods or his representative that he must send the goods out of the Zone within a maximum period of time determined by the Authority. Goods prohibited by religion or law shall in which the names of the Free Zones are stipulated be governed by relevant regulations. 

E. Miscelaneous Regulations

Article 15
Wherever, it turns out after customs clearance of goods, that the funds whose collection is a duty of the Authority were received in excess of or less than the required amount, the Authority and the owner of the goods can claim and receive, as the case may be, the respective defferential within four months from the date of signing the clearance document of the goods concerned. 

Article 16 
Air and maritime freight forwarding agencies and owners or users of transport vehicles are required to submit, at the time of the entry of the transport vehicles into the authorized airport, port and or land terminals, to the Authority one photocopy or copy of the bill of lading relating to each item of the goods attached to the list of the whole cargo. 

Article 17
Control of and supervision over the importation and exportation of goods from Free Zone to the other parts of the country shall be the function of Customs Office of the Islamic Republic of Iran. The head of customs office stationed in a Zone shall be appointed by the director of Customs Office, upon the proposal by the Authority. 

Note
The control of and supervision over the importation and exportation of goods from Free Zone to other countries shall be the function of the Authority Customs Office, in accordance with these regulations and the relevant legal guidelines. 
 
 LAW FOR TRANSIT OF FOREIGN GOODS VIA IRAN

The law Concerning Transit of Foreign Goods Via Iran, comprising 26 Articles and 4 Notes, was approved in the course of ICA's open session held on march 12,1996, ratified by he 
guardians Council on March 17 and notified by the Presidential Bureau as follows:  

Article 1: Transit of foreign goods shall mean the processes through which commodities dispatched from a foreign point of origin and destined for a third (foreign) country or for the conded (protected) regions in Iran, Pending its re-export or transport from Iran at the request of from the same or another border point.  

Note: Any part of the commodities which may enter a bonded warehouse, and the owner of which may latter request that same shall be carried to other destinations within Iran, shall become subject to regulations applying to imported commodities. 

Article 2: To bring order and discipline on the state transit affairs and to provide the required facilities for the reasonable distribution of transit goods as well as to collect the accruing revenues, all transport terminals, railroad and airport stations that are listed as customs areas as per the Ministry of Roads and Transportation's (MORT) request and the State Transportation High Council's (STHC) approval shall be duty-bound as per the 
pertinent regulations, to provide the required facilities for foreign goods transits in the above-mentioned areas. 

Article 3: Foreign transit of the goods that enter Iran under the contracts and letters of agreement signed between the relevant governments shall not require any permit, unless their imports are banned for security  and religious reasons.  

Note 1: The list of goods banned for foreign transit shall be prepared by the State Security Council and approved by the Council of Ministers.  

Note 2: Foreign transit of livestock, vegetable and chemical products shall require prior approval of the relevant authorities.  

Article 4: Goods and containers that pass through Iran as foreign transit goods may not be considered as permanently imported or exported goods, thus they are subject to special regulation already foreseen and consented to by transit agreements signed 
between the Iranian government and each relevant country. Otherwise, payment of such duties is already pronounced mandatory under the international customs and transportation conventions, in which case the foreign transit goods shall be treated in 
accordance with the same special regulations that are stipulated by each agreement concerned. 

Article 5: As regards payment of deposits, all foreign goods which are transported by international Iranian transport companies licensed by MORT, shall be treated in accordance with the regulations of authorized goods. To this end, regular, for joint and several bank guarantees that international transport companies submit to this effect, as well as any valid insurance policies served in lieu of transit deposits, shall be acceptable. 

Article 6: In case a foreign transit consignment fails to reach the exit customs or shall not leave the country vis a border point within the period specified in the relevant permit, the validity of its transit shall be deemed to have expired and the customs house shall make the necessary settlement of accounts by using the deposit submitted for the goods. 

Article 7: Customs houses and to the organizations concerned shall be duty bound to provide adequate space and storing lots where the foreign transit goods can be unloaded and stored, against collection of applicable changes. Any change in the appearance and packaging of the transit goods shall be solely under supervision by the customs authorities. 

Article 9 : Containers entering the country with their original seals shall be authorized to transit and leave the country without contents appraisal with just a transit permit, provided that their documents and declarations shall always verify the same and also bear additional seals that the customs may decide to affix.  

Note: In exceptional cases where customs authorities or disciplinary forces suspect misappropriation, distrust the accuracy of a declaration or otherwise, they can break the seals, inspect the contents and then re-seal the container, by drawing up a process verbally, giving such details as the result of inspection, container number, details of the previous seals and the new seals. All such processes shall be carried out in the 
presence of customs representatives. 

