Le blog de GUILLOT-PARS associates

Depuis 6 semaines nombre de boutiquiers font grêve à Téhéran pour obtenir le retrait de la mise en application de la TVA.

Cette mesure avait déja été suspendue il y a un an.

Il est vrai qu'elle est révolutionnaire par ce qu'elle implique en fixation des prix, comptabilité, fiscalité, en deux mots formalisme et controle.

M. Ahmadinejad poursuit sa campagne de vérité des prix.

Son abolition des subsides aux produits de base a été une réussite.

Parviendra-t-il à faire plier les bazari , principaux soutiens du régime?

L'épreuve de force est en cours!

Chers confrères de toutes spécialités, courez voir ce film d'Asghar Farhadi comme ses films précédents "A propos d'Elly" et "La fête du feu".

Quelle humanité! Quelles subtilités!

A vous faire réviser toutes vos idées reçues sur ces barbares d'Iraniens.

Pour nous, avocats, la justice iranienne, civile et pénale, paraît sans avocat puique il n'y en a aucun dans le film alors qu'il s'agit de divorce, de garde d'enfant, de meurtre et d'enquêtes.

C'est presque vrai puisque le Coran ne prévoit d'avocat que pour les étrangers et les Sourds.

C'est pourquoi je suis devenu l'avocat des sourds et de la langue des signes en parallèle à ma spécialité de droit des relations internationales!

Farda in-e- blog tatil. Bonnes Vacances!

A ce propos connaissez vous le paradis pour un Iranien:

- travailler comme un Iranien;

- gagner comme un Américain;

- avoir des vacances comme un Français.

Comme les Chinois adorent passer leurs vacances en France, rien n'est perdu pour la planète!

Gérard GUILLOT

IRAN : L'APARTHEID SEXUEL

La théocratie iranienne estime que la mixité est une valeur de l' « Occident » qui entraine la corruption des moeurs.

Elle souhaite la séparation des sexes dans la vie sociale.

Plages séparées, voitures de métro et trains distincts, femmes au fond des bus, taxis pour femmes etc...

Un ministre vient de réclamer la séparation des sexes à l'université.

Demain, il sera sans doute prôné des entreprises de femmes, des rues pour femmes...

Cette société iranienne est un mélange de modernisme et de puritanisme.

Les femmes conduisent, étudient, travaillent. On est loin de l'Arabie Saoudite et de nombre de sociétés musulmanes où la femme est réduite à la procréation et au ménage.

On pourrait aussi prôner une Présidente de la République distincte, une Première Religieuse, des conductrices de prière pour les femmes etc...

Peut-être un pays d'hommes et un pays de femmes, les filles élevées par les femmes, les garçons par les hommes.

Fascinant ! Déprimant !

En Iran comme en Chine, on constate qu'il peut y avoir des divergences au sein du parti unique ou de la théocratie et cela est normal dès lors qu'il n'y a pas dictature d'un homme, mais d'une classe ou d'une religion.

il convient de rappeler qu'en Iran les adversaires électoraux du Président réélu étaient tous membres du principal organe politique du régime, le Conseil de Conciliation (Expediency Council), organe chargé du règlement des divergences entre le Conseil des Gardiens (Conseil Constitutionnel en charge de faire respecter la Constitution et la Sharia) et le Parlement.

Le Président s'insurge aujourd'hui contre une volonté expansionniste du Parlement qui voudrait étendre ses prérogatives sur divers domaines de l'exécutif.

De vifs échanges ont lieu actuellement entre les 3 pouvoirs à propos de la désignation et du contrôle du Directeur de la Banque Centrale.

Le Président exige qu'il reste sous son autorité et que le Parlement, comme le chef du Judiciaire, n'interviennent pas.

Après des mois d'attente ce plan est entré en vigueur ce Dimanche 19 Décembre 2010.

Première étape, l'essence est libéralisée avec maintien d'une sauvegarde:

Le prix subventionné de 1000 rials le litre, soit 7 cts d'euro - très inférieur au coût de production - est dèsormais limité à 50 litres par mois;

les 60 litres suivants ont un prix multiplié par 4 et les suivants un prix multipliés par 8.

L'Iran compte ainsi arriver à un prix de marché et réduire une consommation excessive.

Des dispositifs particuliers concernent les taxis et les transporteurs.

On peut imaginer que les vieilles Peykan , grosses consommatrices, ont leurs jours comptés.

La deuxième étape va concerner le gaz et l'électricité; la farine et donc le pain suivront.

En contrepartie les allocations à la personne de 58 euros par mois commencent à être virées sur les comptes bancaires des ayants-droit

LEGAL INFORMATION SERVICE de PARS ASSOCIATES des 2 et 9 Mordad 1387 :

Le 18 Mai 2008 le Parlement iranien a approuvé l'adhésion de l'Iran à la Convention des Nations Unies sur l'immunité des Etats et de leurs biens du 2 Décembre 2004 . Le Conseil des Gardiens n'a pas fait objection et le gouvernement a été autorisé à la ratifier.

En ce qui concerne le dispositif de règlement des conflits organisé par l'article 27 de la convention, le Parlement iranien n'a accepté la soumission du conflit non résolu par la négociation à l'arbitrage ou à la Cour internationale de Justice qu'en cas d'accord conforme de toutes les autres parties au différend

Maitre Gérard GUILLOT, membre de PARS ASSOCIATES, présente à ses fidèles lecteurs les numéros 614 et 615 du magazine " LEGAL INFORMATION SERVICE " édité par son cabinet à TEHERAN.

Ils sont consacrés pour l'essentiel à la nouvelle loi iranienne sur les brevets.

Bonne lecture

Les conditions et limites des opérations financières d'étrangers en bourse, tel est le contenu essentiel de Legal Information Service 601/602.

Ce bulletin comporte

- le détail des frais consulaires,

- la circulaire sur le salaire minimum et l'augmentation des salaires en 1387 (2008/2009)

- un extrait substantiel des conditions d'intervention des étrangers sur le marché des valeurs iranien figurant dans la loi sur les instruments financiers de 2006

PARS ASSOCIATES fait le point dans un double numéro de LEGAL INFORMATION SERVICE des 9 et 16 Janvier 2008 sur les conditions administratives ( visas, permis de séjour et de travail etc... )et les conditions fiscales et sociales de l'emploi d'étrangers en IRA N.

Ce double numéro en Anglais est proposé ci-après

Loi du 30 Avril 2007 qui définit les travaux pénibles,organise leur constat et arrête les conséquences, y compris sur les droits à retraite.

Ce texte pourrait inspirer les partenaires sociaux et pouvoirs publics français qui bloquent depuis des années sur cet aspect essentiel des droits des salariés.

THE NEW REGULATION PERTAINING TO HARD AND INJURIOUS

WORKS

Official Gazette No.18106 published on April 30, 2007

Decree of the Council of Ministers, No. H36005T/15365 dated April 25, 2007

To:

- Ministry of Welfare & Social Security

- Ministry of Labour & Social Affairs

- Ministry of Health, Medical Treatment and Education

- Social Security Organization

The Council of Ministers, in the course of a Session held on March 16, 2006, pursuant to a draft proposed jointly by the Ministry of Labour and Social Affairs, Ministry of Health, Medical Treatment and Education and the Social Security Organization, under letter No.77197 dated September 19, 2006, approved the new Regulation Pertaining to Hard and Injurious Works by virtue of the law on amendment of Articles 72, and 77 and the Note under Article 76 of the Social Security Act, approved 1389, as follows:

Article 1- Hard and injurious works are the ones that shall be performed in an environment of non-standard, physical, chemical, mechanical and biological condition creating constraint, due to such engagement, much higher than a workers' natural capacity (both physical and mental) and resulting in occupational diseases and their consequential effects. The hard and injurious works mentioned in this present Article 1 shall be divided into two groups as follows:

a) The works that, in view of their nature, are considered to be hard and injurious, but they can change into normal non-injurious works through adopting certain hygienic, safety and technical measures, by employers concerned.

b) The works that, in view of their nature, are considered as hard and injurious and will remain hard and injurious regardless of any hygienic, safety and technical measures that will be taken by employers.

Note- Those falling under the provisions of the Law on the Mode of Retirement of the Cripples of Islamic Revolution and the Imposed War and Ordinary Cripples of Hard and Injurious Works, approved 1988 as Amended, as well as the individuals subject to the Law on Protection Against Radiation, approved 1989, shall remain protected by the provisions of the pertinent laws and regulations.

Article 2- Hard and injurious works under Article (1) above and their classification under groups (a) and (b) shall be determined upon review and examination of records, and inspection and examination of the conditions relevant to such works by the occupational health experts affiliated with the Ministry of Health, Medical Treatment and Education as well as the inspectors of the Ministry of Labour and Social Affairs and after confirmation of the relevant reports by provincial committees that will be set up pursuant to these By-Laws.

Note- As regards the instances described in Sub-clause (a) of Article 1 above, where there shall exist standards for elements causing diseases, final decision by the above provincial committees, shall be made after examination and according to opinions given by the experts concerned at the Ministry of Health, Medical Treatment and Education, or the pertinent centers operating under license given by the said Ministry, regarding hazardous levels.

Article 3- Employers in workshops where the whole or a part of their jobs shall be considered as hard and injurious according to First Instance or Appellate Provincial Committees' opinions, or by the High Council of Technical Protection shall, within 2 years after the date of receiving the final verdict of the provincial committee or that of the High Council of Technical Protection, render the conditions prevailing in the work environment safe and secure, in conformity with the authorized levels and standards specified in the Labour Law and in the relevant directives and regulations (approved by the High Council of Technical Protection) as well as in other applicable regulations and shall eliminate the hard and injurious characteristics and nature of the jobs described in Sub-clause (a) of Article 1 above and shall report the results, in writing, to the First Instance Committee set up under Article 8 of this present Regulation, for the purpose of investigation and confirmation by the said Committee.

Note- The Ministry of Labour and Social Affairs and the Ministry of Health, Medical Treatment and Education shall inspect the conditions at the workshops where their conditions were considered hard and injurious after expiry of the above 2-year period, and shall report their findings, in writing, to the First Instance Provincial Committee.

Article 4- Employers at the above workshops shall be duty-bound to have their work-force engaged in hard and injurious works, medically checked up by health and medical treatment centers, at least once a year, in order to ascertain and assure their physical health, to timely diagnose the potential ailments and sicknesses, and to prevent their physical and mental deterioration, and to keep the results of medical examinations in the relevant files. A copy of such records shall be submitted to the Social Security Organization.

Note 1- In cases where an insured worker shall be exposed to physical and mental deterioration due to being engaged in hard and injurious works, his occupation and position shall be changed in conformity with the provisions of the Labour Law.

Note 2- Medical examinations prior to employment shall be carried out in conformity with Article 90 of the Social Security Act, approved 1975 (1354).

Note 3- In case of failure, on the part of employers, in fulfillment of their obligations set forth in Para 2 of Sub-clause (a) of the Sole Article on Amendment of Articles 76, 72 and Note under Article 76 of the Social Security Act, approved 1975, the Social Security Organization shall carry out its obligations towards the workers concerned and shall collect the costs from the defaulting employer according to the provisions of Article 90 of the Social Security Act.

Article 5- By virtue of Note 1 under Article 96 of the Labour Law, the requirements and criteria applicable to the medical examinations described in Article 4 above, including the ones carried out prior to employment and the specialized ones performed periodically on recurrent basis, as well as any other medical examinations undertaken in this regard, shall comply with the current directives and applicable regulations of the Ministry of Health, Medical Treatment and Education.

Note- The Ministry of Health, Medical Treatment and Education shall notify and communicate, to the organizations concerned, the results of medical examinations mentioned in Article 4 above pertaining to the duties and functions of the said organization.

Article 6- First Instance Provincial Committees, pursuant to reports by the experts mentioned in Article 2 above, shall conduct examinations in order to see that the hard and injurious nature of the jobs mentioned in Sub-clauses(a) and (b) of Article 1 remedied, and may exempt the workshop concerned from the provisions of this Regulation.

If the hard and injurious nature of the jobs under Sub-clause (a) of Article 1 above, shall not be remedied during the prescribed respite, necessary actions will be taken by the Ministry of Labour and Social Affairs and the Ministry of Health, Medical Treatment and Education through competent authorities in charge.

Note- In cases where according to reports by experts mentioned in this Article that have been confirmed by first instance and appellate provincial committees, the injurious, hazardous, and dangerous elements in the work environment shall not be remedied, eliminated or reduced within the respite provided by law, necessary actions will be taken by the Ministry of Labour and Social Affairs and the Ministry of Health, Medical Treatment and Education.

Article 7- Policy making process in respect of hard and injurious works as well as investigation of requests made by first instance and appellate provincial committees mentioned in this Regulation, shall be within the responsibilities of the High Council of Technical Protection.

