The only way to save the country's economy is to develop exports

The only way to save the country's economy is to develop exports
  • 2020-05-30
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Deputy Chairman of the Trade Facilitation and Import Management Commission of the Iranian Chamber of Commerce: Preventing the clearance of goods will increase overhead and overhead costs and ultimately to the detriment of the consumer. In order for domestic production to lead to exports, we must first prioritize production needs.

According to the International Exhibition of Iranian Stone, Mohammad Reza Farooqi said about the problems in the export sector following the Corona crisis in the country: "After a few months, the borders are opening one by one." Our main border with Turkey, which was used as a bridge to export goods to Europe, has recently been opened. During this time, exports to the country were made only by rail transport as an alternative fleet. Following the Corona Crisis, the lack of proper planning and the lack of infrastructure has led us to lose some of our target markets.

"The country has a lot to say about the export of detergents and sanitary materials in the world," he said. "Many of our production units are export-oriented and can meet the needs of the domestic market, as well as a large share of international markets." Be. With the announcement of liberalization, quotas and conditions for exports, many factories focused on increasing production capacity, but eventually export bans caused some of them to be damaged or shut down.

"Given that our main trading partners are China and the UAE, we had no problem with good trade relations and diplomacy, but we had a lot of problems with Turkey as the third largest trading partner in imports and exports," Farooqi said. We were facing.

Referring to the country's very special conditions, he added: "Since oil revenues have fallen sharply, the only way to save the country's economy is to expand exports." Export development can create various and significant capacities for the sustainable development of the country's economy in most areas such as employment, production and value creation, as well as the leap of production with a special focus and focus on the development of non-oil exports. If production and employment go hand in hand with this strategy, many of the current problems of the country's economy will be solved. In this situation, we must be able to support the country's production and export sector politically and commercially, because exports are affected by production, and production that is not provided for will be passive.

Referring to last year's budget deficit, the deputy head of the Trade Facilitation Commission said: "Due to the sharp decline in oil revenues, the government is trying in every way to prevent the movement of capital abroad and direct liquidity to the domestic productive sector."

Farooqi said that one of the main problems of the country is the existence of various restrictions on the import of production requirements and stated: According to Article 22 of the Law on Permanent Provisions of the country's development plans to amend Article 66 of the Customs Law, any non-tariff barriers are prohibited. The government could not ban the import of goods simply because of market regulation or other factors.

He continued: "It is worth mentioning that in the divisions stipulated by the Export and Import Law, as well as Article 1 of the Law on Customs Affairs and the Law on Combating Commodity and Currency Smuggling, imported goods are divided into three categories: authorized, conditional and prohibited." Therefore, since 1397, with the start of oppressive sanctions against our country and the need to save foreign exchange and support domestic production, according to the decree of the Command Headquarters of the Resistance Economy, the entry of 1,393 luxury and non-essential goods items was banned. Last year, according to a parliamentary resolution banning the import of goods with similar domestic production, the Ministry of Industry, Mines and Trade is obliged to register the order of durable and consumer goods with foreign counterparts similar to Iranian ones that are produced with appropriate quality and sufficient by the end of the period. The Law on the Sixth Five-Year Plan for Economic, Social and Cultural Development of the Islamic Republic of Iran prohibits or uses tariff and technical barriers to import management in accordance with Article Twenty-two of the Law on Permanent Provisions of the Country's Development Programs. Accordingly, the Ministry of Industry, Mines and Trade was required to set up a system to announce goods with domestic production capacity and to identify examples of Iranian goods.

Farooqi added: "From now on, the ministry, with the program of the domestic construction movement with the priority of domesticization, has considered more than ten billion dollars of imported goods that are generally consumed in a three-year period and in this regard succeeded in domesticizing more than last year." Three billion and four hundred million dollars worth of imported goods. In order to support domestic production, the Anti-Sanctions Headquarters gave the Ministry of Industry, Mines and Trade the right to impose restrictions and bans, lifting the ban on registering orders or importing similar goods of domestic production and unnecessary products.

The Vice President of the Trade Facilitation Commission added: "One of the important issues that should be considered is the transparency of regulations and guidelines." In the past, based on the list of prohibited goods, it was possible for the importer to be informed of the terms and conditions of importing his goods before registering an order with reference to this list or registering initial information in the NTSW system, but the new plan does not specify that imported goods can be registered. Order or not!

Farooqi emphasized that supporting industry and production should be on the agenda of all government institutions and organizations in the year in which the leap of production is marked. In the meantime, if the procedure for banning the import of some goods is to be applied, it is necessary to announce a complete list and separate the consumer and non-consumer goods, to provide complete information in this regard and to apply the import bans to the needs of the consumer market and production capacities. The potential inside is seen and arrangements are made so that manufacturing companies can plan the amount and timing of their production. Therefore, the lack of transparency in this field has led to an increase in the price and a decrease in the quality of domestic products, which can affect the production and export of the country and even lead to the destruction of production and subsequent export markets.

He also commented on the problems with currency allocation: "According to foreign exchange policies and restrictions, the central bank has not issued a new statistical registration certificate for some commodity groups since the beginning of this year, and currency allocation priorities have changed." In this process, in the field of allocating foreign exchange to priority goods, which are generally basic and essential goods, while changing the priority of some of these goods such as rice and rubber to half priorities, importers of applicants are required to go to the relevant ministry and enter their name to announce. They are to the central bank.

Farooqi reminded: "Previously, in order to import priority goods, twenty-one to twenty-four, while accessing Nima's port, it was possible to use export currencies, and in priority twenty-five to twenty-seven, only the possibility of order registration and foreign exchange supply from The place of export was done, but in the new divisions, only the priorities of twenty-one and twenty-two have access to the port of Nima, and the priorities of twenty-three to twenty-six are to be registered only from the currency of individuals and the priority of twenty-seven. It has also been banned from allocating currency. While it is possible to register these goods in the order registration system of the Ministry of Industry, Mines and Trade, it is forbidden for the Central Bank to allocate currency to them. The question that arises is whether the central bank can impose a ban on institutions and organizations involved in banning the import of goods.

He said that some of the imported goods needed by the manufacturing companies have been "deposited" in the customs, while they have an entry permit and an eight-digit code. He said that the customs does not allow these goods to be cleared due to non-issuance of allocation and foreign exchange licenses. Seventy percent of these goods will be able to be cleared, provided that a certificate is issued from the operating bank stating that they are in the queue to provide foreign exchange.

The vice chairman of the Trade Facilitation Commission stressed that given that zero to 100 production does not take place domestically and that raw materials, parts and some equipment need to be sourced from abroad, care must be taken to impose a ban on similar domestic products. These goods will be delivered on time and will reach the producers.

In the end, Farooqi said: "In any case, preventing the clearance of these goods in any way they have entered the customs, will increase the overhead and overhead costs and ultimately to the detriment of the consumer." In order for domestic production to lead to exports, we must first prioritize production needs.

* ILNA