Article 10: In case transit consignment is to be transported only up to the point of entry, then the customs houses and the organizations concerned shall be duty-bound to provide the required facilities for unloading the goods at customs premises or on to trucks, rail-wagons and planes, as the case may be. 

Article 11: Customs houses are required to cooperate as much as possible to expedite goods transit process and for such purpose they shall accept goods declaration attached to the documents including the clearance note and obtain, prior to unloading goods 
from transport vehicle, a letter of commitment from the relevant transport company stating that the required procedures and administration formalities will be performed after the good leave the customs house and the port. 

Article 12: Imposition of any levies on transit goods shall be proposed by the Transportation High Coordination Council and approved by the Council of Ministers.  

Article 13: For transit of goods from Iran, it is necessary that the Iranian transport fleet shall be given top priority for use as much as possible. However, should the use of foreign road transport vehicles be unavoidable, then the MORT shall propose a regulation for this purpose to the council of Ministers for approval. 

Article 14: The MORT shall bring about the required facilities for conclusion of bilateral agreements and render any regional cooperation that can help facilitate transit of goods. 

Article 15: By joining international transport conventions, direct communication with world organizations and also encouraging transportation by containers, the MORT shall bring about the required coordination between the state transit regulations and other transport norms and regulations applicable at international level.  

Article 16: Transit of vehicles covered by CARNET TIR within the Iranian territory shall not require any CARNET DE PASSAGE. For the vehicles not covered by CARNET TIR,  a letter of undertaking from the Iranian transport companies licensed for operation by 
the MORT shall suffice. 

Article 17: To ensure the required consistency and coordination in transit of vegetable and livestock products, the Ministry of Agriculture and the Ministry of Construction Jihad shall reach, as quickly as possible, the necessary agreements with the countries along with the transport route of such commodities. 

Article 18: The Ministries of Construction Jihad and Agriculture shall set up vegetable and livestock quarantine stations at all entry/exit points. Such stations shall render all the required quarantine services. 

Article 19: The Islamic Republic of Iran Customs and Iran Chambers of Commerce, Industries and Mines shall provide the necessary facilities at all entry/exist customs houses, for transit of goods covered by CARNET TIR. 

Article 20: The Central Bank of Iran (CBI) shall render its financial and credit supports to all Iranian transport companies operating in transit of foreign goods. 

Note: The MORT, through cooperation with the CBI, shall highlight the required supportive polices for foreign transits and submit them to the Council of Ministers for approval. 

Article 21: The Passport Department shall issue  passports and exit-booklets for Iranian drivers engaged in transport of foreign transit goods, within the specified period, as per the confirmation by the Organization of Transportation and Terminals (OTT) and with due regard to other pertinent rules and regulations.  

Article 22: The IRI's disciplinary forces shall issue within specified times international licenses, transit plate-numbers and ownership documents for drivers and trucks operating on international routes, as per the OTT confirmation. 

Article 23: The OTT, by taking into consideration the time and location exigencies, shall specify, through coordination with the Interior Ministry, specific routes for transit by road and the disciplinary forces shall enforce the same.  

Article 24: The expenses required for execution of this Law shall be supplied by the credit sources set forth by the Law. 

Article 25: Any laws or regulation which are not in conformity with the requirements of this Law shall be considered null and void from the date the instant Law is notified for 
implementation. 

Article 26: The general conditions regarding declaration and attending to be customs formalities and the documents to be submitted as well as any other relevant matters will be determined by the Ministry of Road and Transportation, the Ministry of Interior and Ministry of Economy and Finance within a maximum period of three months, by including utmost facilities foreseen by the executive regulations of this Law, to be approved by the Council of Ministers. 
 
 

Key Features of Trade and Exchange System
 

The Currency of the Islamic Republic of Iran is the Iranian Rial, and the exchange system is based on a dual exchange rate structure. 
 

a: The "oil-notional" rate, is fixed at Rls. 1,.750 per US$, which applies to part of oil and gas export receipts, which is allocated to imports of essential goods and services, debt services, and imports related to large national projects.
 

b: The "non-oil export" rate which is applied to non-oil exports receipts and imports of goods and services and other transactions which are not carried out at oil-national rate. All non-oil exporters are granted the right to deposit their foreign exchange proceeds with banks and receive certificate of deposits (CD). The CDs could be traded in Tehran Stock Exchange (TSE), sold directly to agent banks within three months of the issuance of CDs or entitled to 100 percent importation from a positive list of 77 brad categories of goods. The non-oil export rate is the rate of certificate of deposits being traded in TSE. Since the beginning of the 3rd FYDP (2000-2004), the export rate at Rls. 3000 per U.S.$ has been eliminated. 