The executive directive and procedures on the mode of operation of the above committees and supervision of their activity shall be proposed by the Ministry of Health, Medical Treatment and Education, the Ministry of Labour and Social Affairs, and the Social Security Organization and shall be approved by the High Council of Technical Protection.

Note- The Managing Director of the Social Security Organization and the representative of the Minister of Health, Medical Treatment and Education, who shall have voting right in respect of matters pertaining to hard and injurious works, shall be members of the High Council of Technical Protection as of the date of approval of this Regulation.

Article 8- In order to identify and classify hard and injurious jobs on the basis of the policies of the High Council of the Technical Protection, provincial first instance and appeal committees each having five principal and five alternate members who shall be appointed and to who maybe reappointed after the expiry of the said three years shall be set up in every province.

A. The first instance committee shall consist of the following members:

1. Director General of the provincial Labour and Social Affairs Department who shall preside over the committee.

2. Deputy Chairperson (health matters) of the University of Medical Sciences and Health Services.

3. The Director General of the provincial Social Security Administration.

4. One labour inspector who shall be appointed by the provincial Labour and Social Affairs Department General.

5. One expert in charge of occupational health who shall be appointed by the Medial Treatment Director of the provincial SSO.

Note 1- Meetings of provincial first instance and appeal committees shall be held at the Labour and Social Affairs Organization in the province. The meetings of the Committee shall have quorum by presence of four principal or alternate members. The decisions of the Committee shall be adopted by a majority of the votes of those who participate at the meeting.

Note 2- In provinces where there exists an independent faculty of medical sciences and health services dealing with certain matters in connection with hard and injurious works in the region, the expert in charge of occupational health appointed by the Deputy Chairperson (health) of the said faculty shall substitute the expert in charge of occupational health appointed by Health and Treatment Services Department.

Note 3- Upon approval by the provincial committee, it shall be authorized to call knowledgeable individuals and university professors to attend the meetings without having the right of vote.

Note 4- In provinces where workers and employers organizations mentioned in paragraphs 4 and 5 above have not been formed yet, the above mentioned representatives shall be appointed from among the members of other majority formations in the province, at the discretion of the Labour and Social Affairs Department, introduced by the said formations.

Note 5- Appeal may be sought, within 15 days after the date of notification and service of verdicts issued by first instance committees, by both parties (workers and employers) concerned. Appeal shall be lodged, in writing, with the local Labour and Social Affairs Department.

Note 6- No member of first instance committee may, at the same time, serve as a member of the appellate committee. Also, the members of first instance committees who shall be later appointed to act as members of appellate committees, shall not have the right of voting in respect of the cases to which they voted at first instance committees.

B. Appellate provincial committees shall comprise the following members:

1. The Head of Labour and Social Affairs Department of the relevant province, who shall act as the chairman of the committee.

2. The General Manager of the Social Security Department of the relevant province.

3. The health affairs deputy dean of the Medical and Health University/College in the province.

4. The workers' representative designated by the majority (workers) formation of the province, at the discretion of the provincial Labour and Social Affairs Department.

5. The employers' representative introduced by the guilds society of employers in the relevant province.

Note 1- A verdict issued by appellate provincial committee shall be final and binding, as of the date of service.

Note 2- If provincial centers of workers and employers mentioned in Sub-clauses 4 and 5 above have not been formed, the said representatives shall be appointed from among the members of the formations holding majorities, at the discretion of the Labour and Social Affairs Organization of the province who shall be introduced by the said majority holder formations.

Note 3- In case of parity of the votes cast in favor and against a resolution, whether in first instance or in appeal, a further meeting shall be held in presence of all members.

Note 4- Provincial committees, in their verdicts, shall determine the type of hard and injurious nature of the jobs described in Sub-clauses (a) or (b) of Article 1 above.

Note 5- In provinces where there exists an independent faculty of medical sciences and health services, dealing with certain matters in connection with hard and injurious works in the region, the expert in charge of occupational health appointed by the Deputy Chairperson (Health) of the said faculty shall substitute the expert in charge of occupational health appointed by Health and Treatment Services Department.

C. Upon approval by the provincial committee, it shall be authorized to call knowledgeable individuals and university professors to attend the meetings without having the right of vote.

D. Employers shall be bound to cooperate with the experts mentioned in Article 2 as well as those mentioned in Article 8 of above who act on behalf of the pertinent committees and to provide them with their required documents.

Article 9- The duties and functions of first instance and appellate provincial committees shall be as follows:

A. The duties and functions of first instance provincial committees shall be as follows:

1. To investigate, identify and determine hard and injurious jobs in conformity with the provisions of this present Regulation that have been reported to the committee as hard and injurious works and jobs by insured workers, employers, the Ministry of Health, Medical Treatment and Education, the Ministry of Labour and Social Affairs, the Social Security Organization and/or the pertinent formations and to report the results of their investigations and verification to the applicant as well as to the organizations in charge, through the Chairman of the first instance committee.

2. To review and examine the job(s) that have been proved to be safe and non-injurious after adopting the required measures and which have subsequently fallen under ordinary jobs category, and to communicate the facts and circumstances, in this regard, to the authorities concerned in order to revoke and cancel the advantages and benefits applicable to workers in hard and injurious jobs.

3. To enforce and execute the policies and decrees communicated by the Technical Protection High Council.

B. The duties and functions of appellate provincial committee shall consist of the investigation, declaring opinion on and to adopt necessary decisions in respect of objections made and appeals sought from the verdicts issued by first instance provincial committees mentioned in Article 8 of this Regulation by insured workers or employers concerned and to declare the result of investigations made by the Appellate Committee to the applicant of investigations and to the organizations concerned. Communication of investigations shall be made by the chairman of the appeal committee.

Article 10- The Ministry of Health, Medical Treatment and Education shall annually notify to the Technical Protection High Council, the extent and degree of workers' exposure to ailment-triggering agents in the case of each and every job. Accordingly, the said High Council shall communicate the facts and circumstances in this regard, for due implementation, to the hard and injurious works provincial committee.

Article 11- In addition to the hard and injurious jobs specified and described in the decrees of the Technical Protection High Council and the ones confirmed by provincial committees, also the following works shall fall under hard and injurious works categories:

1. Works in prisons in direct contact with prisoners.

2. Works in psychiatry centers performed in direct contact with psychopaths.

3. Reporters works.

Note- Instances of reporters works covered by these regulations shall be determined upon confirmation by first instance committee mentioned in Article 8.

Article 12- The manner of specifying successive and recurrent engagement in hard and injurious jobs:

1. The following periods of time shall be considered as record of being engaged in hard and injurious jobs, if they fall within the intervals of being engaged in such works:

a) Week-ends.

b) Official holidays.

c) Paid leave (annual).

d) The days on which an employee shall be on paid leave for marriage, the death of spouse, father, mother or children for 3 days, in the case of the workers being subject to the Labour Law.

e) The days on which an employee shall be on medical leave, including both the ones that shall be paid by the employer and the ones paid by SSO.

2. The following periods of time shall not affect the recurrent engagement of a worker in a hard and injurious job, even if they fall within the intervals of engagement in such jobs.

a) The period of compulsory military service, provided that, after completion of the service, the insured worker either returns to and resumes the earlier occupation not later than two months after the date of completion of his military service, or shall become engaged in another hard and injurious job.

b) The period of time during which an insured worker shall be detained or shall be under custody, provided that the said period shall not terminate in his conviction, or if the employer shall be legally obligated to pay to the insured worker, the wage or the salary applicable to the said period.

c) The period of suspension of work which may arise out of force major (such as flood, earthquake, war, conflagration or fire and/or social turmoil) being out of reasonable control of the employer and the insured worker, as a result of which the workshop may temporarily close down.

d) The period of time during which the insured worker may utilize and take advantage of the unemployment insurance pension, provided that prior to or immediately after termination of the said period, the insured worker shall become engaged in a hard and injurious job, or shall be found eligible for retirement, in conformity with the these by-laws.

e) The period of service in war fronts, upon confirmation and endorsement by competent authorities.

f) The period during which the insured worker shall be considered a political convict or shall be held captive and accordingly shall be considered as a prisoner of war.

g) The period of time during which the insured worker shall be suspended from his job by virtue of a verdict issued by a Board of Settlement of Disputes and/or other legal forums, resulting in payment of the salary/wage applicable to such period.

h) The period of time falling between August 1, 1975 (10.05.1354) and June 22, 1980 (01.04.1359) during which the insured worker may have collected sickness period wage compensation.

i) The one month unpaid leave under Article 67 of the Labour Law.

3. The following periods and instances shall affect the recurrent nature of a hard and injurious job, if they fall within the intervals of engagement in such jobs, with the result being that the engagement of the worker in a hard and injurious job shall be considered to be of a successive kind:

a. The period of leave without pay, for any purpose whatsoever, in addition to the leave taken according to Sub-clause 2-i above.

b. Any discharge, resignation, dismissal and collection of the amount payable to a worker as severance compensation, provided however, that the worker shall not be engaged in hard and injurious works or shall not be able to become retired hereunder within a maximum period of two months after the date of termination, according to the above instances.

c. Engagement in ordinary jobs and occupations for a period of one month.

d. Engagement in free lance occupations for a period of one month.

e. Taking optional insurance for a period of one month, without having an employer.

f. Unemployment without collecting unemployment pension in excess of two months.

g. Other similar instances.

Article 13- Requirements for retirement in hard and injurious occupations shall be as follows:

1. Insured workers having a minimum of 20 recurrent or 25 successive years of record of service and equal record of payment of insurance premium on account of hard and injurious works shall be allowed to apply for retirement irrespective of their age.

2. If the medical committees mentioned in Article 91 of the Social Security Act shall diagnose and confirm the physical and mental deterioration of the insured worker resulting from engagement in hard and injurious jobs, before such workers shall meet service record requirements prescribed in Clause (1) above.

3. However, such workers shall not be authorized to leave or desert their positions. They shall be required to continue with the discharge of their duties until such time when the Social Security Organization shall notify their entitlement to early retirement, due to their hard and injurious jobs records.

4. Notwithstanding the above, if an insured worker shall meet the requirements for early retirement in hard and injurious works, in conformity with the provisions of this Regulation, the SSO shall be bound to pay pension to such worker as of the date the worker leaves and deserts his job and position.

5. The insured workers who are presently employed and who already have a minimum of 20 recurrent or 25 successive years of insurance premium payment record in hard and injurious jobs dating back to a period before the relevant law was approved, or those who will meet similar requirements in future, shall be authorized and entitled to submit an application for retirement to the SSO, in conformity with Clause (1) above.

Article 14- After it shall be established that a worker in a hard and injurious job is entitled to retirement, the employer of the workshop concerned shall be bound to pay to the SSO in a lump-sum amount equal to four percent (4%) of the pension specified by the SSO for the insured worker, in proportion to the years of engagement in hard and injurious jobs in that workshop.

Article 15- The effects of restrictions and benefits stipulated in the Law with respect to the cases resulting in retirement as per the provisions made of these by-laws, shall exclusively apply to a specific job, in a specific workshop, and shall not apply and extend to similar jobs in other workshops.

Article 16- Enforcement of these by-laws in the case of workers falling under the provisions of the Social Security Act engaged in hard and injurious works and jobs by the Ministry of Defense and Logistics of the Armed Forces and the companies and organizations affiliated with the Armed Forces, on contract basis, shall be in accordance with the regulations and criteria governing the Armed Forces. Regulations shall apply in coordination with the Social Security Organization.

Parviz Davoodi - First Vice-President

Règlements sur les modalités du controle des changes, les procédures d'importation, d'exportation, les modalités de transport etc...

Je produis le LIS 536 ci-après, les numéros suivants sont disponibles chez PARS ASSOCIATES à Paris ou Téhéran

September 13, 20 & 27, 2006

Shahrivar 22, 29 & Mehr 5, 1385

THE CENTRAL BANK OF ISLAMIC REPUBLIC OF IRAN-FOREIGN EXCHANGE POLICIES AND REGULATIONS DEPARTMENT

A COLLECTION OF FOREIGN EXCHANGE REGULATIONS

CHAPTER I

IMPORTS OF GOODS AND SERVICES

Circular 60/1087 dated August 8, 2004

Together with Subsequent Amendments until

October 2006

(I)

Chapter I- Import of Goods & Services

Titles

---------------------------

Introduction

A) Import of Goods Through Opening Letters of Credit

B) Import of Goods and Services/Services Through

Opening Letters of Credit and Forex Transfer

C) Import of Goods and Goods-Services Through

Order Registration by Means of Sight-Time Drafts

(Bills of Exchange)

D) Import through Bank Transfer (of Books, Publications,

Goods and Goods-Services)

E) Import (of Goods and Services) by Use of

the Foreign Exchange Belonging to the Applicant Importer

F) Import of Goods and Services from Free

Trade-Industrial Zones and Special Economic Zones

into the Mainland

Circular No.60/1087 issued on August 9, 2004 with Subsequent Amendments Made until August 15, 2006

Import of Goods

Introduction

The following steps and procedures are expected to be taken by importers prior to importing goods:

1. Full compliance with the Export-Import Law and its executive by-laws.

2. Compliance with the legal requirements provided in the annual budget bill in the beginning of every year.

3. Obtaining the authorizations required for import of various commodities from the ministries and organizations concerned according to the requirements of the Export-Import Law and its executive by-laws.

