Article 23

The provincial Governorate-General shall be responsible for creating administrative and infrastructural facilities, quarters required by customs to install its personnel and other investments on the Iranian side of the marketplace. However, in setting up the marketplace on the zero point of the frontier, maintaning public order and monitoring the movement of individuals, due coordination shall be established with the Border Guard authorities.

Note. The manner in which people are to conduct activities and move about in the marketplace, shall be regulated by the provincial governor's office, through issuance of permit.

Article 24

Temporary Admission

The pre-exportation imports of primary materials and goods to be incorporated in producing, processing, finishing and packaging export goods as referred to in Article 12 of the Law shall be subject to the following provisions:

1. Conditions for import licensing

1.1. Permission for temporary admission covered by this Article shall only be granted to the factories, companies and productive units (whether guild or industrial) that hold a valid production permit. Trading units and cooperatives may benefit from the provisions of this Article only if they have concluded a contract with the productive units holding a valid permit.

1.2. The maximum quantity of primary materials and goods to be imported shall be equal to the nominal annual capacity of the unit manufacturing or producing the goods.

1.3. Exporters who engage in temporary admission of primary materials, parts, and other production-related supplies are required to export finished goods equivalent at least to 125% of the value of goods admitted temporarily. If after the fulfillment of the said obligation, a fraction of the imported goods and parts is allocated to be used in goods for domestic market, that fraction shall be considered as outright imports and be subject to the payment of customs duty, commercial benefit tax, other levies, and the relevant "difference", calculated on the basis of rates prevailing at the time when the declaration for temporary admission is being converted into declaration for outright imports.

Note. It shall be the duty of the Customs Administration to publicly proclaim the multipliers that it applies, or obtains from the productive ministries.

1.4. Exporters who need to import packaging requisites, including cartons, boxes, gunny sacks, etc. under the temporary admission arrangements are exempted from the provisions of this Article.

2. The moratorium to export goods made of the primary materials, and intermediate and complementary goods referred to in this Article, as well as goods processed or packaged using the goods under this Article shall be one year from the entry date of materials. In the case of goods requiring longer period of time, the aforesaid moratorium shall be extendable for one year, at the discretion and by the approval of the Customs Administration.

Note. It shall be the duty of the Customs Administration to prepare, at the end of each month, a list of imported primary materials to be sent to the Ministry of Commerce and the relevant productive Ministry for consideration and supervision. The list shall contain the following information: number of the order, date of the permit, specification and address of the applicant, description of the goods, quantity of the goods, CIF value of the goods in dollars, the equivalent Rls. value, and the type of security and letter of guarantee obtained.

3. To allow the temporary admission of goods covered by this Article, the Customs Administration shall obtain valid security or promissory note as hereunder set forth, in compliance with the provisions of Customs Affairs Law and the executive ordinance thereof.

3.1. From state factories, companies and productive units promissory note or statement of obligation in writing, as may be determined by the Customs Administration of Iran.

3.2. From private and cooperative factories, companies and productive units (whether guild or industrial) promissory note as may be determined by the Customs Administration of Iran.

3.3. From merchants and guild members, promissory note at the discretion of head of the Customs Administration of Iran in the amount of double CIF value.

Note 1. The lodging of above security shall not impede the provisions of the Customs Affairs Law from being enforced in the case of imports which are entered benefiting from this Article, but not exported within the prescribed moratorium or extension thereof.

Note 2. It shall be the duty of the Customs Administration to provide utmost facilities for well-reputed exporters. The directive relating to this section shall be prepared and publicly announced by the Customs Administration.

4. The selfsame primary materials and goods imported through temporary admission may be returned. To determine the identicality of materials and goods to be returned to those of temporary admission shall rest in the Customs Administration.