Nourlaw.com-Tehran-27 November 2016- Following our citing of 12 November 2016 on the decree of the Central Bank of Iran (CBI) titled “New Rules Set for Import and Export of Forex by Passengers and Transit Drivers”, ISNA News Agency reported today that customs offices nationwide are implementing the decree which allows passengers exiting or entering the country to hold USD 10,000 or its equivalent in other currencies without declaration. For more details please refer to the related 12 November item in this newsletter.
Nourlaw.com-Tehran- 22 November 2016- The Iran National Trading System (INTS) authority declared that as from today, importers of certain goods should first register preliminary applications with INTS (https://www.ntsw.ir/Default.aspx). The goods falling under the decree of INTS are those specified under the chapters 14,43,46,81,88,89,92 and 97 of the Export & Import Regulations Book. They are:
Chapter 14: Vegetable plaiting materials; vegetable products not elsewhere specified or included
Chapter 43: Fur skins and artificial fur; manufactures thereof
Chapter 46: Manufactures of straw, of esparto or of other plaiting materials; basketware and wickerwork
Chapter 81: Other base metals; cermets; articles thereof
Chapter 88: Aircraft, spacecraft, and parts thereof
Chapter 89: Ships, boats and floating structures
Chapter 92: Musical instruments; parts and accessories of such articles
Chapter 97: Works of art, collectors’ pieces and antique
In the decree it is stated that the applicants whose pro forma invoices also include goods under other chapters, should refer to sabtaresh.tpo.ir as before. The site is managed by a department which is part of the state-run Trade Promotion Organization of Iran and is charged with receiving and approving the applications for the import of goods.
INTS is a trade window which acts as an interface between Customs Single Window, Transport Single Window, Permits Single Window and Foreign Exchange Single Window. It functions for consolidation of cooperation between different government agencies and facilitating foreign trade through an integrated online system. INTS is connected to the Ministry of Industry, Mine & Trade and was formed in compliance with legislation such as the Electronic Trade Law, the Law of Sustainable Improvement of Business Environment, the Law of Combating Smuggling of Goods and Foreign Exchange, as well as a number of related governmental decrees.
Nourlaw.com-Tehran- 26 November 2016- Code Faragir (comprehensive code) is an identification number issued for foreigners living in Iran. With respect to taxation matters and establishing companies in Iran, foreign nationals, whether natural or juridical persons, must be in possession of this ID number.
According to Article 1 of the Implementation Regulation of the Law on Combating Money Laundering, it is mandatory that Code Faragir be obtained by foreign nationals working in Iran. The Tax Affairs Organization, Ministry of Foreign Affairs, and Companies’ Registry are the bodies responsible for issuing the code.
Foreign nationals may apply online for getting this ID number through the website:
For obtaining the code, the following information is required:
Information Needed for Obtaining Code Faragir of Juridical Foreign Entities
Country of Registration:
Information Needed for Obtaining Code Faragir of Foreign Natural Persons
Country of Birth:
+ An ID photo (Valid format of files is “jpeg” and maximum size of file is 100k)
+ Copy of Passport (Valid format of files is “jpeg” and maximum size of file is 100k)
Nourlaw.com- Tehran- 16 November 2016- According to the Official Gazette published today, financial facilities may be granted to foreign investors by the Iranian government. The gazette identified different provisions of the National Development Fund of Iran related to various areas of the economy.
The state-run fund was established in line with Article 84 of the Fifth Development Plan of the Islamic Republic of Iran. It is designed to turn a portion of the revenue originated from selling oil, gas, gas condensates and oil products into durable wealth and productive economic investments. It also insures preservation of the financial interests of future generations from oil and gas resources and products .
According to Resolution 6 of the aforesaid decisions of the Fund’s Board of Trustees, the management of the Fund is allowed: to embark on direct investment (by the Fund itself) or indirect investment (by outsourcing) through assets management companies, to enter into partnership agreements with foreign financial establishments for financing private sector projects, cooperatives and non-governmental public entities and to engage in joint investment with sovereign wealth funds of other countries for investing in joint plans and projects.
