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18 May 2004 |
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ICCIM PRESS RELEASE No. 42/6 18 May
2004
The Law of Uniformity on
Formalities for Import and Export of
Goods and Services
[TOP] |
The Islamic Consultative Assembly
(Parliament) approved The Law on
Uniformity on Formalities for Import
and Export of Goods and Services on
17 Esfand 1382 (7th March 2004). The
legislation is comprised of a single
article.
According to the said article
all importers and exporters are
obliged to import or export all of
their goods through authorized
jetties, airports and routes in
compliance with the decrees of Iran
Customs Administration by submitting
customs declarations and performing
the necessary formalities. Otherwise
all such goods will be liable to
contraband regulations.
The above rules of procedure
shall apply to the import and export
items of all ministries,
governmental establishments,
governmental and non-governmental
foundations, cooperatives, charity
institutes and all private, natural
and juridical persons.
The Law of Uniformity…has also
amended the first clause of Article
29 of the Law of Customs Affairs.
Before the amendment the clause
stipulated that "importation of
goods into the country or
exportation of goods from the
country through unauthorized
channels would be considered
smuggling, unless the said goods at
the time of importation or
exportation had not been banned or
unauthorized or conditionally
authorized and has been exempt of
payment of customs duties, and
commercial benefit tax and levies."
With the amendment, the latter part
of the clause has been omitted and
modified as follows, "importation of
goods into the country or
exportation of goods from the
country through unauthorized
channels would be considered
smuggling."
The Law is considered a move
against smuggling and unauthorized
entry of goods into the country.
No Time Restriction for Use of
Trademarks
The Administrative Court of
Justice, which is empowered by the
Constitution to abrogate the
regulations contrary to the law, has
annulled Article 13 of the
Implementing Regulations of the
Iranian Law for Registering
Trademarks and Patents. The said
article stipulates that if the owner
of a registered trademark fails to
use it without a plausible excuse
over a three year period after
registration, interested parties can
request the court to have it
annulled.
The Administrative Court of
Justice in its decree #251/82/H
dated 1382/12/27 (17 March 2004) has
stated since such a time limit for
use has not been foreseen in the law
itself, then the by-law can not put
such time restrictions upon the
owner of the registered trademark.
Penalty Increase for Polluting
Industries
The
Council of Ministers amended the
rate of penalties related to air
pollution subject to The Law on the
Manner of Preventing Air Pollution
on 13 Ordibehesht 1383 (2nd May
2004). According to one of the
paragraphs of the said amendment,
the penalties for polluting
factories, workshops and industrial
complexes will range from Rials 2m
to Rials 5m for the first offense.
If the violation is repeated the
penalty will increase from Rials 5m
to Rials 10m.
The Law
for the Establishment of the Iran
Handicraft Organization
The Islamic Consultative
Assembly (Parliament) has approved
The Law for the Establishment of the
Iran Handicraft Organization on 26
Farvardin 1383 (14th April 2004).
According to the new legislation,
the Iran Handicraft Organization
will be organized to centralize and
program all activities related to
the handicraft industry, including
protecting and restoring
quantitatively and qualitatively the
development and promotion of
domestic handicrafts. Other
activities will include coordinating
and programming training and
research in the industry.
The new organization is
affiliated to the Ministry of
Industries and Mines. All
government-run handicraft
enterprises will come under the
auspices of this new entity. The
hand-woven carpet industry, however,
would not be subject to the above
law.
Jahanbakhsh Nouraei Esq.
Senior Legal Advisor to the Iran
Chamber of Commerce, Industries and
Mines ( ICCIM)
legaldepartment@iccim.org |
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8 May 2004 |
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ICCIM PRESS RELEASE No. 42/5 8 May
2004
Extracts from the Iranian
National Budget Bill for the Year
1383 (20 March 2004 - 20 March 2005)
[TOP] |
Dear Reader,
The
1383 (20 March 2004-20 March 2005)
National Budget Bill was approved by
the Islamic Consultative Assembly
(Parliament / /Majlis) in the course
of an open session on 24/12/1382
(March 14, 2004) and ratified with
some amendments by the Expediency
Council. It was published in the
Official Gazette No. 17208 of
1383/10/1 (March 29, 2004).
The Bill consists of a single
Article and 21 Notes as follows:
Note 1 - Financial and tax
affairs;
Note 2 - Regulating governmental
companies;
Note 3 - Banking facilities and
employment matters;
Note 4 - Improvement of the
administrative and management
structures;
Note 5 - Social security and
subsidy affairs;
Note 6 - Balancing regional and
provincial plans;
Note 7-- Culture, arts, physical
education and youth affairs;
Note 8 - General, technical and
vocational training,
Note 9 - Defense affairs;
Note 10 - Hygiene and medical
treatment;
Note 11 - Public and judicial
affairs, security and domestic
order;
Note 12 - Energy;
Note 13 - Research and
technology;
Note14 - Transportation and
communications;
Note 15 - Housing;
Note 16 - Urban and rural
development
Note17 - Education, research and
know-how
Note 18 - Water and agriculture;
Note 19 - Industry, mines and
commerce;
Note 20 - Environment and
natural resources;
Note 21 - Money and foreign
exchange
What
you will find below are extracts of
the National Budget Bill
Jahanbakhsh Nouraei Esq.
Senior Legal Advisor to the Iran
Chamber of Commerce, Industries and
Mines ( ICCIM)
legaldepartment@iccim.org
Extracts from the Iranian
National Budget Bill for 1383 (20
March 2004 - 20 March 2005)
Sole
Article - The National Budget for
1383 (20 March 2004 - March 20,
2005) shall amount to Rls.
1,184,506,785,841,000 from income
sources and Rls.
1,184,506,785,841,000 for
expenditures as stated hereunder:
Note 1 - Financial and Tax
Affairs
E. Executive organs, subject to
Article 11 of the Third Economic,
Social and Cultural and Development
Plan of the Islamic Republic of
Iran, are bound to conclude any
foreign transactions and contracts
exceeding USD 1 million through
limited or international tender
(through publication of notices in
domestic and foreign mass
circulation daily newspapers and
electronic media) with the
observance of the Law Concerning
Maximum Utilization of Domestic
Technical, Engineering, Production,
Industrial and Executive Capacities,
approved March 3, 1997.
Exceptional cases shall require
approval by the Council of Ministers
with due observance of Sub-clauses 1
and 2 to Clause (C) of Article 85 of
the Third Economic, Social and
Cultural Development Plan of the
Islamic Republic of Iran.
The Central Bank of Iran (CBI)
shall be only allowed to undertake
or pay for transactions and
contracts which have met the
confirmation of the respective
highest authority of executive
organs to the effect that the
purport of this clause has been
honored.
The purchase of basic goods,
powdered milk, and the articles
handled by the Purchase Council
subject to the Sole Article approved
by the Islamic Republic of Iran
Revolution Council on 24/5/1359
shall be excluded from the
provisions of this clause.
