As per the latest notification received by Ministry of Industry, Metal exporters of Iran needs to submit “certificate of manufacture origin” to relevant authorities. The move is aimed at countering profiteering middlemen who buy metals off Iran Mercantile Exchange at subsidized prices and sell them at higher prices for profit, or falsely brand a certain product as another company’s.
“Different types of metals are offered at IME at the official USD/IRR rate to support downstream industries’ production and employment. However, there are those who turn this opportunity into a threat [for downstream buyers] by buying the products and exporting them [at black market forex rates],” reads a letter sent to the head of Islamic Republic of Iran’s Customs Administration.
Iran had a dual foreign exchange rate regime for years. The official and market rates, however, were unified as of April 9. Trading with unofficial rates currently take place in the forex black market. The letter, published by Chilan Online, banned the export of “steel, or any other metals in the shape of ingot, slab, or cathode” without a certificate of manufacture origin. The directive came into force on May 24.
There appears to be no official definition for a “certificate of manufacture origin” with the only internationally recognized concept being a “certificate of origin”, i.e. a document completed by the exporter and certified by a recognized issuing body, attesting that the goods have been produced in a particular country. Replacing “country” with “producing company” here seems to bring us to the ministry’s concept.
Official Exports Not to Be Affected
Mohammad Reza Bahraman, the head of Iran Mine House, believes that the ministry’s move will simply help identify the origin of the products and would not hinder official shipments.
“Theoretically, it should not affect exports,” he told in an interview. “Some tend to wrongly use other brands’ name for the products they’re selling. Now, by identifying the origin of commodities, this cannot happen anymore.”
The head of Tehran Iron Sellers Union also welcomed the move, noting that this might change metal producers’ priorities.
Inputs taken from Financial Tribune
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