Archive

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

Inflation Rate in June 2012 touches 22.4% Iran and Slovenia Agreement on Avoidance of Double Taxation to Take Effect Iran Joins Hague Convention Abolishing Requirement of Legalization for Foreign Public Documents Iran Signs Bilateral Agreements on Commerce, Customs, Taxes Permission Required for Export of Imported Goods Iran and Russia to protect Plants Tariff Exemption for Imports from Syria Government to Private Change in Ownership Does not Nullify Contracting Tax Exemption Origin of Manufacturing No Longer Condition for Import of Cars Reduction of CBT of the Goods Imported to Mainland from Free Zones Six-month Deadline for Procurement of Medicinal Raw Materials from Domestic Sources Tracing Code a Must for Clearing Imported Goods Presentation of Quality Certificate for Entry of Chinese Goods into Iran Low Quality Goods Denied Entry into Iran Amendments of Compulsory Standard for Production and Import of Drinking Water Decree of the Central Bank on the Rules Relating to Participation of Foreign Nationals in Capitalization of Banks Reduction of CBT for Imports to Mainland through Free Zones Allocation of Foreign Currencies to Passengers Decreased Reward for Attraction of Foreign Investment into Iran High Levy for Export of Eggs Cancellation of CBT for Individual Cigarettes Price List of Chinese Shandong Foton Road Construction Machinery for Year 2011 Import of Second Hand Plane Spare Parts Allowed Iran Joins the Council for Rail Transport of CIS States New Ministries Created out of Merger Double Tax Avoidance Agreement between Iran and Jordan now Effective CBI to Allow Branches of Foreign Banks to Set Forex Interest Rate Conditions for Import of Pharmaceuticals and raw material from Japan Countries Authorized for exporting Drugs to Iran Iran and India Agree on Extradition of Criminals Technical Criteria for Import of Electric Home Appliances with 220 Volts Double Tax Avoidance Agreement of Iran and Kuwait in Effect List of Cars and Public Vehicles Importable until 22 September 2011 Import of Cars Permitted Import Duty for Tractors Iran and Turkey Pen Agreement on Combating Drugs, Organized Crime Export and Import Regulations for Year 1390 (21 March 2011- 19 March 2012) Iran Joins Kyoto Customs Convention Ministry of Health Conditions Import of Drugs from Japan New Tariffs for Import of Certain Products and Goods Commercial Benefit Tax for Importing Eggs Eliminated Import of Tomato and Spinach Powder from China Subject to Quarantine Foreign Exchange Allocation for Border Residents for the First Six Months of the Year Iran and Afghanistan Agree to Extradition of Criminals Imported Goods Bearing Offensive Markings Cannot be Cleared Iran and Indonesia Agreement on Double Taxation Avoidance Now Effective Agreement for Cooperation in Civil, Commercial and Criminal Affairs signed among Iran, Turkey and UAE Diapers for elderly banned for import due to packaging pictures Using Irancode Obligatory for Importers Double Taxation Avoidance Agreement between Qatar and Iran Implemented Dealers Allowed Transfer of Forex by Foreign Investors Mixed Customs Declaration of Imported Furniture and Wood Products from Turkey not Allowed Clearance of Industrial Goods not Subject to Obligatory Standardization Permitted Bogus Brands to Be Identified Customs Decree on Export to Iraq Obligation of Inserting the Retail Price on Imported Goods Central Bank Announces Inflation at 8.9% All Imported Goods Now Subject to Government Pricing Limitation on Travelers' Import of Cigarettes Rial Letters of Credit for Imports via FTZs Special Economic Zones CBI Empowers Iran Credit Rating Company Black Tea Subject to Compulsory Standards Import of 170 Low Quality Goods Banned Iran Customs Decree on Evaluation of Goods Imported under Different Foreign Exchange Methods Price List for Imported Mercedes Benz Cars Import of Certain Drugs and Medical Treatment Consumables Exempt from Value Added Tax No Limitation for Foreign Investors in Accessing Foreign Exchange Reserve Account Iran's Market Closed to Countries Enforcing Sanctions Iran Announces Establishment of Customs Union among Russia, Belarus and Kazakhstan Iran and Qatar Sign Extradition Agreements Iranian List of Specialized Customhouses for Import of Goods Black Tea Subject to Standardization Effectiveness of Double Tax Avoidance Agreement between Iran and the Republic of Azerbaijan The Law of Utilization of Facilities of the Foreign Exchange Reserve Account for Rail and Public Transport in Cities Import of Tobacco Products without Health Warning and Holograms Prohibited National Budget of 1389 (21 March 2010-20 March 2011) on Finance, Investment and Imports Inclusion of the Name of the Country of Manufacture a Must for Imported Goods Foreign Investors Free to Use their Names for Corporations in Iran Refinance for Import of Certain Finished Products Banned  The Bill for Subsidy Targeting Ready for President’s Implementation Iranian Government Bans Purchase of Certain Foreign Goods Implementation of Increased Rice Tariff Extended

11 July 2012

Inflation Rate in June 2012 touches 22.4%

Nourlaw.com (11 July 2012) -- According to a recent report released by the Statistics Department of the Central Bank of Iran (CBI), the rate of inflation in the 12 months ending Khordad 1391 (21 May-20 June 2012) in comparison to the same period last year, was 22.4%. The year used as the basis for calculation of the inflation rate is the Iranian calendar year 1383 (March 2004-March 2005 ).

4 July 2012

Iran and Slovenia Agreement on Avoidance of Double Taxation to Take Effect

Nourlaw.com (4 July 2012) -- The Law of Agreement on Avoidance of Double Taxation and Tax Evasion Respecting Revenue and Capital Taxes, concluded by Iran and Slovenia, was published in the Official Gazette dated 3 July 2012 and shall become effective after 15 days. The law was ratified on 31/2/1391 (20 May 2012) by the Iranian parliament and prohibits acquiring of illegitimate revenues such as usury and sets observance of Article 139 of the Constitution (conditions of arbitration with regard to public and governmental assets) for implementation of the Agreement.

6 June 2012

Iran Joins Hague Convention Abolishing Requirement of Legalization for Foreign Public Documents

Nourlaw.com (6 June 2012) -- The Iranian president sent Iran’s law of accession to the Hague Convention Abolishing the Requirement of Legalization for Foreign Public Documents concluded 5 October 1961, for implementation. The law was initially passed by Iranian parliament on 29 Farvardin 1391 (17 April 2012). According to Article 1 of the Convention it shall apply to public documents which have been executed in the territory of one contracting state and which have to be produced in the territory of another contracting state. The following are deemed to be public documents: documents emanating from an authority or an official connected with the courts or tribunals of the state, including those emanating from a public prosecutor, a clerk of a court or a process-server ("huissier de justice"); administrative documents; notary acts; official certificates which are placed on documents signed by persons in their private capacity, such as certificates recording the registration of a document or confirming the fact that it was in existence on a certain date plus official and notary authentications of signatures. However, the Convention shall not apply to documents executed by diplomatic or consular agents, and administrative documents dealing directly with commercial or customs operations. According to Article 2 of the Convention, “Each Contracting State shall exempt from legalization documents to which the present Convention applies and which have to be produced in its territory. For the purposes of the present Convention, legalization means only the formality by which the diplomatic or consular agents of the country in which the document has to be produced certify the authenticity of the signature, the capacity in which the person signing the document has acted and, where appropriate, the identity of the seal or stamp which it bears”.

16 May 2012

Iran Signs Bilateral Agreements on Commerce, Customs, Taxes

Nourlaw.com (16 May 2012) -- The Iranian state has proceeded with the implementation of the following agreements: The Law of Mutual Promotion and Protection of Investment with Guinea Bissau, approved by the parliament on 15/1/1351 (3 April 2012) The Law of Mutual Assistance and Cooperation on Customs Matters with China approved by the parliament on 15/1/1351 (3 April 2012) The Law of Mutual Assistance on Customs with South Africa approved by the parliament on 20/1/1351 (8 April 2012) The Law of Avoidance of Double Taxation and Tax Evasion Respecting Revenue Taxes with Senegal, approved by the parliament on 23/1/1391 (11 April 2012)

14 April 2012

Permission Required for Export of Imported Goods

Nourlaw.com (14 April 2012) -- Iran Customs in its circular letter No. 13/71/59/747/5548 dated 20/1/1391 (7 April 2012) has declared that: With respect to goods imported into the country through the banking system (via letter of credit, bill of exchange, or draft), the export of such goods if unchanged from their original form, shall require the agreement of the Export Bureau of the Customs.

14 April 2012

Iran and Russia to protect Plants

Nourlaw.com (14 April 2012) --The Iranian parliament in a letter to the president, has asked him to implement the Law of Cooperation Agreement for Plant Quarantine and Preservation of Vegetables between the Islamic Republic of Iran and the Russian Federation. The law was ratified on 4/10/1390 (25 December 2011).

15 February 2012

Tariff Exemption for Imports from Syria

Nourlaw.com (15 February 2012) -- The Exports and Imports Regulations Bureau of the Ministry of Industry, Mines and Commerce in its circular letter No. 90/210/6750 dated 25/11/1390 (14 February 2012) has declared that Decree No. H47351 T/150985 dated 20/7/1390 (12 October 2011) of the Council of Ministers respecting the tariff exemption applicable to the import of certain goods from Syria is now in force. According to the decree, up to a ceiling of USD 1b in goods specified in the attachment, can be imported into Iran with a 40% reduction in the related commercial benefit tax (CBT). CBT is a changing tariff determined for imported goods by the government According to the decree, any person traveling by air from Syria to Iran, is permitted to carry USD 300 worth goods without paying CBT. The decree stipulates that the Central Bank of Iran, in order to encourage expansion of bilateral commercial relations, is obliged to arrange credit lines up to the ceiling of USD 1b for sellers and buyers of goods. In other parts of the decree it is stated that export of steel billet up to a ceiling of 50,000 metric tons to Syria free of payment of related levies is permitted, and the Ministry of Agriculture shall make arrangements and decisions to procure some of its needs for meat and olives from Syria.

1 February 2012

Government to Private Change in Ownership Does not Nullify Contracting Tax Exemption

Nourlaw.com (1 February 2012) -- According to the circular letter No. D/230/40313 dated 3/11/90 (23 January 2012) issued by the Direct Taxation Deputy of the Tax Affairs Organization, the tax exemption foreseen in Note 2 of Article 107 of the Direct Taxation Act shall remain in force when the related governmental company is sold to the private sector in compliance with the privatization policies based on Principle 44 of the Constitution Law. However, this is contingent on the respective contract and provided that the commitments of the contract are performed and no part of it has been changed. In the circular letter it has been stated that the aforesaid verdict has been made by the Tax High Council. According to Article 107 of the Direct Taxation Act, a 12% tax rate shall apply to the aggregate of the amounts collected annually in Iran by foreign contractors and the establishments residing abroad. Note 2 of the said Article, however, stipulates that in the event the employer is a governmental entity, the portion of the contract price which is allocated for the purchase of equipment and accessories from domestic or foreign sources, shall be tax exempt.

28 December 2011

Origin of Manufacturing No Longer Condition for Import of Cars

Nourlaw.com (28 December 2011) -- According to Jamejamonline, Hamid Safdel, deputy minister of Industry, Mines and Commerce, said that in light of new decisions taken, the obligation of importers to bring cars directly from the manufacturing country has been lifted and cars can now be imported from other points of origin. He added that for importing cars, even for one unit, having a commercial card is a must. Safdel stressed that for importation of cars, in addition to being brand new, the importer must have the capacity to render after sale services and the car must be technically compatible with national fuel optimization and environment standards.

