The Guardian Council retracted an earlier decision by lawmakers that criminalizes exporters who are unable to repatriate their forex income.
The GC -- a watchdog that ensures laws are in line with the Islamic Republic Constitution and Sharia -- found the rules “in conflict with Articles 36 and 85 of the Constitution”, the Iran Chamber of Commerce, Industries, Mines and Agriculture website reported.
As per Article 36, “penalties must be enforced by a qualified court and based on law”. Likewise Article 85 bans the Majlis from relegating its authority to legislate to another group. In th exporters’ forex case the Majlis is not allowed to give the Money and Credit Council authorization to decide how to deal with defaulting exporters.
The rules were ostensibly passed to boost non-oil export and foreign exchange revenue.
As per the annulled law, non-oil exporters are required to bring their overseas earnings back to the country within three months after sell their goods. Non-compliance is subject to judicial penalties.
If exporters fail to return the money within three months, they face pecuniary punishment worth twice the value of the goods for the first time. If the default is repeated for the second time, their commercial card is annulled and they possibly face prison terms from six months to one year.
The move was strongly criticized by the export industry. Head of Iran Export Federation Mohammad Lahouti recalled the complex foreign trade conditions due to the US economic sanctions, saying that repatriating currency in three months is often not possible.
He warned that “the Majlis move would ultimately backfire and its purported goals will not be realized”.
The parliament’s decision was also censured by senior government officials and business leaders. Head of the Trade Promotion Organization of Iran Alireza Payman-Pak said the plan had created problems for exporters and was unfriendly to the export sector.
