We would rather start this study with a question: Do you know the most important institutions in Iran, involved with imports and exports?
The Islamic Republic of Iran is a very rich country in regards to having natural resources, in a way that based on estimates Iran houses only around one percent of the world’s population, while having 9 percent of the world’s discovered oil and 16 percent of the world’s natural gas resources. Iran’s natural wealth does not end in its oil and gas reservoirs and this country is counted as one of the top holders of many other natural and mineral resources such as Feldspar, Baryte, chalk, Iron ore, Copper, Manganese, Zinc, Chrome and Gold. Based on the estimates and the current discoveries, Iran holds around 5 percent of the world’s metal resources. Speaking of renewable resources Iran could easily secure all its electricity from the wind or the solar energies and thousands of other economic potentials that could be talked about in thousands of other articles and studies. But how much of this potential has become a reality till the year 2022? The need for foreign investment and imports to Iran have created a considerable potential for the countries in the region and the countries in the world in general. However, it would be necessary to have some information about the most important import export-related institutions in Iran before investing and exporting to it. Information which will help you in the general business cycle with Iran especially in the subject of exports. Follow us in this article in GTG to know more about the most important organizations and institutions involved with imports and exports in Iran.
1-The Iranian Ministry of Industry, Mining and Trade(MIMT)
Without a doubt the most important import export related organization in Iran is the Ministry of Industry, Mining and Trade of the Islamic Republic of Iran. But what is this Ministry and what does it actually do? To put it in another way, how does the ministry of Industry, Mining and Trade does its role in the subject of exports to Iran?
To begin with, it is good to know that in the year 2021, the 47 years old Dr. Seyed Reza Fatemi Amin is serving as Iran’s Minister of Industry, Mining and Trade. Dr. Fatemi has been appointed to this position having a PhD in Strategic Management of Science and a Master’s degree in Economic-Social systems Engineering, with years of experience being in various positions such as the Deputy Minister of the MIMT.
The MIMT has many duties, from dictating Iran’s International trade policies to setting custom duties and policies, the range of MIMT’s activities is quite vast. Some of the most important services and duties performed by this Ministry in the matter of imports-exports are:
1-Authorizing exporting goods
2- Authorizing importing goods
3-Issuing currency bonds
4-Studying and issuing the necessary licenses and permissions for exchanging trade boards
5- Studying and issuing the necessary licenses and permissions for International or specialized fairs
6-Disturbuting the quotas for foreign currencies
7-Presenting information banks for the exporters
8-Issuing the insurance policy for the exports
But what are the most important duties of this Ministry? Here are the most important duties and responsibilities of the MIMT in the matters of imports and exports:
1-Determining the policies for oil based and non-oil based development and regulating and enforcing macro policies in regards to supporting exports in the Islamic Republic of Iran
2-Managing and facilitating the domestic and the international trade
3-Planning, directing and supporting the creation and the development of investment in foreign countries
4-Regulating and expanding the international trade with different countries in the world and economic unions while conforming to domestic and international laws
5-Managing Islamic Republic of Iran’s connection to the World Trade Organization
6-Managing the various events in the field of International trade such as dispatching trade boards and commissions, holding and participating at international fairs and exhibitions
7-Planning and supporting the development and attracting domestic and foreign investment for the expansion of Iran’s industry, mining, and trade
8-Directing and supporting export oriented products
9-Research and Development(R&D) for the growth of the national production
10-Policymaking, planning, overseeing, protecting and supporting the development of foreign investment
The MIMT is composed of many different units with important roles in the management of Iranian imports and exports. We would get to know more of these units in the coming sections.
The Office of the imports and export’s regulations
As one of the most important subunits of Iran’s MIMT, this office is mainly active in the trade-related legal and regulatory sections of the Islamic Republic of Iran. Studying the laws and regulations in regards to importing and exporting goods, studying the process and the laws of imports and exports in targeted countries, proclaiming the circulars and guidelines to the executive institutions as the sole decision making authority are only some of the responsibilities of this office.
