Anti-smuggling campaign in Iran leads to increase in domestic demand

Business Materials 5 April 2019 17:57 (UTC +04:00)

Tehran, Iran, April 5


Iranian Director General of Textile and Clothing Office of the Ministry of Industry, Mines and Trade, assessed the implementation of the anti-smuggling campaign for clothing positively, saying that the plan has led to an increase in demand for domestic products.

“According to the rules, since December 2018, the Central Headquarters on the Combat against Smuggling of Goods and Foreign Exchange began its mission,” Director General of Textile and Clothing Office of the Ministry of Industry, Mines and Trade Afsaneh Mehrabi said, Trend reports citing IRNA.

She said that the ban on clothing imports would boost motivation, increase domestic production and use vacant capacities in the textile and clothing sector.

Mehrabi added that following the request of textile industry activists, the textile and clothing office in the ministry, while coordinating with the Customs of the Islamic Republic of Iran, sought to modify the basic export rate of the products.

Since November 2018, when the central bank instructed how to return the export currency to the country's economic cycle, traders and exporters were demanding the realization of export-based rates.

According to IRNA, in July 2018, in the course of implementation of the "resistance economy" policy, an agreement was signed for the creation of a cooperative for supplying the needs of producers and the construction of the new Industrial Clothing Town.

The agreement was signed between the Ministry of Cooperatives, Labor and Social Welfare, the Iran Small Industries and Industrial Parks Organization, the Tose` Ta`von Bank, the Cooperative Investment Guarantee Fund and Iran's Association of Textile Industry.

Speaking of the plans for the new Iranian year (started March 21), Mehrabi said that the new year's programs are mainly based on two specific projects in the textile and clothing industry, which are - "development of production and trade of the textile and clothing industry" and "improvement of national production capacity with an increase of $1.2 billion in the manufacture of export-oriented products in the textile and clothing sector".