K. The rate of petrol tax and
duties prescribed in Clause (C)
Article 3 of the Law Amending
certain articles of the Third
Economic, Social and Cultural
Development Plan of the Islamic
Republic of Iran and the Manner of
Determination and Collection of
Duties and Other Sums approved on
22/10/1381, will be fixed on the
basis of 30% of the approved price,
20% of the tax and 10% of the
duties, in 1383.
Note 4-Improvement of the
Administrative and Management
Structures
I. In order to minimize
government entrepreneurship and to
expand privatization of state owned
companies, all the governmental
companies which shall be included in
the list of privatization with the
approval of the Ministry of Economic
Affairs and Finance, shall not be
allowed to make any further
investment for the purpose of
expanding their activities.
Note 5 - Social Security and
Subsidy Affairs
C (1) - Any payment by
installment or deferred payment of
the differential balance of the
manufactured goods shall be
prohibited and the Consumers, and
Producers Protection Organization
(CPPO) is bound to collect the
differential balance in cash.
Violation of this stipulation shall
be considered as misappropriation of
public assets.
C (2) - The debts of previous
years up to the end of Khordad 1382
(June 21, 2003) shall be collected
by the Ministry of Economic Affairs
and Finance upon the declaration by
the CPPO. Failure in making timely
payment shall be subject to the
penalty set out in Article 190 of
the Direct Taxation Act approved in
1380/11/27 and the Ministry of
Economic Affairs and finance is
bound to collect the arrears in
accordance with Chapter 9 of this
Act.
E - In 1383, the CPPO is bound
to remit 100% of the incomes
resulting from the collection of the
differential balance (of imported
goods and domestic productions) to
the Public Revenue Account (at the
Treasury General), subject of Item
No.710114, Part III of this Bill. An
amount equal to 10% of the funds
remitted, up to Rls. 30,000,000,000
out of credit No.503573 of this Bill
shall be put at the disposal of the
CPPO.
The provisions of Clause (B) of
Article 46 of the Law of the Third
Five Year Social, Economic, Cultural
and Development Plan of the Islamic
Republic of Iran and its amendment
shall remain valid and enforceable
in 1383.
F - Natural persons or juridical
entities that owe the CPPO for the
differential balance are bound to
transfer the said funds on the due
date determined by the organization
to the Public Revenue Account at the
Treasury General, subject of Item
No.710114, Part III of this Bill.
The Ministry of Commerce may halt
supply of services to natural
persons and legal entities and
government companies and government
affiliated companies which,
according to the declaration by the
CPPO, have failed to pay their
outstanding debts.
Note 8 - General, Technical and
Vocational Training
A- The Ministry of Education and
its subordinate provincial
organizations shall be under the
obligation to collect outstanding
dues (collectable to the end of
1381) as per the 2% education levies
subject of Clause (2), Article 31 of
the Law on Formation of the
Education Councils, approved in 1372
from the persons and remit the same
to the Public Revenue Account, Item
No.710135, Part III of this Act.
Note 12 - Energy
A- The Council of Ministers
shall be allowed to increase, in
1383, the average price of the four
main oil products and natural gas by
10%, the residential electricity up
to consumption of 250 kwh per month
and industrial and mines electricity
by 10%, and residential electricity
exceeding consumption of 250 kwh in
a month, commercial electricity and
other consumptions, except
agricultural and educational
consumptions, by 25% in average.
For the purpose of enabling the
people to logically economize on
energy consumption an use it
optimizingly, it is allowed to pay
subsidies for the interests
applicable to facilities (credits)
as well as gratuitous aid in the
form of administered funds, to the
ceiling of credits of energy
consumption optimization projects
set forth in Annex No. 1 of this
Bill, within the framework of the
following objectives on the basis of
the by-laws to be approved by the
Council of Ministers. The said sums
shall be considered as definite
expenditure:
- Expanding public
transportation
- Expanding railway
transportation
- Converting vehicles to natural
gas consumption
- Converting water pumps of
agricultural wells into electric
pumps
- Promoting the production and
utilization of the low-consumption
oil and gas appliances
- Promoting the production and
utilization of low-consumption
electric appliances
- Promoting economies and
payment of gas supply subsidy to
poor families
- Reducing energy consumption in
factories and buildings
- Increasing energy output
- Reducing fuel consumption in
vehicles to protect the environment
- Reducing waste in the process
of production and distribution of
electricity
- Development of new energy
technologies
- Replacement of fossil fuel in
rural and tribal areas
D. Should the National Iranian
Oil Company (NIOC), at its
discretion, deem it necessary to
swap, instead of selling abroad,
part or all of its surplus oil
products and exportable gas liquids,
mentioned in Article 120 of the
Third Five Year Economic, Social and
Cultural Development Plan, it shall
notify and report the amount of
swapped products, at the end of each
month to the Treasury and the Plan
and Budget, Auditing and Energy
Commissions of the Islamic
Consultative Majlis (parliament).
F- The Organization for
Management of Production and
Transmission of Power in Iran
(Tavanir) shall be authorized, with
the permission to be given by the
Ministry of Energy, to sell power
plants under its supervision up to
10% of the erected power plant
capacities throughout the country at
the market prices to the
non-government sector by obtaining
the necessary assurances and
guarantees in respect of supplying
power at installations of five years
at maximum with the normal bank
interest and commission and to spend
100% of the amounts earned through
such sales for investment in
construction of new power plants in
the regions devoid of such
facilities.
At any rate, the responsibility
to provide electrical power within
Iran, shall rest with the Ministry
of Energy as provided under Article
44 of the Constitution in a manner
wherein no damage shall suffered in
the supply of electricity.
O. NIOC shall be allowed,in
1383, to import the country's petrol
requirements against exporting crude
oil.
Note 13 - Research and
Technology
D- For the purpose of supporting
joint projects on expansion of
telecommunication and information
technology by Iranian companies with
the contribution of their foreign
partners and/or Iranian companies,
executive organizations shall be
allowed to pay facilities and
guarantee for the respective
contracts, out of administered funds
and credits allocated to programs
for technical and credit assistance,
internal resources of their
affiliated companies and/or the
Electronic Industries Support Fund.
F-A sum of Rls. 125,000,000,000
out of the credit provided under
Clause (A) of this Note, shall be
transferred to the Commerce Ministry
merely for implementation of the
provisions of Clause (A) and (B) of
Article 116 of the Third Five Year
Economic, Social and Cultural
Development Plan as well as for
materialization and development of
electronic commerce, after
conclusion of agreements with the
Management and Plan Organization
(MPO)
Note 14 - Transportation and
Communications
C. The duties on passage of
passenger cars on highways in 1383
shall be a maximum sum of Rls. 20
for each kilometer. The duties
payable by other means of
transportation wether passenger or
cargo vehicles shall be in
accordance with the co-efficients to
be fixed by the Ministry of Roads
and Transportation. The motorways
which have been or will be
constructed pursuant to the Law on
Construction and Development
Projects in the field of road and
transportation through partnership
with banks and other fiscal and
monetary resources of the country
approved in 1366 shall not be
subject to the provisions of this
Clause.
