Iran authorizes $33.4M export incentive
Tehran, Iran, October 9
By Mehdi Sepahvand -- Trend:
The Iranian Ministry of Industry, Mine, and Trade has authorized one trillion rials (about $33.4 million for each 29950 making 1 USD) export incentive.
Deputy Minister Valiollah Afkhami Rad said the new move comes as part of the country's new policy to remove burdensome regulations and reduce production costs in order to make Iranian exports competitive, IRNA news agency reported Oct. 9.
Pointing out that cash export incentives have so far failed to meet their intended effects, the official said in the new plan facilities are given on dispatching trade delegations abroad, attendance of Iranian companies at foreign exhibitions, discount on banking facilitates commissions, and subsidizing export shipping.
He said in the current Iranian year (since March 21) 400 Iranian companies have signed up for foreign exhibitions.
However, Afkhami Rad pointed out, although export statistics have improved in terms of weight in the first six months of this year, if gas condensates are counted, the value of nonoil exports has fallen by 14 percent.
Iran exported 9.241 million metric tons of condensate worth $4 billion, and 12.195 million metric tons of petrochemicals worth $7.128 billion during this period.
In the mentioned period, Iran's nonoil goods export reached $1.5 billion.
The official said that although in the first six months mentioned petrochemical exports from Iran rose by 40 percent, they earned the same amount as the same period last year.
The Custom Administration released details of Iran's non-oil export indicating the country's revenues are affected by both crude oil and non-oil exports.
The country's oil export to its Asian clients fluctuated around 1.1 million barrels per day (mb/d) during the first half of 2015, 8.9 percent less than the previous year, while "September and October loadings - for arrivals mostly in October and November - indicate purchases by Iran's main buyers in Asia are set to fall a third consecutive month," Reuters reported Oct. 6.
Iran sold only 720,000 barrels per day in October to its four major Asian clients China, India, Japan and South Korea, while Turkey bought 110,000 barrels per day, the report said.
At the same time, about 55 percent of Iran's total non-oil export revenues are petrochemical products and gas condensate. Iran includes gas condensate - an ultra-light crude oil- in non-oil exports basket.
During the first half of Iran's fiscal year, the country increased petrochemical products export by more than 35 percent in volume, but the revenues decreased by 0.2 percent year-to-year. Petrochemical products export exceeded pre-sanction level during last six month.
On the other hand, while condensate export dropped by about 3 percent in volume in this period, the revenues decreased by more than 40 percent.
Edited by CN