83% of Zanjan's Export Currency Returned to the Economic Cycle

Zanjan – The director general of Zanjan Province's Industry, Mine and Trade Department announced that about €2 billion, equal to 83% of the province's export currency commitments, has returned to the national economic cycle.

According to Mehr reporter, Amir Ali Mesibi, Director General of Industry, Mining and Trade of Zanjan province, at the meeting of the Government-Private Sector Dialogue Council on Wednesday afternoon, pointing to the need for expert handling of foreign exchange cases and facilitating the activities of production and export units, stated: The issue of clearing foreign exchange obligations is one of the important issues affecting the activities of economic enterprises, and the actual conditions and problems of exporters should also be taken into account while implementing laws and regulations.

Appreciating the provincial authorities' follow-up for holding this meeting and dealing with the problems of industrial, mining and commercial units, he added: Issues related to the settlement of foreign exchange obligations were raised in various meetings with the presence of provincial and national officials, and several follow-ups were also done to solve exporters' problems.

The Minister of Industry, Mining and Trade of Zanjan province, explaining the latest statistics of foreign exchange obligations of the province's exporters, said: According to the statistics received up to October 17, 1405, the total foreign exchange obligations of the province since April 21, 2017 has been 2 billion and 408 million euros.

Mesibi continued: Of this amount, about 2 billion euros, equivalent to 83% of foreign currency obligations, have returned to the country's economic cycle, which indicates the acceptable performance of most of the province's exporters in fulfilling their legal obligations.

He stated that Zanjan has the fifth rank in the country in the index of return of foreign exchange from exports, and clarified: This position shows that a significant part of the economic activists of the province have adhered to their commitments and have tried to provide the currency needed by the country in difficult economic conditions.

The director general of industry, mining and trade of Zanjan province announced the amount of the province's remaining foreign exchange obligations of 432 million euros and added: Currently, 310 export units in the province are subject to foreign exchange obligations, and the status of each of these units can be checked in terms of the amount of exports, the percentage of foreign exchange return and the remaining obligations.

194 units have fulfilled more than 70% of their foreign exchange obligations

Referring to the performance status of export units of the province, Mesibi said: Out of the total 310 units subject to foreign exchange obligations, 144 units have fulfilled more than 70% of their obligations and have a more favorable situation in this index.

He added: On the other hand, 116 units have fulfilled less than 70% of their foreign exchange obligations, and the level of fulfilling the obligations of this group varies from zero to 69%. Based on the rules related to the return of foreign exchange from exports, these units have been subject to trade restrictions, and most of these restrictions have been applied systematically.

The Director General of Industry, Mining and Trade of Zanjan province emphasized the necessity of separating the status of these units: it is not possible to put all exporters in one group without examining the conditions of each case; Because there is a difference between a production unit that is facing problems caused by embargo, currency transfer or customs issues and a person who used a commercial card without having a real production activity and did not fulfill his obligations.

He continued: It is necessary to categorize exporters' cases based on the type of activity, the amount of exports, the percentage of fulfillment of obligations and the reasons for not returning the currency, so that a decision can be made about each case with a more accurate understanding of its conditions.

Referring to the legal bases of the cancellation of foreign exchange obligations, Mesibi stated: According to the resolution of the Council of Ministers in 2017 regarding the organization of the foreign exchange market, the exporters were obliged to return the currency obtained from their exports to the economic cycle of the country.

He added: According to the regulations and policy packages related to the return of foreign exchange from exports, the amount of commitment for the return of foreign exchange for exporters in 2017 was set at 80%, and for exporters from 2018 to 2015, the amount of commitment is 90% based on the relevant regulations. Also, steel, non-ferrous metals and petrochemicals industries are subject to the requirement to return 100% of foreign currency from exports.

The Director General of Industry, Mining and Trade of Zanjan province stated that various regulations were formulated in the past years with the aim of organizing the foreign exchange market, and said: However, in some cases, the multiplicity of regulations and the complexity of executive processes have created more problems for exporters instead of facilitating things.

He emphasized: Export is one of the important ways of providing the country's currency, and activists in this field are facing many difficulties to produce, sell products and be present in foreign markets. Therefore, besides monitoring the implementation of obligations, it is necessary to consider legal and practical solutions to facilitate the return of foreign currency.

Mesibi stated about the methods of determining the assignment of the remaining foreign exchange obligations: the foreign exchange obligations related to the years 1397 to 1400 can be assigned through rial reconciliation in the comprehensive trade system, and the deadline for using this method has been extended until the end of this year.

He added: According to the announced rules, for production units, it is possible to compromise with a rate five percent lower than the euro rate of the relevant hall, and for non-production units, it is possible to apply five percent less than the euro rate of the hall.

The General Director of Industry, Mining and Trade of Zanjan province continued: Foreign exchange commitments from 1401 to 1403 can also be followed up through the Senate system, by submitting a declaration of foreign currency entry or indirect supply of foreign currency at the central bank's currency and gold exchange center.