21 December 2011

Reduction of CBT of the Goods Imported to Mainland from Free Zones

Nourlaw.com (21 December 2011) -- The Council of Ministers has approved in its session of 20/9/1390 (11 December 2011) that: 1- The Commercial Benefit Tax (CBT) applicable to the goods imported in commercial quantity into the mainland from the Free Trade-Industrial Zones, shall be decreased up to 15% of the CIF value of the related goods. 2- The volume of the imports subject to the decreased CBT shall not exceed three billion dollars a year.

21 December 2011

Six-month Deadline for Procurement of Medicinal Raw Materials from Domestic Sources

Nourlaw.com (21 December 2011) -- The deputy minister in charge of drugs of the Ministry of Health, Drugs and Medical Education in his circular letter No. 665/94053 dated 23/9/1390 (14 December 2011) has declared that on the basis of the decision of the Commission Article 20, charged with handling issues relating to manufacturing and import of drugs and biological materials, that in six months all the drug manufacturing companies are bound to procure their needed raw materials from domestic sources if their products have suitable quantity, quality and price. The circular goes on to say that after this period no permits shall be issued for the import of such raw material from abroad.

14 December 2011

Tracing Code a Must for Clearing Imported Goods

Nourlaw.com (14 December 2011) --  According to the Decree No. H47588 T /181469 dated 19 Azar 1390 (10 December 2011) issued by the Council of Ministers, in order to deter the unauthorized entry of goods into the domestic market and for the purpose of tracing goods in the supply, production and distribution system, the Iran Customs shall be obliged to ask for the goods tracing code, issued by the Ministry of Industry, Mines and Commerce, in addition to other required documents before releasing imported goods.

30 November 2011

Presentation of Quality Certificate for Entry of Chinese Goods into Iran

Nourlaw.com (30 November 2011) -- ILNA news agency reported on 28 November that the import of many goods from China shall henceforth be subject to compulsory standards. According to the director general of the Trade Promotion Organization of Iran, the volume of Iran’s exports to China in the first nine months of the current year 2011 totaled USD 4.3b dollars while imports from China were valued at US5.5b. Hamid Safdel, the director general for trade promotion, in his meeting with the Chinese deputy minister of commerce in Tehran said: “In a memorandum of understanding signed with China, it has been agreed that as from 1 December 2011, Iranian experts stationed at the points of origin for exports in China shall issue quality certificates for 4,600 types of goods”. He added that this new procedure is designed to block the entry of low quality goods into Iran. Safdel added that China is Iran’s leading trade partner and transactions between the two countries are on the rise.

16 November 2011

Low Quality Goods Denied Entry into Iran

Nourlaw.com (16 November 2011) -- In one week (29 October- 4 November 2011) the entry of 16 shipments of non-standard low quality goods into the country was disallowed. As reported by the director general of inspection of goods and export and import affairs of the Institute of Standards and Industrial Research of Iran (ISIRI), in compliance with Article 4 of the institutes regulations, the 16 shipments were valued at USD 393,509. The cargo was in the process of entering the country through the customs. Mandatory sampling and testing revealed that the merchandise contravened prevailing standards and were returned to the senders. The goods included toys, electric home appliances, eye glasses, water hoses, sketching pencils, gas coolers, plastic taps, cappuccino powder, swimming goggles, meat grinders and home cinema systems. The goods were from China, Taiwan and Malaysia.

2 November 2011

Amendments of Compulsory Standard for Production and Import of Drinking Water

Nourlaw.com (2 November 2011) -- According to the notice of the Institute of Standards & Industrial Research of Iran (ISIRI) the obligatory standard for drinking water has been revised and as of 01/10/1390 (22 December 2011) all the producers and importers of packaged drinking water  shall be obliged to comply with the recent amendments of the compulsory national standard No. 6696 applicable to drinking water.  ISIRI is the sole national organization that can lawfully develop and designate official standards for products. It is also the body responsible for the process of conducting  new standards through the procedures for endorsement by the Council of Compulsory Standards.

6 October 2011

Decree of the Central Bank on the Rules Relating to Participation of Foreign Nationals in Capitalization of Banks

Nourlaw.com-(6 October 2011)- Article 3- Purchase of the shares of the banks by foreign states or governmental foreign juridical persons, as well as their participation in establishment of banks in Iran is prohibited. Article 4- Purchase of the shares of banks by foreign banks, as well as their participation in establishment of banks in Iran shall depend on approval of the banking regulatory authority of the related foreign country and ratification of the Central Bank. Article 5- The banks shall not be allowed to transfer their shares to foreign nationals or juridical persons without acquiring pre-approval of the Central Bank. Article 6- Establishment of development banks in partnership with the government of the Islamic Republic of Iran and a foreign partner, subject to Clause One of the Single Article of the Acceding One Note to the Law of Amendment of Certain Articles of the Fourth Economic, Social and Cultural Development Plan of the Islamic Republic of Iran and Execution of the General Policies of Principle 44 of the Constitutional Law shall follow special regulations and are excluded from the present rules. Section Three- Partnership Ratio of Foreign Persons in the Capitalization of Banks Article 7- The shareholding ceiling of the existing banks for foreign nationals and foreign juridical persons, as well as their maximum level of partnership in establishment of banks in Iran, shall be determined as follows: 1- Up to a ceiling of 40% of shares upon agreement of the Credit Commission of the Central Bank and ratification of the Central Bank Governor. 2- More than 40% of the shares, upon agreement of the Credit Commission of the Central Bank, approval of the managing board of the Central Bank and ratification of the Central Bank Governor Section Four- General Conditions for Foreign Persons Applying for Participation in the Shares of the Banks Article 8- Foreign nationals and foreign juridical persons applying for participation in the establishment of banks in Iran or purchase of the shares of existing banks, are required to present documents or commitments proving they are endowed with the following conditions: A) Having good reputation and financial and professional capability. B) Having no criminal record depriving them from social rights. C) Transparency of the origin of their partnership payment. Article 9- In the event that the foreign party applying for participation in establishment of banks in Iran or for purchase of shares of the existing banks be a juridical person, it is obliged to provide the Central Bank with a copy of its articles of association, balance sheet and audited profit and loss accounts relating to the previous three years along with a declaration including the names of the members of the board of directors and major shareholders and any other necessary information for inspection. Section Five- Regulations Relating to the Members of the Board, Managing Director and Members of the Managing Board of the Banks Consisting of Foreign Shareholders Article 10- The managing director, chairman, majority of the members of the board of directors and the managing board of the banks owned by foreign shareholders, must be Iranian nationals. Section Six-Others Article11- Foreign nationals and foreign juridical persons applying for participation in establishment of banks in Iran or purchase of shares in the existing banks, should they obtain the investment license from the Board foreseen in Article 6 of the Foreign Investment Promotion and Protection Act, shall enjoy all the facilities and protections of the said law such as transferring abroad the principal capital and the profits accruing from the operations of the respective bank. The rules respecting participation of foreign persons in the capital of the banks were approved in 11 articles on 25/5/1389 (16 August 2011) during the 28th session of the Money and Credit Council. This is an unofficial copyrighted translation of the above Rules from Farsi language into English made by Nourlaw.com. Any reproduction and quotation is allowed provided that the source is clearly mentioned.

5 October 2011

Reduction of CBT for Imports to Mainland through Free Zones

Nourlaw.com-(5 October 2011)- Iranian Council of Ministers by virtue of Decree No. H47257 T/134881 dated 6/7/1390 (28 September 2011) has declared in connection to Articles 4 and 14 of the Law On the Manner of Administration of the Free Trade - Industrial Zones that “Commercial Benefit Tax (CBT) applicable to the goods which are commercially imported via the Free Trade - Industrial Zones into the mainland shall be decreased at maximum to 15% of the CIF value of the said goods. The free zones authorities are obliged to collect an equal amount as the levy of import of goods from abroad into the free zone in compliance with the bylaws of collection of levies in the free zones and spend the same in accordance with their annual budget. The volume of such imports shall be at most USD 3b per year”.

5 October 2011

Allocation of Foreign Currencies to Passengers Decreased

Nourlaw.com- (5 October 2011)- According to the declaration of the Public Relations Office of the Central Bank of Iran (CBI) on 12/07/1390 (4 October 2011): “By virtue of the decision of the Foreign Exchange Policies and Regulations Department of CBI, the sale at the official rate of foreign currencies to air passengers heading for all countries of destination (except Iraq and Syria) has decreased to USD 2,000.00 for each trip and USD 500.00 or the equivalent amount in other currencies for road, rail and sea travelers. The amount of foreign exchange to be sold to travelers to Iraq and Syria will be USD 500.00.The amount of foreign currencies to be sold to Iranian nationals residing abroad shall be half of the aforesaid amounts.

24 August 2011

Reward for Attraction of Foreign Investment into Iran

Nourlaw.com-  (24 August 2011)-- In an initiative to boost foreign investment in the economy, Iran has set a reward for persons who assist in bringing in outside investment. According to Clause 68 of the national budget of the year 1390 (21 March 2011-20 March 2012), one hundred billion rials (100,0000,0000,0000) shall be allocated in the current year to be granted as a reward to non-governmental persons active in marketing and attraction of foreign investment commensurate with their services. The Council of Ministers in its Decree H47057T/108586 dated 26/05/1390 (17 August 2011) also passed the by-law of the said clause. According to the bylaw, the amount of the reward shall be 6 of whatever currency per thousand of the newly attracted foreign investment into the country. That figure will be increased to 10 per thousand if the foreign investment is made in undeveloped areas. As foreseen in the decree, the authority for granting such rewards is the Organization for Investment, Economic and Technical Assistance of Iran (OIETAI).

2 August 2011

High Levy for Export of Eggs

Nourlaw.com-  (2 August 2011)--To prevent a shortage of eggs, according to the decree 142/71/98/103/69441/92891 dated 8/5/90 (30 July 2011) of Iran Customs , a levy of 70% shall be imposed on the export of eggs. The decision has been made in line with the Fifth National Development Plan and is retroactive as from 1/4/1390 (22 June 2011)

2 August 2011

Cancellation of CBT for Individual Cigarettes

Nourlaw.com-  (2 August 2011)-- To cope with the lucrative smuggling of cigarettes into Iran, the government has sought to lower the cost of legal importation. In this respect, the Standing Committee for Article 1 of the By-law of the Law of Export and Import Regulation (consisting of ministries of Commerce and Industries and Mines, Agriculture, Finance and Economic Affairs, as well as the heads of Iran Customs, Central Bank and Iran Chamber of Commerce) decreed on 1/5/1390 (23 July 2011) that the 35 rials CBT (Commercial Benefit Tax) until now imposed on importation of each cigarette has been voided.

