Import Restrictions to Protect Iranian Rial

CIRCULAR LETTER Series of 1994

TO : All Authorized Agent Banks and All Concerned

SUBJECT : Import Restrictions to Protect Iranian Rial

Attached for your reference and guidance is the faxed message dated September 8, 1994 from the Philippine Embassy in Teheran relative to the latest import restrictions imposed to protect the Iranian Rial.

EDGARDO P. ZIALCITA Deputy Governor

Tehran

TO : SECFORAF MANILA FROM : AMBAPHIL TEHRAN ATTN : OMEAA/EDU REF No. : ZTH-149-94 SUBJECT : IMPORT RESTRICTIONS TO PROTECT IRANIAN RIAL MESSAGE : HEREWITH ARE LATEST RESTRICTIONS IMPOSED ON 27 MAY 1994 IN ORDER TO PROTECT THE IRANIAN RIAL. PROPOSALS ON HOW TO PROTECT RP EXPORTERS REGARDING PAYMENT FOR THEIR GOODS MUST TAKE THESE RESTRICTIONS INTO CONSIDERATION:

1. Effective from 29th of May all imports should be carried out through banking network of the country and to release goods from customs the certificate should be provided confirming the foreign exchange acquired from the banking system.

2. All imports should have been registered with the Trade Ministry before being transported into the country.

3. Above decision included orders to be registered from 29th of May.

4. All orders of the year 1993 not carried out through the banking network and not imported yet are considered as cancelled. New orders should be placed with the Trade Ministry and the date of registration with the Trade Ministry should precede the date of clearing from the Customs.

5. Imports against exports are also affected by above regulations and documents should be provided to the bank on the foreign exchange acquired through exports prior to implementation of imports. The rate for export foreign exchange is 50 rials less than the price in the open market.

6. The banks should open LCs for Exporters upon receiving certificate for foreign exchange.

7. To facilitate exports, the banks should also extend facilities to the exporters through irrevocable LCs and in case of their request, the banks should open RIAL LCs.

8. The banks should buy the foreign exchange from the exporters, upon their request in the form of forward purchase.

9. Foreign exchange current account should be opened for exporters with an interest rate higher than international rates and the minimum deposit or 100 dollars only.

10. Higher interest would be paid to Foreign accounts with a foreign source.

11. Importers using drafts are included in above regulations.

12. Imports from free trade zones are also included in above regulations.

13. Imports from Central Asian countries should be also registered with the Trade Ministry.

14. Foreign exchange transactions outside the banking system and in foreign countries are considered as smuggling of foreign exchange.

OSCAR G. VALENZUELA Ambassador