Import, Export and

Invest in Iran

geography

Iran boarder: Iran is in western Asia, It is bordered by Armenia, Azerbaijan, Turkey,

Iraq, Turkmenistan, Afghanistan, Pakistan, Persian Gulf, Gulf of Oman and Caspian

Sea. it is the second-largest country in the Middle East and the 18th-largest in the

world. Tehran is the capital and largest city in Iran.

Iran is the only country with both

a Caspian Sea and an Indian Ocean

coastline. The country's central location in

Eurasia and Western Asia, and its proximity

to the Strait of Hormuz, make it of

great geostrategic importance

DemographyIran's population grew rapidly during the latter half of the 20th

century, increasing from about 19 million in 1956 to around 80

million by 2014.

However, Iran's birth rate has dropped significantly in recent years,

leading to a population growth rate—recorded from July 2012—of

about 1.29%. Studies project that the growth will continue to slow

until it stabilizes above 105 million by 2050.

Tehran, with a population of around 12 million (2013

census), is the capital and largest city in Iran. The

highest rate of population is between 25-54 (male

18,955,874/female 18,289,849) that is 46.1%. Also

medium age in Iran is 28.3 years.

Demography

The majority of the population speak Persian, which is also the official language of the country.

Today, the Shia Islam is the official state religion, to which about 90% to 95% of the population officially belong.

Iran after sanctionsHow can Iran take advantage of economic prosperity after the sanctions? The short answer is: by realizing its economic output potential.First, Iran should execute its goal to change its oil contract model to allow international oil companies to participate in upstream phases, including production. However, Iran should retain ownership.

Second, sustained economicprosperity must be built onthe non-oil economy. As a result, Iran should accelerate its efforts in competitiveness, which requires upgrading current efforts and higher productivity across industries.

Iran's relations with Italy after sanctionsItaly was the first country who start relations with Iran after sanction.In the first 9 months after sanction Iran export 594 million $ to Italy and subsequently had 951 million $ import from Italy.

But estimated in the next two years, this number increase to $ 7 milliard.

Some statistic • Import 7 million and 236 thousand tons of goods worth $ 9

milliard to the Iran, In the first quarter.• Iran exports goods worth $ 9 milliard in the first quarter

• Export 18 tons of chewing gum to Italy in 4 months

• Start export Petrochemical cargo to Italy• Sace insurance ready to provide services

to Iran• Germany is fifth largest importer of

goods to Iran

• Import to Iran from Germany: 15% increase in the first six months of this year, equivalent to 1.3 million euros

• Iran and Germany signed a contract for gas turbines

Some statistic

• Import 4 tons anti bedsore mattress worth $ 368 481 from US

• Import $ 339 million from Switzerland include: Corn livestock, soya, sunflower oil, pharmaceuticals, sugar.

• Renault sold three times more in eight months in Iran

• Iran release catalyse petrochemical imports from EU• exports $ 83 million hand made carpet around the

world

Why IRAN• Iran becomes the new frontier for

investment in the Middle East • It 'a relatively large and liquid

market • After the Vienna Agreement offers

new investment opportunities • You can open new and profitable

business opportunities • Italy is confirms the first trading

partner• "Made in Italy" Is highly regarded in

Iran• Iranian government is very keen to

foreign investment

• Iran offers investors exceptional guarantees of payment solvency.

• Iran is a country rich in resources including oil and gas

• Labor, land and the cost of implementation and maintenance is very cheap in Iran

• The Iran has a population of 80 million people

• Iran has a large neighboring countries which are poor in industry and manufacturing with consumerism culture

Import from Iran

• The main export items from Iran to Italy are: Iron and steel, Petroleum products and petrochemical products, Foundry products, leather, water heater, Pistachios and Floor Covering.

• Iran’s main exports partners are: China, Japan, Turkey, Italy and South Korea.

The main export items from Iran are: oil, natural gas, petrochemical , fruits, carpet, saffron, iron, steel, plastics, metals and ceramic products.

Export to Iran

• The main export items to Iran are: rice, Corn livestock, soybeans, CKD parts for cars, different kind of vehicles.

• Iran's main import partners are the United Arab Emirates, China, South Korea, Germany and Turkey.

Italian brands in IranItalian brands are highly regarded market, as many of these brands are present in franchising, and some opened its representation in different cities of Iran.For exampleOil company Eni has been active since 2011 in Iran and before sanctions could play an important role in the expansion of the oil industry. Benetton and Geox are represented in the garment sector in Iran.The appliances Delonghi, Indesit, Ariston products can be obtained from reputable shops.In many supermarkets in the country is possible to find Barilla in food products, olive oil Monini, illy and Lavazza cafe or Ferrero, Nutella and Laocker chocolates.It is noteworthy, Sace Insurance in its latest report said after increased sanctions on Iran since 2006 Italy has suffered nearly 16 million euros.

