Exporters Warned Anew

EghtesadOnline: The Trade Promotion Organization announced a timeframe based on which commercial ID cards of exporters who have failed to return their foreign currency earnings will be suspended.

News ID: ۷۵۰۷۹۹

25 August 2020

Exporters have until Sept. 21 to fall in line.

According to Hamid Zadboum, the TPO chief, commercial cards of non-manufacturing export companies that have repatriated less than 30% of their forex liability will be suspended as of Sept. 5.

Non-manufacturing exporters who brought back between 31%-69% of their earnings have until Sept.21 to fulfill their commitment otherwise their commercial cards will be suspended, the TPO website reported.

Zadboum said this group of exporters should repatriate more than 70% of their commitment to escape the penalty. The TPO has suspended the commercial cards of export companies with zero transfers.

Manufacturing companies that export have also been warned that they should return their earnings until Sept. 21

The Central Bank of Iran recently said exporters had failed to return overseas earnings to the tune of $27.5 billion in the past two years.

Earlier the TPO suspended 2,500 commercial ID cards of non-manufacturing exporters after they failed to heed government warnings about upholding rules guiding forex transfers.

Observers blame users of the so-called “rented commercial cards” and unruly exporters for failure to repatriate their overseas earnings, arguing that credible traders are less likely to breach government rules.

Export Limits

Earlier in the month, the government announced limits on export by owners of new commercial cards. 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 can sell their goods abroad worth $2 million in the second year. Manufacturing firms that export are exempt from such limits.

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