27 July 2011

Price List of Chinese Shandong Foton Road Construction Machinery for Year 2011

Nourlaw.com-  (27 July 2011)-- Iran Customs in its circular letter No. 90/24/205/4264/60705 dated 28/3/90 has notified the price list of the Chinese Shandong Foton Road Construction Machinery for the year 2011. The list plus the freight and insurance charges shall be the basis for evaluation of entry dues. The Iranian agent of the said machinery in Iran is Tamam Sadid Co.   NO Description Qty (set) Unit price (Euro) Equipment Standard Option prices Added or Deducted (Euro) 1 Loader Wheel FOTOCAT FL958G 1 50.322 Weichai styre WD615 engine/ Weichai power (styre) WD10G220 engine, Liuzhou-Hangzhou gear transmission 7 speed, Xushou-Meritor axles, pilot controlled joystick operation, air conditioner, high-back seat, standard bucket ROPS cabin   2 Loader Wheel FOTOCAT FL958g 1 53.413 Weichai styre WD615 engine/ Weichai (styre) WD10G220 engine, Liuzhou-ZF gear transmission 7 speed, Xushou-Meritor axles, pilot controlled joystick operation, air conditioner, high-back seat, rock bucket, standard cabin   3 Loader Wheel FOTOCAT FL966F 1 62.790 Shanghai C6121 engine/ Weichai power (STYRE) WD 10G240 engine, Linzhouzf transmission, air conditioner, high-back seat, standard bucket, standard cabin Chinese Transmission: Deducting Euro 4,993 4 Loader Wheel FOTOCAT FL936F 1 31.175 Weichai-Deutz TD226B6IG15 engine, Hangzhou gear transmission 6 speed, Xushou-Meritor axels, hydraulic levers, , air conditioner, ROPS cabin, rock type bucket Pilot controlled joystick operation: Adding Euro 950 standard bucket: Deducting Euro 218 Shanghai 5 Loader Wheel FOTOCAT FL938g 1 34.950 Weichai-Deutz TD226B-6IG15 Engine, Hangzhou Gear Transmission 3 speed, Xuzhou-Meritor axels, air conditioner,   6 Loader Wheel FOTOCAT FL956F 1 44.500 Weichai styre WD615 Engine/ Weichai power (styre) WD10G220 engine, Hangzhou gear transmission 3 speed , Xuzhou-Meritor axels, hydraulic levers operation, air conditioner , rock type bucket, standard cabin Pilot controlled joystick operation: Adding Euro 950 Shanghai c6121 engine: Adding Euro 558 standard bucket: Deducting Euro 380 7 Loader Wheel FOTOCAT FL956F 1 47.705 Weichai styre WD615 engine/ Weichai power (styre) WD10G220 engine, Linzhouzf transmission 7, Speed. Xuzhou- Meritor axels, hydraulic levers operation, air conditioner, rock type bucket, standard cabin. Pilot controlled joystick operation: Adding Euro 950 Shanghai c6121 engine: Adding Euro 558 standard bucket: Deducting standard Euro 380 8 Loader Wheel FOTOCAT FLB 468A 1 38.700 China LOVOL 1004C-P4TEL04, H-type bracket, 4WD, Italy Carraro transmission, Guizhou Qianjin tires, fiber shield, loading standard lifting arm and bucket, excavation standard lifting arm and bucket, America Husco valve, Permco pump, mechanism operation, amplified hydraulic steering with priority, whole airproof cab, air conditioner. Multifunction bucket: Adding Euro 422 9 Wheel Loader FOTOCAT FLB455W 1 33.000 China local engine, local axles, local transmission, four-wheel drive hydraulic System, air conditioner. ROPS cabin: adding Euro 484 Break Hammer; Adding Euro 3325 10 Wheel Loader FOTOCAT FL917F 1 18.150 Chinese LR4105G83D engine. air conditioner, standard cabin, standard bucket.

27 July 2011

Import of Second Hand Plane Spare Parts Allowed

Nourlaw.com-  (27 July 2011)-- Iran Customs has declared in its circular letter No.74/12032/307/64716/52801 dated 17/03/1390 (07 June 2011) that the Ministry of Commerce has approved the import of certain second hand rotary parts needed by the national airlines and air transport companies for repair and maintenance of aircraft.

27 July 2011

Iran Joins the Council for Rail Transport of CIS States

Nourlaw.com- ( 27 July 2011)-- The Iranian Parliament on 07/04/1390 (28 June 2011) ratified Iran’s joining the Council for Rail Transport of CIS States and has sent the law to the president for implementation. For coordination in rail transport and avoiding dispersion of the unified railway network of the former Soviet Union, the CIS (Commonwealth of Independent States) established the council for rail transport of CIS states in February 1992. Over time the Council has expanded its jurisdiction to attract other states such as Latvia, Lithuania, Estonia and Bulgaria. Now, the Islamic Republic of Iran is also a member of the compact. The Council has focused on promoting cooperation and resolving issues in areas such as organizing freight, transferring cars and trains through international coupling junctions and shunting empty freight cars for loading.

19 July 2011

New Ministries Created out of Merger

Nourlaw.com- ( 19 July 2011)--  The Law of Formation of the Two Ministries of “Cooperation, Labor and Social Welfare” and “ Industry, Mines and Commerce”, approved by Iran’s parliament on 8 Tir 1390 (29 June 2011) was published on 10 July 2011 in the Official Gazette and shall be effective 15 days after publication or 25 July 2011. The merger has been made in line with the stipulations of the fifth development plan for downsizing the ministries and simultaneously boosting their efficiency. According to the law, all possibilities, liabilities, credits, manpower and assets of the ministries of “Cooperation”, “Labor and Social Affairs”, and “Welfare and Social Security” shall be moved to the Ministry of Cooperation, Labor and Social Welfare and those of the ministries of “Industries and Mines” and “Commerce” to the Ministry of Industry, Mines and Commerce.

19 July 2011

Double Tax Avoidance Agreement between Iran and Jordan now Effective

Nourlaw.com- ( 19 July 2011)-- Iran’s Tax Affairs Organization in its circular letter number s/200/8672 dated 13/04/1390 (4 July 2011) has notified that the double tax agreement between Iran and Jordan approved by Iran’s parliament on 23/10/1382 (13 January 2004) is now in effect. According to the decree, the stipulations of the bilateral agreement concerning the tax applicable to revenues shall be implemented in the territory of Iran dating from 1 Farvardin 1388 (21 March 2009) and henceforth in Jordan as from 1 January 2009 (12 Dey 1387).

19 July 2011

CBI to Allow Branches of Foreign Banks to Set Forex Interest Rate

Nourlaw.com- (19 July 2011)--  Iran’s Central Bank has declared in its circular letter number 90/84279 dated 14/04/1390 (5 July 2011) that in order to encourage foreign banks to launch activities in Iran through their branches, “the interest rate of forex savings, loan and facilities in forex and the amount of the fees for banking foreign exchange services and operations, shall be set in accordance with the performance and at the sole discretion of the branch”. The aforesaid shall be added as “Note 2 to the Executive Instruction for the Manner of Establishment, Activity, Supervision and Closure of Branches of Foreign Banks in Iran”, ratified by Iran’s parliament on 16/02/1388 (6 May 2009).

29 June 2011

Conditions for Import of Pharmaceuticals and raw material from Japan

Nourlaw.com- ( 29 June 2011)--   According to the circular No. 665/29338 dated 31/3/1390 (21 June 2011) issued by the the Pharmaceuticals Deputy of the Ministry of Health and Medical Education, import of drugs and pharmaceutical raw material from Japan is allowed provided that the importing entity guarantees in writing that the raw material shall be used for production of drugs and the imported drugs shall be distributed only after receiving a certificate from the Atomic Energy Organization guaranteeing that the goods are free of radioactive contamination.

21 June 2011

Countries Authorized for exporting Drugs to Iran

Nourlaw.com- ( 21 June 2011)--  The Pharmaceuticals Deputy of Iran's Ministry of Health and Medical Education in a circular letter number 665/27312 dated 25/03/90   ( 15 June 2011) has declared that: “In light of the decisions dated 9/03/90 ( 30 May 2011) of the duly authorized Discerning Commission (for recognizing the competence of production and import of drugs and biological materials) the following countries were acknowledged as authorized sources for supply of drugs namely: Austria; Great Britain; Spain; Slovakia; Slovenia; Italy; Ireland; Germany; Belgium; Bulgaria; Portugal; Denmark; Czech Republic; Sweden; France; Finland; Cyprus; Latvia; Luxembourg; Poland; Lithuania; Malta; Hungary; Holland; Greece; Switzerland; United States; Canada; Australia; Japan; South Korea and Turkey.” In the case of other countries that want to be listed, providing a GMP certificate from SWISS MEDIC, MHRA, TGA or the USFDA, in addition to other related documents, shall be required.

15 June 2011

Iran and India Agree on Extradition of Criminals

Nourlaw.com- ( 15 June 2011)-- Iranian Ministry of Justice has notified on 18/3/1390 (8 June 2011) the Law of Criminal Extradition Agreement between the States of the Islamic Republic of Iran and Republic of India for implementation. The law was passed by the Iranian parliament on 16/6/1389 (7 September 2010). Under the agreement, extradition of terrorists, perpetrators of economic offences and other criminals are foreseen. Under the treaty, crimes fall under the extradition process that is considered in both countries prosecutable and the resultant punishment is at least one year of imprisonment.

15 June 2011

Technical Criteria for Import of Electric Home Appliances with 220 Volts

Nourlaw.com- ( 15 June 2011)--  Iran Customs in its circular letter No. 7371/241/791/21115/48261 dated 9/3/90 (30 May 2011) has notified the decree of the Institute of Standards & Industrial Research of Iran (ISIRI) to all customhouses as follows: “As you are aware electricity in Iran is 220 volts and the frequency is 50 megahertz. However, business persons have imported electric home appliances with 110 volts and frequencies of 60 megahertz along with a voltage increasing transformer incompatible with the parts of said appliances and this creates damages to the parts and the malfunction of the appliances. Since in the related standards application these said voltage and frequency problems have not been foreseen, therefore, you are requested to declare the import of home appliances with 220 volts and a frequency of 50 megahertz and cease import of home appliances of 110 volts with a frequency of 60 megahertz”.

15 June 2011

Double Tax Avoidance Agreement of Iran and Kuwait in Effect

Nourlaw.com- ( 15 June 2011)-- Iran Tax Affairs Organization declared on 11 June 2011 that the Law of Agreement on Avoidance of Double Taxation Respecting Revenue and Capital Taxes agreed between the states of the Islamic Republic of Iran and Kuwait is now in force. The law was approved on 6/5/1387 (26/8/2008) and accordingly became effective on 123/11/1389 (12/2/2011) in both countries. The stipulations of the law shall be implemented with respect to the taxes applicable to revenues and capital in each fiscal year, 1 Farvardin 1390 (21 March 2011) in Iran and 11/10/1390 (1 January 2012) for Kuwait.

15 June 2011

List of Cars and Public Vehicles Importable until 22 September 2011

Nourlaw.com- ( 15 June 2011)-- Trade Promotion Organization of Iran (TPO) declared the list of cars and public vehicles with the necessary technical features for importation and which can be imported by the authorized agencies until 31/6/1390 (22 September 2011) as follows. It should be noted that import of the said cars and vehicles in trade volume requires having an authorized sales agency and post sale services in Iran according to the by-law on technical regulations for the import of cars.

8 June 2011

Import of Cars Permitted

Nourlaw.com- ( 8 June 2011)-- Hamid Safdel, director general of the Trade Promotion Organization of Iran declared on 6 June 2011 that regulations for importation of all types of cars are now in place for business persons who have previously been involved in importing cars. They can now proceed with importing various types of cars while observing the rules specified. Safdel added that the approval of the Iranian Fuel Conservation Company (IFCO), Iran Environment Protection Organization, and the Institute of Standards and Industrial Research of Iran (ISIRI) are necessary for bringing in the cars.