E. In 1383, The Ministry of Post
and Telegraph and Telephone (Iran
Telecommunications Company and
provincial telecommunications
companies), with due observance of
the decrees issued by the Supreme
Cultural Revolution Council, shall:
1. Create the necessary
infrastructures in cooperation with
the executive organs (including
Roads and Transport Ministry etc.)
to provide links with suitable band
width to the information network as
well as the Internet for the
departments of the Ministry of
Education, vocational and technical
and centers, high schools,
scientific, training, research,
sports, arts and cultural complexes
and public libraries for scientific
and training users without payment
of the initial funds (including
deposits and installation expenses).
Investors shall be required to
observe all the related legal
regulations and requirements.
2. Take measures for providing
investment and operation
possibilities for the government and
non-government sectors in the area
of Internet Service Providers (ISP)
3. Observing the importance of
utilizing up-to-date technology and
know-how in production, create the
necessary Internet facilities for
industrial townships by itself or
through the private sector so that
the said townships will be enable to
be connected to the global Internet
network by the end of 1383.
H. For the purpose of
development and promoting of
information technology and
communications of the country and
producing software programs and
laying the grounds for the export of
technical and engineering services
in the field of IT, permission is
hereby given to the companies
affiliated to the Ministry of
Communications and Technology to
allocate up to the sum of Rls.
400,000,000,000 out of their
internal resources with the approval
of their general assemblies, in the
form of administered funds to
protect development and job creating
projects and plans, or for the
export of goods and services in the
field of IT through the private and
cooperative sectors in the form of
financial facilities to be granted
through the competent authorities on
the basis of the by-laws to be
proposed jointly by the Ministry of
Communications and Technology and
the Management and Planning
Organization (MPO) and approved by
the Council of Ministers. The
difference in the rate of interest
of such facilities shall be paid out
of the above funds.
J. The Ministry of Roads and
Transportation and the National
Airline Organization shall pay a
penalty in the case of delaying
national flights. The penalty will
be 10% of the total price of the
tickets per hour delay and this
figure shall be deducted up to
50%.of the total price.
Note 19 - Industries, Mines and
Commerce
A. The Law on Prohibition of
Importation of Certain Unnecessary
Commodities approved on 1374/6/22
shall no longer apply to cigarettes.
It shall be thus allowed to provide
for the shortage of cigarettes, in
1383, through imports.
From the beginning of the year
1383, import duties and differential
balance of the CPPO shall be fixed
up to Rls. 7,000 per one kilo for
imported tea, and for other
agricultural items, with observance
of the health regulations, it must
be determined in a manner that the
formal imports can meet the
requirements of domestic market..
The resulting income will be
allocated merely for the protection
of the farmers and improvement of
production methods of the same
product.
C. The credit under Item
No.503028, Part IV of this Bill may
be allocated to meet the following
expenses:
1. 50% to be allocated to
increase the amount of the capital
of the Export Guarantee Fund of
Iran,
2. The other 50% for some of the
export subsidies upon the approval
of the MPO:
The government shall determine
and enforce the amount of export
bonus in proportion to the added
value, penetration into of new
markets and export of new goods
within the framework of the by-laws
to be proposed by the Ministry of
Commerce, Ministry of Economic
Affairs and Finance, as well as the
MPO and approved by the Council of
Ministers.
D. Up to a maximum of 50% of the
credits to be allocated to the aid
projects for development of new
industries and aids to setting up
pilot units for design and
manufacture of chips in
micro-electronic industry may be
given out as risky investments and
be accepted as non-reimbursable
under certain criteria to be
proposed by the MPO and the Ministry
of Industries and Mines to be
approved by the Council of
Ministers.
E. The governors-general shall
collect, in return for rendering
services and authorizing utilization
of facilities at joint border
markets, sums on the basis of
executive by-laws of this Clause to
be approved by the Council of
Ministers upon the proposal of the
Interior Ministry, and transfer the
same to the country's Public Revenue
Account (with the Treasury General),
described in Item No.519971, Annex
III of this Bill.
(8/14)
An amount equal to the sum paid
in every province up to the sum of
Rls. 73,136,348,000 from the credit
in Schedule 2 annexed hereto
(provincial) may be spent for
capital assets ownership, as well as
the welfare and expenditure affairs
of the said markets in order to be
disbursed equivalent to the
collections made by each province
and on the basis of agreements
concluded with the MPO.
K. To support domestic
production, executive organs
mentioned in Articles 2 and 30 of
the Law on Adjustment of Certain
Government Financial Regulations,
approved 80/11/27 by the Plan,
Budget and Auditing Commission of
the Islamic Consultative Majlis
shall be prohibited, in 1383, to
purchase durable consumables
produced abroad similar to which are
manufactured inside the country.
The list of goods covered by the
above prohibition shall be drawn up
by the Ministry of Commerce, the
Ministry of Industries and Mines and
approved by the Council of
Ministers.
L. To protect domestic
production and encourage imports
through legal entry points and to
fight smuggling of goods, the
government shall, in 1383, amend the
regulations, prepare legal
preliminary actions and employ all
administrative, judicial and
disciplinary facilities to adopt the
following measures:
1- Provide incentives for
importation of goods through
official channels ,with observance
of the general regulations of
exports and imports, in a
transparent manner by creating
facilities, lifting monopolies and
rationalizing commercial benefit tax
rates.
2- Any import or export of goods
without passing through the
authorized entry and exit points
where the Customs Organization is
present for implementation of the
respective regulations, shall be
prohibited. Any violation of the
above provision with respect to
entry or exit of the goods shall be
tantamount to smuggling and the
violators shall be prosecuted
according to the law.
The Customs organization shall
declare the list of the authorized
check points and the legal
procedures and formalities applied
in each of them, and any changes in
the said list shall be declared by
the Customs Organization itself.
3- Keeping, distributing,
transporting and transacting in
foreign goods for commercial
purposes that enter Iran through
unauthorized channels and without
payment of import duties, shall be
prohibited and regarded as
contraband and subject to the
punishment prescribed for smuggling
goods. The executive by-laws of this
Clause shall be approved by the
Council of Ministers upon proposal
by the Ministry of Commerce.
4- In order to compensate a
shortage of cash funds, the Customs
Organization shall be at liberty to
give a final release on imported
goods from Customs, with setting a
deadline at most for one year for
payment of the import duties against
taking bank guarantees, insurance
policy or other securities as well
as against keeping a portion of the
goods equal to the amount of the
import duties.
5- Prevent creating privileges
for certain people through omission
of discounts and exemptions while
collecting government revenues. The
Economy Council, as well as the
other authorities, may not reduce or
exempt the commercial benefit taxes
or the differential amounts in
certain special cases for certain
natural persons or legal entities
whether from the government or
non-government sectors.
7- It shall be prohibited to
import goods for trading purposes,
through facilities foreseen in the
regulations for personal consumption
including goods carried by
passengers and border goods
exchanges and goods carried by
seamen.
9- All natural persons and legal
entities supplying foreign goods and
services within Iran, are bound to
supply any such goods and services
to the domestic market by arranging
to have official agents and
rendering after-sale services within
the framework of the regulations
approved by the Ministry of
Commerce. The pertinent goods shall
be considered to be contraband in
case of failure, on the part of
natural persons or legal entities,
to comply with these regulations
upon declaration by the Ministry of
Commerce.
