How import ban affects Iran's domestic production?
TEHRAN, Iran, Feb.21
The ban on import of goods from abroad will hinder the development of Iran's domestic production, Head of Iran's Import Supreme Council Alireza Monaghebi told Trend.
Iran has banned the import of more than 1,500 non-essential items, amid US sanctions on its oil exports, and due to shortage of foreign currency.
The head of Islamic Republic’s export and import office earlier said that based on new policies set by the Ministry of Industry, Mines and Trade the import of non-essential products or items that can be produced locally has been banned.
The only item that was mentioned in the list of banned products is pumice, a porous volcanic rock that is commonly used in Iran to clean feet. The rock is available in Iran but for some reason quantities of pumice has been imported in recent years. The rock is also used as landscaping material and industrial abrasive.
The new policy also says that whoever can locally produce any product, will receive protection through outright bans on imports of the same product or high tariffs.
Monaghebi noted that the ban on imports may lead to smuggling into the country.
"Domestic production was more dynamic when there was no ban on imports. For example, when the country's borders were open for imports, the domestic production of sweet and chocolate production reached to such a high level that Iran even started to export them to western countries," he said, adding that the increase of import would help domestic production.
"Since our domestic production is not extroverted and only focuses on domestic market other consumers demands are not fulfilled so it's unlikely that domestic products can be competitive to domestic markets," he said.
Monaghebi noted that foreign brands in Iran have invested in the country and their products are produced in Iran and have customers in domestic market. "Currently most of consumption goods in the country are foreign products."