4. Filling in the order registration form.

5. Undergoing tender formalities or obtaining the authorization to enter into transaction without undergoing tender formalities in respect of government transactions worth in excess of one million dollars as required by law.

6. Obtaining authorization from the Transport and Terminals Organization of Iran in accordance with the provisions of Chapter II of these Regulations (transportation, insurance and surveillance) for the commodities that will enter Iran via foreign fleets.

7. Obtaining insurance policy with due regard to the provisions of Chapter II of these Regulations (transportation, insurance and surveillance).

8. Possessing a valid commercial card or the authorizations issued on every instance for import of a single consignment by the Ministry of Commerce with the exception of letters of credit opened for purchase of services.

9. Order registration with the Department General, Office of Registration of Orders and Supervision of Commercial Exchanges of the Ministry of Commerce.

Note 1- The following goods shall be exempt from order registration formalities with the Ministry of Commerce:

a. Special military goods, with the confirmation of the Minister of Defense and Logistics of the Armed Forces.

b. Special goods of atomic energy with the confirmation of the Head of Atomic Energy Organization of Iran.

c. Import of medical equipment and supplies of the Board of Trustees of Forex Economization with the confirmation of the chairperson of the Board of Trustees.

d. The goods being the subject of the Satellite Law, transmitters, equipment for production and broadcasting and their spare parts, and the materials for production of films and TV serials by the Radio and TV Organization (Voice and Vision of Islamic Republic of Iran).

e. Goods imported via mail in the quantities fixed by the Export-Import Law.

f. Passengers accompanied goods in the quantities fixed by the Export-Import Law.

g. Commercial and manufacturing samples in the quantities fixed by the Export-Import Law.

h. Foreign books and publications as well as the scientific media imported in the form of diskettes, CD's, etc.

i. Commodities required by families in border regions, cooperative companies of the families in border regions, sailors and crews of floating vessels according to the list published in the Executive By-Laws of Export-Import Law within the limits of quantities prescribed in the said by-laws.

Note 2- Gifts and donations being the subject of Sub-clause 9 of Article 37 of the Customs Law. Provided that such goods shall not be of commercial nature as confirmed by the Ministry of Commerce. Such goods shall not require the authorizations due to be issued by the Government in respect of imported goods in accordance with the Note under Sub-clause 20 of Article 37 of the Customs Law.

Note 3- Import of commodities by Iranian subjects engaged in employments abroad shall be made after special order registration with the Ministry of Commerce and the Ministry of Labour and Social Affairs.

j. Other goods that are exempt from undergoing order registration formalities in accordance with the provisions of a law.

A. Import of Goods by Opening Letters of Credit

(As Amended through Circular No.60/1093 dated August 31, 2005)

Importers of goods shall submit, to a bank of their choice in Iran, their application for opening a letter of credit together with a copy of the order registration form certified by the Department General-Office of Registration of Orders and Supervision of Commercial Exchanges of the Ministry of Commerce.

Thereafter, the L/C opening bank shall take the following actions with due regard to the applicable criteria and regulations:

1. Checking the application made by the applicant importer and making sure that the Ministry of Commerce has agreed with such request by affixing its seal to the order registration form

1.1 Checking the application for opening L/C shall be made by making sure that the seal affixed to the order registration form is genuine.

Note- The seal affixed to the order registration form by the Ministry of Commerce is considered to be the permission for import of the goods concerned into the country. The seal affixed to the order registration form may read "goods importable by using freely transacted foreign currency", "goods importable against export of goods from Iran" or "goods importable by using the foreign currency belonging to and procured by the importer". In all the above cases, the foreign currency required for payment of prices of import goods may be purchased from the bank at prevailing rate, by using the foreign currency belonging to and procured by the importer, by using credit facilities extended by the bank itself, by using the credit from the Foreign Currency Stabilization Fund, or by using other resources authorized by law or through a combination of the above methods. Therefore, there will be no need to amend the text on the seal of the Ministry of Commerce by a change in the conditions.

1.2 In respect of the applications made by the organizations enumerated in Article 160 of the 4th Development Plan Act, the requirements set forth in Sub-clause "d" of Article 13 of the 4th Development Plan Act regarding foreign transactions and contracts having a value of one million dollars or more, quoted in Exhibit 11 hereto, must be complied with. Therefore, it shall be necessary that the documents evidencing compliance with the approved criteria shall be taken from the applicant and kept with the records.

2. Aggregation of customs duties, taxes, order registration fee, and all other levies and charges

According to Article 2 of the Law Amending Certain Articles of the 3rd Economic, Social and Cultural Development Plan Act of Islamic Republic of Iran as well as the Law on the Manner of Levying on and Collecting Duties and Other Charges from Producers, Suppliers of Services and Importers of Goods, ratified on January 22, 2003, all customs duties, taxes, order registration fees, and all other applicable charges and duties collectible on import goods have been consolidated and an aggregate sum of 4% of the customs value of goods shall be collected. The above aggregated sum as well as the commercial profit tax that will be fixed by the Council of Ministers, in accordance with the applicable laws, shall be called Import Excises that will be collected by the Customs Organization.

3. Procurement of L/C Value

It shall be possible to open L/C by the sale of foreign currency against its rial equivalent by the L/C opening bank to the importer, or by using the foreign currency transferred to Iran through the banking network from abroad and belonging to the applicant importer or through a combination of the above two methods in any proportion with due regard to the following regulations:

3.1 The amount of advance payment for the import of all commodities that will be payable on the date of opening the L/C shall be determined at the discretion and risk of the L/C opening bank with due consideration of the credit of the applicant importer. The remaining balance of the L/C value shall be paid to the L/C opening bank by the importer until the date of negotiation of documents.

3.2 The amount of advance payment for import of all commodities by ministries and government entities operating under the National Budget and importing goods by the use of letters of credit shall be one hundred percent (100%) of the L/C value on the date of opening the L/C.

Note- Those government affiliated companies and organizations mentioned in Article 4 of the Public Accounts Law that do not use the resources provided for them under National Budget Bill as certified by the Management and Planning Organization, whether or not they may have an identification number in the Budget Bill, shall not be subject to the provisions of this Clause and may proceed to open L/C according to the provisions of Clause 3.1 above.

3.3 considering the mode of collection of advance payment on L/C value by banks, commodity importers shall be required to provide sufficient securities in order to assure banks on payment of the remaining balance of L/C value in time, as the banks shall collect the L/C value from importers at their own risk.

3.4 Prior to negotiation of documents, any sale of foreign currency equal to the rial payment made by an importer calculated at the rate prevailing on the date of making advance and interim payments, shall be deemed as final and shall be recorded as forex conversion by the bank concerned. Final settlement of accounts with the importer shall be made on the date of endorsement of documents or on the date of maturity of time and refinance letters of credit in respect of the remaining balance of the L/C.

Note 1- Should an importer accept and assume all responsibility in respect of fluctuations of the rates of exchange, the advance and interim payments in Iranian rials shall be deemed to have been made on account basis and settlement of accounts may be made with the said customer in respect of 100% of the L/C value at the rate of exchange prevailing on the date of negotiation of documents.

3.5 In case of L/C opening by using the forex belonging to the applicant importer, the above regulations shall apply only to the extent possible.

3.6 Importers shall be under the obligation to provide funds in foreign currency or the equivalent amounts in rials on the dates designated for payment. Should an importer delay in providing the required funds, the bank concerned shall proceed to impose the delay penalties and shall collect the charges and costs as provided in the agreement concluded by and between the bank and the importer.

3.7 Making use of credit facilities in foreign currencies including the use of banks resources, Foreign Exchange Stabilization Fund, the World Bank, Islamic Development Bank as well as finance and refinance facilities shall be in accordance with the pertinent regulations described in the relevant chapter of these Regulations.

3.8 Considering that L/C opening pre-advice (without any obligation on the part of the bank giving such pre-advice) may not be construed as L/C opening, therefore, these Regulations shall not apply in the case of mere notification of pre-advice on L/C opening. However, full compliance with the regulations pertaining to opening letters of credit shall be mandatory at the time of opening non-operative letters of credit and dispatch of the pertinent short telex.

Note- L/C may be opened in the above manner for a maximum period of six months. Thereafter, the L/C shall be made null and void and the matter shall be notified to the agent bank and the buyer after the said period.

4. Examination of Insurance Policies in Respect of Import Goods

Insurance policies made in respect of import goods shall be examined in the manner descried in Chapter II (Transportation, Insurance and Surveillance).

5. Obtaining a Letter of Undertaking from Importers on Timely Submission of the Original Copy of the Customs Permit Evidencing Final Clearance of Imported Goods

It shall be mandatory to obtain a written undertaking signed by the importer concerned on submission of the original copy of the final customs clearance permit of the imported goods that will be in conformity with the transacted documents as regards the quantity, quality and value of the goods. The letter of undertaking shall be made in accordance with the format in Exhibit 1 hereto.

Note 1- The above said original copy of the final customs clearance permit of the goods shall be checked by the L/C opening bank against the provisions of the L/C as regards the quantity, quality and value of the imported goods and shall be certified and stamped by the bank and then returned to the importer concerned with a photocopy thereof kept with the records of the L/C opened by the bank.

Note 2- No letter of undertaking above described, shall be required in respect of the L/C's whose required funds shall be procured out of the foreign currencies belonging to the importer concerned.

Note 3- Entry of capital goods and/or the goods required for the projects being implemented in Imam Khomaini Port Special Economic Zone and Pars Energy Special Economic Zone by the means of letters of credit with confirmation of such entry by the ministry concerned shall be acceptable proof of entry of the goods into Iran but the foreign currency under the L/C shall be considered as having been settled and accounted for only by submission of the final clearance of the goods or by a certificate to be issued by the customs organization certifying that the imported goods meet the requirements of the order registration of the goods as regards their quantity and quality.

Note 4- Importers intending to import goods with the condition that the goods will be free of charge shall be under the obligation to present the proforma invoice of the goods with indication therein that the goods will be free of charge. Any discrepancy regarding the quantity and quality of free imported goods shall be regarded as short landing. Further, the bank concerned shall be under the obligation to keep the final customs clearance permit of free goods together with the documents evidencing the total consignment (original goods and accompanying free goods) for the purpose of settlement of foreign exchange obligations of the importer concerned.

6. Charging Commission for Banking Services

L/C opening banks shall offer all their banking services against charging a commission.

7. Dispatch of Information Relating to Opened L/C's to the Central Bank

Banks shall be under the obligation to report to the Statistics and Foreign Currency Obligations Department of the Central Bank of Islamic Republic of Iran all information pertaining to the letters of credit opened by them including the L/C's opened under finance schemes, short term credit lines (refinance), forex facilities extended out of Foreign Exchange Stabilization Fund, banks resources, credits extended by the World Bank and Islamic Development Bank, forex belonging to applicant importers, etc. in accordance with the pertinent directives.

8. Conditions that may be Inserted in the L/C's or for Amendment of L/C's

The terms and conditions of letters of credit shall be determined at the request of the applicant importer, requirements by the L/C opening bank, and the uniform conditions of letters of credit issued by the International Chamber of Commerce known as UCP500.

The following conditions may be inserted in a letter of credit in case the applicant importer shall ask for such insertion and accepts the responsibilities attached to the said conditions and the L/C opening bank shall agree to such insertion:

8.1 Authorizing trans-shipment (except in Turkish Ports).

8.2 Opening L/C under the conditions of CIF or CIP in due compliance with the provisions of Article 70 of the Insurance Act and Central Insurance Law and insuring the good with an Iranian insurance company.

8.3 Opening revolving L/C

8.4 Opening back to back L/C in compliance with Circular No.MB/2095 dated March 16, 2005 (Exhibit No.2).

8.5 Opening L/C under the condition of Ex-works. Provided that the buyer shall assume all responsibilities for obtaining the required permissions of export, up to the exit border post in the country of the supplier and making transportation arrangements until final destination in Iran, and providing sufficient and appropriate insurance coverage for the goods.

8.6 The right to transfer ownership and title to goods under the L/C.

8.7 Acceptance of bill of lading and other third party documents.

8.8 Acceptance of the bill of lading as charterparty.

8.9 Carriage by a vessel having no classification provided that sufficient and appropriate insurance coverage shall be provided for the goods.

8.10 Carriage by a vessel on irregular route, devoid of age or on the deck provided that sufficient and proper insurance coverage will be provided for the goods.