The government shall be under
obligation to adopt appropriate
policies for manufacture in Iran of
such goods as household appliances,
audio-visual devices, computer
components and cellular phones under
license and with the participation
of reputable foreign manufacturers
in a manner that the commodities to
be manufactured by the Iranian
companies shall be able to compete
with the imported brands.
10- The Judiciary shall be under
the obligation to set up special
branches of the courts for the
relentless combat against smuggling
and shall take immediate action in
exerting control over combating the
smuggling.
11- The government shall be
under the obligation to reinforce
the Tazirat court branches dealing
with contraband goods for expediting
handling of the smuggling cases and
taking required measures in this
respect.
N. The export and import of oil
products whose subsidies have been
cancelled shall be free in 1383 and
the said products (including
bitumen) shall not require permits
from the Ministry of Oil, to be
imported or exported.
O. As of the beginning of the
year 1383, the IRI Disciplinary
Forces and Iran Customs Organization
shall be under obligation to settle
and enforce their legal
responsibilities in all of the
southern jetties, western border
markets and the entrance of
Bahmanshir-Arvand River.
Note 21 - Money and Foreign
Exchange
B. The Council of Ministers
shall be allowed to sell, up to a
maximum of USD 16,100,000,000
provided in Schedule 2 of the Third
Five Year Economic, Social and
Cultural Development Plan of the IRI
and its amendment, in 1383, at the
foreign exchange rate prevailing in
the inter-banks market and transfer
the rial amount accrued, to the
General Income Account with the
Treasury General under Item
No.810100, Part II of this Bill.
The CBI shall be responsible to
regulate and create balance in the
foreign exchange market and the
management of the country's foreign
exchange payments balance under the
supervision of the committee
foreseen in Article 86 of the Third
five year Economic, Social and
Cultural Development Plan.
F. The rate for conversion into
rials of other foreign exchange
revenues of the government shall be
also based on the rate of the
inter-banks market.
The said revenues shall be
transacted with the banking system
according to the related regulations
or shall be disbursed to cover the
expenses concerned.
…. It shall be permissible to
use, up to the end of 1383, the
balance of the facilities under
Sub-clause 5 of Clause (L) of Note
29 of the 1378 Budget Bill for
implementation of infrastructural
and industrial non-government sector
projects from the date of approval
of this Bill. The list of the above
said projects shall be made by the
Economy Council.
The government shall forward a
report, once every three months, on
the operations of the paragraph
mentioned in this Clause to the
Islamic Consultative Assembly.
G. In implementation of Article
85 of the Third Five Year Economic,
Social and Cultural Development
Plan, the government, in 1383, shall
be allowed to procure and guarantee
repayment, with due observance of
the said Act and the provisions of
this Clause, of financial resources
from foreign capital markets for
investments detailed below up to a
sum of USD 9,300,000,000 in the form
of project finance agreements and/or
partnership contracts:
1. A sum of USD 3,884,000,000 of
foreign facilities shall be procured
and repayment thereof guaranteed for
projects, all the payments of which
including the repayments and
disbursement concerned, shall be
made out of export of the products
of the same project (private,
cooperatives and government/public
sectors) and whose advance payments
shall be made out of the incomes or
foreign currency quotas of the
employer organization concerned. The
government shall guarantee the
permission for export of the
products of these projects until
total settlement of the commitments
resulting from the related
investment.
2. A sum of USD 5.416,000,000 of
foreign facilities shall be procured
and repayment thereof guaranteed for
investment in projects whose
technical and economic feasibility
and the priority of implementation
of which meet the approval of the
Economy Council.
Projects described in this
Clause, which are based on finance
schemes may change into buy-back
schemes, with due observance of
Clause (E) to Article 85 of the
Third Five Year Economic, Social and
Cultural Development Plan Act.
J. Authorization to utilize the
balance of facilities within a
buy-back
scheme for Notes 29 in the 1377,
1378, 1379n and 1380 National Budget
Bills as well as Note 21 of the 1381
and 1382 Budget Bill shall continue
to remain valid in 1383 with the
same conditions as approved already.
In order to regulate the
country's foreign payments balance,
the organizations in charge of
buy-back projects shall make the
necessary coordination with the
Central Bank of Iran (CBI) regarding
their foreign exchange commitments
and time scheduling for the
repayment of these commitments, and
present the required information
every six months to the said bank
and Management and Planning
Organization.
K. Operations for procurement of
foreign exchange resources and
financial contracts such as time
schedule for the repayment of all
contracts of executive organizations
shall be carried out in coordination
with the CBI. The text of financial
contracts and finance projects of
the said organizations shall also
meet the approval of the CBI.
L. In implementation of the Law
on Protection and Promotion of
Foreign Investment approved
1380/12/19, permission is hereby
granted to the Council of Ministers
to seek foreign investment in power
generation projects for
hydroelectric, steam power, gas and
combined cycle power plants, reserve
pump and new energy plants up to a
capacity of 12,000 MW and refinery
construction projects up to a
capacity of 300,000 b/d, Tehran
sewage and construction of 3,400 km
of railway and 1,300 km of highway,
development of Imam Khomeini
International Airport and seven
existing international airports,
developing and equipping large
commercial ports and procurement for
the rail fleet and telecommunication
expansion projects by domestic and
foreign investors by giving priority
to Iranian investors through the
procedure set forth in Clause (B) of
Article 3 of the Law on Promotion
and Protection of Foreign
Investment.
The government shall be allowed,
for the fulfillment of the purport
of the said Clause, to carry out, in
addition to the guarantees mentioned
in the framework of the Law on
Protection and Promotion of Foreign
Investment approved 1380/19/12:
1. To guarantee the payment of
the contractual undertakings of the
Iranian governmental companies that
are parties to the contracts with
the government (and their goods and
services should be necessarily
purchased by the government).
2. In case, according to the
government decision or current
regulations, the price of the said
projects\ products (goods or
services) offered to the customers
shall be less than their guaranteed
price purchased by the government
and the governmental company from
the investor, its differential
balance should be foreseen in the
annual budget by the MPO, and
guaranteed by the government
(Ministry of Economic Affairs and
Finance).
3. If the government decides to
transfer state-owned companies, all
of the company obligations should be
shifted to the new shareholders and
government guarantees should remain
valid and effective till the last
stages of the contract.
4. The Ministry of Economic
Affairs and Finance, with government
approval, will guarantee the said
obligations out of the funds and
resources belonging to the said
companies and with the right to make
withdrawals from all bank accounts
and their funds and resources, in a
manner that their commitments shall
not be met by using the public funds
and resources. The executive
regulation of this Clause comprising
the terms and conditions of payment
and contractual commitments and
selection the projects shall be
proposed to the Council of Ministers
for approval by the Ministry of
Economic Affairs and Finance and the
Management and Planning
Organization.
Q. The Ministry of Economic
Affairsand Finance shall be allowed
to guarantee, up to USD 300,000,000
foreign exchange guarantees issued
by the national banking network and
the Export Guarantee Fund out of the
resources of the Foreign Exchange
Reserve Fund kept at the Central
Bank of the IRI for importation of
goods and services from the Middle
Asia and Russia as well as for
exportation of domestic goods and
services to the said countries. The
by-law of this Clause shall be
proposed by the Ministry of Economic
Affairs and Finance and CBI and
approved by the Council of
Ministers.