The Office of the imports and export’s regulations has five subunits, each working in a different subject in a specialized manner. These subunits are:
-The group for the Commercial Law, public relations
-The Regulatory group
-The group for the registration of the orders
-The group for the frontier dwellers and the border markets
-The article one commission
The Organization for Trade Development
The Organization for Trade Development-as a more or less independent exports related institution in Iran-is a subunit of the MIMT. This organization was founded in 1345/1966 with the aims of the expansion of the international trade, marketing, advertising and the expansion in the international trade. The MIMT’s Organization for Trade Development is extremely effective in providing trade and commerce related statistics by giving precise and up to date stats of non-oil exports, statistics and information in regards to the chosen export markets, stats and information in regards to importing goods based on their type, and the statistics for exports based on different provinces in Iran.
This organization is also active in providing export-related services, and presents various different services in the forms of the High Secretariat of Exports and the group for the managing exports, transportations and insurance firms.
It is also interesting to know that MIMT’s organization for the trade development also has two domestic and international specialized databases, which manage cases such as exports unions, the center for the international trade, the commerce rooms of MIMT and the various commercial agreements and protocols.
The provincial branches of the MIMT
It is good to become familiarized with the provincial MIMT organizations, in order to have a better connection to various places in Iran to export to it. In a way, these organizations are the main hubs of the MIMT in the various provinces, for these provincial organizations are the executive arm of the ministry around the country.
Despite these, MIMT’s organizations are active in the other areas of this Ministry such as mining and industries in the provinces. Most of these organizations usually have a foreign trade sector and the exporters are in touch with them, in order to conduct export-related activities.
All the paperwork and the procedures in the realm of imports and exports in the provinces could be done in these provincial centers and there would be no need to also be present in MIMT’s central headquarters in Tehran in the majority of cases. In addition to any trade and exports-related paperwork, some other services are also performed by these branches, such as providing specialized consulting services in these regional centers.
The Center for Teaching Trade
This center is one of the constituent units of MIMT’s Center for Commercial Studies and Researches. The main aim and mission of this unit is in fact to provide specialized education in the subject of commerce and trading, especially in the realm of the imports and exports. There are considerable numbers of traders or people interested in trading being taught there consistently.
The teachers in these courses are mainly composed of the experts in various commercial fields. Of course this center does provide many other courses as well, however the area of commerce and international trade is the most important subject being taught there. It shouldn’t go unnoticed that having a connection to such centers could be useful in creating a network and networking in general.
The Export Guarantee Fund of Iran
Generally speaking, the existence of commercial and political risks is one of the major concerns for traders in conducting their commercial operations. Risks such as not receiving the fee of their goods on time which could lead to the creation of many major problems for the traders and the merchants. These were the reasons that a fund named The Export Guarantee Fund of Iran was founded by the MIMT in order to support and encourage domestic exporters and growing Iranian exports.
The government’s support plan in the form of the Export Guarantee Fund of Iran decreases the existing risks to a significant part, considering the dependence of most export-oriented firms and companies to the government. But what are the aims of the Export Guarantee Fund? The most important aims of this organization could be mentioned as:
-Covering the exporter’s demands
-Issuing trust guarantees
-Covering and supporting investment plans
-Presenting educational services in the subject of imports and exports
-Decreasing the political and the commercial risks
-Accrediting governments, customers and foreign banks
-Issuing insurance policies for exports
-Issuing analytical reports of the targeted markets and the existing risks
Iran International Exhibitions Company
The Iran International Exhibitions Company is one of the other institutions of the MIMT that is active in the area of exports to Iran. The public company of Iran International Exhibitions is acting as the first and the foremost symbol of the exhibition industry in this country, with the aims of developing the connection with the international groups and associations, introducing the achievements in the industrial, agricultural, mineral and commercial fields by organizing exhibitions and booths inside and outside of Iran.