8.11 Change of the type of the goods and tariffs. Provided that the order registration form shall also be amended by the Ministry of Commerce.

Note- As regards the commodities importable under L/C at export or floating rates (less than Rls.1,750 to one US dollar), the change of the goods under the L/C shall be subject to confirmation by the organization that allocated the foreign currency. The order registration form must likewise be amended by the Ministry of Commerce.

8.12 Change of the beneficiary in the L/C as well as the concurrent changes of the beneficiary, origin of shipping and the agent bank (provided that the original beneficiary and agent bank shall agree to such change and the order registration documents shall be amended accordingly at the Ministry of Commerce).

8.13 Increasing the respite for submission of shipping documents up to 60 days.

8.14 Acceptance of shipping documents issued prior to the date of L/C opening but after the date of order registration at the Ministry of Commerce.

8.15 Increase of the quantity of goods provided that the order registration documents at the Ministry of Commerce shall be amended, accordingly.

8.16 Increase of the price in addition to the amounts indicated in the order registration form and increase of the FOB price to be supplied from a decrease in freight charges mentioned in the L/C. Provided that the order registration form shall be amended by the Ministry of Commerce.

Note- As regards the L/C's opened at floating rate (Rls.1,750 to one US dollar) or less as well as export rates, any increase in the value of the goods and L/C value may be made with the agreement of the organization that allocated the foreign currencies.

8.17 Correcting the mistakes made by L/C opening bank.

8.18 Changes in the packing under the condition of providing sufficient insurance coverage.

8.19 Change of transport under the condition of providing sufficient insurance coverage.

8.20 Change of the point of origin with the approval of the Ministry of Commerce.

8.21 Insertion of the condition for dispatch of free goods under the condition that the supplier, in his proforma invoice, shall make a reference to the dispatch of a part of the consignment free of charge. The said pro-forma invoice must be stamped by the Office of Order Registration and Supervision of Commercial Exchanges. The free goods must be explicitly mentioned in the order registration form, in addition to the original goods.

Any amendment of a letter of credit by inserting the free goods shall be subject to the order registration form by the Ministry of Commerce.

8.22 It shall be permissible to open L/C, countersign and endorse same and pay for the documents of purchase of air and sea transportation against the receipt for handing over the purchased items and the documents evidencing change of title to the property with the certificate of export commodity without submitting a bill of lading.

8.23 Carriage of bulk goods in a commingling manner provided that the goods shall be homogeneous as regards their type and quality.

8.24 It shall be permissible to change the currency of the L/C from US dollar to other convertible currencies by amending the order registration form at the Ministry of Commerce in accordance with the new proforma invoice.

8.24.1 L/C's that will be settled through the Asian Clearing Union shall not be subject to the provisions of this present Clause.

8.24.2 In cases where a letter of credit has been issued in US dollar but the supplier prefers to collect the L/C value in a currency other than US dollar, at the time of negotiation of documents, or states his willingness above prior to the due date for payment, change of L/C value may be made by using the exchange rate mentioned in the website of the International Monetary Fund below:

(http://www.imf.org/external/np/fin/rates/rms_rep.cfm)

8.24.3 Please note that in cases where the L/C opening bank has already collected a down payment in rials according to Sub-clause A.3.4 above and has converted same to US dollar, the new rate of conversion must substitute the previous one in settlement of the account of the L/C that will be made eventually in Iranian rials.

8.24.4 In respect of those letters of credit for which the documents mentioned in Sub-clause A.1.2 above must be submitted prior to the opening of L/C (international tenders/limited tenders/transactions and contracts without undergoing tender formalities permitted by the 3-member panel of government transactions), the buyer shall be under the obligation to submit a certificate of amendment of the amount or the type of the foreign currency concerned, as the case may be.

8.24.5 As regards those letters of credit opened in US dollar, the following text must be inserted in them and the buyer shall be under the obligation to accept all pertinent risks and obligations:

"If any amount payable under this L/C shall not be possible to be paid in US dollar, it will be paid in any other freely usable currency/hard currency/major currency/top currency (choose one as appropriate) specified by the L/C beneficiary or the financing bank, as the case may be, by converting the US dollar amount into the relevant currency at the representative exchange rate announced by the currency issuing central bank (meaning the country that issued the relevant currency according to IMF definition) two banking days prior to the payment date and available on the IMF website (www.imf.org).

8.24.6 In case of agreement by and between the buyer and the seller, insertion of any specific currency, in the above text, shall be permissible. In such case "the currency issuing central bank" in the above text must be substituted with the name of the relevant central bank. For example, if euro will be agreed to substitute US dollar, European Central Bank (ECB) will substitute "the currency issuing central bank".

9. L/C Maturity Date and Validity Period (amended through Circular No.60/1035 dated May 6, 2006)

Validity period of a letter of credit shall be fixed upon request to be made in this regard by the importer concerned and with due regard to his credit for up to 18 months after the L/C opening date.

Note- In cases where the commodities being the subject of the L/C must be manufactured and fabricated during a certain period mentioned in the relevant pro-forma invoice or in the relevant contract of sale, the validity period shall be fixed at the discretion of the L/C opening bank with due regard to period required for fabrication and shipment.

10. Extension of Validity Period

10.1 Validity period of letters of credit may be extended by submitting a certificate of payment of foreign currency, or certificate of settlement of previous L/C's (purchased at the Stock Exchange or made out of allocated foreign currencies), foreign exchange earned by the applicant through the export of commodities, foreign currencies purchased from banks at agreed upon parity rates or foreign currency belonging to the applicant. Application in this regard shall be made by the applicant and accepted by the bank concerned.

10.2 Extension of validity of all letters of credit opened by the organizations enumerated in the attached list (Attachment No.3 hereof) by using export and floating rate i.e. Rls.1,750 for one US dollar as well as the letters of credit opened by the companies and entities affiliated to those enumerated in Attachment No.3 that have been allocated at the above rates of exchange out of the quotas of the said organizations and entities shall be possible, up to the end of 1385 with the agreement of the organization that allocated the funds in foreign currency.

10.3 Extension of validity of letters of credit for development projects by ministries, government organizations and entities whose L/C's have been opened at export and floating rates (Rls.1,750 to one US dollar) with a bank may be possible up to the end of 1385. Provided, however, that the minister or deputy minister concerned with the project, shall certify that the L/C is related to a development project.

10.4 Extension of validity of finance L/C's, short term credit lines (refinance), Islamic Development Bank and World Bank L/C's shall be possible with due regard to all applicable regulations.

Note- It must be noted that it shall not be possible to extend the validity of L/C's being the subject of Sub-clauses 10.2, 10.3 and 10.4 that have been opened before March 21, 2001 at export rate or floating rate (Rls.1,750) and no withdrawal has been made from such L/C's as well as those L/C's that have been opened at parity rates less than the said floating rate. These L/C's may be extended only in case the difference in rials between the said rates (export, floating and less than floating) and the rate of exchange prevailing on the date of extension of validity shall be provided by the applicant.

10.5 It shall be permissible to extend the validity of all letters of credit opened by the Ministry of Petroleum and all its affiliate companies and entities out of the credit under Article 120 of the 3rd Development Plan Act with due regard to the provisions of Directive No.876 dated August 8, 2001 issued by CBIRI's Int. Dept.'s general manager or by Forex Operations Dept. of the CBIRI.

10.6 Extension of validity periods of letters of credit opened at the rates below those mentioned in Sub-clause 10.1 above may be possible upon request by the applicant and by supplying the difference between the said rate and that prevailing on the date of extension.

10.7 It shall be also possible to extend the validity of L/C's opened for payment of freight charges in accordance with the criteria for extending the period of the L/C opened for payment of the pertinent commodities.

10.8 Extension of validity period of letters of credit that, on the basis of the relevant pro-forma invoice or the contract, require a fabrication/manufacturing period shall be made at the discretion of the L/C opening bank with due regard to the said period. Such extension may be possible at the discretion of the Central Bank of Iran after expiry of the initial maturity date.

10.9 Letters of credit having been expired for six months after their last maturity dates, must be made null and void and settlement of accounts in this regard must be made with the customer.

11. Certificates of Inspection for Import Goods being Subject to Compulsory Standards

(Amended through Circular No.1093 dated August 31, 2005)

L/C terms and conditions shall contain the requirement for submission of inspection certificate in respect of the goods that are subject to compulsory standardization in accordance with the provisions of Chapter II of these Regulations entitled Transportation, Insurance and Surveillance (Inspection).

12. Certifying the Documents (packing list, certificate of origin, inspection certificate and freight list)

12.1 The commercial packing list and the certificate of origin shall be certified by the chamber of commerce in the relevant country of the port of embarkation or manufacturing of the goods.

12.2 The certificate of inspection issued by an authorized foreign inspection company shall be certified by the chamber of commerce in the relevant country that is the country of the port of embarkation, issuance of the certificate or manufacturing of the goods.

12.3 The list of freight charges issued by the foreign shipping company shall be certified by the chamber of commerce in the relevant country that is the port of embarkation or manufacture of the goods.

Note 1- A list of the organizations and chambers of commerce in various countries that carry out the task of certifying the certificates of origin and other commercial instruments has been given in Exhibit No.4 hereof.

Note 2- Should the supplier declare that in his country, the authority certifying the documents is other than that mentioned in the L/C conditions, the L/C opening bank shall obtain a confirmation in this regard from the agent bank and shall then accept the certificate issued by the latter authority.

13. Legalization of the Documents

Insertion of the condition on legalization of commercial instruments by diplomatic missions of Islamic Republic of Iran in foreign countries has been required for the purpose of protection of the interests of the buyer. However, waiver of insertion of the said condition or its deletion from the text of L/C on the request of the buyer and by his acceptance of all the ensuing results, shall be permissible.

Note 1- In cases where the L/C opening bank has granted credit facilities to the buyer, deletion of the condition on legalization of documents may be possible at the discretion of the bank.

Note 2- In cases where in the opinion of the ministry concerned, legalization of certain documents shall be necessary and such requirement shall be mentioned in the order registration documents, it shall be mandatory to insert and include the condition on legalization of documents in L/C conditions.

14. Confirmed Letters of Credit

L/C opening banks may proceed to confirm the L/C at the request of the buyer made pursuant to a requirement on the part of the supplier and the agent bank.

15. Time L/C's (Deferred Payment)

(Amended through Circular No.1044 dated June 11, 2005)

Time L/C's providing for deferred payment of the value of the documents within a maximum period of 12 months after the date of negotiation of the instruments or after the date of bill of lading (provided that the documents shall be negotiated), with submission of the proforma invoice or the commercial contract in which the condition of deferred payment shall be provided, may be issued by banks, pursuant to signature of a letter of undertaking to be given by the buyer according to the format in Exhibit No.10 hereof in compliance with the following conditions:

15.1 A minimum of 5% of the L/C value (in rials or in foreign currencies) must be paid at the time of opening L/C.

15.2 A minimum of 5% of the L/C value (in rials or in foreign currencies) must be paid at the time of negotiating the documents.

15.3 The remaining value of the L/C shall be paid on the date of maturity of payment.

The above percentages are the minimum amounts collectible. The L/C opening bank shall be under the obligation to obtain sufficient securities from the importer that will be required to assure payment of the remaining value of the L/C at the time of maturity of the payment to the agent bank.

Note 1- The parity rate for conversion of any of the above payments from rials into foreign currencies shall be the rate prevailing on the date of payment of the amounts in Iranian rials.

Note 2- It may be also possible to make a final settlement of accounts with the applicant importer on the basis of the rate of exchange prevailing on the date of settlement in respect of 100% of the L/C value in case the importer concerned shall accept all liabilities in respect of fluctuation of the rates of exchange.

Note 3- The applicant importer shall be under the obligation to provide the required funds in rials/foreign currencies on due dates. In case of his failure in providing the required funds, the bank shall charge delay penalties and interest in accordance with the terms of the agreement concluded by and between the bank and the applicant importer.

Note 4- In cases where a letter of credit has been opened under an order registration providing for cash payment, but the importer wishes to change such condition by using the facilities of making deferred payments or applies for change of the condition of payment from cash to time L/C, such request may be accepted by the L/C opening bank only in case of explicit acceptance of the supplier in this regard and also accepting that the supplier shall not ask for any additional amount due to changing payment condition of the L/C or after receiving a new pro-forma invoice/commercial contract signed by the supplier for payment of the L/C value within a maximum of 12 months after the date of negotiation of the documents or the date of issuance of the bill of lading (provided that the documents shall be negotiated and in compliance with the above regulations.

Note 5- Time letters of credit opened with the condition of deferred payment may be amended to cash L/C's.

Note 6- Change of maturity date of payment of time L/C's and extending such respite shall be permissible. Provided, however, that total respites shall not exceed by 12 months.

