Economy, Domestic Economy

Move to Address Mehran Border Transit Fee Dispute

Move to Address Mehran Border Transit Fee DisputeMove to Address Mehran Border Transit Fee Dispute

Head of western Ilam province’s Chamber of Commerce, Industries, Mine and Agriculture on Sunday spoke of a fivefold increase in transit fees imposed by Iraqi customs authorities on the Iranian trucks crossing Mehran border terminal, adding that a delegation has been appointed by First Vice President Eshaq Jahangiri to negotiate with Iraqi officials to resolve the matter.

“The Iraqi customs officials are demanding the Iranian trucks to pay a transit fee of 36.7 million rials ($1,112 at market exchange rate), which is five times higher than the previous rate of 7.1 million rials ($215),” said Shaban Forutan, adding that the Iraqi officials have so far not cited the reason behind the hike.

“Many Iranian trucks, mostly carrying fruits and vegetable, have been halted at Mehran border while the Iraqi traders are not willing to buy the products due to unreasonable prices as a result of increased transit fees,” said the official.

The news follows the Iraqi government’s decision last week to triple import duties to 15% from the previous 5%; a move that is expected to reduce Iran’s export of non-essential goods to the western neighbor.

Mehran border terminal is a major hub for export of Iranian products. As many as 600 Iranian trucks and trailers cross the border every day.