R. All ministries and government
institutes and companies described
in Article 11 of the Third Social,
Economic and Cultural Development
Plan Act of the IRI shall be
governed by the provisions of this
Note.
T. In implementation of Clause
(V ) of Article 113 of the Third
Five Year Economic, Social and
Cultural Development Plan, the
Council of Ministers shall be
allowed, in the year 1383, to
allocate the sum of USD 100,000,000
from the surplus income of exported
crude oil (USD 16,100,000,000) to
increase government capital in the
Iran Export Guarantee Fund. |
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17 March 2004 |
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ICCIM PRESS RELEASE No. 42/4
Amendment Made to the Executive
Directive for Regularizing
Activities of Natural and Juridical
Persons Supplying Foreign Goods and
Services in Iran
[TOP] |
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To:
Esteemed directors of the
provincial chambers, the joint
chambers and related NGOs
Subject:
Amendment Made to the Executive
Directive for Regularizing
Activities of Natural and
Juridical Persons Supplying
Foreign Goods and Services in
Iran
Respectfully,
Attached please find two copies
of the Amendment of the
Executive Directive for
Regularizing Activities of
Natural and Juridical Persons
Supplying Goods and Services in
Iran for consideration and
execution.
For further explanation,
observing the directive is an
amendment, the deadline set in
note 3 is not binding and
foreign natural and juridical
persons and official
representatives of foreign
companies that supply goods and
services to the Iranian market
can refer to the Ministry of
Commerce, General Office for
Guilds and Traders' Affairs
(Edareh Kole Omour Asnaf Va
Bazarganan) for obtaining
certification.
Please inform your members
through appropriate means.
Jahanbakhsh
Nouraei Esq.
Senior Legal Advisor to ICCIM
The emblem
of the Islamic Republic of Iran
Ministry of Commerce
Number: J/441
Date: 6/12/82 (25/2/2004)
Esteemed
Iran Chamber of Commerce,
Industries and Mines
With
regards,
Respectfully, pursuant to the
letter number 1/1914 dated
9/2/1382 (29/4/2003) concerning
the executive directive of the
content of sub-paragraph 9 of
clause R of Note 19 of the 1382
(21 March 2003-20 March 2004)
National Budget Bill on the
subject of regularizing the
activities of natural and
juridical persons that supply
foreign goods and services in
the country, we are attaching a
copy of the amendment. Please
arrange the implementation of
the said directive and inform
the Ministry of Commerce of the
results of the measures taken
Seyyed Hussein Faraji
Director General of Guild and
Traders' Affairs
& Director of the Supervisory
High Council
Amendment Executive Directive
for Regularizing Activities of
Natural and Juridical Persons
Supplying Foreign Goods and
Services in the Country (Iran)
In order to
enforce the purport of
sub-paragraph 9 of clause R of
note 19 of the National Budget
Bill of 1382 on regularizing the
activities of natural and
juridical persons that supply
foreign goods and services in
the country Iran, the respective
directive makes the following
notifications:
Executive Rules
Article 1. All
natural and juridical persons
and official representatives of
foreign companies that supply
foreign goods and services in
the market of the Islamic
Republic of Iran are obliged to
provide the related documents of
their representation contract
and the information about the
goods and services supplied by
them, to the Ministry of
Commerce for natural and
juridical persons previously
registered in Iran must as well
obtaining necessary
certification. The
representatives of the foreig
receive this necessary
certification from the Ministry
of Commerce in the above manner.
Note 1: Foreign companies and
their branches acting in Iran
and legal and juridical Iranian
persons that are representatives
of foreign companies are also
bound to provide respective
documentation on the
registration of the company or
their representation to the
Ministry of Commerce.
Note 2: The General Office of
Guilds and Traders' Affairs in
the Ministry of Commerce shall
be responsible for the issuance
of the required certificate
subject to Article 1 and the
said representatives in the
event acting within the
framework of the guilds'
regulations shall be also
obliged to honor The Guild Order
Law.
Note 3: If foreign natural and
juridical persons as well as
official representatives of
foreign companies supplying
foreign goods and services do
not take action for receiving
the required certification from
the Ministry of Commerce by
15/3/1382 (5/6/2003). The goods
offered by them shall be
considered contraband and they
shall be prosecuted according to
the laws pertaining to combating
contraband goods and foreign
exchanges at the judicial courts
and governmental Punishment
Courts (tazirat hukumatee). Also
the persons offering the said
goods and services inside the
country shall be subject to the
laws and regulations pertaining
to contraband goods and such
persons shall be obliged to
appear before the competent
authorities.
Note 4: The Organization of
Inspection and Control for
Pricing and Distribution of
Goods and Services is mandated
to identify those foreign
companies and official
representatives of foreign
companies supplying foreign
goods and services that have not
referred to the General Office
of Guilds and Traders' Affairs
for obtaining the required
certification and take measures
to have them appear before the
governmental disciplinary courts
and other competent authorities.
Article 2. All foreign companies
and official representatives
subject to Article 1 of this
directive are obliged to
establish after sale authorized
service and repair centers in
proportion to the quantity and
scope of the distribution of
their goods and place the list
of these centers at the disposal
of the Ministry of Commerce.
Article 3. Licensing for after
sale service centers and
authorized service and repair
centers shall be carried out on
the basis of The Guild Order
Law.
Article 4. All foreign companies
and official representatives of
the foreign companies subject to
Article 1 of this directive are
obliged to issue a Farsi
language manual, guarantee card
and after sale service cards for
their durable goods and put the
same at the disposal of the
buyers along with the goods.
Article 5. All foreign companies
and official representatives of
the foreign companies are
obliged to offer their goods
with unambiguous packaging,
registration number of the
company, certification number of
the Ministry of Commerce, labels
indicating the particulars of
the goods, the serial number of
the said item and its hologram
in addition to the sales
invoice.
Article 6. Discovering the
violation of foreign natural and
juridical persons and official
branches and representatives of
the foreign companies supplying
goods and services as well as
their after sales services
centers shall be the
responsibility of The
Organization of Inspection and
Control for Pricing and
Distribution of Goods and
Services and the related files
shall be handled by the judicial
courts and governmental
punishment courts in accordance
with the laws pertaining to
combating contraband and foreign
exchanges and The Guild Order
Law.
Note: The official
representatives of foreign
companies supplying goods as
well as their after sales
service centers shall be
prosecuted by the governmental
punishment courts in accordance
with the laws of governmental
punishment courts and other
prevailing regulations in case
of repeat offenses and they will
be barred from continuing their
activities.
Article7. All mass media and
advertising companies are
obliged to advertise only those
types of foreign goods which the
operations of their foreign
companies and official
representatives have been
permitted by the Ministry of
Commerce.
Article 8. Direct purchasing of
goods and services from abroad
for direct utilization in
manufacturing, production and
projects as well as sample goods
and sample services shall not be
subject to this directive under
provision of the pre-approval of
the Ministry of Commerce.
