Ministry Moves to Keep Apparel Import in Check

EghtesadOnline: The Ministry of Industries, Mining and Trade has introduced new regulations aimed at fighting rampant smuggling in the domestic apparel market.

News ID: ۷۷۹۴۰۳

25 September 2017

The ministry has decided that foreign brands willing to sell their products in the Iranian market are required to directly apply for permits to open sales outlet in Iran without middlemen, Fars News Agency quoted deputy minister of industries, mining and trade, Yadollah Sadeqi, as saying.

The representatives are required to produce 20% of the value of their imports (in rial terms) inside Iran in the first two years of their business activities in the country. After two years, the authorized representatives are obligated to export 50% of the apparel produced domestically.

“Currently, 14 companies have accepted the new regulations and conditions, and they’re in the process of registering their representatives,” Financial Tribune quoted Sadeqi as saying.

Referring to illegal import channels, he said as free trade zones are one of the main points of entry open to smugglers of apparel, the ministry has banned apparel imports from these zones in the form of passenger luggage.

Iran is home to seven free trade zones, namely Kish, Qeshm, Chabahar, Anzali, Arvand, Maku and Aras.

As per an agreement between the Textile Office of the Ministry of Industries, Mining and Trade and Free Trade Zone Organization, the import of apparel from free trade zones with prices higher than domestic products will face tariffs.

“Previously, the import of apparel into the country through free trade zone enjoyed a 15% discount; now it has decreased to 2%,” he said.

Sadeqi noted that Iran’s Customs Administration is also responsible for stopping the import of goods that are not labeled with identification codes.

According to the Headquarters to Combat Smuggling of Goods and Foreign Exchange, apparel tops the list of goods smuggled into Iran.

Textile, Apparel and Leather Industry Organization, affiliated to the Industries, Mining and Trade Ministry, recently announced that about 90% of foreign clothing are smuggled into the Iranian market.