In our newsletter, you will find the latest news and comments on legal and trade-related developments in various areas of Iranian commercial and financial law and practice.

Contents

First Iranian Law on Special Economic Zones

15 Feb 2006

First Iranian Law on Special Economic Zones

NOURLAW.COM - January this year witnessed the coming into force of the first ever national law; specifically The Law on the Establishment and Administration of the Special Economic Zones in the Islamic Republic of Iran.  The five-part, 25 article piece of legislation lays out the framework for implementing the rules and regulations governing the activities in the zones. According to article one of the law, the zones have been created to "support economic activities and organize international trade relations in regional economies and producing and processing goods, transfer of technologies, non-oil exports…attracting and protecting foreign investments…in provinces which have the requisite capacity and potential…(as) Special Economic Zones". The Council of Ministers is the body responsible for assigning and changing the executive administration of the zones and this administration may be either governmental or non-governmental. The council also has oversight powers in the zones "within the framework of their (the zones) programs and objectives".          On matters related to building infrastructure, the executive administration can collect monies to provide roads, engineering services, warehousing, offloading and landing facilities, communications, hygiene and a range of other services. Companies and individual investors engaged in producing goods and services are exempt from routine taxation and other customary charges assessed within the country. Article eight of the law treats questions of exchanging of goods outside the country by the zones and among the zones domestically. It specifies that such transactions are "exempt from customs duties, commercial benefit taxes and all of the import and export charges under any category…and it will not fall under the limitations and prohibitions of the Export and Import Regulations"… According to article 14 issues related to attraction of foreign investment, the percentage and modality of foreign participation allowed, is to be based on the Foreign Investment Promotion and Protection Act (FIPPA) of 2002. The State Registration of the Deeds and Properties Organization is obliged to register the companies or their agents doing business in the zones. It is also responsible for protecting intellectual property rights therein.