8 June 2011

Import Duty for Tractors

Nourlaw.com- ( 8 June 2011)--  According to Decree Number H46558T/51902 dated 8/3/1390 (29 May 2011) of the Council of Ministers, the Commercial Benefit Tax for importation of all types of tractors with 110 horse power or less shall be 21%.

25 May 2011

Iran and Turkey Pen Agreement on Combating Drugs, Organized Crime

Nourlaw.com- (25 May 2011)-- The Law of Agreement of Cooperation Between the State of the Islamic Republic of Iran and the State of the Republic of Turkey on Combating Smuggling of Narcotics, Organized Crime and Terrorism, was approved by the Iranian parliament on 31/01/1390 (21 April 2011), published in the Official Gazette on 02/03/1390 (23 May 2011) and shall go into effect on 8 June 2011 after the statutory 15-day deadline. According to the single article law, the agreement has been concluded in light of the “friendly relations between the two countries, urgency of expansion of bilateral and international cooperation in security affairs and combating extra-national organized crimes, a mutually shared interest in consolidation of national security of the two countries and the welfare and peace of the two nations”. By virtue of the law, both states shall cooperate in a broad range of areas, These include combating terrorist groups inside each parties' territory, stemming arms smuggling, production, transport and distribution of narcotics, smuggling of commercial goods and cultural-historical artifacts, smuggling of rare herbs and animals, forgery of official documents and travel papers and credit cards, money laundering and revenues accruing from corruption and fraud, computer and communications crimes, human trafficking and abuse of women and children.

18 May 2011

Export and Import Regulations for Year 1390 (21 March 2011- 19 March 2012)

Nourlaw.com- (18 May 2011)-- Iran Customs in its circular letter No.52/73/879/113/34883 dated 24/02/1390 (14 May 2011) has notified to all customs posts throughout the country that export and import regulations have been complied in a bilingual (Farsi and English) book by the Ministry of Commerce and this shall henceforth be the basis for customs affairs of the exportation and importation of goods in the Iranian year 1390 (21 March 2011- 19 March 2012) . The book contains the law, bylaw and decrees relating to export and import and it also clarifies the conditions for the export and import of goods, as well as the tariff of imported goods coded according to the international standardized customs system.

11 May 2011

Iran Joins Kyoto Customs Convention

Nourlaw.com- (11 May 2011)--Iran Customs reported today that the law of acceding to the Kyoto Convention had been finalized by the supervisory body of the Council of Guardians. According to the World Customs Organization (WCO), the Kyoto Convention is an international convention on the Simplification and Harmonization of Customs procedures (Kyoto Convention). It entered into force in 1974 and has been subsequently revised and updated to ensure that it meets the current demands of governments and international trade. The Convention does not prevent implementation of national regulations respecting banning and restriction of certain goods.

11 May 2011

Ministry of Health Conditions Import of Drugs from Japan

Nourlaw.com- (11 May 2011)-- The Department of Control Over Drugs and Narcotics of the Ministry of Health in its circular letter No. 665/11098 dated 12/02/1390 (2 May 2011) to pharmaceutical companies has decreed that: “in light of factual atomic radiation resulting from the recent earthquake in Japan and concerns over probable contamination of imported goods, it is required that in case of importation of drugs or pharmaceutical raw materials and auxiliaries etc., the official certification of Japan’s Ministry of Health on non-contamination of the related goods to atomic radiation be obtained and after authentication by the Iranian Embassy should be supplied to this department. In case of non-presentation of this certification, issuing of a permit for clearing the goods from the customs and other permits relating to the import of goods shall be impossible".

11 May 2011

New Tariffs for Import of Certain Products and Goods

Nourlaw.com- (11 May 2011)-- Iran Customs in its circular letter No. 34/8/21640 dated 6/02/1390 (26 April 2011) has declared that in addition to entry dues, 500 rials shall be imposed on the import of each kilo of fruits and vegetables imported into the country. In addition, for protection of domestic production and trade, the tariff on certain imported goods has been increased. The rise of some of items are: Saffron and pistachio 90%.- Shoes 120%- Sugar 20%- Cotton 4%- Green Tea 15%- Black Tea 40%- Tea bags 60%- Wheat 20%- Rice 45%- Flour 30%- Cucumber 50%- Cherry, melon and grapes 90%- Potato and tomato 90%- Garlic 100%- Mineral water 60%.

4 May 2011

Commercial Benefit Tax for Importing Eggs Eliminated

Nourlaw.com- (4 May 2011)--To augment the shortage of domestically-produced eggs on the Iranian market and prevent further increase in the price of eggs, the government has reduced the Commercial Tax Benefit (CTB) from the current 26 % of the CIF value to zero. The decree came into effect on 10/02/1390 and will remain in force until 10/06/1390 (30 April to 1 September 2011).

27 April 2011

Import of Tomato and Spinach Powder from China Subject to Quarantine

Nourlaw.com- (27 April 2011)-- Iran Customs in its circular letter No.6/73/1230/103/264022/2298 dated 25/01/1390 (17 April 2011) has declared in accordance to the resolution of the Ministry of Agricultural Jihad, that in light of the applications for the import of tomato and spinach powder from China and since these goods are listed among the products which have low risk quarantine, their import is permissible on the condition of presentation of the original plant health certificate and examination of the quarantine experts at the entry point and goods clearing customhouses.

27 April 2011

Foreign Exchange Allocation for Border Residents for the First Six Months of the Year

Nourlaw.com- (27 April 2011) -- Iran Customs in its circular letter No. 17/73/2940/103/270066/10712 dated 27/01/1390 (16 April 2011) has informed the related customhouses of the resolution of the Ministry of Commerce respecting the foreign exchange allocations for importing goods through Iran's borders in compliance with the Law of Organizing Frontier Transactions. The allocations for the first six months of the current Iranian year (21 March to 22 September 2011) are as follows:

6 April 2011

Iran and Afghanistan Agree to Extradition of Criminals

Nourlaw.com (6 April 2011) -- The Law of Agreement on Extradition of Criminals between the Islamic Republic of Iran and the Islamic Republic of Afghanistan approved by the Iranian parliament on 16/12/1388 and ratified recently by the Expediency Council, was published on 9/01/1390 (29 March 2011) in the Official Gazette. The law comes into effect after 15 days from the date of publication. According to Article 2 of the 19-article agreement, a criminal can be extradited who has committed acts which are considered a crime under the laws of the two states and the maximum legal punishment for the act shall not be less than one year and the sentence issued must be at least six months or any other heavier punishment. Perpetrators of military and political crimes shall not be subject to extradition.

6 April 2011

Imported Goods Bearing Offensive Markings Cannot be Cleared

Nourlaw.com (6 April 2011) -- Iran Customs in its circular letter No.456/73/214/112/249969/268241 dated 23/12/89 (14 March 2011) to the customhouses has declared that "for the correct implementation of regulations and maintaining greater control over the import of cultural goods such as stationary and school bags etc., you are requested that in accordance with Clause 9 of Article 40 of the Customs Affairs Law to not allow clearance of goods with wordings or symbols on the goods or their packaging, in the bill of lading or other related documents contrary to the peace of society, national values, public decency or the official religion of the country.”

26 February 2011

Iran and Indonesia Agreement on Double Taxation Avoidance Now Effective

Nourlaw.com (26 February 2011) -- Technical and Legal Deputy of the Tax Affairs Organization has announced in a circular letter No. 210/22267 dated 12/11/89 (1 February 2011) that the Agreement on Double Taxation Avoidance and Prevention of Tax Evasion with Respect to Revenue Taxes between Iran and Indonesia, approved by the Parliament on 16/1/1385 (5 April 2006), has become effective as from 10/9/1389      (1 December 2010) and all the related tax authorities are obliged to apply the stipulations of the said agreement in the subsequent fiscal years for the nationals and residents of Indonesia and Iran.

1 February 2011

Agreement for Cooperation in Civil, Commercial and Criminal Affairs signed among Iran, Turkey and UAE

Nourlaw.com (1 February 2011) -- As reflected in the Official Gazette dated 12/11/1389 (1 February 2011), the President of the Islamic Republic of Iran has ordered publication and enforcement of the agreements the Iranian Parliament has approved recently for cooperation of the state of Iran with the states of Turkey and UAE in the fields of civil, commercial and criminal affairs, extradition of criminals and transfer of prisoners. The agreements’ stipulations shall become effective within 15 days as from today.

5 January 2011

Diapers for elderly banned for import due to packaging pictures

Nourlaw.com (5 January 2011) - Iran Customs in its circular letter No. 388/73/39/778/196613/211498 dated 12/10/89 has announced that diapers for the elderly imported from Turkey and brand-named Actual and Fresh Life cannot be cleared from the customs because of pictures on the packaging that violate the religious and ethical norms of the society.

21 December 2010

Using Irancode Obligatory for Importers

Nourlaw.com (21 December 2010) -  Mehr News Agency reported today that, according to the codification center of Iran’s Ministry of Commerce, all importers must use Irancode as of 22 December 2010 for clearing their goods from customs. As defined by the Irancode website, Irancode is the Iranian National Products and Services Classification and Codification system. It enables producers and distributors to identify, classify and codify their products and services. The information on supplier resources, the base information and technical specifications of products, correspondence with the international coding system, and the base information of items are found in this national archive. The Irancode system is run by the Ministry of Commerce and Irancode applicants should refer to the relevant department for registering products and services and receiving the respective identity code.

14 December 2010

Double Taxation Avoidance Agreement between Qatar and Iran Implemented

Nourlaw.com (14 December 2010) - Technical and Legal Deputy of the Tax Affairs Organization in his circular letter number 210/25687 dated 22/8/1389 (13 November 2010) has announced that the Law of Double Taxation Avoidance Agreement on taxes relating to revenues and capital concluded by Qatar and Iran has come into force on 21/9/2010 in both countries. The provisions of that part of the agreement relating to accrued revenues and capital shall be binding for Iran from 1 Farvardin 1389 (21/2/2011) and in case of Qatar it will be from 1 January 2011.

14 December 2010

Dealers Allowed Transfer of Forex by Foreign Investors

Nourlaw.com (14 December 2010) -- According to the decree of the Money and Credit Council, foreign investors are allowed to use private foreign exchange dealers, in addition to banks, for the transfer of foreign currencies, Mehr News Agency reported on 13 December 2010. According to the Iranian foreign investment law and its regulations, the capital of foreign investors should enter the country through the banking system. However, as per the new decision, a receipt from authorized foreign exchange dealers shall be sufficient for registration of the transfers.

6 December 2010

Mixed Customs Declaration of Imported Furniture and Wood Products from Turkey not Allowed

Nourlaw.com (6 December 2010) --Iran Customs in its circular letter Number 326/8/168323 dated 10/8/89 (1 November 2010) has notified the letter of the legal department of customs with respect to certain items imported from Turkey and other countries. In order to clear goods from customs, submission of a declaration which specifies the imported items and payment of the applicable duties is obligatory. According to the aforesaid circular letter, the Legal Deputy of the Iran Customs has noted that in re-checking the declaration in some border customs, it is observed that, “The owners of goods declare and clear a mixture of wood products and furniture from Turkey through a single declaration. This action does not make distinction between the weighing of the furniture and that of other wood products such as bedroom sets and the value difference of furniture from wood products and has caused probable misappropriation of the owner of the goods”. The value of furniture from Turkey is 6.30 USD for each kilo and wood products is 2.20 USD per kilo. The deputy has instructed that henceforth furniture and wood products from Turkey and other countries must be declared separately.