This organization tries to take an effective step in the matter of expanding Iran’s international commerce, especially in the subject of exports by utilizing cutting edge technology, using an expert and competent workforce and the standardization of servicing and exhibitory activities.
2-The customs of the Islamic Republic of Iran
The customs is the second most important institution of the Islamic Republic that is active in the imports and exports. Iran’s customs has an important role in collecting government incomes and the execution of the economic and commercial guidelines and policies of Iran. In fact the national customs of this country is the gateway to enter into this country’s exports market.
As it is already mentioned the customs of the Islamic Republic of Iran is one of the most necessary organizations that foreign traders and businesspeople have to deal with, during the process and the operation of exporting. This in turn makes it necessary to have sufficient familiarity and information with the rules and the requirements and the operational and executive procedures of Iran’s customs.
Iran’s customs has many duties alongside doing the procedures for releasing the goods and the matters related to it. Duties such as supporting the domestic products, controlling the flow of currencies, controlling the model of consumption, enforcing the laws in the subject of the imports and exports, safeguarding the goods, determining and taking the custom’s and the commercial duties and charges, fighting smuggling, supervising the transits and exchanging technical knowledge.
3.Iran’s shared Chambers of Commerce
Currently Iran has more than 38 active chambers of commerce with various countries in the world. But what is Iran’s aim of founding chambers of commerce? What help does chambers of commerce provide to you in the subject of exports to Iran? Generally speaking, it could be said that the chamber of commerce of MIMT is a deeply-seated and well stablished institution which is known as an association and an union of the private sector’s companies in the area of international commerce.
In other countries too, the chambers of commerce affect important economic indicators and are the cause of growth in communication, economic development, the growth of firms and the economic growth of countries. In the modern global economy many countries of the world see a huge part of their economies being in the hands of private firms, and this shows the exceptional potential of these firms in commerce, especially the international commerce.
The active and expansive participation of the private sector in various economic areas is of a high importance in the current situation of Iran’s economy. Islamic Republic of Iran’s common chambers of commerce try to create influential commercial connections in order to provide the conditions for the development of international relations and world diplomacy for Iran, in addition to economic interests.
These are the most important duties and responsibilities of the chambers of commerce:
1-Supporting and developing the trade in the private sector
2-Providing the necessary facilities for absorbing more foreign investment
3-Establishing an effective connection to economic associations and unions
4-Issuing, extending and managing trade cards
5-Solving disagreements with governmental authorities
6-Issuing the origin certificates
7-Confirming commercial documents
8-Matters related to commercial visas
9-connecting and cooperating with the chambers of commerce, mining and industry of other countries
10-Providing consultation services in the matters related to taxation and the international commercial law
4-The Ministry of Foreign Affairs
Naturally each country’s ministry of foreign affairs doesn’t have a central and key role in the area of commerce and exports. The situation is a little different in the Asian countries however. Iran’s Ministry of Foreign Affairs has always been one of the most important institutions of the Islamic Republic of Iran in expanding exports to other countries, using political and diplomatic means and is on the other hand, a very suitable way of connecting to Iran for exporting, for the countries of the world.
In fact in the recent years the Foreign Ministry of Iran has tried to play a more prominent role in the development of the international economic relations, by dispatching its economic advisors to foreign countries. Generally speaking, Iran’s embassies and consulates in other countries provide a good knowledge of Iran’s market, the requirements to export to Iran and the development of economic relations with this country.
5-Iranian National Standards Organization
The Iranian National Standards Organization is the last institution in the list of the most important imports exports related organizations in Iran. This organization has the responsibility of quality controlling Iran’s imported and exported goods. The most important exports-related duties of this organization could be summarized as:
1-Quality controlling imported and exported goods
2-The preparation and the publication of the list for the imported and exported goods who require compulsory standards
3-Regulating the laws and the regulations related to imported or exported goods inspections
4-Directing the process of receiving a certificate of imported exported goods conformity assessment
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We appreciate you accompanying us till the end of this article. Contact our experts in GTG to receive expert counselling in the matter of exporting to Iran.