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7 March 2004 |
|
ICCIM PRESS RELEASE No. 42/3
Iran Joins Madrid Agreement on
Indicators of Source of Goods
[TOP] |
The Council of Ministers on 8
February 2004 authorized the Iranian
government to join the Madrid
Agreement for the Repression of
False and Deceptive Indications of
Source on Goods of 14 April 1891.
The measure was taken by virtue of a
single article of the 1958 Law
Authorizing the Iranian Government
to Join the Paris Convention for the
Protection of Industrial Property.
The Madrid Agreement seeks to
provide international protection for
traditional national goods and
products that are well-known by
reason of attribution to a specific
area or geographical location. The
measure also aims at preventing the
misuse of the name of the country of
origin by foreigners through
emphasis on observation of national
laws and regulations regarding
export and import.
Geographical indication refers
to the name or mark of a product
from a specific geographical area
that is renowned for its special
quality and whose repute is
authenticated by consumer
recognition such as the Kashan
carpet, Rafsanjan pistachios, Ceylon
tea, the Swiss watch, Havana cigars,
etc.
The Agreement has undergone
several revisions. These were at
Washington in 1911, The Hague in
1925, London in 1934 and Lisbon in
1958. It is comprised of six
Articles the highlights of which are
as follows:
- All goods bearing a false or
deceptive indication by which one of
the countries to which this
Agreement applies, or a place
situated therein, is directly or
indirectly indicated as being the
country or place of origin shall be
seized on importation into any of
the said countries.
- Seizure shall also be affected
in the country where the false or
deceptive indication of source has
been applied, or into which the
goods bearing the false or deceptive
indication have been imported.
- If the laws of a country do
not permit seizure upon importation,
such seizure shall be replaced by
prohibition of importation.
- If the laws of a country
permit neither seizure upon
importation nor prohibition of
importation nor seizure within the
country, then, until such time as
the laws are modified accordingly,
those measures shall be replaced by
the actions and remedies available
in such cases to nationals under the
laws of such country.
- In the absence of any special
sanctions ensuring the repression of
false or deceptive indications of
source, the sanctions provided by
the corresponding provision of the
laws relating to marks or trade
names shall be applicable.
- Seizure shall take place at
the instance of the customs
authorities, who shall immediately
inform the interested party, whether
an individual person or a legal
entity, in order that such party
may, if he so desires, take
appropriate steps in connection with
the seizure effected as a
conservatory measure. However, the
public prosecutor or any other
competent authority may demand
seizure either at the request of the
injured party or ex officio: the
procedure shall then follow its
normal course.
- The authorities shall not be
bound to effect seizure in the case
of transit.
- These provisions shall not
prevent the vendor from indicating
his name or address upon goods
coming from a country other than
that in which the sale takes place;
but in such case the address or the
name must be accompanied by an exact
indication in clear characters of
the country or place of manufacture
or production, or by some other
indication sufficient to avoid any
error as to the true source of the
wares.
- The countries to which this
Agreement applies also undertake to
prohibit the use, in connection with
the sale or display or offering for
sale of any goods, of all
indications in the nature of
publicity capable of deceiving the
public as to the source of the
goods, and appearing on signs,
advertisements, invoices, wine
lists, business letters or papers,
or any other commercial
communication.
- The courts of each country
shall decide what appellations, on
account of their generic character,
do not fall within the provisions of
this Agreement, regional
appellations concerning the source
of products of the vine being,
however, excluded from the said
reservation.
Jahanbakhsh Nouraei Esq.
Senior Legal Advisor to ICCIM |
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7 February 2004 |
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WIPO Convenes Seminar on Iran
Joining Agreement on International
Registration of Trademarks [TOP] |
The following is a press release of
Iran Chamber of Commerce, Industries
and Mines.
The Government of the Islamic
Republic of Iran became a signatory
to the Madrid Agreement Concerning
the International Registration of
Marks and the Protocol Relating to
the Madrid Agreement on 28 Mordad
1382 (19 August 2003). The pacts
deal with all matters related to the
international registration of marks.
On this occasion, a national seminar
was organized at the Iranian Chamber
of Commerce, Industries and Mines
(ICCIM) in collaboration with the
World Intellectual Property
Organization (WIPO) and the State
Organization for Registration of
Deeds and Properties on 7-9 Bahman
1382 (27-29 January 2004).
As explained by WIPO experts,
the system of international
registration of marks is governed by
these two treaties: namely the
Madrid Agreement Concerning the
International Registration of Marks,
which dates from 1891, and the
Protocol Relating to the Madrid
Agreement, which was adopted in
1989, entered into force on December
1, 1995, and came into operation on
April 1, 1996. Common regulations
under the Agreement and Protocol
also came into force on that date.
The system is administered by the
International Bureau of WIPO, which
maintains the International
Register.
Any State which is party to the
Paris Convention for the Protection
of Industrial Property may become a
party to the Agreement or the
Protocol where these conditions are
fulfilled: at least one of the
Member States of the organization is
a party to the Paris Convention and
the organization maintains a
regional office for the purposes of
registering marks with effect in the
territory of the organization.
By the end of 2003, a total of
74 countries had acceded to the
Madrid System. All trademarks
registered by the Madrid System have
single registration and will be
protected by all the members.
During the seminar held on the
occasion of Iran's accession to the
Madrid Agreement and the Protocol,
lecturers from WIPO and Iran tackled
the advantages and different aspects
of the international registration
system. According to commerce
professionals, the agreement will
help Iranian exporters seeking both
the protection of their brand names
and more secure access to
international markets.
In 1379 (2001) many Iranian
products in the food sector were
denied entry by Canadian customs.
This was done on the grounds that
some of their export product brands
had already been registered and
introduced to the Canadian market by
competitors. That experience served
as an impetus for the ICCMI to seek
legislation from Parliament for
Iran's joining the Madrid Agreement
and the related protocol.
Now, and in accordance with
international registration of their
marks through the local Trademark
Registry plus a small fee, Iranian
exporters can be protected against
any product infringement in tens of
countries. This point and the
relevance of the Madrid Agreement
was the core of the lecture
delivered by ICCIM President Alinaqi
Khamoushi at the seminar.
Jahanbakhsh Nouraei Esq.
Senior Legal Advisor to ICCIM |
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7 February 2004 |
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The Law of Electronic Commerce
Coming Into Force
[TOP] |
The following is a press release of
Iran Chamber of Commerce, Industries
and Mines.
The Law of Electronic Commerce
in 81 articles was approved in the
Iranian Majlis (Parliament) on 17
Dey 1382 (7 January 2004). The law
was published in the Official
Gazette on 11 Bahman 1382 (31
January 2004) and will come into
effect after the legal grace time
limit of 15 days on 27 Bahman 1382
(16 February 2004).
This law, designed to harmonize
Iranian involvement in E-commerce
with domestic requirements and
global developments contains six
chapters on the safe exchange of
data and information through the
medium of new communication systems.
The first chapter, General
Regulations, explains terms and
definitions of the law, including
electronic signature, procedures for
sending and receiving data and
verifying its authenticity, time and
place of transmission of the data
messages.
