In a video conference head of Iran’s Trade and Promotion organization with the deputy minister of commerce of Turkey, discuss trade developments, removal of the restrictions during the current situation of Coronavirus.
As the Iranian government is making all its effort to ensure the health and safety of commercial cargoes and the establishment of disinfection facilities and observation of personal hygiene on exporting goods, with complying health protocols, Iran and Turkey are willing to reopen the borders.
The trade borders between Iran and Turkey will reopen as soon as possible, and this critical issue will happen in the near future.
They also emphasized the need for broadening friendly ties and the significance of bilateral trade and economic relations.
During two days meeting in Dec 2019, a memorandum of understanding (MOU) on economic, trade, scientific, and cultural cooperation between Iran and Kyrgyzstan was signed by road ministers of two countries.
One of the significant articles of this MOU is the capacity of cooperation between Iran and Eurasia union and is to highlight the grounds of promotion of regional interactions. Also, both sides have agreed to use the potential of Anzali Free Zone to create a transportation corridor to the Persian Gulf markets and Turkey. Anzali Free Trade Zone is well known as the economic hub of Iran in the southern part of the Caspian Sea and it is located in Gilan province.
The assistance of the governments for preparing the ground in engineering services in the field of export as well as establishing a joint trade council involving Iran and Kyrgyzstan free zones and holding industrial tours for the two countries’ investment to get familiarized with free zones are among the other clauses of the MOU. Moreover, facilitating the issuance of visas, in particular for people in business, holding international exhibitions, and establishing direct flights between the two countries were among the areas agreed at the meeting of two countries.
In late July, the government of Iran approved cryptocurrency mining as an industrial activity and announced that cryptocurrency miners should acquire necessary licenses from Industry, Mining, and Trade Ministry. Recently, Iran government announced a new electricity tariff for cryptocurrency mining operations. According to the new guideline, mining digital currency is banned during peak hours, which usually extends over 300 hours in the four months of high electricity consumption across Iran mostly due to the warm weather.
The rates of electricity for mining is issued by the government in Nov 2019. During non-peak hours of these four months, miners can continue their operations and will be charged $0.16 per kWh for each kWh consumed. For the remaining cold 8 months of the year, around $0.04 per kWh will be charged to miners.
Additionally, the government has offered an incentive to those who would set up their own power plants for mining digital currencies, adding if a failure occurs to generate electricity from renewable sources, the government would back-up these plants; taking into consideration that the government will also offer various bounties in different sections of this field.
Imam Khomeini International Airport’s (IKIA) free trade zone is ready for economic activities through the establishment of a new customs building and stock room since June 2019. The purpose is to evolve IKIA into a major cargo and passenger hub in the Middle East.
IKAC, which includes a 1,500-hectare free trade zone and a 2,500-hectare special economic zone in a 13,700-hectare area, aims to help national and international companies to cluster around the airport and engage in business activities. The unique geographical location of Iran and its altitude in comparison to the International airports of Iran’s neighboring countries makes it reasonable to invest in the expansion of IKAC. IKAC is looking for investors in international finance, as well as owners of know-how in this industry. This is good news for who may wish to make investments in free zones.
According to Iranian laws and regulations, the main advantages of free trade zones are:
1) 20 years income tax exemption for any type of economic activity
2) No requirement for foreigners to obtain a visa
3) No limitation on currency transfer
4) Exemption from certain customs duties
Connecting IKIA to the international transportation networks, including the East-West and North-South corridors, as well as linking it to the national railway and Tehran’s subway system are among the main steps to achieve such a goal.
more on boosting non- oil exports recently. One of the approaches is to target the markets of neighboring countries Iran has adopted a policy of the least reliance on oil revenues and focusing more and by entering into various agreements with different countries. One of these agreements is the trade agreement between Iran and the Eurasian Economic Union officially, which came into force on October 27, and its implementation was formally notified to customs offices across Iran last week. The accession of Iran into EAEU is a significant breakthrough for Iran’s trade as it would allow exports on zero tariffs for 70 products while 503 other items would enjoy lowered duties, according to Iranian Energy Minister Reza Ardakanian.
This process means that the Iranian state-owned companies, private companies and people in business can export these goods at much easier terms and with much lower customs duties (even zero for some categories of products) to the Eurasian Union member states, which are often Iran’s neighbors and Eurasian Union businessmen can also trade with Iran with greater convenience.
In other words, in this event, to enjoy the maximum potential of the market, fully corporation of government and private is needed. Most importantly private sector needs an organized plan due to inconspicuous presence in the regional market. This market is going to give a chance to those who want to enter an enormous market and is an excellent opportunity for national companies to get involved in business with companies over the seas.
Indian government sources have said that New Delhi has recently allowed investment in Indian rupees in Iran, the Again Age reported on Friday.
The announcement was made simultaneous with Iranian President Hassan Rouhani beginning his visit to India from Hyderabad on Thursday.
Sources said this will not violate U.S. sanctions on Iran since transaction will not be in U.S. dollars. The Indian move will hugely help the Iranian economy as it will draw in more Indian investment into Iran.
If an Indian businessman wants to invest a certain amount in rupees in the bona fide concerned Iranian account in one of the Indian banks and the equivalent amount of Iranian rials will then be deposited in the venture in Iran, sources said.
India’s contribution to the development of Iran’s Farzad B gas field in the Persian Gulf and its operation of Chabahar Port in southeast of Iran are among the issues to be discussed between President Rouhani and Prime Minister Narenda Modi on Saturday during delegation-level talks.