Iranian Banking – Deputy Minister of Industry, Mining and Trade has issued a decree from the Minister of Industry, Mining and Commerce to impose 10 per cent duty on sponge iron exports since February 10, said the ministry of industry, backing high value-added exports.

Hossein Modarres Street, today on Wednesday, February 7, the second day of the Steel Outlook Conference, outlining the importance of non-oil exports in the current economic situation in Iran, said today because of trade and currency policies in the country and international restrictions that Faced with the Iranian economy, the currency has seen significant price differentials with the rial, and a great many of the country’s manufactured goods have gained export value.

The deputy minister of industry, mines and commerce added: “In the past years, only 5 rows of tariff booklets have been exported, but now that number has increased to more than 4 rows, so a huge number of manufactured goods. Have been exported; this is in a situation where exports are of value to the country in a way that the country’s non-oil exports take the place of oil exports and much of the country’s affairs is provided by the foreign exchange resulting from the export of Iranian goods and services.

He said that the utilization of the empty capacities of production units would be possible in the light of export boom. He said that part of the reason for the lack of production capacities of the country is because Iranian projects and goods did not enjoy comparative advantages and in terms of political decisions. Against the Iranian economy, they cannot export, but there is surplus production capacity in the country, and what has happened in recent years is that domestic demand cakes have shrunk and there has been no growth of 5% to 5% in the Iranian economy. Domestic consumption is also booming, so excess production capacity is over The show itself.

Street lecturer continued: Exports can play a role here, while if not for export, most of the country’s manufacturing units, especially in the ceramic tile sector, would certainly have been shut down. It has also been widely seen in the country.

Deputy Minister of Industry, Mining and Commerce in the Ministry of Commerce said today’s export route is using empty production capacity, which will cover part of the fixed costs of manufacturing companies and will directly lead to lower prices for finished goods domestically. In a situation where exports are in line with market regulation and production, as it is for the benefit of domestic customers, on the other hand, it should be borne in mind that today the country’s most pressing problem is employment, because the investments that should lead to employment growth will be realized. Not found.

He pointed out that the export route could be a way to maintain sustainable employment in the country. He said that according to the statistics of the Ministry of Industry, Mining and Commerce based on the data of producers, with the export boom that has taken place in the country in the past year and a half. , More than 6,000 people have returned to work in various industries, adjusted for economic hardship, and 6,000 new workers are employed, a promising point for exports to affect production and employment.

The official at the Ministry of Industry, Mining and Commerce noted: In the past, there was some speculation that the equipment and cranes used in the ports of the country were being used to transport and discharge imported goods, whereas now this trend is reversing. The export process of non-oil ports has been well developed. However, this is not happening now, and the government’s export run is a green route, while imports in the opposite run are slow and imports of up to five items have been banned.

He added: “The trade balance of the country is $ 5 million positive, and so the numbers can prove that the country’s outlook on foreign trade has facilitated heavier exports, and in the import sector, sanctions have been imposed to support domestic production. Reduce the exchange rate, while according to the official statistics of the Islamic Republic of Iran, over the first nine months of this year, more than $ 5 billion worth of exports were exported, compared to $ 1.9 billion in imports. Is.

According to the street instructor, the country does not have an imported look, because if it were a ban, the item would not have been enforced by the government, especially given the range of goods ranging from clothing and home appliances and snacks to sportswear that are similar to domestic ones. Now, they are facing a ban on imports. A banner has also been raised to promote the country’s domestic construction and has been held in the Ministry of Industry, Mining and Commerce with vigor. Accordingly, over $ 1 billion of domestic construction contracts have been entered into by the Ministry of Industry, Mining and Trade between the producers of these goods, with a focus on a variety of industries such as petrochemical and steel and the automotive industry.

Noting that Iran’s Mines and Mining Development and Renovation Organization is trying to procure some of the equipment and equipment needed for its projects from within the country, he said, “The government is very careful that unnecessary or unnecessary imports or even Not similar to domestic production, while the government’s policy is in the area of ​​export, development and growth, and in the import sector, in some cases, to manage importation, or better to say, import control.