The Note of Resolution 6 stipulates that when granting financial facilities to foreign investors is necessary, Part 5 of Section T of Article 84 must be observed. According to which, “Extending facilities to foreign investors should be undertaken with due consideration of competitive conditions, an equitable economic return and with observance of Principle 80 of the Constitution Law”. The said principle states that taking and giving of loans or grants-in-aid, domestic and foreign, by the government, must be approved by the Islamic Consultative Assembly (parliament).
Nourlaw.com- Tehran- 27 September 2016- Iran Customs in its circular letter No.122470/237 has notified that according to the information received from the Ministry of Foreign Affairs and the Iranian Embassy in Baku, the government of the Republic of Azerbaijan has banned the entry of vehicles lacking Euro 4 standards (European toxic emissions limit of vehicles) or those manufactured before 2010. In the circular it is noted that the ban should be duly considered in issuing permits for temporary exit of vehicles to the Republic of Azabaijan or exporting cars from Iran to that country.
Nourlaw.com-Tehran-5 October 2016- The website of the Tax Affairs Organization published a short Farsi language article on tax criminalization in Iran today. Our English translation of excerpts of that item is as follows:
Prevention of non-abidance of the law is a subject of great significance in all countries and Iran is no exception to this rule. One of the essential matters in the realm of tax law, are tax violations such as tax evasion that carry particular weight and efforts to combat this phenomenon are unstinting, as far as is possible, by passing preventive legislation.
In the Direct Taxation Act of Iran, tax violations such as tax evasion were dealt with in a non-criminal manner in the past and cash fines were imposed to prevent such actions. But, with the passing of the Amendment of the Direct Taxation Act in August of 2015, the perpetrators of tax offenses shall be sentenced, in addition to cash fines, to penal punishment set out in Articles 274 to 279 of the act.
According to Article 274 of the act, tax violations such as concealing economic activities and hiding accrued revenue, presenting falsified statutory books, statements and documents as evidence of ongoing business and using the Commercial Card of other persons for tax evasion, are now considered a crime. The perpetrators (as stipulated in Article 275) shall be subject to Grade Six Punishment (i.e., imprisonment ranging from six months to two years, deprivation of social civil rights for a period of six months to five years etc.).
In cases wherein tax violations are committed by a juridical entity, the company may be prohibited from transacting certain businesses or issuance of certain commercial instruments. In addition to the said punishment, the perpetrators of tax offenses shall be held liable for payment of the principal tax plus the applicable cash penalties, including the damages inflicted upon the government in accordance with the courts’ ruling.
In the amendment of the tax act, the violations which might be committed by tax offices have also been the focus of attention and according to Article 279, any unauthorized access to and misuse of the information registered in the tax data base relating to the identity, performance and assets of the tax payers for purposes other than assessing and collection of taxes and also disclosure of the information of tax payers is considered a crime. The perpetrator of such crime, in addition to being deprived of governmental and public services for two to five years, shall be sentenced to imprisonment ranging from six months to two years.
Nourlaw.com- Tehran-6 October 2016- The Iranian Official Gazette in today’s issue published the full text of the Law of Approval of Amendments to the International Convention for the Safety of Life at Sea (SOLAS), passed by the Iranian parliament on 31 August 2016.The Islamic Republic of Iran acceded to the convention on 17 May 1994.
The SOLAS Convention in its successive forms is generally regarded as the most important of all international treaties concerning the safety of merchant ships. The convention has been updated and amended on numerous occasions. The convention in force today is sometimes referred to as SOLAS, 1974.