Mesibi said about the foreign exchange obligations of 1404 so far: by observing the 15-month limit from the time of export, it is possible to use methods such as import versus export, assigning the obligation to others or offering currency in the relevant forum.

He emphasized: exporters' detailed knowledge of the legal methods of resolving foreign exchange obligations and case-by-case review of cases can be effective in determining the remaining obligations and reducing trade restrictions.

The need to support production units involved in currency problems

Director General of Industry, Mining and Trade of Zanjan Province, referring to the consequences of commercial and judicial restrictions for economic activists, stated: When an exporter is faced with a judicial summons or commercial restrictions due to the fulfillment of foreign exchange obligations, significant concern and discouragement is created in him; Especially if this is a production unit and most of its capital, equipment, and human resources operate in the province.

He added: Of course, people who have not taken any action to fulfill their obligations and their violation is clear, should be dealt with according to the law. However, in the case of units that have fulfilled part of their obligations or have not been able to complete the currency return process due to banking, foreign exchange and customs problems, it is necessary to carefully examine the case conditions before applying restrictive decisions.

Stating that the judicial system also acts based on the information and official reports received, Mesibi stated: When the central bank introduces the case of an exporter to the judicial authority as having a foreign currency obligation, the investigation is carried out based on the available documents; Therefore, in order to avoid making decisions based on incomplete information, the documents related to the actual status of each unit should be provided to the decision-making authorities.

He continued: If a production unit has faced a delay in the process of returning foreign currency due to problems beyond its control, it is necessary to investigate this matter expertly in order to prevent unnecessary damage to the province's production and exports while maintaining public rights and implementing regulations.

Proposal to file separate files for 310 export units

The General Director of Industry, Mining and Trade of Zanjan province, presenting a proposal for organizing foreign currency files of the province, said: It is suggested that the status of all 310 units subject to foreign exchange obligations should be reviewed with the cooperation of the responsible institutions, the Chamber of Commerce and relevant authorities, and the files should be categorized based on the type of activity and the level of fulfillment of obligations.

Mesibi added: In this category, a distinction should be made between active production units, exporters with real commercial activity, units with documented banking and customs problems, and people who have used rented business cards or lack the support of real economic activity.

He clarified: The information related to the amount of exports of each unit in different years, the percentage of foreign exchange return, the balance of commitments and the possible reasons for the fulfillment of commitments are available to the responsible institutions and it is possible to present a clear picture of the status of each case by using this information.

The Director General of Industry, Mining and Trade of Zanjan Province continued: If this investigation is carried out, the judicial system can make a decision with a more detailed understanding of the conditions of each unit. In such a way that the real violators are dealt with legally and at the same time, the committed production units who are following up to determine the task of their obligations, have the necessary opportunity to solve the problems.

He emphasized: The purpose of this proposal is not to prevent the implementation of the law, but to try to implement the regulations more accurately, to separate violations from enforcement problems, and to prevent damage to the active production and export units of the province.

Referring to the follow-ups carried out at the national level, Mesibi stated: In the meetings held with the officials of the Trade Development Organization and other related institutions, the problems of the exporters of the province were raised and proposals to remove the restrictions of some units were also discussed.

He added: In one of these follow-ups, the deputy minister and head of the trade development organization issued orders to review the situation and lift the suspension of the business cards of some units. However, the implementation of such decisions should be followed by complying with the regulations and through coordination between the responsible institutions so that the executive officials can take the necessary measures within the legal framework.

The General Director of Industry, Mining and Trade of Zanjan province continued: It has been decided to follow up the issue in a meeting with the presence of the senior managers of the Central Bank and Customs, so that the existing issues and obstacles will be investigated with the presence of the responsible agencies and decisions will be made to determine the assignments of the cases.

Asking for an opportunity to complete these follow-ups, Mesibi said: "If possible, it is expected that a suitable deadline will be considered for the units whose cases are under expert review, so that we can clarify the status of their obligations through negotiations with the Central Bank and other related institutions."

He added: If it is determined after conducting investigations and legal follow-ups that it is not possible to use the proposed solutions, the status of each unit will be announced in a transparent manner; But before making final decisions, it is necessary to provide the necessary opportunity to examine the problems and use the legal capacities.

The director general of industry, mining and trade of Zanjan province also suggested that the Chamber of Commerce, in cooperation with economic organizations, put legal and expert support for export units with foreign exchange cases on the agenda.

Mesibi said: The Chamber of Commerce holds numerous meetings and specialized commissions and can provide more detailed explanations to judicial authorities and responsible institutions by collecting documents, examining the files of affected units and preparing expert reports.

He added: It is necessary to collect documents and reasons in a coherent manner about cases that have similar problems and provide them to the relevant authorities in the form of an expert report or bill so that the issue can be pursued through the legal path and with a reasoned defense of the rights of economic units.

The Director General of Industry, Mining and Trade of Zanjan province emphasized: Supporting production and export does not mean ignoring foreign exchange obligations, but a difference should be made between the offending units and the enterprises that have faced delays due to implementation obstacles or problems beyond their control.