The second chapter titled
Certification Service Providers
outlines the workings of the offices
dedicated to the issuance of
electronic signatures. Their
services include producing, issuing,
saving, sending, confirming,
canceling, keeping and updating all
electronic signature certificates.
The third chapter, Legal
Protection in Electronic
Communication, covers consumer
protection, marketing, private data
protection, copyright, trade secrets
and trade names. The section on
consumer protection defines the sale
and services in consumer
transactions. However, there are a
number of exceptions including:
1) financial services
2) the sale of immoveable
property
3) purchase of direct sale
machines for goods and services
4) transactions made through
public phones
5) transactions undertaken at
auction
The other parts of the chapter
explain the legal protection of
compositions in the form of data
messages. This category covers
information, software, computer
programs, computer equipment and
operating techniques, databases and
also protection of intellectual
property including patents, designs,
copyright and the related rights,
integrated circuits & chips,
protection of trade secrets
including information, formulas,
patterns, software and programs,
equipment and techniques,
unpublished writings, business
operating procedures, drawings,
financial data, consumer lists, etc.
Chapter four named Computer
Crimes, defines the fines and
penalties related to fraud, forgery
and other related crimes. As for the
definition of computer fraud, the
law states, "Any person who in
relation to electronic transactions
deceives others or creates confusion
in automatic processing systems and
the like and through such actions
procures for himself or others
monies, assets or financial benefits
and usurps the assets of others
shall be regarded as a criminal if
the act is done through
misappropriation or unauthorized use
of data messages, computer programs
and systems and telecommunication
means and commission of acts such as
entrance, deletion, blocking data
messages, interference in the
functioning of the computer program
or system and the like."
As stated in the law, the
computer forger is the person who
"forges the data messages bearing
financial and affirmative value in
order to use the same as valid data
messages by rendering such messages
to administrative, judicial,
financial, and other authorities.
Forgery shall be committed through
hacking, changing, deleting,
blocking data messages and
interfering in processing of data
messages and computer systems, and
or using the practical means of
coding systems of production of
signatures-such as a personal
key-without the permission of the
signatory and or production of a
signature lacking a registration
record in the indexed books of
electronic documents and or in
conformity of the said means with
the name of the holder of the
signature in the said index and
obtaining forged certificates and
the like."
Jahanbakhsh Nouraei Esq.
Senior Legal Advisor to the
ICCIM |
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13 May 2003 |
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Supply of foreign goods and services
requires official agency
[TOP] |
The following text is a circular
sent under # 42/887 dated 1382/1/28
(17 April 2003) to the heads of the
Iranian chambers of commerce
nationwide, associations and joint
chambers of commerce,
Respectfully,
With regard to the importation
of goods please be informed that
according to Part 9 of Paragraph R
of Note 19 of the Budget Law of the
year 1382 (March 21, 2003 - March
19, 2004) for the purpose of
protecting domestic products, import
of goods from legal points of entry
and the suppression of smuggled
goods, supply of foreign goods and
services to the Iranian market
requires official agency.
The text of the aforesaid
current year budget law is as
follows:
?"All the natural and juridical
persons supplying foreign goods and
services in the
country are required within the
rules and regulations declared by
the Ministry of Commerce to offer
such products to the domestic market
through official agency and
providing after sales services. In
the event of non-compliance of the
natural and juridical persons they
shall be, upon the declaration of
the Ministry of Commerce, subject to
the laws and regulations pertaining
to the smuggling of goods."
Jahanbakhsh Nouraei
Director of Legal Affairs |
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22 August 2002 |
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The New Foreign Investment Law
Effective [TOP] |
The Iranian new foreign investment
law was published in pages 5, 6, 7
of the Official Gazette dated
22/4/1381 (13 July 2002) Number
16709.
Whereas, according to Articles 2
and 3 of the Civil Code of Iran the
legislative enactments come into
force throughout the country fifteen
days after their publication in the
Official Gazette, therefore, the new
law has replaced the former one and
is considered effective since
29 July 2002. Consequently, all
the new applications for foreign
investment in Iran must be handled
and processed in accordance with the
new law.
As for the Implementation
Regulations, the Foreign Investment
Bureau in O.I.E.T.A.(the
Organization for Investment,
Economic and Technical Assistance of
Iran affiliated to the Ministry of
Economic Affairs & Finance) has
prepared and sent the text for
approval to the Council of
Ministers. But, It is still there.
Nourlaw.com shall publish the
English version of the Law soon in
Foreign Investment Section. |
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23 April 2002 |
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Drastic Reduction of Customs Duties
for Imported Goods
[TOP] |
According to the Iranian Official
Gazette number 16634 dated 10 April
2002, the Iranian Majlis
(parliament) on 10 March 2002
approved the Law of Addition of
Three Notes to Article Two (2) of
the Law of Customs Affairs. By
virtue of this legislation, from 21
March 2002 customs duties of all
imported goods have been reduced to
1% (one percent) of their c.i.f
value. The customs sundry fees and
charges have been lowered as well.
Prior to the aforesaid law, the
customs duties ranged from 2% to 30%
for various kinds of goods. |
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22 April 2002 |
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Iranian Railways (RAI) Joins S.M.G.S
Agreement [TOP] |
Iranian Majlis (parliament) passed
the Law of Accession of the
Government of the Islamic Republic
of Iran to the Convention of Cargo
Transport by Rail (S.M.G.S) on 13
February 2002. It was reported in
the Official Gazette number 16634
dated 10 April 2002.
The Iranian Railways has already
joined a number of organizations and
international / regional
conventions, such as:
1 - UIC International Union of
Railways
2 - Intergovernmental
Organization for International
Carriage by Rail
3 - COTIF Convention for
International Carriage by Rail
4 - OSSJD Organization for
Cooperation between Railways
5 - ETTMTT CIS & Caucasian
Countries Transportation Tariff
Treaty
6 - CMO Middle East Railway
Tariffs (Iran, Turkey, Syria, Iraq,
Hedjaz in Jordan, Hedjaz in Syria)
7 - BPO Middle East &East Balkan
Tariffs (Iran, Turkey, Bulgaria,
Syria, Greece)
8 - CII International Rail
Transport Committee
9 - BCC - Central Bureau of
International Transportation
Payments & Accounts (central
clearing house)
10 - RIC International Carriage
and Luggage-van Union
11 - RIV International Wagon
Union
12 - International Agreement for
Using East Bloc Wagons
13 - ICF Interfrigo &
Intercontainer Company
14 - SMPS Direct Passenger &
Cargo Transportation Agreement with
Turkmenistan
15 - Agreement on Cargo Exchange
at Border Point with Turkmenistan
16 - Agreement on Direct Border
Point Link with Former Soviet Union
via Jolfa Border point
17 - Bilateral Agreement Between
RAI & Turkmenistan Railways
18 - ICCD Agreement on Exchange
of Cargo with Turkey |
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13 April 2002 |
|
|
Tax Law Amended
[TOP] |
The Law Amending Certain Articles of
the Law of Direct Taxation which was
passed by the Iranian Majlis
(parliament) on 16 February 2002,
came into force on the first day of
the current Iranian year of 1381
(starting 21 March 2002).
