Iran-Selling and buying

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Published: 06 Oct 2008 17:51:21 PST

Distributing a product

Distribution network: Structure of import network
Since 1995, the import of basic food products is almost totally entrusted to the State through the intermediary of certain ministerial purchasing groups. Private companies do not enjoy any more the right to import on account of the State. The private sector in all cases was becoming less and less active due to constant changes in rules and regulations which are complex and restricted.

Purchasing groups
These purchasing groups were created at the beginning of the Revolution and were placed under the direction of Ministries. They buy in large quantities in order to obtain a good price and also to distribute the products they import. Further, they are going to disappear to the benefit of the General Trading Corporation (an institution placed under the supervision of the Ministry of Commerce). The role of the General Trading Corporation (GTC) is to import and distribute the basic products that are subsidised by the State.

Co-operatives
These co-operatives play a growing role in the economy and operate under the direction of the Ministry of Jihad and Agriculture. There are several types of co-operatives : purchase and distribution co-operatives are private producers, distributors and service co-operatives and then come the rural co-operatives. These rural co-operatives provide agricultural products and resell them. Finally, there are urban co-operatives which are responsible for supplying local consumer products or imported at lower prices than those distributed.

Foundations
These foundations are aimed at assisting needy persons and families affected during the war. They control commercial companies, production units and agricultural holdings.

Private sector
The role of this sector tends to diminish except for the production of foodstuffs and for export. The companies investing foreign currencies in exports are authorised to import certain products.
Reaching the consumers
Selling to the firms

Market access procedures

Commercial policy: A general license granted by the Ministry of Commerce is required to import into Iran. Furthermore, the importer needs the approval of the appropriate Ministry.
The market is open for staple commodities, equipment goods, spare parts and raw materials. Equipment goods, raw materials, medicines, wheat and other strategic goods have no import customs duties. The import is not allowed to finished products competing with a local production nor to local consumer goods. As for the last goods, imports are carried out through non-official channels.
It is important to check, by consulting your national authorities settled in the country, the specific pieces of information, especially given the frequent changes made in import regulations.
Import procedures and custom duties: The Iranian government may impose rental payments, import tariffs and import taxes. Most of the goods are subject to customs duties.
Import taxes (excluding consumer taxes)

Identifying a supplier

Business directories: Yellow Pages 20UN
Domestic Trade Agencies and their representations abroad: Iran Chamber of Commerce, Industries and Mines

Organizing goods transport

By sea: As for the merchant fleet, Iran has a 135-ship fleet including 39 cargo vessels, 6 ships for long distance shipping routes and 32 tankers, ...
By air: The domestic air transport is efficient and serves numerous cities in the province. The aircrafts fleet is ageing but its maintenance seems to be satisfactory.
By road: The most utilised means of transport is the road transport.
By rail: Railway transport extends over 4,852 km as a whole and has 140,200 km long practicable roads. The ports are : Abadan, Bandar Beheshti, Bandar-e Bushehr.
Useful resources: The airline company Iran Air