Gov’t Tightens Export Rules

EghtesadOnline: The government announced limits on the amount of export by owners of new commercial cards. The decision was approved by the Cabinet earlier in the month and sent to relevant administrative bodies on Thursday.

News ID: ۷۵۰۶۹۸

15 August 2020

Accordingly, exporters who got their commercial cards recently can export not more than $500,000 during the first year of their activity.

Likewise, new export companies will be able to export goods worth $2 million in the second year, IBENA reported. Manufacturing units that export are exempt from such limits.

The decision was made “in consultation with Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) with the aim to promote the export sector and improve procedures in repatriation of export earnings”.

Observers and officials blame users of so-called “rented commercial cards” and novice exporters for failure to repatriate their earnings. It is often said that reliable traders uphold their financial commitments and are less prone to breach the rules.

In recent weeks it has been officially reported that the government is planning to restrict exports by newcomers.

The Central Bank of Iran recently said exporters have failed to repatriate export earnings to the tune of $27.5 billion in the past two years.

As per new rules governing repatriation of export earnings  announced by the CBI, the Ministry of Industries will rate exporters based on their credibility and commercial background and impose restrictions on how much they can export.

The Industries Ministry will monitor foreign trade conducted with commercial cards.

As per the rules, exporters have four repatriation methods.  Export earnings are supposed to be returned via one of the following ways:  selling currency on the secondary foreign exchange market, known as Nima (Persian acronym for Integrated Forex Deal System), cash transfers through hawalah, selling currency to exchange bureaus, and finally, use their overseas earnings to import goods and machinery or allow a third party to do so.