Note 7- It shall be permissible to open letters of credit through a combination of the above cash and deferred payment methods for any portion of the L/C value to be paid in intervals not exceeding 12 months.

Note 8- The bank shall be under the obligation to investigate the ability of the applicant importer for making payment on due dates in respect of time L/C's providing for deferred payment by the importer.

16. Foreign Currency Advance Payments

(Amended through Circular No.1087 on August 8, 2004)

It shall be permissible to pay up to 25% of the L/C value to the beneficiary as advance payment against an unconditional, valid bank letter of guarantee for the same amount, by inserting these conditions in the text of the L/C. It may also be possible to increase the amount of 25% against the same conditions of issuing unconditional bank letter of guarantee for the same amount by giving evidence to the bank regarding the convenience of such arrangement.

16.1 It shall be mandatory for the agent bank to provide payment of interest at inter-banks rate or higher rates determined by L/C opening bank in the letters of guarantee in order that in case one or more parts of the transaction shall not be carried out, such interest shall be paid to the buyer in compensation of the costs imposed on the buyer. In such cases, the rials equivalent of the collected interest, at the rate provided in the L/C, shall be paid to the buyer, after deducting therefrom, the commission and expenses of the bank.

If the foreign currency paid as advance payment was provided by the buyer, the collected interest will be paid to the buyer in foreign currency.

17. Negotiating the documents of opened L/C

17.1 Agent banks shall collect the documents due to be submitted by the beneficiary and shall check the said documents against the conditions of the L/C and in case of compliance of the said documents with L/C conditions shall negotiate the documents within a maximum period of seven (7) working days and shall inform the L/C opening bank accordingly and shall send the documents to the said L/C opening bank. The agent bank shall then debit its relevant covering account and shall collect the value of the L/C from the L/C opening bank or the bank covering the relevant claim and shall pay same to the beneficiary of the L/C.

Note- Should the L/C opening bank inform the beneficiary of the L/C directly, it may proceed to negotiate the documents and pay the L/C value to the beneficiary under the condition that all L/C conditions have been met.

17.2 The L/C opening bank shall be under the obligation to examine the collected documents within seven (7) working days. Should there exist no discrepancy between the said documents and L/C conditions, the L/C opening bank shall accept the documents by crediting the relevant accounts for the value of the documents. Should there exist any discrepancy, the L/C opening bank shall inform the bank that negotiated the documents and shall either pay or return or keep the documents through making agreements with the agent bank.

Note 1- Should the bank that negotiates the documents note a discrepancy between the documents and the conditions of the L/C, it may treat the L/C as a collectible bill. In such case, it may send the documents with the agreement of the beneficiary to the L/C opening bank for collection of its value in the form of bills collectible.

Note 2- Should the bank negotiating the documents pay the value of the L/C despite one or more discrepancies in the documents and the L/C opening bank shall notice such discrepancies, the negotiating bank shall be bound to return the L/C value and the interests accruing thereon and the L/C opening bank shall be bound to make claim and pursue collection of the value.

Note 3- Should the collected documents be as such that according to the regulations they can not be countersigned and endorsed, the documents shall be kept with the bank, on trust basis, through coordination with the agent bank and shall be returned to the agent bank at the request of the buyer in case of non-payment.

17.3 Acceptance and negotiation of collectible documents and giving instruction for payment to the negotiating bank shall be subject to compliance with the regulations set forth in the chapter on acceptance and endorsement of collectible documents.

18. Endorsement of Documents Collectible Pertaining to Letters of Credit Opened with Different Rates

L/C opening banks, in accordance with the provision of the Uniform Regulations of Letters of Credit (UCP500) shall be bound to accept or reject the documents they collect from the agent bank within 7 banking days after making coordination in this regard with the buyer.

In cases where the existing differences in the documents cause changes to be made in the order registration documents, the matter shall be reported to the Ministry of Commerce by the importer.

In cases where there shall exist discrepancies between the collected documents and L/C conditions, action shall be taken according to the following provisions:

18.1 Instances where the endorsement and payment of the value of the documents shall be possible with the acceptance of the buyer and assuming all consequences by him:

18.1.1 Change of the agent bank and/or acceptance of the documents dispatched by another agent bank, provided that there shall exist a confirmation of acceptance by the agent bank designated in the L/C conditions.

18.1.2 Typing and writing errors in any of the documents.

18.1.3 Change of the currency of the L/C to any other hard currency up to the total value of the L/C. In such case, payment of the L/C value, after confirmation to be made by the agent bank, shall be made in the currency designated in the L/C but conversion shall be made by the L/C opening bank at the exchange rate prevailing on the date of payment.

18.1.4 Discrepancies in the addresses of the buyer or the bank in any of the documents.

18.1.5 Change of the means of transportation (from land to sea transport, etc.)

18.1.6 Change of the shipping company to another authorized shipper.

18.1.7 Change of destination within Iran. Provided that the goods have already reached the second destination.

Note- In case of increase in freight charges according to Sub-clauses 5, 6 and 18.1.7, payment shall be made up to the amount fixed in L/C conditions. Should there occur a decrease in freight charges, the difference shall be deducted.

18.1.8 Delay in presenting the bill of lading for up to a maximum period of 90 days (old documents).

18.1.9 Changes in the number of packages, type of packaging, gross weight. Provided that there shall occur no discrepancy in the quantity and quality of the goods.

Note- In the case of Sub-clauses 9 and 18.1.8, inspection must be made at the destination to ascertain compliance of the imported goods with other terms of the L/C in respect of the commodities imported by the use of floating rate (Rls.1,750 to one US dollar) or less as well as export rates.

In the case of ministries, government organizations and government companies, waiver of inspection at the destination shall be possible by assuming all ensuing consequences by the topmost executive authority in the organization concerned.

18.1.10 In case of a decrease to be made in the number and weight, the value of the L/C must be reduced pro rata. Should the number and weight of the cargo increase by up to 20%, payment of the additional sum, up to the maximum amount envisaged in the L/C, shall be possible with the confirmation to be made by the ministry concerned.

Note- Confirmation of the ministry concerned shall be compulsory in respect of commodities imported at floating rate (Rls.1,750) or less.

18.1.11 In case of partial shipment, payment, commensurate with the collected documents of partial shipment, may be made in compliance with other terms of the L/C.

Note- Confirmation of the organization concerned shall be required and compulsory in respect of commodities imported at floating rate of Rls.1,750 to one US dollar or less as well as export rate.

18.1.12 In case of existence of any discrepancy in the documents (in unit prices or the total price), should the value of documents fall below the L/C value, payment shall be made equal to the value of the collected documents. Should there exist an increase, payment may be made up to the value ceiling of the goods value according to the terms of the L/C.

18.1.13 Indication of brand new commodities instead of used, second hand goods in the documents without any change in the amount of the L/C and obtaining the confirmation of the Ministry of Commerce.

18.1.14 Indicating the name of another acceptable country in the certificate of origin other than that indicated in the original L/C conditions and any discrepancy regarding the name of such country.

Note 1- Authorization in this regard must be issued by the Foreign Exchange Policies and Regulations Department of the Central Bank in respect of the goods imported by using foreign currency at floating rate (Rls.1,750 to one US dollar) or less and export rates.

Note 2- Confirmation of the International Department of the Central Bank shall be required in the case of transactions with member countries of Asian Clearing Union (ACU).

18.1.15 Failure in dispatching copies of any of the documents in sufficient number.

Note- As regards the insufficient number of copies of the bill of lading, payment may be made after presenting the final customs clearance permit.

18.1.16 Failure in presenting the documents required by buyer or presenting such documents with discrepancies.

18.1.17 Failure in presenting the shipping list.

18.1.18 In case of discrepancy in the cost of inspection, if such cost shall be less than that envisaged in the L/C, payment shall be made in the amount of the invoice given by the inspection company. Should the actual cost be more than the sum envisaged in the L/C, payment of the difference up to the value ceiling provided in the L/C for inspection costs shall be permissible.

18.1.19 Should the shipping documents be sent to the L/C opening bank in the form of bills collectible due to discrepancy in the text of the certificate of inspection of the goods in respect of a commodity that is not subject to compulsory standardization as compared with the prescribed format set forth in Exhibit No.5 of these Regulations (Chapter II), action shall be taken, after settlement of accounts with the customer, in the following manner, through agreement with the agent bank:

a. A copy of the documents shall be submitted to the importer concerned, at the customs yard, for the purpose of arranging inspection of the goods by an Iranian authorized inspection company.

b. Should the inspection costs be payable by seller, the value of the L/C shall be reduced, in foreign currency, commensurate with the cost of inspection charged by the authorized Iranian inspection company.

c. After collecting the certificate of inspection issued by the authorized Iranian inspection company on the conformity of the quantity, quality and packaging of the goods with the final terms and conditions of the L/C, the documents shall be endorsed and payment of the documents shall be made after deducting therefrom the costs of inspection.

18.1.20 Should the shipping documents of the commodities being subject to compulsory standardization be sent to the L/C opening bank in the form of bills collectible due to the date of inspection falling prior to the date of bill of lading or discrepancy in the text of the certificate of inspection (as provided in Exhibit No.3, Chapter II of these Regulations), or due to failure in presenting a certificate of inspection, endorsement of the documents and payment thereof shall be subject to submission of a confirmation to be issued by the Institute of Standards and Industrial Research of Iran.

18.1.21 Presenting a certificate of inspection issued by an inspection company other than that provided in the L/C. Provided, however, that no objection was made by the initial inspection company.

18.1.22 Submission of all third party documents except the bill of lading

18.1.23 Submission of documents within a maximum of one month after the date of expiry.

Note- In the case of letters of credit opened at floating rate (Rls.1,750 to one US dollar) or less and export rate, the above shall apply only in case the L/C shall be extendable according to the applicable regulations.

18.1.24 Documents collected in respect of the goods being in addition to those for which order registration was carried out and also the documents showing an increase in the FOB price of goods, which increase was compensated out of a reduction in freight charges quoted in the L/C, provided that the order registration documents shall be amended by the Ministry of Commerce.

Note- Agreement of the organization that allocated the foreign currencies of the imports shall be required in the above case in respect of letters of credit opened by the use of foreign currency at floating rate (Rls.1,750 to 1 US dollar) or less and export rate within the value ceiling of the letter of credit.

18.1.25 Failure to have the air bills of lading stamped by the flight impression stamp.

18.1.26 Documents issued prior to the date of opening the letter of credit. Provided, however, that such date shall be after the date of order registration with the Ministry of Commerce.

18.1.27 Presenting the documents with the condition of trans-shipment, except in respect of Turkish ports.

18.1.28 Discrepancy between the goods and their tariff numbers. Provided that the order registration documents shall be amended by the Ministry of Commerce.

18.1.29 Change of the port of embarkation in the bill of lading except unauthorized countries.

Note- In case of a decrease in freight charges pursuant to Sub-clause 18.1.29 above, the difference shall be deducted from the L/C value. In any case, the maximum freight charges, according to the relevant invoice, may not exceed the freight charges indicated in the L/C.

18.2 Instances where the endorsement of documents shall be contingent on the request to be made by the importer concerned and acceptance of the agent bank to collect the value of the documents after the final customs clearance permit shall be issued in accordance with the terms of the L/C:

18.2.1 Discrepancy between the date and number of the pro-forma invoice in the commercial list or the packing list.

18.2.2 Submission of documents providing trans-shipment from Turkish ports.

18.2.3 Discrepancy in the description of goods in the documents without changing the tariff numbers.

18.2.4 Change of ship from classified and liner vessel to non-classified, non-liner vessel.

18.2.5 Bill of lading issued for carriage on deck.

Note- In case of a decrease in freight charges under Sub-clauses 18.2.4 and 18.2.5, the difference shall be deducted from the value of the L/C.

18.2.6 Submission of a third party bill of lading.

18.2.7 Submission of charter party bill of lading.

18.2.8 Submission of documents issued after the expiry of the L/C (within a maximum of six months in compliance with Sub-clause 18.1.23).

18.2.9 In case the date, seal or signature on the bill of lading has been tampered with and the date of shipment can not be ascertained by checking the manifest or other documents.

18.2.10 Failure to mention Persian Gulf on the bill of lading if the goods shall be destined to a southern Iranian port.

18.2.11 Failure to provide inspection certificate or submission of a certificate issued prior to the date of the bill of lading as regards the goods that are not subject to compulsory standardization.

Note- Goods imported under L/C's opened in floating rate (Rls.1,750 to 1 US dollar) or less and export rate, shall be inspected at the destination.

18.2.12 Failure to have the documents certified by local chamber of commerce.

18.2.13 In case the number of the insurance policy in shipping documents shall not be the same number indicated in the L/C.

Note 1- Should any of the above discrepancies be removable, amendment shall be made by the same authority in charge of issuing the document concerned and shall be sent to the beneficiary through the agent bank as a supplementary document. In such case, the documents may be endorsed upon acceptance of all ensuing liabilities by the buyer concerned.