30 November 2010

Clearance of Industrial Goods not Subject to Obligatory Standardization Permitted

Nourlaw.com (30 November 2010) -- Iran Customs in its circular letter dated 343/73/278/113/188145 dated 7/9/89 (28 November 2010) has declared that on the basis of the letter of Institute of Standards & Inddustrial Research of Iran (ISIRI), as long as the by-law of the Law for Improvement of the Quality of Vehicles and Other Industrial Goods has not been notified, clearance of industrial goods not subject to obligatory standardization shall be allowed as before and supply of a standard certificate by the importer is not compulsory.

30 November 2010

Bogus Brands to Be Identified

Nourlaw.com (30 November 2010) -- Mehr News Agency reported on 28 November 2010 that according to Mr. Hossein Radmard, the head of the Center for the Affairs of Tradesmen and Merchants, 35 known foreign brand names have been recognized in the domestic clothes market. He said that all genuine brand names are permitted to establish their presence in the Iranian market by registering their representatives at the Center for the Affairs of Tradesmen and Merchants. To accomplish this, the tradesmen representing a trusted brand name must supply the center their contract with the principal company owing the brand and the principal’s guarantee of quality. Radmard said that all bogus brands shall be identified and those promoting them prosecuted.

24 November 2010

Customs Decree on Export to Iraq

Nourlaw.com (24 November 2010) -- Iranian Customs in its circular letter number 342/71/3100/747/159956/183457 dated 29/8/1389 (20 November 2010) has declared that given the problems arising in relation to exporting foodstuffs to Iraq and specifically the return of certain items to the sender, clear and required conditions must be observed for preserving the market of Iraq as an importance destination for Iranian products. The decree lists the problems as follows: 1- The exact day and month of production plus the expiry date must be clearly and visibly stated on the packaging according to the Gregorian calendar. 2- The production date on some goods falls after the day of their entry at the border. 3- Some goods lack the standard seal and hygienic license number. 4- With respect to certain goods the production and expiry date has not been printed but stamped in a color different from the text on the export box or package. 5- Concerning other goods, the name of the manufacturer and contact information has not been stated. 6- Certain goods such as chicken and liver are principally banned for export from any country to Iraq. 7- Some goods have not been packaged and stored properly and their lids are distended.

10 November 2010

Obligation of Inserting the Retail Price on Imported Goods

Nourlaw.com (10 November 2010) -- Public Relations Office of the Organization for Protection of Consumers and Producers, affiliated to the Ministry of Commerce, has stated in a notice on 7 November 2010: “Following previous notices related to implementing the Target-oriented Subsidies Law and based on the co-ordinations and forecasts made by this organization for regulation and control of the market, the controls on supply of goods and services by the sales units, distributors, producers and providers of services, in addition to preventing abuse and unfair practices against consumers, it is hereby notified to all importing companies and wholesalers of imported goods nationwide that at the supply points (where wholesale of imported goods is conducted) insertion of the real consumer prices shall be obligatory on all the products and related invoices in accordance with the pricing regulations set out by this organization”. The notice warns that violators shall be prosecuted accordingly.

12 October 2010

Central Bank Announces Inflation at 8.9%

Nourlaw.com (12 October 2010) -- The Public Relations Office of the Central Bank of Iran (CBI) has stated the following in its notice number 89/152994 dated 15/07/1389 (7 October 2010) with respect to the annual inflation rate in Iran: “A summary of the accrued results of the index of the price of consumer goods and services in Iran's urban areas in light of the basis year 1373 (21/03/1994- 20/03/1995)=100,is as follows: In the month of Shahrivar 1389 (23 August-22 September 2010) the index of the price of consumer goods and services in the urban areas of Iran increased .8% in comparison to the former month. The inflation rate in the 12 months leading up to the month of Shahrivar 1389 was equal to 8.9% in comparison to Shahrivar 1388 (23 August-22 September 2009).

12 October 2010

All Imported Goods Now Subject to Government Pricing

Nourlaw.com (12 October 2010) --  The Minister of Commerce in his circular letter number 1/444429 dated 30/06/1389 (21 September 2010) has mandated that for avoidance of pricing irregularities in the retail market, all imported goods shall be subject to government regulated pricing. The Minister noted in the preface of the letter that, ”During certain times, provision of some necessary and critical goods which were not produced domestically or domestic production was insufficient for meeting market needs, were needed by the domestic market. These goods were imported and the government would allocate the necessary foreign currency at a rate less than the official rate or for protection of domestic production would adopt measures such as adjusting tariffs for imported goods. All the aforesaid actions resulted in significant differences in the prices of such goods, thereby preparing the grounds for misappropriation by profiteers…” According to the letter, pricing shall now be based on all related purchase, transport, insurance, and customs clearance documents and other related charges. Based on this data a ceiling for the maximum profit for importers with respect to different groups of imported goods has been set. The ceilings are as follows: Percentage of the Importer Profit Goods Description 18% Medical, dentistry, laboratory goods 17% Veterinary Drugs and vaccines 18% Vehicle spare parts 12% Iron products 15% Other Imported Goods Different departments of the Ministry of Commerce shall supervise and control the implementation of these pricing criteria. Violators shall be prosecuted.

29 September 2010

Limitation on Travelers' Import of Cigarettes

Nourlaw.com (29 September 2010) --  Iranian Customs in its circular letter number 265/73/114/113/116453/136352 has decreed that any traveler entering Iran can only bring two cartons of cigarettes with her/ himself. The customs has ordered the entry posts to prohibit any abuse in this respect especially with regard to pilgrimage tours wherein tour leaders distribute cigarette boxes containing many cartons among pilgrims to boost the volume of illicit cigarettes entering the country.

8 September 2010

Rial Letters of Credit for Imports via FTZs Special Economic Zones

Nourlaw.com (8 September 2010) -- The Imports Office of Iran Customs in its circular letter No.247/73/4368/722/102574/123825 dated 15/6/1389 (6 September 2010) has announced that in order to facilitate foreign trade with the target countries and for development of the trade-industrial free zones and special economic zones, the Central Bank of the Islamic Republic of Iran (CBI) has replaced the former text with the following text in its Collection of Foreign Currency Regulations (Import of Goods and Services). 1-1-Importers of goods and services are allowed to open rial letters of credit (cash or usance) by presenting the rial pro forma invoice of the sellers in the target countries as well as sellers in the free trade and industrial zones and special economic zones plus the order registration forms approved by the Ministry of Commerce, with due observance of this set of regulations. 1-2-Compliance with international regulations relating to combating money laundering between the banks of the seller and buyer on the basis of the agreements made between them shall be obligatory. 1-3-Opening rial accounts with that bank and branches of that bank located abroad and the branches of other Iranian banks in the name of foreign sellers for remittance of the sums accrued from negotiation of documents will be permitted with due observance of the respective regulations. 1-4-In the event of assurance of the bank of entry of the goods to the destination, exchange of rials into foreign currency at that day’s rate shall be permitted. 1-5-Amendment of the rial letter of credit on the basis of the rate of the day of amending and obtaining the amendment of the order registration of the Ministry of Commerce is allowed. 1-6-Iranian banks are not permitted to discount the documents of the usance rial letters of credit for import of goods from the origin of the said zones. 1-7-Presentation of the quantity and quality inspection certificate of goods along with other documents is obligatory. 1-8-Presentation of a certificate of definite clearance of the goods from customs within the deadline foreseen in the foreign currency regulations framework is obligatory for releasing the commitments before the banks. 1-9-It is required that the information relating to such letters of credit be sent to the department of statistics and foreign currency commitments by virtue of the related instructions.

8 September 2010

CBI Empowers Iran Credit Rating Company

Nourlaw.com (8 September 2010) -- Public Relations Office of the Central Bank of the Islamic Republic of Iran (CBI) announced on 7 September 2010 that: "Central Bank of the Islamic Republic of Iran on the basis of the By-law of the Credit Rating System approved by the esteemed Council of Ministers, on 13/6/1389 (4 September 2010) has issued a permit activating the Iran Credit Rating Consulting Company. By virtue of the permit and in accordance with Para. B of Article 1 of the said by-law, all the banks, finance and credit institutions which are licensed by CBI as well as all providers (of credit) are obliged to supply the credit rating system with all the information it requests. CBI, as the regulator, oversees the activities of the said company and all banks, authorized financial and credit institutes are obliged to use the credit rating reports of the company, which are notified to them by CBI, for improvement of their credit decisions.

25 August 2010

Black Tea Subject to Compulsory Standards

Nourlaw.com (25 August 2010) --  The Institute of Standards and Industrial Research of Iran (ISIRI) has declared in a public notice that: “By virtue of Note 1 of Article 6 of the Law of Amendment of the Laws and Regulations of the Institute of Standards and Industrial Research of Iran, approved in 1371 (1992), and in implementation of the decree of the High Council of Standards (Infrastructure, Industry and Environment Affairs Commission) dated 8/9/1388 (29/11/2009 ), obligatory enforcement of the standard for black tea products as per the pamphlet titled: Black Tea-Specifications and Test Methods under National Standard Number 623 is hereby announced for public knowledge and observation of these legal obligations: A- The commencement date of the said standard shall be the beginning of the year 1391 (20 March 2012). B- Marking products that have a compulsory standard is obligatory and supply and sale of such products without the official emblem of Iran is forbidden. C- Issuing of the permit for using the emblem for production units requires meeting the general conditions for production and compatibility of the quality of the product with the related standard. D- With respect to imported products, honoring all the rules of compulsory standards and other current laws and regulations is obligatory." ISIRI is the sole organization in Iran that develops and designates official standards for products. It oversees implementation of the standards in the areas of production and trade as well.

