Higher Duties for Border Trade Imports in Law's Second Year

Effective from

28 January 2026

Issued by

Trade Development Organization of Iran

Reference

No. 7077871

Iran’s Trade Development Organization, through its Deputy for Planning and Regulations, has notified the Deputy for Customs Affairs of the Islamic Republic of Iran Customs Administration that, based on Article 1 of the Law on Organizing and Supervising Border Trade (Kolbari and Malavani) and Creating Sustainable Employment for Border Residents, imports of goods under kolbari and malavani procedures have been permitted under this law’s regulations since the executive bylaw was communicated by the Council of Ministers on 1404/11/07. Article 2 of the law specifies that goods imported through these exchanges are, at the stage of definitive clearance, subject only to fifty percent (50%) of the value-added tax and duties otherwise determined for definitive entry; other legal customs duties and charges are subject to a graduated annual increase of twenty percent (20%) starting from the law’s second year of implementation, with the government empowered to apply full or graduated exemption from commercial profit for these imported goods within the framework of bylaws approved by the Council of Ministers during the law’s implementation.

Under Article 16 of the law’s executive bylaw, starting from the law’s second year of implementation, the Article 4 Working Group established under the law determines an annual reduction of ten percent (10%) to thirty percent (30%) from the commercial profit exemption applicable at definitive entry, proportional to the applicable clearance rate. Based on Clause 1 of the resolutions of the 13th session of the Article 4 Working Group (dated 1404/10/23), the following rates now apply for import under kolbari and malavani procedures: (a) value-added tax equal to 50 percent and other customs duties and charges equal to 20 percent of the rates set for the ordinary commercial procedure will be collected; (b) for specific items with domestic-produced equivalents (household goods, fabric and thread, textiles, tires, cosmetics and health products, per the attached tariff-code list), a commercial profit of 30 percent will apply, and for other items, 15 percent, calculated and collected against the rate set for the definitive entry procedure; (c) for guilds and manufacturers based in qualifying provinces, imports of all permitted items under kolbari and malavani procedures will have a commercial profit of 20 percent for the specific items with domestic-produced equivalents (household goods, fabric and thread, textiles, tires, cosmetics), and 10 percent for general items, calculated and collected against the definitive entry procedure rate; the method for determining registration of guild and manufacturing statistics in qualifying provinces will be announced separately.

The listed tariff codes subject to the special (domestically produced equivalent) rate span a broad range of chapters, including cosmetics and toiletries (HS 3304-3307), rubber tires (HS 4011-4014), various textile yarns and fabrics (HS chapters 50-56, 58-60, 63), and selected household and electrical appliance codes (including HS 7321, 7323, 8413, 8414, 8415, 8419, 8422, 8423, 8424, 8443, 8450, 8451, 8452, 8507-8529, and 8708).

The Trade Development Organization instructed Iran Customs to implement the calculation and collection of value-added tax, duties and customs charges under these terms in kolbari and malavani procedures effective 1404/11/07, given the start of the law’s second year and the possible delay in communicating the formal minutes due to signature collection.

Key Details

• Approval authority: Ministry of Industry, Mine and Trade
• Responsible organization: Not specified
• Classification: Circular
• Affected procedure: Statistical Registration
• Document number: 7077871
• Unique identifier: 404110710616
• Document date: January 25, 2026
• Publication date: January 27, 2026
• Effective date: January 28, 2026
• Expiration date: Not specified

This summary is provided for orientation only. The official Persian text issued by the relevant Iranian authority is the governing version.