Opposition to the text of the amendment to Article 31 of the Export and Import Law
Opposing the text of the amendment to Article 31 of the Export and Import Law, the President of the Import Federation said: The text of the amendment to the article of the Export and Import Law is a kind of step back, deviation from upstream documents and dusting the foreign trade environment
Farhad Ehteshamzad, in an interview with Mehr, said: “Considering the sensitivity of the issue and the ominous effects and consequences that this plan could have on the country’s trade policies, the Import Federation has formed a special working group to pay serious attention to this amendment.” Has examined the issue from different dimensions. Regarding the background of this plan, he clarified: This plan is in fact the amended text of the government on the revision of the law approved in 1987, which was apparently submitted to the Islamic Consultative Assembly in July of this year by the government to manage the import of some foreign goods. Its two urgencies were not approved and it was referred to the Parliamentary Economic Commission for review.
According to Ehteshamzad, the Law on Export and Import Regulations in 1987 had 48 articles, which in its revision in 1993, was changed to 24 articles, and now the government was looking for the deleted article and notes in the 1987 plan. To add to the law again, and therefore the choice of the name “amendment” instead of “add” for this plan has been done incorrectly. He continued: “This plan, by making fundamental changes in Article 31 of the law, has been regulated in such a way that the government is authorized to prohibit the import of some foreign goods, both consumer and non-consumer, in terms of three quality conditions.”
The head of the Import Federation added: “The three conditions included in this plan to ban imports are that the product in question should be produced in the country as needed, not needed by industries, and weaken production units.” For the implementation of this plan, it is envisaged that the Ministry of Industry, Mines and Trade will prepare a list of importable goods and its amount in cooperation with other ministries and submit it to the Cabinet for approval. According to Ehteshamzad, considering the opinion of the Economic Commission of the Parliament from various centers, the Iranian Chamber of Commerce also held a meeting with various stakeholders to review the various dimensions and announce the opinion to the Economic Commission of the Parliament. The meeting concluded that the replacement of the text proposed by the government was a kind of setback, deviation from the upstream documents and dusting off the foreign trade environment.
The President of the Import Federation continued: “Unfortunately, the mentioned amendment contains both non-tariff barriers for foreign trade and includes parameters that are described qualitatively and beyond that it is clearly based on the licensing system.” He added: “The experience of the past few decades has shown that the country’s economy should move away from licensing mechanisms, because for every desk that is created for licensing in any organization, the administrative bureaucracy is intensified and in parallel It also strengthens the supply and demand of corruption, rent-seeking and rent-seeking through mushroom-shaped golden pens.
According to Ehteshamzad, not only are there qualitative parameters in each law, paving the way for multiple interpretations and the emergence of legal irregularities, which ultimately leads to a gray business environment, but the important point is that this amendment, It is both against the development plan law and violates other current laws and regulations, including Article 22 of the Law on Permanent Provisions adopted in 2016, and the parallelism of the laws with the ability to interpret based on qualitative and non-quantitative parameters, space for different interpretations and creating perishable points. It opens for opportunists.
He added: “Unfortunately, in the text proposed by the government regarding the amendment of Article 31 of the Export and Import Law, the only means of protecting national production is the ban on its import in the form of a hammer and unrealistic and far from benefiting from global experience.” However, in fact, with the import ban, the only thing that happens is that the consumer is directed from the registered and supervised goods to the smuggled, counterfeit and expired goods.
The President of the Import Federation continued: “Even this plan, despite its main mission, which is to support production, can not guarantee it, because it leads to reduced market competitiveness and in the medium term to reduce the productivity rate of production workshops and reduce quality “Productive products lead, and such extravagant actions will certainly not eliminate the government’s shortcomings in the face of ineffective support for production.” Increasing investment risk and intensifying the ominous phenomenon of trafficking are other serious harms of this plan.