Legal Newsletter

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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

 

  Import of Basmati rice halved
  Government bans purchase of foreign goods similar to domestic products

  Iran Khodro Car Production up Three-fold

Increase of Iranian Gas Reserves and Petrochemical Exports

“We gave oil to bring junk goods from China”

10 June 2014
Import of Basmati rice halved
Nourlaw.com- 10 June 2014- Iran has reduced the purchase of Basmati rice from India by nearly 50% in the past three months, the Farsi language news agency ISNA reported Tuesday.

Chemical contamination of the rice and its quality which is lower than that stipulated in the relevant contracts, are the primary reasons for reduction in importing this iconic brand of Indian rice.

India is the largest exporter of rice to Iran. According to the statistics provided by New Delhi, the quantity of the export of Indian rice to Iran in the year ended March 2014 was 1.45 million tons valued at USD 1.83b. India exported about 130,000 tons of rice to Iran in February but since then sales have dropped 50-60%. The price of rice in the domestic Indian market has also decreased due to the weakening of Iran’s imported rice market.

 
10 June 2014
Government bans purchase of foreign goods similar to domestic products

Nourlaw.com-10 June 2014- For safeguarding and boosting the domestic production of goods, the Council of Ministers has banned governmental entities from purchasing foreign goods that are similar to products already being manufactured in Iran, the Farsi language news agency ISNA reported today.

However, according to the decree, in cases wherein the domestic product is not acceptable in terms of quality, price or quantity, importing comparable foreign goods is permitted. The order also prohibits governmental organizations and companies from promoting and advertising foreign goods, except in cases wherein the law has specifically allowed it.  The decree does not disallow such importation in the private sector.

 
7 June 2014
Iran Khodro Car Production up Three-fold
7 June 2014-nourlaw.com - Car production at Iran Khodra, the country’s largest vehicle manufacturing group, exceeded 70,000 units in the first two months of the current Iranian year (March and April). This represents a tripling of production in comparison with the same period last year, the Farsi Iranian language news agency IRNA reported.

As a consequence of improved planning and timely procurement of spare parts, production at Iran Khodro has increased to 16,476 cars in April 2013.
 
7 June 2014
Increase of Iranian Gas Reserves and Petrochemical Exports

7 June 2014-nourlaw.com- the Iranian Minister of Oil Bijan Zangeneh said today that the gas reserves of Iran have increased to 33.6 trillion cubic meters and billions of dollars of petrochemical products were exported to Asian, Europe and the Americas, the Farsi language news agency Mehr reported

At the end of 2013, Zangeneh added, 12.8 million tons of petrochemical products with a value of USD 9.9b were exported and 14.4 million tons were supplied to the domestic market.

6 June 2014
 “We gave oil to bring junk goods from China”
6 June 2014- nourlaw. com- Ayatollah Sobhani, a leading Shia clergyman residing in the holy city of Qom, criticized the import policy of Iran in a meeting with the governor of the Iran Central Bank (CBI) , Mr. Valiollah Seif yesterday, the Farsi language news agency Iran reported.

Ayatollah Sobhani said: ”During the past eight years we have imported junk from China against oil. This effectively closed our best manufacturing workshops down and we could not get access to our oil money”.

He added that “for solving the problem of inflation in the country and creating employment, we should close the nation’s doors and open them only for imports when necessary.”

In another part of his remarks, Sobhani emphasized the point that, “in the old days we always said the government is not a good businessman. But, it is a good supervisor. We should make efforts to involve the private sector in business and the banks should not engage themselves in non-banking activities. Nowadays the banks have removed business from the hands of the people and in so doing have created inflationary problems”.