Central Bank Regulations on Imported Goods
Iran Exports and Imports (Bimonthly)
No.34, Pages: 92-94
The following Circular, addressed to concerned banks, has been issued by the Central
Bank of Iran:
Please be informed that Circular No. 60/1217 dated 9/11/1373 (January 29, 1995) which
indicates that a guarantee must be possed for the import of foreign exchange derived from
non-oil exports, has been rectified as outlined below. The superseding regulations and
relevant forms are enclosed. You are hereby instructed to urgently inform you branches of
the new regulations and ensure that they are enforced accordingly.
A- Preparation Method of the Guarantee letter
- 1- You are authorized to print guarantee letter forms in five different color copies,
numbered consecutively from 1 to 5, and bearing serial number. These forms must be put at
the disposal of your branches.
- 2- Part "A" of all copies of the guarantee letter form must be completely
filled out and signed by the exporter.
- 3- Part "B" must be filled out by the relevant bank after ascertaining the
identity of the exporter. The fifth copy to be retained by the Bank and copies one through
four to be returned to the exporter for presentation to Customs.
- 4- Customs House processing the customs formalities should insert the relevant
information in part "C" of all four copies of the Form and certify the
correctness of the particulars and figures indicated on the Form.
first and second copies of the Form to be handed over to the Exporter, while the fourth
copy to be retained by the Customs. The third copy of the Form, along with a photocopy of
the "Exit Declaration Form", to be sent to the International/Foreign Department
of the involved bank.
- 5- Having completed the export formalities and secured the Customs certification on the
copies of the Guarantee From, the Exporter is obliged to submit the documents to the
Note 1: If the Exporter does not wish to use the foreign exchange for
import of goods, then all four copies of the Guarantee Letter Form must be retained by the
involved bank. The bank should cancel and keep the documents in its files.
Note 2: Should the exporter fail to exports his goods or should part or all of the
exported goods be returned to the country of origin or should the price of the exported
goods change, the Bank, after receipt of confirmation to this effect from the Customs,
must adjust the local and foreign currency amounts of the Guarantee Letter accordingly.
- 6- Guarantee Letter is not necessary for goods exported to Middle Asian Countries
(Azerbaijan, Georgia, Armenia, Turkmenistan, Uzbekistan, Kirghizia, Tajikistan,
Kazakhstan, Russia, Belo-Russia, Ukraine, Moldavia).
On the strength of the Export Declaration Form, exporters to the above countries may
personally import commodities or delegate their privilege to others or they may sell the
foreign exchange to banks provided that the foreign exchange is of foreign origin and
obtained within the context of this circular. Otherwise, within the one year life period
of the Export Declaration Form, the exporter, against his exports to any of the above
countries, may import goods from the relevant country or any other country named above.
B- Declaring of foreign exchange and procedure for obtaining deposit certificate
- 1- Having deposited any amount of foreign exchange originating from abroad with your
local or foreign branches, and after such amounts are deposited in the account of your
correspondent bank abroad, the exporter can request your bank to issue Deposit
Certificate. The format of the relevant form and the procedure for its issuance are
outlined in Item "E" of this Circular.
- 2- Within maximum four months from the date of issuance of Deposit Certificate, the
exporter either directly or through another authorized importer may import permissible
goods, provided that Ministry of Commerce's Import Registration Certificate and Foreign
Exchange Allocation Guarantee Letter (enclosed form which must be issued by the relevant
bank) are presented to the bank.
Note: In compliance with item 2 above, the importer
must initially obtain Import Registration Certificate from the Ministry of Commerce and
then submit to the concerned bank all relevant documents along with the Foreign Exchange
Allocation Guarantee Letter in order to entitle him to utilize the foreign exchange for
import through draft, money order or opening of documentary credit.
- 3- If the beneficiary of the deposit certificate fails to make use of his privilege
within four months from the date of the certificate issuance then he must sell to the
bank, at the day's rate of exchange, the deposited amount. If the beneficiary fails to
contact the bank, then the bank would convert the amount of the Deposit Certificate into
local currency at the day's rate of exchange and place it in the Temporary Creditors
Account of the bank until such time that the beneficiary contacts the bank.
- 4- Only the issuing bank of the deposit certificate subject of item 1 can transfer it to
other qualified importers.
- 5- For the sake of expediting import formalities, the concerned bank at the request of
the importer who would submit the Ministry of Commerce's authorization and other relevant
documents, must take the necessary action to meet the demand of the importer. The bank
then, through its International/Foreign Affairs Department, must send all documents along
with a general summary to the Central Bank for registration of statistics relating to
issuance of deposit certificates. Repeated extension and amendment of documentary credits
relating to imports is allowed.
- 6- Importers who import goods against Deposit Certificates are obliged to present to the
concerned bank the Customs' Green Permit within the specified period.
- 7- The exporter may use the rest of the foreign exchange amount of the undertaking
letter (the second 50 percent), obtained through export, to import goods within the
framework specified in this Circular. To do so, the involved exporter must deposit the
foreign exchange required for import with one of the local banks, their overseas branches
or foreign banks. Obviously, transactions relating to required amounts between the
domestic and foreign banks must be arranged in such a way as to enable the domestic banks
to secure the foreign exchange amount required for imports from the foreign banks.
Note: The customs clearance of the goods imported through a Deposit Guarantee in
accordance with Item 3- 7 of Circular Nol 1035 dated 18/3/73 (June 8/94) is conditional on
the importer being in possession of Foreign Exchange Securing Certificate.
