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1.GENERAL PRESENTATION:
1 - 1. General characteristics:
| Official Name: |
Islamic Republic of Iran. |
| Area: |
1648000 km². |
| Population: |
67.28 millions inhabitants (Midyear -1995). |
| Density: |
41 inhabitants per square kilometer. |
| Capital: |
Tehran. |
| Climate: |
The climate of Iran is dry and hot in summer, harsh in winter. Low annual rainfalls.
At times, the difference of temperature levels between day and night is 50 degrees centigrade. |
| Main holidays: |
February 9th, February 11th, March 20th to 24th, April 1st, April 2nd, April 28th,
May 31st, June 5th, June 15th, July 14th, September 29th, Eid-ul-Fitr*, Eid-ul-Adha*, Muharram 1st *, Mouloud*,
Ashoura*, Birthday of 12th Imam*, Tashua*, Edi-Qorban*, Eid -e- Qadir* and Ascension of the Prophet Mohammed *.
(*) Variable Dates. |
| Weekly day off |
Thursday p.m. - Friday |
1 - 2. General information:
| Language: |
Farsi is the official language. French, English and Germany are spoken. |
| Currency: |
Iranian Rial (IR). 1 US$ = 1747.5 IR (End of 1995). |
| Local time: |
GMT + 3.5 (or GMT + 4.5 from March 21st to September 21st ). |
| Working hours: |
- Commercial establishments:
- Summer (Saturday – Wednesday): From 8H to 13H and from 17H to 19H or from 8H to 17 H.
- Winter (Saturday – Thursday): From 8H to 13H
- Winter (Saturday – Wednesday): From 16H to 18H
- Government offices (Saturday – Wednesday): From 7/8H to 13H30 or to14H30.
- Banks (Saturday – Wednesday): From 8H to 16H / (Thursday): From 8H to 13H
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1 - 3. Legal framework of trade relations:
Iran is member of the following international organizations:
| United Nations Organization (UN) and its main specialized institutions ; |
| Organization of the Islamic Conference (O.I.C) and its specialized institutions; |
| Economic Co-operation Organization (E.C.O); |
| Organization of Petroleum Exporting Countries (O.P.E.C); |
| Group - 77. |
Several economic co-operation agreements and trade conventions were signed between
Iran and the member states of ECO like Afghanistan, Azerbaijan, Kazakhstan, Kyrghistan, Pakistan, Tajikistan, Turkey,
Turkmenistan and Uzbekistan.
In April 1995, Iran signed an economic co-operation memorandum with Armenia and
Turkmenistan.
In July 30th 1995, Iran signed with the Kingdom of Morocco a trade co-operation
agreement.
2. TRADE STRUCTURE:
2 - 1. Main exported products (1996):
| Petroleum; |
| Hand-woven carpets; |
| Fruit; |
| Nuts; |
| Hides and skins; |
| Iron and steel. |
2 - 2. Main imported products (1996):
| Machinery; |
| Military supplies; |
| Metal works; |
| Foodstuffs; |
| Pharmaceuticals; |
| Technical services. |
2 - 3. Trading partners (1995):
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Main suppliers
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Main customers
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Germany
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Germany
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Japan
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Italy
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Italy
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United Arab Emirates
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Great Britain
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Turkey
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United Arab Emirates
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Swiss
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Belgium
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Japan
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3.FOREIGN TRADE REGULATIONS:
3 - 1. Imports regulations:
There are three import categories:
Products imported within the framework of the general regulations are: machinery,
industrial equipment;
The products which are imported under special conditions are the following: drugs,
food products, cosmetics;
The products which are prohibited for imports: alcoholic beverages, pork meats,
narcotics products, guns, ammunitions, aerial photo cameras, transmitter receiver apparatus, vulgar films, unpleasant
records, cassettes, videos, indecent photographs or any kind of fashion magazine.
At import level the following documents are required:
Commercial invoice: Four (4) copies are in general recommended and must be
certified by a recognized chamber of commerce.
Motor vehicles, tires, and tubes may be imported only if accompanied by invoices
issued by the actual manufacturer;
Certificate of origin: Two (2) copies must be sent if requested by the importer
or the letter of credit. The certificate of origin should contain the name of the country of origin, name of the
shipper, the name of the consignee and a statement describing the goods, specifying the kind, the weight and the
shipped quantity;
Bill of lading: Two (2) copies should be sent to the importer's bank. A bill
of lading customarily shows the name of the shipper, the name and address of the consignee, the port of destination,
description of goods, the listing of the freight and other charges, the number of the bills of lading in full set
and the carrier's official acknowledging receipt on board of the goods for shipment;
Pro forma invoice: Manufacturers and suppliers must provide a pro forma invoice
to Iranian importers who must then submit it to the bank coupled with a farsi language translation of this document.
3 - 2. Exports regulations:
In compliance with the Export regulations, the following documents must be produced:
Certificate for veterinary products: This certificate must indicate that
the product is free from disease and toxicity;
Free sale certificate: This certificate should state that the sold commodities
are in free circulation in the exporting country;
Health certificate: The imports of animals, animal products, food products
and plants require a health certificate from the country of origin.
3 -3. Other formalities and documents:
Exporters must contact the Iranian authorities to obtain information on the modalities
and legalization that should be applied.
As concerns the imports of goods for which letters of credit have been opened, priority
should be given to Iranian carriers.
Standards and provisions:
Most of the articles that are sold in Iran are submitted to quality control;
Labeling: There are special labeling regulations for pharmaceutical , foodstuffs
sold in containers, beverages, mineral waters, syrups, juices and extracts and toilet and beauty articles and accessories.
