Import Licensing, Tariffs
and Taxes
The Iranian government can levy a number of license fees, tariffs and taxes on
importers. Most goods are subject to some kind of charge. It is important to check with
your embassy in Iran for specific information, as the particulars of import regulations
change often.
A general license issued by the Ministry of Commerce is required for imports into Iran.
As well, the importer requires the approval of the relevant Ministry (e.g. Ministry of
Health for pharmaceuticals). Most duties are imposed on an ad valorem basis. Capital goods
and raw materials imported for foreign investments may be exempted from normal duties;
similarly medicines, wheat and other strategic goods are exempt from duties. However, most
imports are subject not only to licensing fees and tariffs, but to taxes as well.
Foreign Exchange
Imports are traded at US $1 = Rials 8,000.
Exchange control authority is vested in the Central Bank (Bank Markazi). All foreign
exchange transactions must take place through the Central Bank or authorized banks.
However, there is a black market in currency in Iran. As of February 1 998, the black
market rate for US$l was rials 4800. The black market is illegal and subject to occasional
crackdowns.
Methods of Payment
Confirmed irrevocable letters of credit terms are preferred. Terms for business
transactions were once primarily 360-day confirmed irrevocable letter of credit but sight
letters of credit are presently the norm. Barter trade arrangements, especially those
involving oil, are also becoming increasingly popular.
In recent years, Iran has developed a good reputation for repaying its debts.
Pre-shipment Inspection and
Documentation
Imports valued at more than IR 500,000 must be inspected for quantity and quality in
the country of origin by an inspection Organization recognized internationally. Goods
shipped to Iran must be supported by invoices legalized by the Iranian consulate office
and the chamber of commerce of the supplier's country, certificate of origin, bill of
lading and certificate of inspection, in the case of major imports.
Samples and Advertising Matter
Samples may be imported free of custom charges if they are of little or no commercial
value, or if they have been made unfit for use. Small quantities of advertising matter are
admitted duty free. Samples of value may be entered against bond or by guarantee of a
reputable Iranian merchant that they will be re-exported within a specified time. Iran is
a signatory to the International Convention to Facilitate the Importation of Commercial
Samples and Advertising Materials.
