Iran lifts ban on imports of goods that have domestic rivals

  Iran allows businesses to resume imports of consumer durables that have domestic rivals. Iran has lifted a five-year ban on imports of goo...

 

Iran allows businesses to resume imports of consumer durables that have domestic rivals.

Iran has lifted a five-year ban on imports of goods that have domestic rivals, allowing businesses to resume imports of products like home appliances.

The Iranian Presidency’s legal department said in a letter addressed to the Ministry of Industry, Mine and Trade (MIMT) that the ministry will be able to place orders for foreign-made consumer goods and consumer durables that have domestically-produced versions, according to a Wednesday report by the semi-official ISNA news agency.

The letter, dated April 30, said that a ban on imports of such products that had been enacted in 2019 to support domestic manufacturers has expired, adding that the MIMT would still be allowed to regulate imports by imposing tariffs on certain goods.

The order comes amid calls in Iran that the ban on imports of products like home appliances has led to a monopoly for domestic manufacturers, causing consumers to pay exorbitant prices for low-quality products.

Others have defended the ban, saying it has helped the local manufacturing and has enabled the government to cut back on its massive import bill amid US sanctions that restrict its ability to access hard currency.

Figures released by the Iranian government have pointed to a steady rise in domestic manufacturing activity in recent years.

However, Iran’s Association of Home Appliance Manufacturers said that the MIMT has yet to start processing import applications one week after the decree to lift import curbs was issued.

A former Iranian administrative government imposed an outright ban on imports of home appliances in September 2021, causing a major decline in imports of models manufactured by South Korea’s household names Samsung and LG.

Sources said at the time that the ban was also a response to South Korea’s failure to return Iranian funds frozen in the country because of US sanctions.