Note 2- In cases where endorsement of collected documents shall be subject to a request by the importer concerned and acceptance of the agent bank for collecting the value of the documents after the issuance of the final customs clearance certificate, it shall be mandatory that the buyer concerned shall accept and sign a letter of undertaking according to Exhibit No.9 attached hereto.

18.3 Instances where no endorsement and payment of value shall be permitted:

18.3.1 Change of destination to free trade zones and special economic zones or to destinations other than customs houses in the Islamic Republic of Iran.

18.3.2 Providing dispatch of used, second hand goods in any of the documents where brand new goods must be dispatched.

18.3.3 Submission of an inspection certificate denoting non-compliance of the inspected goods with the goods being the subject of the L/C.

18.3.4 Submission of documents after six months from the expiry date of the L/C except in cases where the Foreign Exchange Policies and Regulations Department of the Central Bank of IRI shall accept such arrangement.

18.3.5 The instances that have not been mentioned in Clauses 18.1, 18.2 and 18.3 must be consulted with the Central Bank of Islamic Republic of Iran.

19. Endorsement of the Documents under Letters of Credit

The bank opening letters of credit shall endorse and submit the documents that have been issued without any discrepancy with the terms and conditions of the L/C and shall hand them over to the importer concerned for clearance of the goods from the customs.

Note- Considering that by endorsing and handing over the documents to the importer, the title to the imported goods shall be transferred to the importer, the banks shall make certain that they have enough securities in their hands covering their claims, at the time of such endorsement and handing the documents to the importer concerned.

19.1 Endorsement of documents shall be possible against collection of the original copies of the documents in accordance with the terms of the L/C.

Note 1- According to the Decree of the Council of Ministers dated August 10, 1994 permission has been granted to Iran Cu

Circulaire d'application fiscale de la loi sur l'immatriculatin des succursales et buraux de représentation des entreprises étrangères en Iran.

Les controleurs sont invités à examiner la réalité des activités

Shahrivar 15, 1385

September 6, 2006

THE MODE OF TAXATION OF BRANCHES AND

REPRESENTATIVE OFFICES OF FOREIGN COMPANIES

IN IRAN

The following Circular Letter No.232/1623/18921 has just been issued by Mr. A. A. Arab'mazar, the Head of Taxation Affairs Organization on the mode of taxation of foreign companies:

In order to bring about uniformity in investigation of the tax files of the branches and representative offices of foreign companies in Iran, tax assessors shall be required to take the following points into consideration:

1. representative offices and branches of foreign companies may be registered in Iran in order to carry out any one or more of the following activities in accordance with the Law on Registration of Foreign Companies :

1.1 Supply of after sales services in respect of the commodities sold or services provided by a foreign company.

1.2 Carrying out the executive works required to be rendered under a contract concluded with the foreign company concerned and Iranian entities.

1.3 To investigate and prepare grounds for investment in Iran by the foreign company concerned.

1.4 Cooperation with Iranian technical and engineering companies.

1.5 Promotion of non-oil exports.

1.6 Supply of technical and engineering services and transfer of technology.

1.7 To carry out the activities authorized by government organizations in charge of such authorizations such as the supply of services in the fields of transportation, insurance, goods surveillance, marketing, etc.

2. Iranian natural persons and legal entities (companies limited by shares, limited liability companies, firms, etc.) representing foreign companies in Iran shall also be subject to the provisions of this Circular.

3. It should be noted that the branches and representative offices of foreign companies, according to the provisions of Article 1 of the Executive By-Laws of the Law on Registration of Branches and Representative Offices of Foreign Companies, approved by the Council of Ministers on March 31, 1999, may operate in Iran only in respect of the activities enumerated in Clause 1 above and registration of a branch or representative office may be possible only in respect of the said activities. Therefore, tax assessors are required to check the validity of the relevant feasibility report or the permission given to a foreign company in order to continue its activities in Iran, at the time of examination of tax returns in accordance with the requirements of Articles 3 and 10 of the said Executive By-Laws .

4. In implementation of Article 8 of the Executive By-Laws of the Law on Registration of Branches and Representative Offices of Foreign Companies as well as Sub-clause e of Article 2 of the Executive By-Laws of Note 4 of the Law on Utilization of Services of Official Accountants, the tax assessors shall be under the obligation to ask for audited financial statements of the branches and representative offices of foreign companies when asking for submission of their accounts books and vouchers as provided in Sub-clause 2 of Article 97 of the Direct Taxation Act.

5. Considering that a condition and requirement for the registration of a branch or representative office of a foreign company, as provided in Article 5 of the Executive By-Laws of the Law on Registration of Foreign Companies, is the grant of a permission to be given in this regard by a government organization, the tax assessors are, therefore, required to check the said permission at the time of checking the accounts books and vouchers of the branch or representative office concerned.

6. According to the provisions of the above said Executive By-Laws, branches of foreign companies are required to submit, every year, the Annual Report of the head office of the company including its financial reports audited and confirmed by independent auditors in the country where the head office of the branch office is located, to the authorities in Iran who issued the relevant permit. Therefore, tax assessors shall be under the obligation to communicate with the sponsoring organizations and to obtain the required information.

7. Despite the tax exemption provided under Note 3 of Article 107 of the Direct Taxation Act for the branches and representative offices of foreign companies and banks that are engaged in marketing and collecting economic information for their head offices without having the right of entering into any transaction in Iran and receive money from their head offices to cover their expenses in Iran, the following points must be taken into consideration in respect of the activities of this type of companies in Iran:

7.1 Some branches and representative offices of foreign companies in Iran, in addition to marketing and collecting information for the use of their own head offices, also collect information and carry out marketing activities for other foreign entities. In such case, the works carried out for the benefit of other foreign entities shall be regarded as taxable activities.

7.2 Some branches and representative offices of foreign companies, in addition to carrying out marketing and market research activities, are also engaged in after sales services. In such case, the said after sales services do not fall in the category described under Note 3 of Article 107 above and any such branch of a foreign company, in addition to the obligation for payment of the tax accruing on the said after sales services, shall also be subject to tax on commission it will be due to receive.

7.3 Some branches and representative offices of foreign companies, despite the notice of their incorporation issued by the Companies Registry, that clearly and distinctly provides that they are not authorized to become engaged in any profit making activities, issue proforma invoices and sign contracts on behalf of their head offices with clients in Iran. In such case, the said branches and representative offices may not benefit from the tax exemption provided under Note 3, Article 107 above and shall be subject to taxation and their income must be investigated, identified and assessed according to the rules of international trade.

8. Tax assessors, in implementation of Note 3 of Article 107 of the Direct Taxation Act, shall be under the obligation to become certain about the manner and nature of activities of foreign companies in Iran through investigation of the documents and vouchers in the company and collecting the required data and information. Should, as a result of such investigation, it will become known that the head office of the company is selling goods or services (direct sales), the status of the branch office shall not be regarded as before and the said branch office will be considered to have entered into profit making activities or else the said branch office shall be under the obligation to introduce another natural person or legal entity that is acting as the representative of direct sales.

9. All works pertaining to representatives, in accordance with the norms of international trade, will be carried out under contacts. Taxpayers, in implementation of tax laws, shall be under the obligation to provide their representation agreement, related to their documents and vouchers, to the tax office.

10. In accordance with the format international contracts (OECD), as well as the laws on avoiding double taxation, concluded by and between Iran and other countries, in cases where an entity of a contracting state shall, directly or indirectly, participate in the administration, control or the capital of an entity of the other contracting state, or in cases where the same entities or individuals shall, directly or indirectly, participate in the administration, control or the capital of the entity of the other contracting state, and both entities shall be related to each other as regards their trading or fiscal relations under any conditions (whether agreed by, or forced upon them) which conditions shall be different from the conditions in force between independent entities (Arms length principle/third party comparison basis), the profits that could be earned by any one of the said entities if the said conditions did not exist, and such profits were not earned due to the existence of the said conditions, can be regarded and accounted as the profits of that entity and made subject to taxation.

11. In identifying incomes and assessment of profits, legal principles and business criteria, under normal conditions, must be complied with. Therefore, tax assessors, while investigating a tax case, must become certain of the nature of the relations between a branch or representative office of a foreign company in Iran with its head office with due regard to the documents and evidences that have come in hands of the tax assessor and make certain, in one way or another, of the validity or falsehood of the representation agreements and the declared incomes. With due consideration of the international norms of the activities of commission agents, all cost plus, lumpsum commission or fee against services agreements may be acceptable only in case such agreements shall have homogeneous and logical basis similar with the agreements concluded by and between independent entities in which a commission or fee is being normally paid in the form of a percentage of the final invoice of the supplier. The basis of calculation of the income, in such cases, shall be the invoice of the foreign supplier that will be paid through letters of credit in cash, bills of exchange, cash direct through transfer of funds or other methods. Therefore, if the declared income, with due consideration of the normal rates charged by commission agents being independent entities or individuals, shall not be acceptable, then the amount of the letters of credit and its equivalent in rials registered with bank, must be used as the basis for fixing the commission income.

12. As provided in Sub-clause 16 of Article 20 of the Regulation on the Manner of Making Entries in Ledgers, the registration of false expenses and incomes in the ledgers, provided that such falsehood shall be established, shall be the cause of rejection of the accounts books. Therefore, tax assessors are expected to verify the agreements submitted to them and compare the said agreements with other commission agency agreements concluded under normal conditions in accordance with the rules of international trade and prevailing market conditions and must report the false instances to the three-member panel set forth in Sub-clause 3 of Article 97 of the Direct Taxation Act.

13. According to Article 8 of the Executive By-Laws of the Law on Registration of Branches and Representative Offices of Foreign Companies as well as Sub-clause e of Article 2 of the Executive By-Laws of Note 4 of the Law on Expert and Professional Services of Official Accountants, the branches and representative offices of foreign companies in Iran, are under the obligation to utilize the services of official accountants being members of the Society of Official Accountants to act as auditors of their companies. Therefore, the financial statements of the above companies duly audited by official accountants must be examined by tax assessors and the said audited statements must be used as the basis of examination of tax returns.

14. Considering that the firms of auditors and fiscal services are in charge of the accounting and book-keeping works of most of the branches and representative offices of foreign companies, tax assessors must note that according to the principle of independence in auditing, the audit report of the said companies must be drawn up by yet another firm of auditors that will be independent of that in charge of accounts and book-keeping of the company. Therefore, any audit report made and drawn up by the firm of accountants that is in charge of book-keeping of the company shall not be valid and acceptable.

15. The official accountants in charge of auditing the accounts of branches and representative offices of foreign companies in Iran shall be under the obligation to express explicit opinion regarding the identification of incomes and expenses and correctness of the declared incomes including the commission, fee or discount granted to the company and the normal state of commercial affairs of the company and shall fill in the attached form.

Action shall be taken in the following manner in respect of the branches and representative offices engaged in the sale of commodities, equipment, or supply of services in Iran:

15.1 The branches and representative offices supplying goods, equipment or services directly to Iran shall be taxed on the basis of the volume of their sale or their income earned through supply of services according to the regulations of the Direct Taxation Act and other applicable regulations.

15.2 As regards the branches and representative offices having a contract with their head office according to which the sales shall be carried out by the head office and the branch or representative office only records the commission of the sales or the discounts allowed on the sale in its accounts books in Iran, shall not be authorized to record the said commissions or discounts less than the normal commissions or discounts. Therefore, in cases where the said branches or representative offices fail to record their actual income like an independent entity in their account books, or declare a lesser income by presenting superficial agreements, the tax assessors shall acquire reasonable and creditable documents and evidences and shall carefully compare the said agreements with those of other foreign representative offices and shall assess and fix the income of the above said taxpayers, accordingly.

16. Iranian natural persons and legal entities being the exclusive agents of foreign companies that are engaged in transactions pertaining to foreign commodities and rendering services in this regard in Iran, shall be bound to declare their income earned through the sale of foreign goods and services, regardless of whether such income will be earned in cash, by transfer of money or in non-pecuniary form by goods or parts.

17. Other natural persons and legal entities engaged in representing foreign companies in Iran (sale of commodities, supply of technical services, surveillance, etc.) shall be subject to these regulations as regards the examination of their accounts books.

Ali Akbar Arab'mazar (Sgd.)

* * *

Attachment No.1

La Cour suprême fixe la compétence juridictionnelle rationne loci en matière de chèques impayés.

Le licenciement pour faute à nouveau possible?

CHEQUES

Official Gazette No.17875 dated July 11, 2006

The General Board of Judges of the Supreme Court issued a Judgement No.688 SUPREME COURT ON COMPLAINTS IN RESPECT OF DUD on June 13, 2006 regarding the competent court to hear claims regarding dud cheques as follows:

Considering that a cheque is not a commercial instrument, therefore, the claims regarding cheques, in respect of the competent court with which the plaint must be filed, shall not be subject to Article 314 of the Commercial Code (concerning bills of exchange). The said claims must, therefore, be filed according to Article 13 of the Law on Procedures of Public and Revolutionary Courts (in civil lawsuits).