25 August 2010

Import of 170 Low Quality Goods Banned

Nourlaw.com (25 August 2010) -- Mehr News Agency reported on 24 August that the Iranian Ministry of Commerce has prohibited the import of 170 specific items. The complete list is as follows: 1.Toys with the brand name Animal World, made in China 2. Toy dolls with brand name Prety Doll, made in China 3. Lamp holder with brand name Vem, made in China 4. Automobile car light brand name MP Sport, made in China 5. Notebook computer model CS118 with brand name Sony, made in China 6. Electrical soldering iron with the brand name Proskit, made in China 7. Ceiling fan with the brand name Mahpooya, made in China 8. Battery with the brand name Tianqiu, made in China 9. Notebook computer model PCG-3E2L(VGN-CS220J/W), made in China 10. Spark plugs with the brand name NGK, made in China 11. Parking lot set toys with the brand name 2228, made in China 12. Vacuum cleaner with the brand name Hugel, made in China 13. Pressure cooker with the brand name Tuna, made in China 14. Inner tube for automobiles with the brand name Balance, made in India 15. Swimming goggles with the brand name Jielai, made in China 16. Gas-powered air conditioners model ESA12PS5NE, brand name Electrolux, made in China 17. Cold rolled steel sheet with the brand name Ferconetel, made in Kazakhstan 18. Notebook computer model PCG-3E2L(VGN-CS230J/Q), made in China 19. Microwave oven with the brand name Electrolux, made in China 20. Electrical multi-function kitchen appliance with the brand name Micromax, made in China 21. Strawberry flavored carbonated drinks with the brand name Robby Bubble, made in Germany 22. Notebook computers models PCG-3E2L(VGN-CS215J/Q) and PCG-3E2L(VGN-CS215J/R), with the brand name Sony, made in China 23. Notebook computer PCG-3C2L(VGN-CS230J/Q) with the brand name Sony, made in China 24. Milking machine with the brand name Kurtsud, made in Turkey 25. Insecticide with the brand name Hongjian, made in China 26. Computer case with the brand name Speed, made in China 27. Sewing machine with the brand name Janomeh, made in China 28. Spark plugs with the brand name NGK, made in China 29. Toy rattle with the brand name A2828-11144, made in China 30. Electric kettle with the brand name Mingye, made in China 31. Toy car, toy colored snake, yellow toy figurines and mask with the brand CHILDRENTOYCAR,553, 729, made in China 32. Toy with the brand name 9833, made in China 33. Toy animal set with the brand name Animal, made in China 34. Toy rattle and flying saucer with the brand name 066,2008, made in China 35. Computer case with the brand name Power Zenith, made in China 36. Industrial googles with the brand name Esab, made in Taiwan 37. Bicycle with the brand name Aomeisi, made in China 38. Television model KLB-37S400A, made in Malaysia 39. Printing and writing paper with the brand name Unvoated, made in Korea 40. Electrical soldering iron with the brand name Diesel, made in China 41. Rubber gloves with the brnad name HB, made in China 42. Soccer ball with the brand name Boraxim, made in China 43. Melamine dishes with the brand name Dining Set, made in China 44. Re-chargeable vacuum cleaner with the brand name Elegante, made in China 45. Radio set with the brand name Keribo, made in China 46. Notebook computer model PCG-3E2L(VGN-CS290NAB) with the brand name Sony, made in China 47. Notebook computer model PCG-3E2L(VGN-CS230J/W) with the brand name Sony, made in China 48. Notebook computer model PCG-3E2L(VGN-CS22OJ/W) with the brand name Sony made in China 49. Video projector model SXT-OL with the brand name Eyevis, made in Germany 50. Printer model NX400 with the brand name Epson, made in China 51. Sunglasses with the brand name Polar Eagle, made in China 52. Automobile shock absorbers with the brand name FM, made in England 53. Syringe for insulin LML brand name Pix, made in Italy 54. Toy dolls 60018-2, made in China 55. Toy ball sets Model Sport Series, made in China 56. Melamine dishes with the brand name Mo, made in China 57. Toy ball sets Model Sport Series, made in China 58. Toy car with the brand name First Speed, made in China 59. Lamp holder with the brand name Cie, made in China 60. Automobile lights with the brand name Osram, made in Germany 61. Tires with the brand name Stalion, made in Indonesian 62. Electrical hair iron with the brand name Gemel, made in China 63. Color pencils with the brand name Fraternity, made in China 64. Contactor with the brand name Telemechanique, made in China 65. Autoclave model AD7-1-3A with the brand name Neoclave Auto House AD7, made in Taiwan 66. Notebook computer model PCG-3E2L(VGN-CS90NFB) with the brand name Sony, made in China 67. Notebook computer model PCG-3E2L(VGN-CS220J/W) with the brand name Sony, made in China 68. LCD monitor model MT5XXX with the brand name Sony, made in Taiwan 69. Plastic welding machine with the brand name Elallar, made in Turkey 70. Threaded iron bars MM32 with the brand name Fisico, made in UAE 71. Notebook computer model PCG-3G4L(VGN-CS325J/W) with the brand name Sony, made in China 72. One-way electrical converter model WA with the brand name Wonpro, made in Taiwan 73. Video DVR with the brand name KPRO, made in South Korea 74. Notebook computer model PCG-3G4L(VGN-CS325J/Q)with the brand name Sony, made in China 75. Notebook computer NW120 with the brand name Sony, made in China 76. Notebook computer model PCG-3GH4L(VGN-CS325J/W) with the brand name Sony, made in China 77. Notebook computer model PCG-35IC(PAVILION DV4-1430US) with the brand name HP, made in China 78. Mechanical scale with the brand name S.K, made in India 79. Laboratory scale with the brand name Kern, made in Germany 80. Pocket scale with the brand name LT Series, made in China 81. Thread colors with the brand name Solarus, made in Taiwan 82. Autoclave with the brand name Runyes, made in China 83. Pocket scale with the brand name LT Series, made in China 84. Notebook computer DV4-1272 with the brand name Strong GT Super Police, made in China 85. Notebook computer with the brand name Sony, made in China 86. Notebook computer DV4-1430VS with the brand name HP, made in China 87. Energy saving electric light bulbs with the brand name Osram, made in China 88. Computer power supply with the brand name TCM, made in China????? 89. Electrical home appliances diaper washer with the brand name GT, made in China 90. Energy saving electric light bulbs with the brand name Star Light, made in China 91. Toy hand tools set with the brand name 262, made in China 92. Automobile lights with the brand name Hella Hid, made in China 93. Home appliances grinding machine with the brand name Black & Decker, made in China 94. Toy trucks with the brand name 6308, made in China 95. Toys with the brand name 326-77, made in China 96. Toy guns with the brand name 2015, made in China 97. Home appliances electric oven, with the brand name Johnson, made in China 98. Textile pigments with the brand name Scarlet FFG, made in China 99. Safety shoes with the brand name Panoply, made in China 100. Electrical warmer with the brand name Limra, made in China 101. Computer power supply with the brand name West, made in China 102. Notebook computer model NW120 with the brand name Sony, made in China 103. DVR Video model TPB916 with the brand name Hi-vision, made in Taiwan 104. DVR Video model 400 with the brand name Digicap, made in China 105. Safety shoes with the brand name Best Step, made in China 106. Motorcycle horn with the brand name Tekno, made in China 107. Tires with the brand name Stalion, made in Indonesia 108. Toy tanks, guns and whistles with the brand name 775-3, made in China 109. Toy ball set with the brand name Stuffed Ball, made in China 110. Home appliance hair stylers and hair dryers with the brand name SH-Rose, made in China 111. Toy robots with the brand name A599, made in China 112. Home appliances meat grinder with the brand name New Life, made in China 113. Home appliances soldering iron with the brand name Proskit, made in China 114. Lever controlled water faucet with the brand name Benito, made in China 115. Automobile lights with the brand Kingtools, made in China 116. Home appliances slow-cooker with the brand name Duncan, made in China 117. Home appliances hair dryer with the brand name Clatronic, made in China 118. Mobile battery with the code BL-5CA with the brand name Nokia, made in China 119. DVR Video model P704 with the brand name Hunter, made in Taiwan 120. Towing cables with the brand name Orona, made in Spain 121. DVR Video models 8016, 7008, 4100, 5100 and 4200 with the brand name Alpha-tech, made in China 122. DVR Video model HA640 with the brand name Vio-net, made in Taiwan 123. Autoclave model Tanzoe18, with the brand name Woson, made in China 124. Notebook computer model CS390-CS325 with the brand name Sony, made in China 125. Notebook computer model CS390-CS325 with the brand name Sony, made in China 126. Notebook computer model NW240 with the brand name Sony, made in China 127. Notebook computer model DV4 with the brand name HP, made in China 128. Notebook computer model NW250 with the brand name Sony, made in China 129 Notebook computer model NW270 with the brand name Sony, made in China 130. Notebook computer model NW110 with the brand name Sony, made in China 131. Notebook computer model NW228 with the brand name Sony, made in China 132. Notebook computer model NW240 with the brand name Sony, made in China 133. Notebook computer models NW240, NW250 and NW270 with the brand name Sony, made in China 134. Notebook computer models NW240, NW250 and NW270 with the brand name Sony, made in China 135. Notebook computer model AW390 with the brand name Sony, made in China 136. Notebook computer model NW250 with the brand Sony, made in USA 137. Notebook computer model 6930 with the brand name Acer, made in China 138. Notebook computer model NW228 with the brand name Sony, made in China 139. Lamp holder HY519 with the brand name Bahram, made in China 140. Toy gun with the brand name JUN-02 , made in China 141. Split air conditioner model FCCZW-CCT34 with the brand name Pearl, made in China 142. Split air conditioner with the brand name Super Gebson, made in China 143. Safety helmet with the brand name Safe, made in China 144. Home appliances juicer with the brand name Ace, made in China 145. Home appliances blender with the brand name Magic Bulle, made in China 146. Split air conditioner Seven and 12000 with the brand name GE, made in China 147. Toy hand tools set with the brand name 3532, made in China 148. Volley-ball ball with the brand name Joe Rex, made in China 149. Bed hanging toy for infants with the brand name B21108, made in China 150. Home appliances vaporizer with the brand name Classik, made in China 151. Ceramic tile with the brand name Compounde, made in China 152. Home appliances hair iron with the brand name Grundig, made in China 153. Home appliances meat grinder with the brand name Brine, made in China 154. Toy gun with the brand name Fanny Gun, made in China 155. Electrical toaster with the brand name Sven Star, made in China 156. Miniature light switch with the brand name G&F, made in China 157. Fan engine with the brand name Olmo, made in Italy 158. Meat grinder with the brand name Gosonig, made in China 159. Meat- grinder with the brand name Gosonig, made in China 160. Electrical soldering iron with the brand name Kirin, made in Taiwan 161. Textile color with the brand name Bluegl, made in China 162. Rice with the brand name Mohsen, made in Pakistan 163. Notebook computer PCG-3G4L (VGN-CS325J/Q) with the brand name Sony, made in China 164. Car brake-lining Delica and oil filters Sem with the brand name Delica-Sem, made in China 165. Single faucet with the brand name Kuatroplis, made in Spain 166. CNG cylinder with the brand name Igvi, made in Armenia 167. Notebook computer model DV4-1430VS, made in China 168. Autoclave with the brand name Woson Tanda, made in China 169. Weight scale with the brand name Kern, made in Germany 170. Notebook computer PCG-3G4L(VGN-CS325J/W) with the brand name Sony, made in China Nourlaw. Com NOTE: All repetitions in the list of the 170 banned items and other irrelevancies are in the original Farsi text.

18 August 2010

Iran Customs Decree on Evaluation of Goods Imported under Different Foreign Exchange Methods

Nourlaw.com (18 August 2010) -- Iran Customs in its circular letter dated 203/73/814/113/67937/106198 has declared: ”For greater uniformity of practice and the expeditious clearance of goods, with respect to the different methods of assessing the value of the goods imported under the modalities of “without transfer of foreign exchange”, “free market foreign currency” and “against export”, the procedures are explained here below and it is requested that they be implemented accordingly with complete observance of the regulations. 1- With regard to the value difference of the goods imported against export, if the value rating of the customs is more than 20 percent above the stated value, the difference in amount needs an export license but does not require that the original permit of the ministry of commerce be amended. 2- The same 20 percent value difference respecting goods imported in the form of “collection” and “free market foreign exchange” and certified by the related bank does not require certification of the bank amendment or amendment of the ministry of commerce permit. However, at the time of clearance the following phrase must be inserted: ”For the attention of the bank opening this letter of credit: The transaction value of the imported goods….. at ……USD or…….. is confirmed”. 3- With respect to goods imported on the basis of “without transfer of foreign exchange”, if the value rating of the customs is more than 20 percent above the stated value, amendment of the ministry of commerce permit shall be required.