Part of import management and control is due to the country’s foreign exchange resources management, while the country’s top officials have long hoped to one day close the oil wells and run the country in non-oil currency, Modares said. It is imperative that we keep the oil revenue gaps in the shadow of the oil boycott.

“Today, all the pillars of the government are looking for non-oil exports, and accordingly, the Ministry of Industry, Mining and Commerce will launch an export development task force with special powers from the first vice president, who will now attend the high-level meetings,” he said. Exporters and export organizations are being held, and the Trade Promotion Organization is also in the process, along with the Chamber of Commerce and Export Confederation, in order to remove barriers and problems for exporters in various sectors; That includes sending full-fledged business representatives to the target markets A coherent plan for the export to Iran in cooperation with the Chamber of Commerce and Chambers of Commerce in common, the experts deployed in target markets and provide services to exporters.

The official said at the Ministry of Industry, Mining and Trade that trade diplomacy will be strengthened by the presence of full-fledged trade representatives at the Ministry of Industry, Mining and Trade, and the Iranian Export Guarantee Fund will support export of technical services and engineering by realizing its capital increase. will do.

He added: “All the elements of government are looking for something good to happen in exports, but we must also keep in mind that we are pursuing these goals under certain circumstances, so that now the most cruel and severe sanctions a country could have Implemented, it is now facing the Iranian economy, and when we say economic war, it means that the most severe economic war is ongoing.

Street instructor said: Iran containers have been boycotted and accordingly, today all the supplies and requirements of a merchant to carry out the export act have been sanctioned, while none of the businesses whose export performance has taken place today Iranian businessmen are being dragged out, facing sanctions and restrictions on banking, insurance, transportation, port, harbor and other means, while today we are in all of these sanctions. We have plans in place for the new steel boom in corporate name.

“We have developed programs to support traders and exporters of our steel products to defend them under sanctions, but some of them can be discussed and others cannot be spoken,” he said. However, the conditions of Iranian exporters are not equal to any other exporter in the world. The $ 2 billion is also a miracle, because after oil exports, the country’s non-oil exports were to be overshadowed and seriously harmed, while it is not, and now $ 5 billion is exported. Nine months in the year, it’s like a miracle.

Today’s lecturer said in another part: Today, for many reasons, our exports have been taken into consideration and are not only a way of boosting production, but also a way to move the entire production cycle, so that if these exports are not formed , The production wheel will also stop moving.

As for steel, he said: “The developed world countries have focused on and developed at least five major industries, while in Iran there are more than 5 defined industries that have been invested in two sectors, so no We have wasted concentration of resources and, of course, we have had policies in place for the first development plan that we have had in place for import substitution policy, which emphasized that everything was produced in the country because of the self-sufficiency policy at that time. This is in a situation where mining and mining appear to be the closest field to replacing the oil and gas industry in most of the categories invested in the country and have good relative advantages over rich gas and oil resources. There are rich sources of iron ore.

The school lecturer pointed to the existence of three species in the mining sector in Iran: Two percent of the world’s mineral reserves are allocated to Iran and twice the world’s mineral advantage in terms of concentration because Iran is located on the copper belt of the world. Iron ore is also rich in resources, so long-term planning for the mining and mining industries needs to be formulated to replace the oil industry, which is on the government’s agenda.

Deputy Minister of Industry, Mining and Commerce said that the country’s steel industry has a great potential for currency exchange and therefore needed support, while the model in The development and capacity building of steel, which covers the entire supply chain, from iron ore to steel production, has been developed with an appropriate balance and this is a great strength. While this is a good model for other industrial sectors, the problem for many industries is that either their upstream or downstream industries are strengthened, while the whole chain needs to be controlled with balanced development.

“In some industries, we even have to produce raw materials and sell raw materials, while some of the home appliances and automobiles are formed as an end product, but in the supply of raw materials and production inputs,” he said. They have a problem, so the form of steel and mining development is a successful model, and the value chain is forming all over the world.