Considering the above, a cheque must be regarded as an order of payment and is therefore governed by the provisions of Article 724 of the Civil Code that concern movable properties. The holder of a cheque may, therefore, file lawsuit and complaint with the court where the pertinent contract of sale or transaction was concluded, i.e. the place of issuance of the cheque, or the complaining party may refer to the court where the cheque was due to paid i.e. to the court within the jurisdiction of which the payee bank is situated. Also, considering a general rule that a plaint may be filed with the court within the jurisdiction of which the defendant has his domicile, the holder of the cheque may refer to the court at the place of domicile of the person who issued the dud cheque. The courts at the above three locations shall have jurisdiction to investigate and hear lawsuits in respect of dud cheques.

This present Judgement, according to Article 270 of the Procedure Code of Public and Revolutionary Courts (in criminal cases) shall be binding on all benches of the Supreme Court as well as the other courts.

* * *

Circulaire du Ministère du Commerce du 20 Mai 2OO6 sur les ouvertures de lettres de crédit pour les importations.

August 2, 2006

Mordad 11, 1385

LAWS AND REGULATIONS

- Regulations on Commodities Imports by Opening L/C ..... Page 1

- Change of Currencies under L/C's from US$

to Other Currencies ..... Page 5

BUSINESS AND ECONOMY

- 40,000 MW's of Power Generation by Private Sector

During 10 Years ..... Page 6

- A Halt in Energy Subsidies Will Close Down 50% of

the Industries ..... Page 7

- Hopes for Attracting Foreign Investors ..... Page 8

- Completion of Tehran-Caspian Highway Subject to

Procurement of Budget ..... Page 9

- Employers' Contributions to SSO Premiums Shall Reduce

by 7% ..... Page 10

- The Ex-Minister of Economy and Finance on

Achievements of the New Government ..... Page 11

- Iranian Internet Network Becomes Operative in

September 2006 ..... Page 12

=======================

LAWS AND REGULATIONS

=======================

REGULATIONS ON COMMODITIES IMPORTS BY OPENING L/C

The Ministry of Commerce, through its Circular No.85/2/2844 dated May 20, 2006 quoted an earlier instruction given by the Central Bank of Islamic Republic of Iran regarding the above subject as follows:

Commodity Imports by Means of Letters of Credit

Importers of goods must submit an application for opening L/C together with the Statement of Registration of Order to a bank in Iran. The Statement of Registration of Order must have the confirmation of the Bureau of Registration of Orders and Supervision of Commercial Exchanges of the Ministry of Commerce, and its validity period must not have expired.

The L/C opening bank shall take the following actions in accordance with the applicable regulations:

1. To check the application made by the applicant importer and to check the validity and contents of the explanatory notes imprinted by a rubber stamp on the said application by the Ministry of Commerce. The stamp known as the Order Registration Stamp shall specify whether the goods being the subject of the application may be imported by using foreign currencies purchased by the importer at the market, the foreign currencies earned through export of goods from Iran or without using any foreign currency allocated and sold by banks. Therefore, commodities may be imported by opening letters of credit through the use of foreign rates of exchange, or by using the foreign currencies belonging to the applicant importer or by using the credit offered by the L/C opening bank or through the use of Foreign Currency Stabilization Fund or by using foreign currencies supplied through other sources or through a combination of the above methods. In the above cases, it shall not be required to have the application stamped by the Ministry of Commerce if the method of procurement of foreign currency shall be different from what the said Ministry originally stamped on the application.

Note- In the case of applications made by the Government organizations mentioned in Article 160 of the 4th Development Plan Act, the requirement under Sub-clause "d" of Article 13 of the 4th Development Plan Act in respect of foreign transactions and contracts having a price of one million US dollars or more must be complied with and the certificate in respect of such compliance must be taken from the applicant and kept in the records.

2. Aggregation of Customs Duties, Taxes, Order Registration Fee and Other Charges

According to Article 2 of the Law Amending Certain Provisions of the Third Development Plan Act, as well as the requirements of the Law on Collection of Duties and Charges from Producers of Commodities, and Providers of Services and Importers, approved on January 22, 2003 all applicable duties, taxes, order registration fees and other charges payable by commodities importers have been aggregated and reduced to a sum of 4% of the customs value of the goods.

The above sum of 4% as well as the total amount of commercial profit tax fixed by the Council of Ministers in respect of every commodity are collectively known as Import Duties, that will be collected by the Customs.

3. Procurement of the Amount of L/C

Opening the L/C by collecting the equivalent rial value of the L/C by the bank and sale of foreign currency by the bank to the applicant importer or by using the foreign currencies belonging to importers or through a combination of these methods shall be governed by the following regulations:

3.1 A down payment shall be fixed by the L/C opening bank and collected on the date of opening the L/C by the bank with due regard to the creditability of the applicant importer. The balance due on the L/C shall be paid by the applicant importer on the date of negotiation of the documents.

3.2 The amount of the down payment for import of all commodities by ministries and government entities being funded through the General Budget Bill when importing goods through letters of credit shall be 100% of the value of the L/C on the date of opening the L/C.

Note- The companies and organizations affiliated to the Government mentioned in Article 4 of the Public Accounts Law and confirmed by the Management and Planning Organization or MPO comptroller of the organization or entity concerned , regardless of whether they shall have the right to receive funds out of the Budget Bill or not, in cases where they actually do not use the resources of the General Budget Bill in general or in respect of import of a certain commodity shall be exempt from the provisions of this present Sub-clause and may proceed to open L/C according to the provisions of Sub-clause 3.1 above.

3.3 Considering the manner of collection of down payment of the L/C value, banks shall be under the obligation to obtain sufficient security from the applicant importers at the time of opening L/C in respect of the remaining value of the L/C at their own discretion and risk in order to make sure that the remaining value of the L/C shall be paid by the applicant importer in due time.

3.4 The banks shall consider the sale of foreign currencies to applicant importers, on the dates of payment of down payment and interim payments as final sale of foreign currency and shall record such transactions in their books on the date of such transactions. The final settlement of account with the applicant importer on the date of endorsement shall be made by using the exchange rates on the date of negotiating the documents or on the date of maturity of payment (in case of time L/C's and refinance L/C's) in respect of the remaining value of the letter of credit.

Note 1- If the applicant importer shall accept and undertake all fluctuations in the rates of conversion of foreign currencies, the down payment and interim payments shall be made on account basis and final settlement of accounts with the importer concerned shall be made at the rate of exchange prevailing on the date of negotiating the documents.

3.5 The same provisions above shall apply if the foreign currency shall be procured out the currencies belonging to the applicant importer for the purpose of opening letter of credit.

4. It shall be permissible to import goods up to a value ceiling of US$100,000 through making transfer directly in favour of a beneficiary, after obtaining all the required permits and performing all order registration formalities at the Ministry of Commerce.

In such case, the importer must submit evidence on arrival of the import goods in a customs house in Iran within six months after transfer of the price.

In a Circular No.8/SA/705 dated May 4, 2006, the Central Bank provided the following explanations regarding transfer of money for the purpose of import of goods:

["Importers of commodities may pay the price of the goods in various methods including transfer of foreign currencies through the banking network. Payment of price by making transfer of money shall be made by instruction to be given by importer to the operating bank to send a sum of money in writing, by telegram, etc. through an agent bank to a beneficiary outside Iran.

The following points must be taken into consideration in respect of imports by making transfer of funds:

1. If transfer of fund shall be made by using the foreign currencies belonging to the customer (importer), he may clear the goods from the customs by showing the documents evidencing imports by using his own foreign currencies and the order registration documents to the customs.

2. If the importer has asked for transfer of funds by banks through the use of foreign currencies purchased from banks, the importer shall be under the obligation to submit documents evidencing entry of the goods into Iran, within 6 months after the date of transfer.

3. All exporters of goods may import commodities into Iran by using the foreign currencies they earn through export of goods from Iran.

* * *

CHANGE OF CURRENCIES UNDER L/C'S FROM US$ TO OTHER CURRENCIES

The Central Bank of Islamic Republic of Iran, through Circular No. 60/1091 dated June 18, 2006 made the following recommendations to importers of commodities to Iran:

Importers of goods to Iran are urged to take the following points into consideration:

1. To use currencies other than US dollar for the purpose of opening letters of credit and to obtain the pertinent proforma invoice and order registration document also in a currency other than US dollar.

2. To change the type of foreign currencies under the letters of credits that have been opened already but the documents thereunder have not been yet negotiated, or in case the L/C has been partly used but still has a remaining balance.

3. It shall be permissible to change the type of the foreign currencies of the letters of credit at the exchange rate prevailing on the date of change of currency by amending the order registration documents at the Ministry of Commerce.

4. In cases where a letter of credit has been already opened and the supplier is agreeable to collect the money of the L/C in a currency other than US dollar, but the money under the L/C is not yet payable, the parties may agree that the money under the L/C shall be paid to the supplier by using the rate of exchange prevailing on the date of payment.

5. In cases where the down payment under the L/C has been paid by the customer in rial and converted into US dollar by the bank and kept by it in the form of a forex deposit, the settlement of the L/C shall be made on the basis of the rate of conversion of the new foreign currency designated to be the money of the L/C, and all calculations to be made by banks shall be on the basis of the new foreign currency.

6. In the case of those letters of credit pertaining to international tenders or the transactions and contracts made without tender formalities, the buyer shall be under the obligation to arrange for the change of the currency of the L/C from US dollar to a new currency.

7. After the date of release of this Circular (June 20, 2006) if any letters of credit shall be opened to be payable in US dollar, the following provisions must be inserted in the terms of the L/C:

"If any amount payable under this L/C is not possible to be paid in USD, it will be paid in another alternative convertible currency by converting the USD amount to the respective alternative currency at the respective exchange rate announced by the concerned Central Bank, two banking days prior to the payment date."

Sommaire . A signaler l'interprétation par l'autorité fiscale de quelques dispositions sensibles du Code des impôts directs

LAWS AND REGULATIONS

- Tax Regulations-The Way They Are Actually Implemented ..... Page 1

- The Law on Rationalizing the Interest Rates of Banking

Facilities ..... Page 4

BUSINESS AND ECONOMY

- Banks on the Verge of Bankruptcy ..... Page 6

- Three Solutions by ICA to Avoid Bankruptcy of Banks ..... Page 7

- Private Sector Unable to Acquire Government Entities ..... Page 8

- 7000 NGO's Operating in Iran ..... Page 9

- Construction Works of Tehran-Caspian Highway Started ..... Page 9

- Deputy Minister of Labour on Unemployment ..... Page 10

- Supply of Gasoline: Dual Rates or Rationing? ..... Page 11

Circulaire de la Banque Centrale du 6 Mai 2006 sur les ouvertures de lettres de change en particulier

July 19, 2006

Tir 28, 1385

LAWS AND REGULATIONS

- On Escalation of Prices of Steel, Cement and

Explosives for Contracts Implementation during the First

and Second Quarters in 1384 ..... Page 1

- The Amended Text of CBIRI Regulations Pertaining

to Letters of Credit ..... Page 2

BUSINESS AND ECONOMY

- Major Privatization Scheme Underway ..... Page 9

- Development of Azadegan Oilfield by Iranian Companies ..... Page 10

- Economy Council's Agreement to Refer Work to

Iranian-Foreign Consortium of Consultants ..... Page 11

- Use of Asbesto in Industries Banned ..... Page 11

- Suppliers of Durable Goods are Bound to Offer After

Sales Services ..... Page 12

- 12% of Iranian Households Live Below the Poverty Line ..... Page 12

THE AMENDED TEXT OF CBIRI REGULATIONS PERTAINING TO LETTERS OF CREDIT

The Policies and Regulations Department of the Central Bank of Islamic Republic of Iran, through Circular No.60/1035 dated May 6, 2006 amended Clauses 9 and 10 of Section I regarding opening letters of credit and Clause 1 of Chapter 1 of Foreign Exchange Regulations regarding miscellaneous items and Part 2 of the above regulations pertaining to insurance.

The following is a translation of the amended parts:

Amended Regulations Pertaining to Opening Letters of Credit:

9. Fixing the Date of Maturity: The date of maturity of the L/C may be fixed to be within 18 months after the date of L/C opening at the request of the importer and with due regard to the creditability of the customer concerned.

Note- In cases where according to the pro-forma invoice or the contract concluded in respect of the commodities, some time shall be required to manufacture the goods, a period commensurate with the time required to manufacture the goods under the contract shall be allowed at the discretion of the L/C opening bank.