10 August 2010

Price List for Imported Mercedes Benz Cars

Nourlaw.com (10 August 2010) --  The Office for Evaluation of Goods of Iran Customs, in its circular letter number 183/24/206/4885/99157 dated 12/5/1389(3 August 2010) has declared that, "in compliance with Note 6 of the Automobile Law and by virtue of the minutes 403 dated 4/5/1389 (26 July 2010) of the joint committee of the Customs and the Ministry of Industries and Mines, attached hereto, please find the new price list for Classes A,B<CL of the German-made Mercedes Benz cars of 2010”. The list is as follows:

10 August 2010

Import of Certain Drugs and Medical Treatment Consumables Exempt from Value Added Tax

Nourlaw.com (10 August 2010) --  Iranian customs in its circular letter number 177/73/6107/722/81530/94578 dated 6/5/89 (28 July 2010) has announced that according to the VAT Deputy of the Tax Affairs Organization, by virtue of Part 9 of Article 12 of the Value-added Tax Law, supply and import of all kinds of drugs and medical treatment consumables (for humans, animals and plants) are exempt from payment of value added tax. The tax is 3% of the value of the related goods and services. The decree of the customs adds that, “consequently import of all types of drugs for animal consumption such as the drugs to be used for husbandry and poultry are not subject to value added tax. It should be noted that for import of drugs used for animals, cattle and poultry the permit of the Veterinary Organization must be attached to the customs clearance documents".

10 August 2010

No Limitation for Foreign Investors in Accessing Foreign Exchange Reserve Account

Nourlaw.com (10 August 2010) -- According to the daily economic newspaper Abrar Eghtesadi, the Board of Trustees of the Foreign Exchange Reserve Account in a decree this week has amended the regulations for foreign investors' accessing this account. According to the decree the 25% ceiling set for joint venture companies in enjoying facilities from the reserve account has been eliminated and hereinafter there will be no limitations in extending facilities from the reserve account to foreign joint venture companies. The account was created some years ago for reserving oil revenue surpluses that were to be used for extending low rate loans to the private sector. Elimination of the facility ceiling to the joint venture companies is seen as an initiative for increased attraction of foreign investments. Industry and mines, agriculture, transport, services (such as tourism), IT and the export of goods and services are the sectors authorized to enjoy the new facilities from the Foreign Exchange Reserve Account.

4 August 2010

Iran's Market Closed to Countries Enforcing Sanctions

Nourlaw.com (4 August 2010) -- According to the Fars News Agency Iran's Industry Minister Aliakbar Mehrabian has said that the import of consumer goods from countries enforcing sanctions against Iran is to be prohibited. In a report by the public relations office of the ministry, Mehrabian added: “The Iranian market shall be closed to the consumer and junk goods of those countries which block the export of technologies, machinery and equipment to Iran”. He asserted that the machinery and equipment needed domestically would henceforth be primarily manufactured by domestic researchers, scientists and industrialists while other needed items would be procured from friendly states.

21 June 2010

Iran Announces Establishment of Customs Union among Russia, Belarus and Kazakhstan

Nourlaw.com (21 June 2010) -- The Iran Chamber of Commerce and Industries and Mines (ICCIM) has forwarded a letter to Iranian Customs announcing the establishment of the Russia-Belarus-Kazakhstan Customs Union. Iranian Customs in its Circular Letter number 95/55/25/108/83822 dated 23/04/1389 (14 July 2010) has notified all Iranian entities engaged in international road transport, that the newly formed customs union came into force as of 1 July 2010. The area of the said union covers the entire territory of these countries and is considered a single customs zone. The TIR Carnet operations shall be implemented in the union's territory and handle goods only at the point of entry and the designated customhouses. Exchange of data for settlement of carnets will be undertaken and recorded electronically among customs union members. Additionally the border between Russia and Belarus shall effectively cease to exist on 1 July 2010, and in the case of the border between Russia and Kazakhstan it will gradually disappear starting from 1 July 2010.

2 June 2010

Iran and Qatar Sign Extradition Agreements

Nourlaw.com (2 June 2010) -- The Iranian Official Gazette published two agreements today that were concluded between the Islamic Republic of Iran and the State of Qatar. The measures are for extraditing perpetrators of crimes and the exchange of nationals serving sentences in either state. In the agreements ratified by the Iranian parliament on 16/10/1388 (06 January 2010), each of the signatories is committed to deliver to the other party persons sought for prosecution or convicts sought for punishment and the transfer of prisoners of the respective nationalities to the requesting party. The extradition and transfer will be carried out in compliance with the conditions set out in the agreements.

12 May 2010

Iranian List of Specialized Customhouses for Import of Goods

Nourlaw.com (12 May 2010) --  Directorate General of Transit Supervision in its circular letter No. 41/55/73/102/33460 dated 19/2/89 (9 May 2010) has published the list prepared by the Import Bureau regarding the specific customhouse for the import of different kinds of goods. They are: 1- Medical Equipment: Customhouses of (1) Mehrabad Airport (2) Imam Khomeini Airport (3) Shahid Rajaee Bandar Abbas (4) Imam Khomeini Port (5) Oroumieh (6) Sahlan. In addition, Shariar customhouse is allowed to clear the said goods until the permanent stationing of the representative of the Ministry of Health in the designated customhouses is accomplished. 2- Cigarette and Tobacco Products: Customhouses of Shahid Rajaee Bandar Abbas Port (2) West Tehran (3) Imam Khomeini Airport (4) Jolfa (5) Khorramshahr (6) Chabahar (7) Qeshm (8) Bushehr. 3- Second-hand Road Construction Machinery: (1) Shahid Rajaee (2) Khorramshar (3) Bushehr (4) Oroumieh (5) West Tehran (6) South Tehran (7) Esfahan. 4- Vehicles: (1) Shahid Rajaee Bandar Abbas (2) Shaid Bahonar (3) West Tehran (4) Nowshahr (5) Bandar Anzali (6) South Tehran (7) Bushehr (8)Imam Khomeini Port (9) Chabahar (10 ) Shahriar (11) Oroumieh (12) Sahlan (13) Mashhad (14) Esfahan (15) Khorramshahr (16) Salafchgan (17) Genaveh (18) Zanjan (19) Bandar Lengeh (20) Qazvin (21) Shiraz. 5- The Customhouses of West Tehran, Bandar Anzali, Shiraz, Esfahan, Mehrabad, Shahid Rajaee Bandar Abbas, Shahriar, Imam Khomeini Airport, shall be allocated to the Ministry of Defense. 6- Mobile Phone Sets: (1) Mehrabad sections 1 and 2 (2) Imam Khomeini Airport (3) Payam Airport (4) Esfahan (5) Shiraz (6) West Tehran and Shahid Bahonar Customhouses are authorized to clear only the accessories of mobile phones. 7- Customhouses Allocated to the Embassies: Mehrabad, South Tehran, Mashhad, Shiraz, Tabriz, Esfahan, Bushehr. 8- Gold and Jewels: (1) Mehrabad (2) Esfahan (3) Tabriz (4) Mashhad. 9- Chinaware: (1) Bushehr (2) Khorramshahr (3) Chabahar (4) Qeshm (5) Shahriar.

12 May 2010

Black Tea Subject to Standardization

Nourlaw.com (12 May 2010) --  The First Deputy of the President has notified the decree No. 40831/23022 dated 4/2/89 (24 April 2010) to ministries of commerce, industries & mines, and agriculture and the standard organization for implementation. According to the decree, as from the beginning of the Iranian year 1389 (21 March 2010), the standards outlined for black tea in the notification shall be obligatory. In light of the above, producers, retailers and importers shall be subject to the new rules.

5 May 2010

Effectiveness of Double Tax Avoidance Agreement between Iran and the Republic of Azerbaijan

Nourlaw.com (5 May 2010) --  Technical and Legal Deputy of the Tax Affairs Organization in circular letter No.210/1438 Dated 25/01/1389 (14 April 2010) has declared that with respect to the Double Tax Avoidance and Barring Tax Evasion Agreement and its related Protocol concluded on 26.08.1388 (17 November 2009) between the Islamic Republic of Iran and the Republic of Azerbaijan, the stipulations of the Agreement shall be applicable to the revenues and capital accrued in Iran as from the first day of the month Farvardin 1389 (21/3/2010) and as from first of January 2011 in Azerbaijan.

5 May 2010

The Law of Utilization of Facilities of the Foreign Exchange Reserve Account for Rail and Public Transport in Cities

Nourlaw.com (5 May 2010) --  The law of Utilization of the Facilities of the Foreign Exchange Reserve Account for Rail and Public Transport in Cities, passed on 22/10/1388 ( 11January2010 ) by the Parliament and ratified on 15/11/1388 ( 4 February 2010 ) by the Expediency Council, was published on 11/02/1389 (1 May 2010) in the Official Gazette and shall be effective 15 days thereafter. According to this single article law “In line with the Law of Protection of the City and Suburban Rail Transport Systems, approved in 1385 ( 2006 ) and the Law of Expansion of Public Transport and Fuel Consumption Management approved in 1386 ( 2007 ) and for the purpose of the Subsidy Targeting Bill, the government is obliged to allocate one billion USD (1,000,000,000) for securing the equipment and construction of the Tehran and Suburban Rail Lines, USD seven hundred thousand (700,000,000) for securing the equipment and construction of city rail lines of other cities having approved rail plans and USD three hundred thousand (300,000,000) for implementation of the transport and traffic master plans of other cities until the end of the year 1389 (21/March 2010 – 20 March 2011) out of the Foreign Exchange Reserve Account or under any other name in the form of facilities and with due consideration of the law on Maximum Use of Iranian Technical, Engineering, Manufacturing, Industrial and Executive Expertise and Capability for Implementation of Projects and Provision of Facilities Required for Export of Services approved on 2 March 1997, to the respective municipalities. The said facilities are recognized as the 50% share of the government and a guarantee of 100% repayment of the same shall be borne by the government. The Ministry of Economic Affairs and Finance is obliged to put the aforesaid resources at the disposal of the related municipalities in the year 1388 ( 2009 ) or the year 1389 ( 2010 )”.

21 April 2010

Import of Tobacco Products without Health Warning and Holograms Prohibited

Nourlaw.com (21 April 2010) -- Ministry of Commerce on the basis of the Decree No. 610072 dated 25/12/1388 (16 March 2010) of the Ministry of Health and Medical Education, has declared that as from the year 1389 (21 March 2010-20 March 2011), the sale and import of tobacco products without the health warning and hologram of the tobacco company shall be prohibited.

