Tuesday Mar 28, 2017

FAQ

What are the objectives of establishment of special economic zones in Iran?

On the strength of the contents of Article 1 of Law on Establishment and Administration of special economic zones, the objectives of establishment of the said zones are given as follows:
1.    Support of economic activities
2.    Establishment of international trade relation and stimulation in regional economy and production and processing of goods
3.    Transfer of technology
4.    Non-petroleum export
5.    Creation of generating employment and attraction and encouragement of domestic and foreign investment
6.    Re-export, foreign transit and transshipment of goods

What roles do special economic zone essentially play in global economic development?

Special economic zone play a prominent role in raise of international trade trend and employment all over the world. In the view of global economy, special economic zone and export processing zones are regarded as means or objectives for policy making by governments for development of industrialization, employment and regional development.

What facilities and privilege are presented by special zones?

Issuance of transactional separable warehouse receipts and certification of origin for imported and exported goods
Freedom in partnership and investment for national and foreign nationals
Arrival and exit of goods with no customs charges and commercial interests for processing, production, conversion, completion and the ones
Customs exemption for import of goods manufactured at special economic zones to the country with value-added
Possibility for export, transit, transshipment, and re-export f goods with no customs formalities
Guaranty for foreign capitals and interests obtained
Freedom in arrival and exit of capital to the zone
Freedom in arrival and exit of foreign goods from all borders and destinations at the zone
Possibility for conversion of and packaging of goods for re-export
Possibility for production of kinds of industrial products that can be offered in Iran’s market or in foreign countries
Possibility for import of a few percentages of products, manufactured at the zone to the country without useless formalities
Wholesale of goods under easy conditions

Is there any difference between foreign investment at free trade-industrial zones and port special economic zones?

Foreign investment at free zones is subject to special investment regulations at the said zones. However, special economic zones in this respect are parts of main land and are subject to Law on Encouragement and Support of Foreign Investment.

What authority does issue license for economic, development, construction, cultural, educational and service activities at port special economic zones?

On the strength of Article 7 of Law on Establishment and Administration of Special Economic Zones, the only authority for issuance of the aforesaid licenses is responsible organization of zones (ports and maritime organization). This duty is assigned to management of each zone by the responsible organization in the view of organizational structure of special port zones.

How are the said free zones administered in Iran?

Each zone is established in form of a company or an independent legal entity and its capital belongs to government. These companies and the companies and affiliated companies are excluded from rules and regulations governing governmental companies and other general governmental regulations and they are exclusively administered by virtue of Law on Administration of Free Trade-industrial zones ratified on Aug 29, 1993 by Islamic Consultative Assembly and respective articles of association. Regarding the cases, not predicted in the said Law and corresponding Articles of Association are subject to Commercial Law.

What are the objectives of establishment of free trade-industrial zones?

Article 1 of Law on Administration of Free Trade-Industrial Zones of Islamic Republic of Iran ratified by Islamic Consultative Assembly on Sept 12, 1993, expresses objectives of establishment of Free Trade-Industrial Zones as follows:
Accelerating accomplishment of infrastructure affairs, development and economic growth and development, investment, rise of public incomes, desirable employment, regulation of labor market and goods and active participation in global and regional markets and production and export of industrial and converting goods and offering general services.

What is a port special economic zone?

Port special economic zone is a secured zone that is established by virtue of Article 1 of Law on Establishment and Administration of Special Economic Zone in Islamic Republic of Iran (Ratified in 2005) and presently, it consists of port special economic zones of Shahid Rajaee, Booshehr and Amir Abad.