Article 38

Outright imports without transfer of foreign exchange

1.Spare parts, cutting tools, new and used moulds, samples of goods (for research and copying purposes) for productive, educational or research units as well as medicine samples (pharmaceutical products, primary materials, associated materials) and their packaging materials, medical, laboratory, and sanitary equipment and supplies, baby milk and formula, books, publications, laboratory equipment, and scientific research necessities for medical science universities may be imported and cleared in the name of the respective productive units or educational or research or treatment institutes, providing that such items do not have a commercial attribute.

2.Goods supplied free of charge by the foreign seller to compensate for any short delivery, wastage, and disagreement of consignment with the order, may be imported and cleared subject to the discretion of the Customs Administration, and the approval of the Ministry of Commerce.

Note 1. Short delivery of CKD packs consigned to assembly factories, and discovered by the factories after the consignment has been cleared from customs, may be cleared subject to the discretion of the relevant productive Ministry and the approval of the Ministry ofCommerce.

Note 2. Items which are imported by the productive units and found, after being cleared from customs, to be lacking in the quality specified in the order, may be cleared with the confirmation of the relevant productive Ministry and the Ministry of Commerce.

3 .In cases where the buyer obtains a discount from the seller, goods consigned in consideration of the discount may be imported and cleared at the discretion of the Customs Administration and subject to the approval of the Ministry of Commerce, with due regard to the connection between the consignment and the original imports.

4.Catalogues, brochures, calendars, booklets, compact discs, diskettes, tapes, microfilms, and other media containing technical and commercial specifications of goods, shipping documents, technical blueprints, and samples of no substantive value (including textiles display samples, etc.) may be cleared free of commercial benefit tax, and without licenses set forth in the table annexed to this ordinance.

5.Goods required by contractors and consultants may be imported and cleared subject to the confirmation of the relating governmental organization and the approval of the Ministry of Commerce.

6. Temporary or outright admission and clearance of books, publications, compact discs, diskettes, tapes, microfilms, and other media containing scientific and cultural materials, as well as other products of the printing, reproduction and copying industry may be effected with the approval of the Ministry of Culture & Higher Education or the Ministry of Health & Medical Education as relevant in the case of the scientific and technical fields, and the approval of the Ministry of Culture and Islamic Guidance in respect of other fields, without a need for any other permit.

7.Components, parts, equipment and necessities required by the production line of domestic producing units, and dispatched by the foreign seller free of charge in the name of the producing unit under the sale contract, may be cleared at the discretion of the relevant productive Ministry, and with the approval of the Ministry of Commerce.

8.Components, parts, and necessities required by authorized agents for the repair, maintenance and after sale service of foreign appliances existing in the country may be cleared by obtaining necessary permits.

Article 39

Entry of goods through mail

Imports, excluding religiously or legally banned items, through mail may be cleared up to a value of $ 50 per person, free of customs duty and commercial benefit tax, and without a Commercial Card, or licenses set forth in the tables of Export-Import Regulation, provided that such goods do not have any commercial attribute. Should the entry of goods in this manner become a commercial practice or cause other problems for the country, the Ministry of Commerce in consultation with the Ministry of Post, Telegraph & Telephone may prepare the list of such goods and communicate it to the Customs Administration with a view to preventing clearance.

Note. Goods under Article 38 (without transfer of foreign exchange) may also be imported through mail.

Article 40

Validity period of orders registered by the Ministry of Commerce, and the maximum validity period of documentary credit and documentary bill

The validity period of import orders registered at the Ministry of Commerce, shall be determined and proclaimed by this Ministry. The validity period of documentary credit and documentary bill shall be determined and proclaimed by the Central Bank. The validity periods which are determined and declared by the Ministry of Commerce and the Central Bank at the beginning of each year, shall be binding on all relevant organizations.Specific cases shall be agreed upon by the parties.

Note 1. In the case of goods which become prohibited or subject to a new entry condition, the extension of validity period of documentary credit and order registration shall depend on the approval of the Ministry of Commerce.

Note 2. The maximum period from the date of order registration at the bank, for the shipment of merchandise imported by documentary bill, shall be determined by the Central Bank.