Necessity to revise the heterogenesis decisions
Countries such as; China, Turkey and Brazil, which had a quite fragile and vulnerable economy with high unemployment, high inflation and a slight per capita income, two or three decades ago, and their national currencies were constantly changing and falling versus foreign currencies, with a systematic planned approach to the export and a comprehensive support for production and exporters, and giving priority to export productions instead of raw materials, managed to exit from recession, to solve unemployment, to attend successfully in the international arena, followed by the stability of the national currency and nowadays they have devoted a significant share of the world market to their products. For example Turkey, despite not having minerals like iron ore, with the purchase of scrap and other materials such as iron ore, sponge iron, has more than 34 million tons of steel production mostly used for construction like, bars, beams, and….., while domestic consumption is less than 50% of this value, and the rest of it is flooded to world and regional markets. They have good incentives for exporters, including the return VAT of 18% to exporters. This led to private sector willingness to invest in production and export. Exploring new markets and valuing customers is so important for Turkey that the country’s ambassadors to Iraq and Afghanistan have personally referred to the clients’ offices several times. They promised special assistance such as credit term sales without using the banking system. Discovery process to find new markets for exporting products consistently and finding new markets and customers needs long-term planning and requires enormous costs. Terms of sanctions imposed by the global arrogance has doubled hard work.
In such circumstances, the presence of Iranian products in global markets heralded the development of non-oil exports, job creation, economic growth, and maintaining the value added. Expecting a mere support and customary encourage was the least excuse that the authorities could give exporters of products, particularly steel products that raw materials related to them are found abundantly in the country. Only a few days after the Export National Day and Commemoration Ceremony of outstanding exporters, all of a sudden we encountered with an overnight decision to ban the export of 52 items without any prior notice. Meanwhile, even the items which had received registration numbers (Quotage) before the circular issuance and contrary to repeated Article 11 of regulations on import and export law were returned from the output ports of the country. Not only caused billions of dollars of damages by loading & unloading of freight, and mechanism shutdown, but also the exporters’ reputations who had given shipping and delivery timetables to their customers were questioned. Moreover, thousands of dollars of damages were imposed on exporters due to delay or failure to deliver the goods, and no one was held accountable. Do these people deserve such a treatment, who have taken all risks into considerations, in the years of Jihad economic sanctions and supporting national production for exchange technology. Which country problems will be solved by preventing the products, the Export licenses of which have already been issued and carried to the border markets and ready to deliver to the customers, then after days of waiting and lots of expenses with trucks stayed in lines and reloaded to the destinations? Aren’t flange beams and the bars final products?
If this is a mechanism to stabilize domestic prices and to prevent excessive rates of items listed, shouldn’t they pre-announce or at least allow the items, the license of which have been issued by I.R.I. customs to be exported and the customs would not allow new permits? What will happen to the products built to customer order, and are not consumed within the country?
Will the foreign customers trust the Iranian suppliers, to order whether manufacturers or merchants?
At the end of this…. They would be responsible enough to say whether there is intent on the development of non-oil exports or not.
Ahmad Reza Rezazadeh
The managing director of S.I.S. Co.