14 April 2010

National Budget of 1389 (21 March 2010-20 March 2011) on Finance, Investment and Imports

Nourlaw.com (14 April 2010) --The Iranian National Budget for 1389 (21 March 2010-20 March 2011) contains specific points related to international trade. Excerpts: 1- Remaining allocations of approved buy-back facilities and foreign financial facilities subject to the Law of Utilization of Foreign Financial Resources passed on 6/7/1384 (28 September 2005) and the commitments of the Foreign Exchange Reserve Account mentioned in the budget laws of past years shall remain in force in the year 1389 (Part A of Clause 3 of the Law). 2- For securing the foreign exchange funds needed in its ongoing investment projects, the Oil Ministry is allowed to issue, after approval of the Central Bank of the Islamic Republic of Iran (CBI), and through its related affiliate companies (in the areas of oil, gas, petrochemical, refining and distribution) Sukuk Islamic bonds and or foreign exchange participation papers (bonds) on the international financial markets respectively up to five billion euros (5,000,000,000 EUR) for the national Iranian Oil Company and up to one billion euros (1,000,000,000 EUR) for each of the two companies engaged in gas and refining and two billion euros (2,000,000,000 EUR) for the Petrochemical Company. The said companies shall be responsible for re-payment and guaranteeing the principal sums and interest of such papers (Part C of Clause 3). 3- For the purpose of investment in profitable projects having technical, economic and environmental justification, as well as for passive defense, Industrial Development and Renovation Organization of Iran (IDRO), Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO), the industries related to the Ministry of Defense and the Armed Forces Logistics and the transport industry are allowed to issue, after approval of the Central Bank of the Islamic Republic of Iran (CBI), up to two billion euros (2,000,000,000 EUR) in the form of Sukuk Islamic bonds and or foreign exchange participation papers (bonds) on the international financial markets. The said companies shall be responsible for re-payment and guaranteeing the principal sums and interest on such papers (Part D of Clause 3). 4- In implementation of Part 3 of Article 28 of the Law of General Policies of Principle 44 of the Constitution Law and for the purpose of opening a credit line for increasing the share of foreign exchange facilities of non-governmental sectors, the Central Bank of the Islamic Republic of Iran is bound to deposit seven hundred million dollars (700,000,000) from its own foreign exchange sources in the banks of Industry and Mines and Agriculture in foreign currency and rial forms at most by the end of the month Khordad 1389 (21 June 2010) for payment to the production units and industrial and mining projects (Part L of Clause 8). 5- Clause 15 of the law deals with importation. The import of all manner of agricultural products which act as substitutes for domestic products is allowed with the effective tariff rates three times higher than the past year. Should the shortage in domestic agricultural products be removed, imports will be allowed with the effective tariff rates two times more than the past year. In the event that the domestic production of agricultural goods is sufficient for nationwide consumption, the import of similar goods shall be permitted with the effective tariff rates four times more than the past year. Clause 15 notes that if the increase in tariffs results in an unreasonable increase in prices, the tariff shall be adjusted. Clause 15 also notes that the import tariffs should be adjusted so that smuggling of goods is reduced. In this respect, the ban on import of cigarettes shall be lifted for compensating the shortage of cigarettes on the market. For creating a competitive market and upgrading the quality of domestically-manufactured cars, the import tariff for such vehicles shall be reduced to 70%.

7 April 2010

Inclusion of the Name of the Country of Manufacture a Must for Imported Goods

Nourlaw.com (7 April 2010) -- Iranian Customs in Decree Number 73/73/847/113/865 dated 9/1/1389 (29 March 2010) has declared that for the accurate implementation of Part 12 of Article 40 of the Customs Affairs Law, as from 1/3/89 (22 May 2010) inclusion of the name of the country of manufacture on the goods to be supplied directly to the consumer market shall be obligatory.

2 February 2010

Foreign Investors Free to Use their Names for Corporations in Iran

Nourlaw.com (2 February 2010) -- In a shift intended to attract more foreign investment, the Iranian government has softened its stance with respect to restrictions imposed on using foreign names for corporations formed by foreigners in Iran. According to the Law Banning Usage of Alien Names, Titles and Phrases approved on 4 December 1996 restrictions had been foreseen for those wanting to use foreign names and wordings in commercial and production activities. Now, the Iranian Council of Ministers has decreed in its decision No.H 42200T/213296 dated 29/10/1388 (19 January 2010) that: ”Firms producing goods under special trade names in other countries, are allowed when investing in Iran, to use the name of the foreign company and the said special trade name (brand) when they register the company making the investment and offer the goods produced in Iran with observation of other related laws and regulations, and they shall have neither limitations nor differences with similar domestic cases in promoting such goods”. The said decree shall be used as the Note of the By-law of the Law Banning Usage of Alien Names, Titles and Phrases.

27 January 2010

Refinance for Import of Certain Finished Products Banned

Nourlaw.com (27 January 2010) -- In yet another measure aimed at the protection of domestic manufacturing and exerting greater control over foreign exchange resources, the Iranian government by virtue of Decree Number K4385T/207903 dated 12/10/1388 (2 January 2010) has banned the import of certain foreign goods through refinance facilities. The goods affected are finished foreign products which are also manufactured in Iran. Iranian commercial banks have been involved in payment of short term foreign exchange facilities in the form of refinance credit lines utilizing the resources of their foreign branches and foreign banks. In this particular method of refinance, the foreign seller receives the price of the goods by submitting the related documents to the respective bank and the Iranian buyer pays the price in instalments to the bank. According to Bank Saderat Iran, since the profit rate of this facility for the consumer is lower than that of Iranian Rial facilities, it can be of significant help to importers in reducing the cost price of goods while assisting manufacturers in the import of raw materials, spare parts and machinery for production lines. As well as commercial importers for import and purchase of consuming goods, are the users of refinance. The ceiling levels for utilization of refinance credit lines facilities by real and legal persons are advised by the Central Bank of the Islamic Republic of Iran. The maximum period of utilization of short term facilities is one year after negotiation of the relevant documents. At present, the minimum amount of the LCs issued for refinance credit lines is USD 100,000 or its equivalent in other currencies. At least 10% of the Rial equivalent of the principal and interest of the refinance LC is obtained from the applicant when the LC is opened. The cost of the refinance facility fee is 1.25% - 2% above the International LIBOR rate, depending on the time limit and is to be paid by the applicant at the time of repayment of the amount of the negotiated documents. Other fees related to opening the LC, the negotiations involved plus management fees are paid by the applicant in conformity with the contract between the bank and the financer, based on current regulations and considerations related to credit risk and provision of services.

20 January 2010

The Bill for Subsidy Targeting Ready for President’s Implementation

Nourlaw.com (20 January 2010) -- The controversial government bill for subsidy targeting previously sent to the legislature for approval, was finally sanctioned on 15 Dey 1388 (5 January 2010). After a series of modifications it was notified to President Mahmoud Ahmadinejad for implementation. The bill aims at decreasing and ultimately eliminating the huge amount of subsidies paid nationwide. The highlights of the legislation are: According to Article 1 of the Bill, the government shall be obliged to gradually rectify the price of energy carriers (fuel) until the end of the m Fifth Five Year Economic, Social and Cultural Development Plan which has been recently submitted by the government to the parliament for debate and approval. The said article stipulates that the domestic sale price of petrol, gasoil, mazut, kerosene, LPG and other oil derivatives, with due consideration given to the quality of the carriers and the costs borne (including transport, distribution and legal levies) shall incrementally change until it would not be less than 90% of the Persian Gulf fob price of the product. The article adds that the average domestic price of natural gas must be graduated so that by the end of the Fifth Plan it is equal to at least 75% of the export price of natural gas after deduction of transfer costs, taxes and levies. The article adds that for promoting investment, the average price of the natural gas feed of industrial, refinery and petrochemical units shall be at most 65% of the export basket price of the origin of Persian Gulf gas (without the transfer cost) for a period of 10 years after approval of this law. In another part of the article it is stated that the average domestic sale price of electricity should be determined so that by the end of the Fifth Plan it is equal to its actual cost price. Note One of the article states that with respect to the price of electricity and natural gas, the government is authorized to implement preferential prices taking into consideration the geographic regions, type, amount and time of consumption. By virtue of Article 3 of the Bill, the average water price for different consumption levels shall be determined, with due consideration given to the quality and manner of exploitation in the country and shall be so graduated that by the end of the Fifth Plan it equals the real cost price. As stated in Note 2 of the article, setting preferential and scheduled prices for different types of water consumption according to geographical regions, type and quantity of consumption shall be permitted. In accordance with Article 4, the government is obliged to implement the subsidies targeted with respect to wheat, rice, edible oil, milk, sugar, postal services, air and rail (passenger) services in a regular manner until the end of the Fifth Plan. Article 5 binds the government to provide flour and bread subsidies to consumers who apply for them in a convenient fashion at the amount foreseen in the annual budget bills. Article 7 permits the government to spend 50% of the net proceeds accruing from the implementation of the Law in the form of a cash and non–cash subsidy payable to the head of all families while taking into account the ceiling of the earnings of the family, expansion and funding social security schemes, medical services, improving the health of the society, and providing medical treatment for the chronically ill, providing assistance for housing costs, strengthening the structure of existing houses, improving employment, social aid etc. As foreseen in Article 8 of the law, the government is bound to expend 30% of the net proceeds accruing from the implementation of the law. This shall be in the form of contributions, subsidies for payment of interest on financial facilities and loans for optimization of energy consumption in industrial, services and housing units and encouraging economization on consumption. It shall also include improvement of the technological structure of production units for increasing optimized use of power and water and compensation of a part of the losses sustained by companies providing water and sewage disposal, electricity, natural gas and oil products. Municipalities and townships accruing losses through implementation of the bill shall be compensated as well. Expansion and improvement of public transport, protection of the producers in the agriculture and industry sectors, protection of industrial bread, protection of expansion of non-oil exports, development of electronic communication services for reduction of unnecessary trips are also foreseen. As stipulated in Article 11, the cash and non-cash assistance allowed for in this bill shall be exempt from payment of statutory taxes, and according to Article 15, for implementation of the bill an entity shall be established as a duly authorized governmental company under the name Targeting Subsidies Organization. Article 16 permits the government as from the next Iranian year of 1389 (21 March 2010-20 March 2011) to increase the salary tax exemption of workers and employees, foreseen in Article 84 of the Direct Taxation Act, to not more than double within five years, in addition to the yearly increase of the exemption.

13 January 2010

Iranian Government Bans Purchase of Certain Foreign Goods

Nourlaw.com (13 January 2010) -- In a new measure intended to protect domestic products, the Iranian Government by virtue of decree Number K43680 T/193567, dated 1/10/1388 (22 December 2009) has prohibited the purchase of a significant list of foreign goods by executive government agencies. The catalogue of proscribed goods includes 121 items, among them solar water heaters, elevators, conference microphones, iphones, edible phosphoric acid, blank cds and dvds, buses, minibuses, vans, trucks and bicycles. Also listed are textiles, shoes, safes, refrigerators, washing machines, electronic calculators, gas, water and electricity meters, pumps for hydro air coolers, sugar, soap, audio and video door opening devices, powdered milk for infants, computers LCD monitors. fungicides, newsprint paper, packaging industries, lamps, factories for producing livestock feed and poultry food, vacuum cleaners, cosmetics and hygienic products. According to the decree, a work group consisting of the ministries of industries and mines, commerce, oil, defense, health, agriculture and National Code Center is preparing an additional list of prohibited import goods.

13 January 2010

Implementation of Increased Rice Tariff Extended

Nourlaw.com (13 January 2010) -- Iranian Customs in its circular letter number 287/73/3103/103/237571/237906 dated 21 Dey 1388 has declared that by virtue of the Council of Ministers ruling on the increased tariff of imported rice, the higher duty shall be extended to the end of the current Iranian year (19 March 2010). Earlier, in a measure to quell the growing discontent of domestic rice producers, the government upped the import tariff on rice in September 2009. According to the declaration of the Ministry of Commerce as of 22 Shahrivar 1388 (13 September 2009) to 1 Dey 1388 (22 December 2009), the Commercial Benefit Tax (CBT) was increased from 21% to 41% of the CIF (cost insurance freight) value of rice imported under the Harmonised customs codes 10061000, 10062000, and 10063000. In light of the higher rice tariff, importers must also pay 4% for entry dues and 3% for VAT which when added to the increased CBT, would be nearly 50% of the CIF value of the imported rice. In the last few months, reports have circulated alleging the contamination of imported rice, especially from India and petitions were made by local farmers in support for consumption of domestically-produced rice.