Iran in trouble with ceramics export due to new gov't rules

Business Materials 11 October 2018 08:51 (UTC +04:00)

Baku, Azerbaijan, Oct. 11


Iran's exports of ceramic products is not going on as planned, due to currency issues. The problem emerged after the recent Iranian government's announcement.

Chairman of Iran Ceramic Producers Syndicate Behnam Aziz-Zadeh complained about the new notification of the Iranian government regarding payment to government in foreign currency of a part of the revenues gained by the exporters who receive their payments in foreign currency, Tasnim news agency reported.

"Manufacturers and exporters of glazed and ceramic products export their products to Iraq, Afghanistan and Pakistan and receive rials (the Iranian currency) in exchange for their products. How can we pay US dollars to the government if we receive the Iranian rials in exchange for the exported goods?”, Aziz-Zadeh said.

He noted that this notification has caused suspension of export of glazed and ceramic products to Iraq, Afghanistan and Pakistan.

He went on to add that approximately 90 percent of the export of glazed and ceramic products from Iran falls to the share of the mentioned three countries.

Aziz-Zadeh said that it is impossible to continue export of glazed and ceramic products after issuance of the mentioned notification.

"The producers have to reduce the volume of or to stop their production activity, because the production market within the country is in the stagnant condition and they recover their expenses by means of export," he said.

Aziz-Zadeh further warned that if export of the glazed and ceramic products by Iran to these three countries is suspended, Iran’s place in the market will be occupied by the Indian and Chinese rivals.