Economy, Domestic Economy

IRICA Eases Customs Affairs to Aid Manufacturers

IRICA Eases Customs Affairs to Aid ManufacturersIRICA Eases Customs Affairs to Aid Manufacturers

The Islamic Republic of Iran Customs Administration is enacting new regulations to ease import and export of goods by Iranian manufacturers.

The new regulatory package comes after IRICA issued another directive allowing manufacturers to pay import duties in increments, IRNA reported.

The directives are part of a general push by the government and the parliament to revive the economy and help the manufacturing sector get back on its feet after years of economic turmoil.

The turmoil resulted from western sanctions over Iran’s nuclear program and mismanagement of government finances that led to rampant inflation and a two-year back-to-back recession.

Now, following the lifting of sanctions in exchange for limits on Tehran’s nuclear works, Iranian businesses are reestablishing their ties with their foreign counterparts and have regained access to raw materials and consumer markets previously blocked by financial sanctions.

International measures against Iran, including banking curbs, were lifted in January as part of the deal with world powers. Nonetheless, the Islamic Republic is struggling to access new financing as many large banks fear falling foul of remaining US restrictions.

The government is pinning its strategy on a revival of Iran’s wide industrial base and is easing regulations to accelerate their operations.

The measures enacted by the customs administration include easing of import and export documentation requirements, easier modes of tariff and duty payments and faster processing of import and export cases.

The IRICA will also work in conjunction with Iranian lenders when processing letters of credit and other financing documentation.

Earlier on Tuesday, IRICA Chairman Masoud Karbasian said customs clearance formalities now take three days, down from the previous 26 days, which have reduced costs by 280,000 billion rials (around $8 billion at market exchange rate).

The Iranian government is also aiming to quickly join the World Trade Organization to help businesses gain easier access to foreign markets.

WTO members are willing to support Iran’s accession to the body, but a lot will depend on Tehran’s drive to make proposals during the early stages, the WTO’s director general said in March.

Iran, one of the biggest economies outside WTO, had signaled its intention to join, as part of normalizing its international trade relations in the post-sanctions era.