Economy, Domestic Economy
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S. Korean Firm Fined $750m for Evading Iran Tariffs

S. Korean Firm Fined $750m for Evading TariffsS. Korean Firm Fined $750m for Evading Tariffs

The Islamic Republic of Iran Customs Administration has fined a South Korean home appliance manufacturer about 30 trillion rials ($750 million at market exchange rate) for violating Iran’s import regulations and evading tariffs.

An inter-office IRICA letter published by Iran’s semi-official Tasnim News Agency on Wednesday said a South Korean company, whose was not disclosed, has dodged the payment of 18.2 trillion rials (over $450 million) in tariffs by shipping disassembled products through separate customs bureaus.

Home appliances are subject to import tariffs of more than 50%, if shipped as final products to Iran. However, the government imposes considerably less for parts used in appliance manufacturing in a bid to support domestic industries.

South Korean electronics giants, Samsung and LG Electronics, lead Iran’s home appliance market. While foreign products account for 65% of Iran’s home appliance market, the two South Korean companies hold a 55% share. 

Home appliances also account for 13% of all the goods smuggled into Iran.

 

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