It is advisable that labels, instructions and description of imported goods be printed in Farsi (Persian);
Marking: All packages should show gross weight in kilograms or metric tons.
In general, all identifying marks should include the consignee's mark and port marks. They should be clearly indicated
to facilitate the arrivals of shipments;
Packing: All goods consigned to Iran should be adequately packed in order
to be protected against rough handling, extreme heat and pilferage. Containers should be adequately waterproofed.
4. FINANCIAL REGULATIONS OF FOREIGN TRADE OPERATIONS:
4 - 1. Banking system:
The Iranian banking system is constituted of the Central Bank or Bank Markazi Joumhouri
Islami Iran, deposit banks, specialized banks and provincial banks.
Private banks were nationalized but there are still 30 foreign bank agencies in
Iran.
The main government banks: Central Bank, Bank Keshavarzi, Bank Mellat, Bank Melli
Iran, Bank Refah Kargaran, Bank Saderat Iran, Bank Sanat va Madan, Bank Sepah, Bank Tejarat and the Islamic Economy
Organization.
4 - 2. Foreign exchange system:
The foreign exchange system consists of two rates: the official rate and the Export
rate.
The official rate is mainly used for the payment of essential goods;
The Export rate is used for all other import payments.
The central bank administers all foreign exchange control.
Currency restrictions: There are no restrictions on the import of foreign currency
if declared on arrival. Export of foreign currency is allowed up to the declared limit of imported goods. Import
of local currency is allowed up to RL 20,000 and its exports up to RL 200,000. Any amount larger than that requires
authorization from the Central Bank.
4 - 3. Methods and means for international settlement:
The payment of imports may be made in foreign currency provided that the currency
was obtained from Iranian banks before the release from customs of imported goods.
The most used method of payment is the irrevocable letter of credit.
5.CUSTOMS TAXATION:
Iran uses Customs Co-operation Council Nomenclature system. Customs tariffs are
published at the beginning of each Iranian new year.
5 - 1. Applicable duties and taxes:
Customs duties: Customs duties are imposed on an ad valorem basis and payable
in Iranian Rials at the rate of exchange fixed by the Central Bank.
Customs duties range between 5 and 375 % but they are very influenced by the exchange
rates.
Preferential duties: In general agreements on preferential duties are concluded
between the ECO countries, Islamic countries and Iran.
Specific duties: Specific duties are in general assessed on the basis of
the gross weight and quantity of the product.
Customs surcharges and indirect taxes: Commercial benefit taxes (CBT) include
monopoly taxes. They are assessed on an ad valorem basis and levied on the sum of CIF value and charges. The tax
must be paid before customs clearance.
5 - 2. Special provisions:
Trade samples and advertising material are also imported duty-free.
6. FOREIGN TRADE LOGISTIC:
6 - 1. International transports:
Maritime transports: In the North of Iran, Bandar Nowshahr and Bandar Anzali
ports are the main Iranian ports that are linked to the Persian Gulf states and Karachi. Non-oil ports are Bandar
Shahid Rajai, Bandar Khomeïni, Bushehr, Bandar Abbas and Chah Bahar.
Air transports: Iranian national airlines are Iran Air. Other foreign companies
serving Iran include Air France, British Airways, KLM, Lufthansa and Swissair.
The international airport: Tehran (THR) or Mehrabad is 5 km west of the city and
Abadan international airport is located on the Iraqi-Iranian border.
There is also a small international airport in Isfahan and tree others airports
under construction in Tabas, Ardebil and Ilam.
Land transports: Railways: Sleeping cars run once a week from Moscow to Ankara via
Tehran. The Qom-Zahedan line which is under construction will link Europe with India. The railways in Iran extend
over more than 4647 km.
Road network: The domestic road network exceeds at present 51300 km of paved roads
and 490 km of motorways.
6 - 2. Telecommunications:
The telecommunications network of Iran includes international telephone lines. The
Central Post Office is located in Tehran. Telex, telegram services are also available at the Central Telegraph
Office of Meydan Sepah, as well as at the major hotels of the country.
6 - 3. Distribution system:
The recent evolution of the progressive liberalization in Iran may lead to the gradual
disappearance of commercial agents. In fact, the distribution system of Iran does not include private and big stores.
The market is mainly supplied by the governmental central buying offices, local factories and para-public institutions.
7. USEFUL ADDRESS:
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ORGANIZATIONS AND PUBLIC ESTABLISHMENTS
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ADDRESS
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TEL/TELEX/FAX
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| Ministry of commerce. Office of International Affairs. |
N. Kargar Street Laleh Park. P.O.Box. 15745 -365 Tehran 14187. |
Tel: (9821)890925
Telex: 226284 itsr ir
Fax: (9821)893945
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| Export Promotion Centre of Iran. Trade Information Centre. |
Valie-Asre Shahid Charman Highway P.O.Box. 1148 Tadjrish Tehran 19395. |
Tel: (9821) 2040251
Telex: 213397 epci ir / 212896 fair ir
Fax: (9821)2042858
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| Ministry of commerce. IRI Trade Centres |
43, Jahad Square, 6th Floor Tehran 14316. |
Tel: (9821)653240/2
Fax: (9821)8857466 |
| Iran chamber of commerce, industries and mines. Public relations. |
254, Taleghani avenue P.O.Box. 15875-4671 Tehran 15814 |
Tel: (9821)8830064
Telex: 213382 tcim ir
Fax: (9821) 882511
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| Bank Markazi Joumhouri Islami Iran (Central Bank) |
Ferdowsi Avenue P.O.Box. 1136-58551 Tehran |
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| Ports and Shipping Organization |
751 Enghelab Avenue, Tehran |
Tel : (9821)837041
Telex : 212271. |
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Iran