Street lecturer said: Today’s business is speed and reaction and reaction and time is small in business and to think that tariffs and instructions can be managed for a long time is incorrect, because the business space does not allow this. ؛ Therefore, there is a fierce competition in the international arena where manufacturers must constantly monitor and respond to the peripheral environment, while at the same time most of our circulars are designed to wherever America boycotted, we reacted; otherwise we received criticism from economic activists who believed that the government was asleep. And the quick response of the sanctions does not so much of a directive that has been issued in the country, affected by external conditions and pressures of the sanctions that may not appeal to many manufacturers and exporters.

“In the face of the US embargo, the government has responded as fast as it can, thanks to the stability of the currency market, we have managed the economy better,” he said. Meanwhile, the head of the central bank has also seen exchange rate stability as one of his most important agenda items in the central bank, as it gives predictable power to the economy and economic activists, so thanks to exchange rate stability over the past months, The government has now reduced the number of guidelines issued.

Street lecturer said: According to statistics from the Institute for Commerce Studies and Research of the Ministry of Industry, Mining and Commerce, more than two circulars were issued in one month, which was a sharp reaction, but there are some errors, however, because The economic war is ongoing. But now the circulars have been slower and more logical; at the beginning of my first tenure as deputy minister, I decided to take two steps that would converge the ministry. Trading is done and at the same time, the set of redundant rules and guidelines is removed.

The Deputy Minister of Industry, Mining and Commerce pointed out: hurried excitement and decisions should be avoided, meaning that most of the directives came from our peripheral environment, although some mistakes may have been made. But the multiplicity of directives and guidelines has hurt the export sector and has overshadowed production; of course, we also believe that the export is in the field, while the Third Development Plan points out that the lack of a domestic market prevents It cannot be exported unless the export market is lost overnight, as it takes months and costs to form an export market and cannot be banned overnight.

He emphasized: Note 2 of Article 2 of the Barriers to Production Act has stated that exports of raw materials will not be subject to tax exemption, while also resisting economic policies which emphasize the need for comprehensive and targeted support for high value-added exports; The Law on Permanent Plans of Development Plans also emphasizes the need to encourage high value-added exports, while from 1 to 3 countries around the world, export duties on conservation of resources and materials China, Malaysia and Indonesia have set themselves up.

According to the school lecturer, we should certainly encourage exports today, but must also protect domestic resources, while iron ore trucks were rejected by steel mills a few months ago, and because of factories Lack of iron ore as a raw material was a problem, so we had to impose export duties on raw materials exports to support the steel production chain and send higher value added goods to export markets. Yesterday, 10 percent of tariffs on sponge iron will be levied from February 10, but now, according to Imidro CEO, the government is preparing to import iron ore into the country next year.

He added: “It makes no sense today to export the country’s iron ore as a raw material; in a situation where we cannot export sovereignty, all the country’s iron ore can be exported and all our bullion is exportable.” So what about all the capacity and employment that has been achieved over the years? This is a big question that needs to be answered.

Someone might say that the US has exported $ 5 million of one commodity and imported $ 2 million of the same commodity, but one should note that our conditions in foreign trade are not normal, That is to say, in a free trade environment, everything goes smoothly and it is okay if an exporter could export iron ore, continue to do so, and steel plants would import iron ore; While this is happening all over the world, conditions are normal.

He added: “All our efforts are to boost high value-added exports, while raw materials, inputs and intermediaries are already coming into the country and we are exporting high-value goods, whereas this is now happening.” It has not happened because the average value of imported goods in the country is three times the average value of exported goods; that is, we sell raw and import high value-added goods. Today, the average value of exported goods in Iran is less than $ 5, while the average value of our imported goods is $ 5.

Street lecturer said: Today steel sheets are better exported or high value added commodities are exported, definitely higher value commodities should be selected but today our concern is that the upstream input supply chain does not participate in the downstream input interests. And then the benefits of these two dimensions need to be met; that is, if steel bars are exported, the benefits of iron ore producers will also come. So if the benefits are shared, he has set up export management companies so that if the export is done, all the chains will benefit from it.