C- Procedure For Using Foreign Exchange Obtained Through Exports Conducted Prior to
15/11/73 (February 4/1995)
Exporters who had exported goods prior to 15/11/73 (2-4-95) when such exports did not
require the posting of foreign exchange guarantee may adapt one of the following two
methods for importing goods:
- 1- Direct import by the exporter within one year from the date of issuance of the Export
Permit and within the context of Circulars No. 60/1021 dated 31/1/73 (20-4-94), No. H/1035
dated 18/3/73 (8-6-94) and No.60/1072 dated 15/4/73 (7-6-94).
- 2- Through depositing in a bank any amount of foreign exchange of foreign origin plus up
to 100 percent of the amount of the export permit. Additionally a certificate must be
submitted to the effect that such amounts have been deposited with a bank and that the
amounts are transferable to others during a period of four months from the date of
issuance of the Certificate as specified in Item 2-B of this Circular. In this case the
presentation of foreign exchange and the securing of the deposit certificate (valid for
one year from the date of issue of the Certificate) also applies.
Not: Banks which issue Certificates of Deposit against Export Declaration Forms issued
prior to 15/11/73 (2-4-95) as well as prior to and after 15/11/73 (2-4-95) for Middle
Asian States, they must stamp the Export Declaration Forms with a stamp having the
following notation: "The amount of ...... has been used for import on the strength of
Purchase Order Permit issued by the Ministry of Commerce". The purpose of such
notation is to prevent the owner of the Purchase Order Permit from repeated use for import
of the amount of the Purchase Order Permit.
D- Information Regarding expired Guarantee Letters and Other Relevant Matters
E- Procedure For issuing Foreign Exchange Deposit Certificates and Guarantee Letters
- 1- The Foreign Exchange Deposit Guarantee must be prepared in triplicate (as in the
enclosed sample) in the amount declared and deposited in each instance by the exporter.
The document must bear the serial number (that indicated on the reverse side of the
Foreign Exchange Guarantee Letter), issue dated and maturity date.
- 2- The first copy of the Guarantee Letter must be retained by the issuing branch of the
bank for the transfer of the amount of the foreign exchange and the second and third
copies must be stamped "Not Transferable / Not negotiable" . The second copy to
be delivered to the exporter for his reference and the third copy to be sent to
International Department of the bank or its Computer Services Department.
- 3- Generally, the validity of the Foreign Exchange Deposit Certificate for issuance of
Foreign Exchange Guarantee Letter for export is four months from the date of issue. AT any
rate, even at the last day of the validity date, issuance of Foreign Exchange Guarantee
Letter for import is permitted. (The issuance of Foreign Exchange Guarantee for import by
the owner of the foreign exchange deposit certificate is necessary as such document must
be enclosed with the purchase order and, along with other documents, submitted to the
Central Bank for statistics registration as specified in Section B of this Circular.)
- 4- Within the mentioned four-month period, if the beneficiary of the Deposit Certificate
of another party does not make use of the Certificate for import, then the bank is obliged
to buy the foreign exchange and pay the beneficiary the equivalent amount of the foreign
exchange in Rials and cancel the Certificate.
- 5- Transfer of any amount of the Deposit Certificate's total amount to another importer
(real or legal person) dependents on the submission by the concerned party of an
authorization by the owner of the Certificate and the presentation of Purchase Order
Register Permit issued by the Ministry of Commerce.
- 6- Should the foreign exchange requested for import of goods be different from the
foreign exchange required for goods indicated the Purchase Order Permit, the bank must
ensure that the foreign exchange is converted at the exchange rate prevailing at the date
of issuance of Foreign Exchange Guarantee Letter.
- 7- The branch which issues the Foreign Exchange Guarantee Letter must make notation and
certification in the mentioned Form as to for what purpose the foreign exchange was used.
- 8- Should an exporter present to your bank a Foreign Exchange Guarantee Letter issued by
a branch of another bank, you bank must comply with the exporter's request (for opening an
L/C, acceptance of draft of a transfer) as expediently as possible and then take the
necessary action to secure the relevant foreign exchange from the bank which had
originally issued the Guarantee Letter.
Note: The Foreign Exchange Guarantee Letter
must be issued in duplicate. The first copy must be handed over to the owner of the
Purchase Order Permit and the second copy, after having been stamped "Not
Negotiable", must be sent to the Computer Center Department of your bank.
- 9- With regards to deposits of foreign exchange derived from export on which basis you
issue Deposit Certificate: to ensure that the undertakings are met, the Deposit
certificate shall be valid for four months from the date of issue until the foreign
exchange is not used) it shall be entitled to interest on the basis of interest rate
prevailing at the day of the Certificate's issue.
Note 1: Any amount of the Deposit
Certificate remaining in the bank shall not be entitled to interest within the first
month. Payment of such interest shall be on part payment basis.
Note 2: Deposit Certificate subject of this Circular shall be considered as time
deposit and unless otherwise specified shall be governed by the regulations outlined in
the meeting of the 514th Session dated 18/10/1362 (8-1-84) of the Money and Credit
- 10- The rate of interest relating to Item 9 of this circular shall be determined by the
International Department of the bank.
- 11- Part payment of interest of Deposit Certificate shall be paid on the basis of the
Certificate's hard currency at the end of the four- month validity period or when the
foreign exchange is totally used for import or sold to the bank.
- 12- Interest obtained through Deposit Certificate of foreign exchange shall not be
considered as part of the Deposit Certificate amount and can not be used for import.
- 13- The interest amount shall be calculated and converted into Rials on the basis of
day's export foreign exchange rate and the account of the beneficiary at the bank shall be
credited with that amount.
- 14- The foreign exchange of the Deposit Certificate, its interest and in general all
foreign exchanges bought in accordance with Items B-3, D-1 and E-4 and 6 above shall be
kept by the bank. Such amounts should be used for imports under the supervision of this
bank (Central Bank) after obtaining relevant information and statistics. (Regulations
regarding information and statistics shall be prepared and announced later).