10. Extending the Validity of the Opened L/C

10.1 It shall be permitted to extend the validity of the opened L/C at the request of the applicant and by agreement and acceptance of the L/C opening bank at the prevailing rate of exchange, foreign currency deposit certificate or certificate of payment of foreign currency-Variz'nameh-(forex purchased from Stock Exchange or out of government allocated forex), forex earned by the applicant through exports, forex purchased at agreed upon rate (from banks) or the forex belonging to the applicant.

10.2 It shall be permitted to extend, up to the end of the year 1385, the validity of all letters of credit opened at the request of the organizations listed in Exhibit No.3 hereof at export or floating rates of exchange (Rls.1,750 to a dollar) as well as the companies and entities affiliated to the said organizations out of the quotas allocated to the organizations concerned with the agreement of the forex allocating organization.

10.3 It shall be allowed to extend, up to the end of the year 1385, the maturity dates of the letters of credit pertaining to development projects of the ministries and government organizations and entities, opened at export and floating rates (Rls.1,750 to one US dollar). Provided, however, that the minister or deputy minister concerned shall confirm that the L/C is related to a development project.

10.4 It shall be allowed to extend the maturity dates of finance L/C's, short-term credit lines L/C's (refinance) and the L/C's under the credits of Islamic Development Bank and the World Bank with due regard to the foreign exchange regulations.

Note- It should be noted that the maturity dates of the L/C's being the subjects of Sub-clauses 10.2, 10.3 and 10.4 that were opened prior to March 21, 2001 by using forex at export and floating rates (Rls.1,750 to one US dollar) and no withdrawal whatsoever has been made from them, to this date, as well as the maturity dates of L/C's opened with the use of forex allocated at less than the floating rate, shall not be possible.

The said L/C's may be extended only in case the difference between their rates (export, floating and less than floating rate) with the prevailing rates of exchange, in rials, shall be paid by the applicant.

10.5 It shall be allowed to extend the period of validity (maturity) of the letters of credit pertaining to the Ministry of Petroleum and all the companies and entities affiliated to the said Ministry the foreign currencies for which were supplied out of the credit envisaged in Article 120 of the 3rd Development Plan Act and Sub-clause 1 of Clause D of Note 11 of 1384 National Budget Bill. Provided that the provisions of Directive No.876 dated August 8, 2001 and Directive No.VMK/55 dated October 3, 2005 given by the General Manager of International Affairs and Bank Operations of CBIRI shall be complied with.

10.6 It shall be allowed to extend the validity (maturity) of the letters of credit opened by using forex at parity rates less than that mentioned in Sub-clause 10.1 above in case of request by the applicant and payment of the difference to bring the parity rate to the one prevailing on the date of extension.

10.7 It shall be allowed to extend the validity of the letters of credit pertaining to payment of freight charges in accordance with the criteria governing the extension of validity of the L/C's pertaining to cargo.

10.8 Extension of validity of the L/C's pertaining to the cargo that shall require a period to be manufactured and produced shall be made at the discretion of the L/C opening bank with due regard to the terms of the pro-forma invoice or the relevant contract.

Amended Regulations Pertaining to Rial L/C's

G. Opening L/C in Iranian Rial for Import from Neighbouring Countries

1.1 Importers may apply for opening letters of credit in rials (payable at sight or on maturity by submitting pro-forma invoices issued by foreign suppliers in Iranian rials and order registration documents confirmed by the Ministry of Commerce for the purpose of importing goods in accordance with the foreign exchange regulations of CBIRI.

1.2 Banks shall make sure that regulations pertaining to combat against money-laundering are in force in the country of the supplier.

1.3 Banks may open accounts in the name of a foreign supplier in order that proceeds of sales shall be paid to such accounts in compliance with the applicable regulations.

1.4 If the bank becomes sure of arrival of the imported goods at the destination, the Iranian rials being the currency of the L/C may be converted into other currencies at the request of the Seller through the agent bank on the basis of the rate of exchange prevailing on the date of conversion.

1.5 It shall be allowed to convert a foreign currency L/C to Iranian rials L/C at the rate of exchange prevailing on the date of conversion by collecting the order registration certificate amended by the Ministry of Commerce.

1.6 It shall be necessary to report the information concerning the L/C's mentioned in Sub-clause 1.5 above to the Department of Statistics and Foreign Currency Undertakings of CBIRI according to the pertinent directives.

H. The Manner of Payment and Clearance of Foreign Currency Pertaining to Commodity Imports from the Countries Being Members of Asiatic Barter Union:

Imports from the above countries shall be governed by the regulations set forth in Exhibit No.8 of CBIRI Foreign Exchange Regulations

Part II- Insurance Regulations

1. According to Article 70 of the Law on Establishment of Central Insurance approved 1971, for the purpose of carriage of goods imported into Iran, it shall be necessary to insure the goods for transportation with Iranian insurance companies. Therefore, for the purpose of opening letters of credit or imports through bills of exchange, submission of insurance policy issued by an Iranian authorized insurance company shall be required. Opening a letter of credit shall be contingent on submission of a copy of the insurance policy issued by an Iranian authorized insurance company and indicating insurance in the terms of the L/C.

Note- In cases where imports will be made by L/C or bills of exchange from Iranian free trade-industrial zones or from special economic zones to the mainland Iran, submission of insurance policy for transport to the bank opening the L/C shall not be required, provided that the importer shall assume all liabilities regarding carriage of goods. However, the banks should seek coverage for that portion of the value of goods paid under the L/C that has been provided by the bank and that has not been paid by the importer.

2. According to a notice made by Iran Central Insurance, the following insurance companies are authorized to operate in the field of insurance for carriage of goods:

Bimeh Iran Co., Asia Insurance Co., Alborz Insurance Co., Dana, Parsian, Towsee, Karafarin, Razi, Mellat, Sina, Dey, Saman, Novin, and Exports and Investment Insurance Co. (PJS).

In addition to the above companies, transport insurance policy may be obtained from Hafez Insurance Co., Omid Co. and Iran Moin Co. for goods transported from destinations outside Iran to the free trade zones of Kish, Qeshm and Chahbahar.

3. Carriage insurance policy must be issued under any one of the insurance policy types A, B, or C.

4. In case of L/C's or bills providing for payment of the insurance premium by the Supplier, the insurance policy must be made payable in the same currency of the L/C.

5. Should the importer so request, the insurance policy may be issued by authorized Iranian insurance company in the same currency of the L/C.

6. In calculation of the value of the letters of credit for which insurance policies have been submitted in Iranian rials, the currency of the L/C shall be taken into consideration.

7. The minimum amount of coverage allowed for the goods under the letters of credit/bills of exchange shall be the value of the goods except in cases where the sale has been made as C.I.P. and C.I.F.

B. The inspection certificates issued by the following foreign inspection companies shall be acceptable:

July 5, 2006

Tir 14, 1385

LAWS AND REGULATIONS

- Punishment of Crimes Committed by Iranians Outside Iran ..... Page 1

- Decree on Affiliation of Bahman Manufacturing Company

to IDRO ..... Page 4

LEGAL NEWS

- Money Laundering Bill Approved by Expediency Council ..... Page 5

INTERVIEW

- Revolutionary Guards Corps, A General Contractor ..... Page 5

BUSINESS AND ECONOMY

- TSE Prices Fell by $8 Billion Since Last Year ..... Page 12

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LAWS AND REGULATIONS

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PUNISHMENT OF CRIMES COMMITTED BY IRANIANS OUTSIDE IRAN

According to Article 7 of the Penal Code of Iran, "any Iranian who commits a crime outside Iran and who shall be then found in Iran, shall be punished according to the Laws of Islamic Republic of Iran."

The above instances are in addition to those mentioned in Articles 5 and 6 of the Islamic Penal Code that provide for punishment in Iran of the individuals who commit crimes against the State of the Islamic Republic of Iran and who shall be then found in Iran. Such individuals shall also be tried and punished according to the Laws of Iran.

The words "... who shall be then found in Iran" certainly refer to those who commit a crime outside Iran and shall manage to escape and shall then be found in Iran. If the perpetrator "shall be found" in the country where he perpetrated the crime, he shall be tried, punished and then released from prison. He may then come to Iran and no one will be after him to "find" him in this country.

There have been ambiguities regarding the true meaning of Article 7 of the Islamic Penal Code. Cases had been reported on prosecution of those who committed crimes outside Iran and on their return to Iran, they were prosecuted again despite their punishment in foreign countries where they perpetrated the crime.

To put an end to the ongoing discussions, the Judiciary has just published, through Official Gazette No.17825 dated May 10, 2006 two opinions given earlier by the Department General of Legal Matters and Compilation of Laws of the Judiciary.

Both the above opinions explicitly provide that a crime may only be examined once and a criminal may be punished only once. Therefore, an Iranian tried and punished outside Iran for a crime committed by him in a foreign country, cannot be tried again and punished anew in Iran.

The following is a translation of the said two opinions:

Opinion No.7/2595 dated July 6, 2003 published in Official Gazette No.17825 dated May 10, 2006

Inquiry: A coach driver in Turkey caused the coach to capsize and kill a number of passengers.

The driver resides now in the city of Qom and the heirs of those who were killed wish to know if they can file valid complaints against the driver.

Opinion: Considering that the crimes of manslaughter and inflicting injuries were perpetrated in Turkey, and apparently the driver went to trial and was condemned to imprisonment for three months in Turkey and was thus punished in Turkey, therefore he can not undergo a new trial in Iran.

However, in case the driver did not go to trial and was not punished in Turkey, and shall be found in Iran, as provided in Article 7 of the Law of Islamic Punishments, the court of the place where he will be arrested shall have jurisdiction for his trial and punishment. Blood money may also be claimed by reference to the dossier of the same penal case.

If the driver received punishment in Turkey, but payment of blood-money was not made there due to the fact that blood-money could not be claimed in Turkey, the next of kin of those who died in the accident as well as those who became injured may institute claim and file lawsuit for payment of blood-money with the court of the place where the driver resides in Qom.

The second opinion given by the Department General of Legal Matters and Compilation of Laws of the Judiciary is numbered 7/979 and was issued on June 6, 2002:

Inquiry: In cases where certain individuals commit crimes outside Iran and shall be prosecuted, tried and punished in those foreign countries, should, on their return to Iran, be tried again and punished regardless of the type and nature of the crime perpetrated by them?

Reply Given as Opinion No.7/979 on June 6, 2002 published in Official Gazette No.17825 dated May 10, 2006:

With due regard to the purport of Article 3 of the Law of Islamic Punishments that provides: "The penal laws shall apply to all those individuals who commit any offence or crime within the land, air, or sea boundaries of Islamic Republic of Iran, except in cases where the law shall provide otherwise", in cases where an individual shall commit offences and crimes outside Iran and shall be tried, condemned and punished there, it shall be against the general rules of penal proceedings to call such person to new trial in Iran, except in cases where explicit provisions of law provide contrary arrangements.

* * *

The following are translations of Articles 3, 5, 6 and 7 of Islamic Penal Code quoted above:

Article 3- The Penal Laws of Islamic Republic of Iran apply to all those who commit offences and crimes within the land, sea and air boundaries of the country, except in cases where the Law provides otherwise.

Article 5- Any Iranian national or foreigner who commits any one of the following crimes outside the area of sovereignty of Iran and who shall be found in Iran, or shall be returned to Iran, shall be punished according to the Laws of Islamic Republic of Iran:

1. Acts against the Government of Islamic Republic of Iran, domestic or foreign security, integrity or independence of Islamic Republic of Iran.

2. Forging the decree, handwriting, seal or signature of the Leader or using same.

3. Forging official writing of the President, Speaker of the Islamic Consultative Assembly, Guardians Council, Assembly of Experts, Head of the Judiciary, Vice President, the President of the Supreme Court, Attorney-General or anyone of the ministers or using such forgeries.

4. Forging the bank notes currently in circulation or any bank documents such as the bills of exchange accepted by banks or cheques issued by banks or banks binding documents, forging Treasury documents and bonds issued or guaranteed by the Government and forging and making false domestic coins currently in use.

Article 6- Any crime committed by the foreigners who are at the service of Iranian Government or civil servants of Islamic Republic of Iran's Government in relation to their duties outside Iran as well as the crimes perpetrated by diplomatic, consular or cultural agents and authorities of Iranian Government who benefit from diplomatic immunity shall be punished in accordance with the penal laws of Islamic Republic of Iran.

Article 7- In addition to the instances enumerated in Articles 5 and 6 above, any Iranian national who commits a crime outside Iran and who shall be then found in Iran shall be punished according to the penal laws of Islamic Republic of Iran.

Ces 6 numéros comportent la loi de finances de l'année 1385 ainsi que les tableaux récapitulatifs des ressources ou charges procurées par chacune des entités publiques de nature industrielle ou commerciale de l'Etat iranien.

Tout intéressé peut se les procurer auprès des cabinets de Paris et Téhéran