Trade Policies & Trade Composition

Trade Policies

Iran’s main interest in foreign trade depends on the long-term relationship and presence the country has to offer Iran. Therefore trade relationships with companies and countries that provide a transfer of technology and know-how, development of import-led substitution and export led growth activities are favored.

According to customs laws & regulations, the value of goods and commodities entering Iranian customs is calculated on the basis of the CIF value plus registration fees plus all other expenses and charges applicable to goods and commodities in question until their arrival to the first port of entry. Furthermore, this calculation is done on the basis of the documents submitted by the owner of the goods and commodities and on a floating rate of exchange basis.

Where domestic production for a particular product dose not meets the market needs within the country, special permits are granted for limited importation of certain goods. In fact this permit is a way of putting ration on importation of goods where a specified ceiling is set on the value, weight and quantity of imported goods and commodities. As indicated in the tables annexed to the Import and Export Regulations, the import of certain goods and materials to the country is permitted on condition that there is no domestic production for the goods and materials in question. In such cases obtaining the required certificate of “No Domestic Production” for importation of the said goods is necessary.

Restrictions on the importation of goods and commodities to the country are divided into three main categories: 

·         Religious restrictions concerning those goods and commodities which are forbidden by Islamic laws.

·         Legal retractions concerning the importation of guns, ammunition, drugs, non - standard and unhealthy goods or goods contaminated with radio- active materials.

·         Economic restrictions supporting domestic industries and productions including 

o        Restrictions on materials and goods for which there is adequate domestic production.

o        Restrictions on unnecessary and luxurious goods and commodities.

·         Restrictions on the export of goods are as follows:

·         Religious restriction on the export of goods which are forbidden according to Islamic Laws.

·         Legal restrictions which are implemented based on the prevailing situation.

The limitations placed on certain export goods in the country are mainly for the protection of domestic consumers and include those consumer goods or domestic industries for which there is inadequate domestic production.

Composition of Trade

The table below represents Iran's trade by sector during 2007/2008.

Source: Customs of the Islamic Republic of Iran

Top Trade Partners

Based on the 2007/2008 trade figures, Iran's top trade partners include UAE, Germany, China, Switzerland Iraq, India, South Korea, Turkey, and Italy, among others. The table below lists Iran's top ten trade partners, according to both exports and imports, in the Iranian year corresponding with 2007/2008.

Source: Customs of the Islamic Republic of Iran