Nourlaw.com-Tehran- 8 October 2016- The Trade Promotion Organization of Iran (TPO) in its circular letter No. 95/210/44253 dated 17/07/1395 (8 October 2016) has disallowed applying for the import of second hand goods which are subject to standard regulations. TPO‘s decree is based on the resolution of the Committee which according to Article 1 of the by-law of the Export and Import Regulations Act, has been charged with supervision and drafting suggestions regarding export and import of goods and services. TPO notes in its circular that according to the declaration of the National Standard Organization of Iran (a.k.a ISIRI), a thorough examination of the standard qualifications of the group of imported second-hand goods which are subject to a set of compulsory criteria, is impossible of achievement.
Nourlaw.com-Tehran-10 October 2016- The Iran Official Gazette in its issue No. 20854 dated 19/7/1395 (10 October 2016) published Decree No. H52602T/161205 dated 8/12/1394 (2 March 2016) passed by the Iranian Council of Ministers respecting the issue of entry visas for foreign nationals in the free trade and industrial zones. Excerpts follow:
– In this Decree the Host of foreign nationals means governmental or private holders of economic corporations and development, construction, production, industrial, service, medical, recreational and touristic projects, as well as other natural and juridical persons.
– Public Places refers to hotels, motels, hostels, dormitories and private places including guest houses of private companies and homes of the individuals who are authorized for hosting the travelers.
– The police stationed at the entry points of the free zones shall issue and stamp the residence permit on the valid travel documents of foreign nationals. The validity duration of the permit is one month. However, upon the request of the Host and approval of the free zone authority, it can be extended for six months. It is also renewable for an additional six month period. For the residence of foreign nationals investing in the free zones, a residence permit of one to five years can be issued at the discretion of the related free zone authority.
– For the following persons, a residence permit shall not be issued:
A) Citizens of the countries whose entry has been banned by the government of Iran.
B) Those who are not allowed to enter the country on the order of judicial and security authorities.
C) Those who are not allowed to enter the free zones on the order of judicial and security authorities.
– Foreign nationals, in addition to the entry points of the free zones, can use
other entry points for accessing and leaving the free zones. For that, the Iranian consulates in foreign countries or domestic representatives of the Ministry of Foreign Affairs, or the representatives of police at the designated points (with prior permission of the Ministry of Foreign Affairs) will issue a visa valid for one month. Extension of the residence of such foreign nationals is possible in line with the manner described above. Upon the request of the foreign national and at the discretion of the Ministry of Foreign Affairs, issuance of a visa and residence permit on separate forms is allowed. In order for them to exit through the mainland, the representative office of the Ministry of Foreign Affairs in the free zone shall issue the related visa for entering mainland Iran.
– Foreign nationals who have entered the free zones and wish to travel to the mainland, should obtain an entry visa from the Ministry of Foreign Affairs’ representative office in the free zone. The visa would be issued within 48 hours.
– Foreign nationals residing in the mainland and having a valid visa, will not need a separate visa for entering the free zones. They may travel to the free zones by presenting their residence permit and a valid visa.
– Foreign nationals working on Iranian oil and gas installations located outside the authorized water limit of the free zones (800 meters) should obtain their valid visa from the Iranian consulates abroad or the representative offices of the Ministry of Foreign Affairs in the free zones or provincial capitals.
– Managers of public and private places are obliged to inform the alien affairs section of the police of the free zone, concerning the particulars of the identity and the date of entry of foreign nationals to the zones.
– Employment of foreign nationals shall be subject to the free zones’ regulations pertaining to labor, social security and insurance.
Nourlaw.com-Tehran-12 November 2016- The Official Gazette published today “The Law of Cooperation Agreement in the Field of Veterinary and Livestock Health between The Islamic Republic of Iran and Republic of Azarbaijan States”. The legislation was passed by the Iranian Parliament on 4/7/1395 (25 September 2016).
According to Article 1 of the agreement, its scope of action includes bilateral cooperation for guaranteeing preventive controls, elimination and upgrading the supervision and vigilance respecting the spread of disease in land-based and aquatic animals and facilitation of trade in goods related to the aforesaid animals.