Foreign Currency Repatriation Obligation Set for Iranian Exporters
Nourlaw-26 November 2018-Tehran -In light of the various decisions adopted by the Iranian government in reaction to the renewal of US sanctions, in an effort aimed to better control and regulate the Iranian economy and ameliorate any sanctions-related obstacles, the Central Bank of Iran in a circular letter which was published today, notified a mechanism for bringing export-generated foreign currency into the cycle of the national economy. The details are as follows:
1.All Exporters of goods and services are obliged to repatriate foreign currency generated from their exports into the country’s economy.
2.The Central Bank of Iran shall allocate and provide the necessary foreign currency for import of goods and services only to those exporters whose manner of bringing back their foreign currency into the economic cycle of the country is in line with the following requirements.
3.The repatriation of foreign currency generated from annual Iranian export sums totaling up to one million euros, more than one million to three million euros, and more than three million to 10 million euros and in excess of 10 million euros, is as follows:
A.*Up to one million euros, is exempted from selling the currency to the Integrated System of Hard Currency Transactions (NIMA).
*The exporter may utilize it for importing needed goods and services for his own production or business after placing an order registration (import against his own export).
* The exporter may directly transfer the currency to other importers, for import of the goods at the sole discretion of the Ministry of Industry, Mine and Trade (imports against exports of other persons).
* The exporter may supply it as a payment order or banknote to the banks and authorized foreign currency dealers along with registration of the same with the Foreign Currency Monitoring System (Sana).
B. More than one million and up to three million euros:
* The exporters are obliged to supply 50% of the export currency to the NIMA system.
Note: Up to a ceiling of one million euros is exempt from sale of the currency to the NIMA system.
The balance of the foreign currency shall be repatriated to the economic cycle in the following manner:
The exporter may use it for importing needed goods and services for his own production or business after placing an order registration (import against his export).
* The exporter may directly transfer the currency to other importers for import of the goods at the sole discretion of the Ministry of Industry, Mine and Trade (imports against exports of other persons).
* The exporter may supply it as a payment order or banknote to the banks and authorized currency traders along with registration of the same in the Foreign Currency Monitoring System (Sana).
C. More than three millions and up to 10 million euros:
* The exporters are obliged to supply 70% of the export currency the NIMA system.
Note: Up to one million euros is exempted from selling to the NIMA system.
The balance of the foreign currency shall be repatriated to the economic cycle in the following manner:
*The exporter may use it for importing needed goods and services for his own production or business and marketing costs after placing a registration order (import against his own export).
D. More than 10 million euros:
* The exporters are obliged to supply 90% of the export currency to the NIMA system.
Note: Up to one million euros is exempted from sale to the NIMA system.
The balance of the foreign currency shall be repatriated to the economic cycle in the following manner:
The exporter may use it for importing needed goods and services for his own production or business and marketing costs after placing a registration order (import against his own export).
Note. Selling the foreign currency to the NIMA system for more than the specified percentage in the above mentioned categories, is possible.
4.All exports transacted after 22/01/1397 (11 April 2018) are subject to this decree.