All companies with their fiscal
year starting 21 March 2002 will be
subject to the new tax rates and
stipulations.
From the beginning of 1381, all
contradictory tax rules and
regulations, with the exception of
tax decrees set in the Third
Five-Year Development Plan
(2000-2005) and Article 113 of the
Law on Free Trade Zones dated 1993,
have been cancelled.
Experts believe that with more
reasonable tax rates envisaged in
the new tax amendment legislation,
domestic and foreign investments
will be encouraged.
With respect to companies and
foreign entities, some main features
of the tax amendment law are:
* The total income of companies
and other legal entities, earned
from their profitable activities in
Iran or abroad, shall be subject to
a flat rate of %25 after deduction
of the losses and exemptions.
* Foreign legal entities must
pay taxes on all taxable income
earned through investments in Iran
or from direct or indirect (through
agents, branch offices,
etc)activities in Iran, at the flat
rate of %25 as mentioned in Article
47 of the amendment law.
The above has some exceptions:
Direct tax on the income earned
by foreign airlines and shipping
companies through transporting
passengers and cargo from Iran, is a
flat rate of five percent on all
sums received from these activities
in Iran, en route, or at the final
destination.
Foreign insurance companies
which earn their profit through
reinsurance shall be subject to a
tax at the rate of two percent of
the premium collected and the
interest accrued from their deposits
in Iran.
The tax for foreign contractors
in Iran, active in areas such as
construction and installation works
and the related commissioning,
transportation, designing plans for
buildings and installations,
topographical surveying, drawing,
supervision and technical
calculations, training and technical
assistance, transfer of technology
and other services, shall be
calculated on the basis of a flat
rate of 12 percent of their annual
receipts in all instances.
* The taxable income of foreign
legal entities earned by the
assignment of their royalties and
license and their other rights and
ceding of movie films (earned as
price, screening rights, or
otherwise), depending on the case,
shall be from 20 to 40 percent of
the total sum acquired by the entity
within one fiscal year. The basis
for applying the specific rate for
each case shall be later determined
and approved by the Council of
Ministers.
* The rates set by Article 131
which began at 12 percent of the
annual taxable income and rose to 54
percent, have been amended as
follows:
|
Up to Rls. 30,000,000
annual taxable income |
|
15% |
|
Up to Rls. 100,000,000
annual taxable income |
On sums in excess of
Rls. 30,000,000 |
20% |
|
Up to Rls. 250,000,000
annual taxable income |
On sums in excess of
Rls. 100,000,000 |
25% |
|
Up to Rls. 1,000,000,000
annual taxable income |
On sums in excess of
Rls. 250,000,0000 |
35% |
| |
On sums in excess of
Rls.1,000,000,000
annual taxable
income |
35% |
* The companies whose shares are
offered on the stock exchange
market, shall be exempted from
payment of %10 percent of the tax
assessed and applicable to them. |
|
|
13 April 2002 |
|
|
Exporters no Longer Bound to Forex
Repatriation [TOP] |
During the past 8 years, Iranian
non-oil exporters were committed and
bound to repatriate export proceeds
and surrender it to the banking
system at the "export" rate. The
obligation for bringing in the
proceeds to the country, called
Paymaan Arzi in Farsi language, was
carried out by the guarantee forms
which the exporters were obliged to
sign. Failing in bringing in the
foreign exchange, would subject the
exporter to criminal prosecution.
Since February 1998, ,%100 of
the non-oil export proceeds that
were surrendered to the banking
system could be used by the exporter
to import certain goods listed for
this purpose. Later, a number of
goods were exempted from the forex
repatriation obligation and the
exporters were allowed to transact
their forex on the Tehran Stock
Exchange.
Exporters and a number of
economists had repeatedly objected
to the forex repatriation as an
impediment to the growth of
exportation of Iranian goods and
services. Finally, on 19 March 2002,
in a positive step, the High Council
of Non-Oil Export Development,
waived the export of all goods and
services from Forex repatriation
obligation.
The decision has become
effective from the beginning of the
current Iranian year (started 21
March 2002). The High Council also
resolved that the exporters can
import goods in an amount equal to
the Forex earned from their goods
and services exports. |
|
|
22 May 2001 |
|
|
Iran Accedes to Madrid Agreement
Concerning the International
Registration of Marks [TOP] |
Another good news for supporters of
intellectual property in Iran! The
Council of Ministers by virtue of
the decree number H24305T/6921 dated
12 May 2001 has ratified accession
of the Islamic Republic of Iran to
Madrid Agreement Concerning the
International Registration of Marks.
The treaties dealing with the
international registration of marks
and industrial designs are,
respectively, the Madrid
Agreement(and its Protocol) and the
Hague Agreement. Because they
provide a useful service to industry
and commerce, these treaties have
bright prospects for growth in the
coming years. Iran has not joined
the Hague Agreement yet.
According to the Madrid
Agreement, nationals of any of the
contracting countries may, in all
the other countries party to the
Agreement, secure protection for
their marks applicable to goods or
services, registered in the country
of origin, by filing the said marks
at the International Bureau of the
World Intellectual Property
Organization (WIPO). |
|
|
1 May 2001 |
|
|
Iran Accedes to Convention on the
Recognition and Enforcement of
Foreign Arbitral Awards [TOP] |
|
Late April brought good news for
commercial lawyers and businessmen
who had long been seeking accession
to the Convention on the Recognition
and Enforcement of Foreign Arbitral
Awards. That act was originally
concluded at New York, 10 June 1958
and entered into force, 7 June 1959,
under the auspices of the United
Nations. Now, foreign arbitral
awards made in foreign countries,
shall be enforceable in the
territory of the Islamic Republic of
Iran under the provisions of the
Convention. Awards issued on Iranian
soil shall enjoy the same
enforceability with respect to the
member countries of the New York
Convention. Iranian parliament
(Majlis) approved Iran’s joining the
Convention last week and the
legislation becomes legally binding
15 days after being published in the
Official Gazette. According to
informed sources, the Iran Chamber
of Commerce, Industries and Mines
was the impetus behind the
accession.According to Clause 1 of
Article 1 of the Convention:” This
Convention shall apply to the
recognition and enforcement of
arbitral awards made in the
territory of a State other than the
State where the recognition and
enforcement of such awards are
sought, and arising out of
differences between persons, whether
physical or legal. It shall also
apply to arbitral awards not
considered as domestic awards in the
State where their recognition and
enforcement are sought.” |
|
|
1 May 2001 |
|
|
New Regulations for Non-oil Buy-back
Agreements [TOP] |
|
Iranian Council of Ministers has
approved regulations on conditions
of non-oil buy-back transactions.
According to the Decree
NO.H21560T/50991dated 30 JANUARY
2001, increased facilities have been
foreseen for implementation of
buy-back agreements. According to
Article 3 of the Decree, all
financial resources and facilities
received in form of buy-back
contracts shall be subject to the
rules of the Law Concerning
Attraction and Protection of Foreign
Investments and the foreign capital
shall be compensated against any
nationalization, appropriation, and
adverse future rulings. The full
text of the Decree will soon be
available in English language on
this Website. |
|
|
