Le blog de GUILLOT-PARS associates

Les temps sont un peu durs en Iran.

Non seulement les Américains poursuivent leur embargo et chassent désormais les armateurs internationaux, mais le plan de vérité des prix renchérit fortement la vie courante.

L'inflation est remontée à 20 sinon 25%.

Le Rial se déprécie. Après une dévaluation de 11% par rapport au dollar officiel dont la disponibilité est rare ( 2000 pour chaque voyageur ), le marché libre enregistre une dépréciation de 3 à 5% .

Certains estiment encore le rial surévalué de 20 à 50% et préconisent une dévaluation permettant aux produits iraniens de retouver une compétivité entamée aujourd'hui.

UN PETIT RAPPEL : En 1979 un dollar valait 70 rials; il en donne actuellement 11750 au taux officiel.

Géard GUILLOT

Washington multiplie les actions internes et externes visant à empêcher ou limiter les transactions financières avec l'IRAN.

les groupements VISA et MASTERCARD, sous domination américaine, ont depuis longtemps interdit l'échange.

Après avoir fait pression sur les banques occidentales pour restreindre tout nouvel investissement en IRAN, les ETATS UNIS ont contraint DUBAI, poumon des transactions avec l'IRAN, à limiter ses opérations.

En dernière date, les ETATS-UNIS interviennent auprès des chambres de compensation bancaires pour empêcher les paiements de pétrole et de gaz iraniens. En effet les ventes de ces produits procurent à l'IRAN la finance pour développer les bien-connues armes de destruction massive.

Finalement M. OBAMA est bien le successeur de M. BUSH

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

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

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