The benefits of investing in Iran

Strategic Position

Islamic Republic of Iran, as a strategic country, has got common borders with states of ESCWA in South and West, SAARC in East and CIS and Caucasus as well as UNECE in North. The country is regarded as one of the richest countries in hydrocarbure reserves, so that it ranks the second for gas reserve and its export as well as the second for exporting crude oil in the world. According to the reports of the international institutions like the World Bank, Islamic Republic of Iran, with having more than 700 million dollars GDP, scores the eighteenth out of twentieth outstanding economies, eighteenth and sixteenth for population and area respectively.

Trade-Industrial Free ZonesIncentives and advantages for investment in Trade-Industrial Free Zones1-Tax exemption for 20 years from the date of operation for all economic activities2-Foreign investment and nearly a hundred percent of the amount invested.3- Freedom of entry and exit of capital and profits4- Protection and guarantees for foreign investments.5- Abolition of entry visas and easily issue of residence permits for foreigners.6-Facilitated regulation on labor relations, employment and social security.7- Transfer of part manufactured goods to the mainland without paying customs duties.8- Elimination of pay customs duties on imports from outside to the region and vice versa.9- Employing trained and skilled manpower in all different skill levels and professions.10- Utilization of raw materials, oil and gas as feedstock and fuel for all industrial activities.

The list of the Trade-Industrial Free Zones of the Islamic Republic of Iran are as follows:

1-Qeshm 2-Chabahar 3-Aras 4-Anzali 5-Arvand 6-Kish 7-Maku

Special Economic ZonesIncentives for investment in Special Economic Zones• Import of goods from the above mentioned zones for domestic consumption would be subordinate to export and import regulations, and export of goods from these areas will be carried out without any formalities.• Import of goods from abroad or free trade zones or industrial area-would be carried out with minimal customs formalities and good internal transit cases would be performed in accordance with the relevant regulations.• Log entry of merchandise subject to this article will be done without any customs formalities.• Goods imported from outside or industrial areas or other commercial zones can be exported without any formalities of the country.• Management of the region is allowed to assign the region to qualified natural or legal persons after classification and valuation.• Owners of goods imported to the region can send all or part of their goods for temporary entry in to the country after doing customs clearance regulations.• If the processing of imported goods is to some extent that changes the tariff of goods, the rate commercial benefit of the goods would be calculated equal the commercial benefit of raw materials and spare parts of the country.

• Importers of goods are allowed to hand over to others part or all of their products against warehouse receipt to be issued by the district administration, in this case the breakdown warehouse receipt holder would be the owner of the goods.• The management of each district is authorized to issue certificated of origin for goods per applicant out of the area with the approval of the customs.• All the goods imported to the region for the required production or services are exempted from the general import-export laws. Imports of goods to other parts of the country will be subordinated to export and import regulations.• Percentage of goods produced in the zone, based on paragraph (d) of clause (25) of the law of the second economic, social and cultural development plan of the Islamic republic of Iran imported to the country, the proportion of total value added and domestic parts and materials used in the total price of the commodity production is allowed without any limitation and in addition to not having to order and open letter of credit.• Goods manufactured in special economic zones, as well as raw materials and imported CKD parts into the country is not subject to price regulation due to unutilized resources and allocated currency.The list of the special economic zones of the Islamic Republic of Iran are as follows:1-Salafchegan 2-Shiraz 3-Assaluye 4-Arge Jadid 5-Payam Airport 6-Persian Gulf 7-Lorestan 8-Amirabad 9-Bushehr port 10-Shahid Rajaee Port 11-Sarakhs 12-Sirjan 13-Yazd 14-Bushehr …

Supportive Government PoliciesThe Law on foreign investment in Iran under the name of “Foreign Investment Promotion and Protection Act” (FIPPA) was ratified by the parliament in 2002.Some specific enhancements introduced by FIPPA for foreign investment in Iran can be outlined as follows.1-Broader fields for involvement by foreign investors including in major infrastructure.2-Broader definition given to foreign investment, covering all types of investments from FDI to different types of project financing methods including :Civil Participation, Buy –Back arrangements, Counter trade and various BOT schemes.3-Streamlined and fast track investment licensing application and approval process.4-More flexibility and facilitated regulatory practices for the access of foreign investors to foreign exchange for capital transfer purpose.

Economic advantages:

• The 18h largest economy in the world by purchasing power parity • Consumption and the government plans billions of dollars worth of further investment to increase this share.• The diversified economy and broad industrial base with over 40 industries directly involved in the Tehran stock Exchange is the industrial base in the MENA region.• Resource-rich economy• Labor-rich economy • Young and educated population • Large domestic market

• The Middle East market is a prime market opportunity for Iran’s non-oil exports • An increasingly sophisticated infrastructure and human capital base providing the foundation for an emerging knowledge –based economy.