Exchange control authority is vested in Bank Markazi Jomhouri Islamic Iran. All foreign exchange transactions must take place through the banking system. 

Imports and exports are governed by regulations issued periodically by the Ministry of Commerce after approval by the Council of Ministers.

According to these regulations, import goods are divided into "authorized" , " conditional" and "prohibited" goods. "Authorized" goods require no special license or permits for importation, while importation of "conditional" goods require licensing by respective authorities. "Prohibited" goods are those which are forbidden by Islamic Sharia, or respective laws.  All imports are subject to import advance payments. Import advance payments vary from zero to sixty percent, depending on the type of goods, and creditworthiness of the client. Most imports are subject to duties including commercial benefit tax. The commercial benefit tax rates are specified in the Export-Import Regulations by the authorities each year. 
 

Export of all products must be undertaken in accordance with the relevant regulations. Non-oil exporters could either deposit their export proceeds with the banking system and receive a certificate of deposits (CD) or sell it directly to agent banks within three months. Since February 1998, %100 of the non-oil export proceeds that are surrendered to the banking system could be used by the exporter to import certain goods listed for this purpose. Exporters may choose to import themselves or trade the right to import at the negotiated price in TSE. 

Persons needing medical treatment abroad may obtain foreign exchange at the CD rate unto the amount specified by High Council of the Ministry of Health. In case the allocated amount does not cover the expenses, the balance could be allocated at negotiated rate. Foreign exchange allowances are provided for students holding fellowships at oil-notional rate by the relevant authorities granting fellowships. For other students studying abroad foreign exchange will be allocated at CD rate. 

Iranian nationals traveling abroad may purchase unto 1000 US dollars at CD rate for first travel. However, for second and third travels in the same year, travelers may purchase 1000  US dollars at negotiated rate. Every accompanying person (above 12 years of age) in group passports, is eligible to purchase unto maximum of U.S.$ 500 per person, at the CD rate, and the same amount at negotiated rate for successive travels in the same year. 
 

Iranian nationals and foreigners are allowed to hold interest bearing foreign exchange deposits with authorized domestic banks. Two types of foreign exchange deposits are permitted, i.e. foreign exchange deposits of "external origin", and foreign exchange deposits of "domestic origin". Foreign exchange with external origin could be traded at negotiated rate. 
 

Balances of the foreign exchange deposits of "external origin" may be taken out of the country freely. Foreign exchange deposits bear interest at LIBOR plus one percentage point. 
 

There is no limit on the amount of foreign exchange that travelers may bring into the country. However, for the purpose of repatriation, the amount should be declared at the time of entry. Iranian travelers leaving the country must pay an exit fee of Rls. 70,000. 
 

Foreign investment in Iran is allowed. The right for repatriation of principal and dividends is guaranteed if the investment is made under the 1955 Law for the Attraction and Protection of Foreign Investment. As for portfolio investment non-residents may invest in instruments traded on the Tehran Stock Exchange. 

D ecree On Specific Facilities Determined for Entry Of Goods, Produced In Special Economic Zones, To Other Parts of The Mainland.

• Importation of some percentage of goods, produced in the Especial Economic Zones and the Zones subject to the paragraph "D: of the note 25 of the Law on Second Economic, Social and Cultural Development Plan of I.R. of Iran, into the country is allowed. The amount of the goods permitted into the mainland shall be a ratio of total added value plus materials and domestically produced parts used in the products, to the total cost price of the produced goods regardless of any manner of restriction. In addition to that, it shall neither obligate order registration and letter of credit opening, nor it is subject to conditional principles of NOT ALLOWED AND CONDITIONAL ALLOWED.
• The above ratio, mentioned in paragraph 1 of present decree shall be fixed by a commission consisting of the representatives of the ministry relevant to production of the goods envisaged for, the Ministry of Commerce, Central Bank of I.R. of Iran, Iran's Customs, secretariat of The High Council of Free Trade and industrial Zones and the pertinent Free Zone, which shall be convened in the Secretariat of the High Council of Free Trade and Industrial Zones.

Percentage of permissible amount of goods = (Price of goods - CIF price of imported material and parts)/ price of goods 

The price of the goods to be produced shall consist of the CIF price of imported goods plus the imported parts and materials. 

Note
In all cases, the decision of the commission subject to this paragraph shall be taken on the basis of the majority of votes. 

The Iranian Customs shall fix the annual permissible quota of the production amount of each manufacturing unit upon the discretion of the commission subject to paragraph (2) of present decree.

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