New Regulations on Export, Import and Hard Currencies Announced
Nourlaw.com-29 October 2018-Tehran-The Supreme Council of Economic Coordination in its 14th session on 10/07/1397 (3 October 2018) set out new regulations on export, import and the manner of handling foreign currencies. The decree on 23/07/1397 (15 October 2018) was notified by the President to different governmental organizations for implementation.
The content of the decree is as follows:
1. All non-oil exporters are obliged to offer the foreign currency generated by their exports within three months to the Integrated System of Hard Currency Transactions (NIMA) or in the manner the Central Bank of Iran (CBI) which may regulate and offer the foreign currency to the overall currency mix of the country. Those exporters who adhere to this rule, will enjoy special facilities to be approved by the government.
Note 1: The implementation form and type of exclusions will be set by a committee specified in Article 2 of this decree.
Note 2: In view of the current extraordinary economic conditions of the country, not honoring the above order shall be considered, upon the discretion and declaration of the CBI, as foreign currency smuggling and the violators will face legal punishments.
2. To secure foreign currencies for importing goods and services, a committee working under the authority of the CBI and composed of the Governor of CBI, Head of the Plan and Budget Organization, Minster of Economic Affairs and Finance, Minister of Petroleum and Minister of Industry, Mine and Trade will be formed to assess the monthly foreign currency income, both from export of oil or non-oil goods and services of the country and for the purpose of managing the order registration and will announce “payable foreign currency” to the Ministry of Industry, Mine and Trade.
3. Determination and appropriation of foreign currency allocation within the scope of the tasks of each organization will be performed by a committee, working under the auspices of the Minister of Industry, Mine and Trade, composed of the Plan and Budget Organization, Ministry of Economic Affairs and Finance, Central Bank of Iran, Ministry of Petroleum, Ministry of Agriculture and Ministry of Health and Medical Education. Distribution of the allocated foreign currency within the scope of the authority of each organization, shall be the responsibility of the related minister.
4. Every juridical and natural person, in compliance with the regulations announced by the CBI, is permitted to import any amount of foreign currency in the form of cash. The security and enforcement organs and the Customs Organization are not allowed to prevent such transactions. Any form of prevention will be considered as an administrative breach of duty and the responsible person, in case of conviction, will be dismissed from public service for six months and in case of a recurrence (of the wrongdoing), will be sentenced to stiffer punishment.
5. For the purpose of managing the foreign currency market, the CBI may intervene in the forex market with full authority and necessary control, within the framework of policies, schemes and other required actions which are affirmed by the Governor of the CBI and through the banks and authorized exchange dealers and other appropriate mechanisms, and may also supply out of its own foreign currency resources and that of non-oil exporters as well as buy from any juridical and natural person.
6. Purchase and sale of foreign currency is only allowed through the banks and authorized exchange dealers within the framework of the declared regulations of the CBI which will take the needed steps for announcement of the exchange rate at the foreign currency market in an officially approved manner. Any form of publication of the exchange rate which deviates from the above mentioned method and may create a negative psychological impact and a resulting tumult in the market, shall be considered as economic sabotage upon the discretion and announcement of the CBI and the Headquarters of Economic Propaganda. The security and the judicial authorities are obliged to take legal action against them.
7. The Islamic Republic of Iran Broadcasting Corporation and other official and authorized media of the country which are considered forerunners in combating the propaganda and psychological war of the enemy, are bound in their reporting and analysis of the foreign currency and gold market, to act in a manner in conformity with the information propagation system of the CBI and the Headquarters of Economic Propaganda, although the door should not be closed to fair criticism. The security and judicial organs are obliged that upon discretion and notification of the CBI and the Headquarters of Economic Propaganda, to immediately take action against those who infringe upon such instructions. The Judiciary shall set fair punishments in such cases and follow the matter through legal channels.
8. For the purpose of investment promotion, in the event that nationals of the states recognized by the Government of Islamic Republic of Iran, bring in at least USD 250,000 for investment into Iran, they would enjoy the privilege of having a five year residence permit in line with the regulations to be declared by the Government
9. CBI within the framework of the capital market rules and regulations is allowed to undertake operations in the open market and it can, for the purpose of implementation of monetary policies, proceed with the purchase and sale of Islamic Securities issued by the Government and also Foreign Currency- Rial Securities in coordination with the committee foreseen in Clause K-1 of Note 5 of Budget Law of the year 1397.
Note 1: (in accordance with the above) Any kind of money received from the public shall be in the form of deposits and not loans.
Note 2: These resources, will only be under the control of the CBI and the Government is not permitted to use them.
10-The CBI is obliged to lay down the required grounds for purchase of the foreign currency generated by the export of petrochemical and steel products, as well other export goods that are offered by the exporters. The CBI may purchase foreign currency offerings, directly or indirectly, at the rate which is set by the secondary foreign currency market (NIMA system). Under the supervision of the CBI, the risk of purchase and transfer operations resulting from the perils of fighting the sanctions, shall be accepted and registered in the operating accounts of the CBI
11. The duration of the validity of this regulation, as from the time of approval, shall not exceed one year.