Iran Petrochem Exports to Turkey Back to Normal

EghtesadOnline: The snag hindering the export of Iranian petrochemical products to Turkey has been tackled, returning the situation back to normal, the chairman of Iran Export Confederation said.

News ID: ۷۷۸۲۰۱

06 August 2017

“The problem had arisen out of new rules imposed by Turkey making it mandatory for export documents to be first approved by the Turkish Consulate in Iran, a lengthy process which led to huge truck queues on the Iranian side of border with Turkey as well as incurring more costs,” Mohammad Lahouti was also quoted as saying by Mehr News Agency on Friday. Noting that other goods, like lead and zinc, were also hit by the same rules, he said Iran’s Chamber of Commerce put the matter on its agenda and pursued it with Turkish officials, adding that it turned out to be “a misunderstanding”.

Lahouti noted that Iran had asked Turkey to obtain approved documents from Iranian Embassy for its merchandise with preferential tariffs. The measure led to a reciprocal Turkish action that requires all Iranian goods imported there to have their certificates of origin approved, without distinguishing preferential tariff goods from the others.

“The issue has now been solved and there is no need for obtaining approvals from Turkish Consulate anymore. Iran-Turkey export, including petrochemical products, can be carried out as before,” Financial Tribune quoted him as saying.

Lahouti said the Turkish issue was different than that created by China, although the media have reported as though they were the same. China has established new rules regarding its transactions with Iran, out of concern over the Financial Action Task Force rules against money laundering.

“Chinese officials have done so just to be sure the revenues of exported petrochemicals would end up in the hands of Iranian exporters,” he said.

In some cases, Iranian goods are exported through the UAE, a process which makes it difficult for businessmen to receive money as they have to exchange related documents, a problem that has been compounded by the recent Chinese rules.  Chinese measures are just assurances that it plays by the rules of FATF, although many believe that they have been taken as a result of Washington’s pressures against Iran.

FATF is the international standard-setting body that combats money laundering and financing of terrorism.