Amendments to New FX Policy Introduced

EghtesadOnline: New amendments were introduced into Clause V of the government’s new foreign currency policy on imports during a Cabinet meeting held last week.

News ID: ۷۸۳۷۶۸

26 August 2018

Under Clause V, goods imported after the implementation of the new forex policy can receive customs clearance only if importers pay the surcharge on exchange rate difference between the government’s subsidized foreign currency rate (42,000 rials per dollar) at which they registered their import orders before the new policy took effect, i.e. on August 7, and the value of foreign currency presently determined by the Secondary Forex Market.

As per the amendments ratified by the Cabinet on Monday, the exchange rate surcharge was set at 28,000 rials per dollar and the importers are required to clear their goods within a maximum six months from the customs clearance date, IRNA reported.

Importers who fail to pay the surcharge will be introduced to the ‘Tazirat’ organization (a judiciary-affiliated oversight body dealing with trading offenses) and might face the risk of not receiving foreign currency for future imports, according to Financial Tribune.

The government also exempted importers of manufacturing machinery, production lines’ spare parts, chemicals, raw materials needed for manufacturing and the raw materials of pharmaceuticals as well as the raw materials for production of medical equipment from paying the exchange rate surcharge.

An increasing number of consignments have been piling up at customs terminals of major Iranian ports, without being claimed by their owners since the government has unveiled its new forex policy and its controversial Clause V.