Export To Iran

Iran’s main imports are machinery, transportation, and agricultural products and foodstuffs. Its main import sources are China, the UAE, and Brazil, with the rest of the major Asian exporters close behind. Iran is one of the most populous countries in the Middle East, with a stable and resilient economy that is boosted by but not reliant on oil growth.

The Iranian government is friendly to investors and exporters, instituting several measures to encourage foreign investment and facilitate exports. Products imported to specially instituted Free Trade Zones or imported for the intended use in the Zones are not subject to any customs duty, and storage in bonded warehouses is allowed for a limited time everywhere in the country, easing the impact of customs duties on the exporter.

Export To Iran: What is trade finance?

Iran is a member of OPEC and GECF and ranks as the 57th largest export economy in the world and stands at the 92nd most complex economy according to the Economic Complexity Index (ECI). The main yearly imports are cocoa beans (around $3B), rice (around $2.4B), cocoa beans (around $3B), rice (over $2.3B), soybean meal ($1.5B), gold (over $1.5B) and wheat ($1.2B).

Imports in Iran averaged around 19000 USD Million from 1974 until 2014, hitting of a high of over 77700 USD Million in June 2011 and a low of around 3000 USD Million at the start of 2013. The main import countries are India (around $ 5B), South Korea (around $4B), Turkey ($4B), China (around $ 13B) and Ghana ($3B).

The top imports are non-electrical machinery (almost 20%), steel and iron (around 15%), chemicals (around 10%), transport vehicles (around 8%) and machinery (around 7%). The main countries of import are China (around 20%) and UAE (around 30%). They also trade heavily with Germany, Turkey and South Korea.

General Characteristics:

Iran is the most populated country in the Middle East with over 84.6 MLN people and a life expectancy of 76.8 years for women and 71.3 years for men. Iran shares 5,894 Km of land borders and 2,440 KM of coastlines with 13 countries, the breakdown of which is as follows:

Land Borderline Distances
Afghanistan- 921 km
Armenia- 44 km
Azerbaijan- 611 km
Iraq- 1,599 km
Pakistan- 909 km
Turkey-1,148 km
Turkmenistan- 1,148 km
Maritime
Kuwait
Saudi Arabiao Bahrain
Qatar
UAE
Oman

Iran is a developing nation with population density at approximately 52.3 people per square kilometer. The Country comprises of 31 provinces, 429 counties, 1057 districts, 1245 cities and 2589 villages.

As with most other countries around the world, the population of urban dwellers is much higher than rural inhabitants. However, this was not the case in Iran four decades ago. Prior to the 1979 Islamic Revolution, the country’s economy revolved around the petroleum and the agricultural sector.

The industrial sector was only starting to develop, and a slow pace of urbanization was taking place. However, after the country’s oil income continued to increase and once the Islamic Republic came to power, focus shifted to the development of urban areas as well as the urbanization of the country.

This resulted in the agricultural sector no longer being the number one employer and many people living in villages migrated to the cities in search of a better life in the services and industrial sectors.

Despite the economic struggles Iran has been facing over the past four decades, the population is continuing to rise. In the 1980s, Iran’s population experienced an increase by 3.9%. This was due to the government’s lack of population control, together with the outbreak of the Iran–Iraq war and the need for soldiers. In the 1990s the government introduced birth control strategies that led to a decrease in population growth to 1.5%.

This downward trend has continued and during the March 2013-2018 time frame, the average population increase stood at 1.2% while the March 2018-2023 timeline has illustrated an average increase.

Iran is an active member in a total of 52 international organizations which have been listed below:

1- Colombo Plan (CP)

2- Economic Cooperation Organization (ECO)

3- Food and Agriculture Organization (FAO)

4- Group of 15 (G15)

5- Group of 24 (G24)

6- Group of 77 (G77)

7- International Atomic Energy Agency (IAEA)

8- International Bank for Reconstruction and Development (IBRD)

9- International Chamber of Commerce (ICC)

10- International Civil Aviation Organization (ICAO)

Principal Economic Sectors

The main economic sectors in Iran are oil and gas, agriculture, industry and mines and services.

Brazil Export To Iran

Brazil Exports to Iran were $US2.3 Billion during 2023, according to the United Nations COMTRADE database on international trade. Brazil Exports to Iran – data, historical chart and statistics – was last updated on September 2024.

Iran imports $8 billion worth of basic goods annually from Brazil.

The main products exported from Brazil to Iran in this period were sugar cane, edible oil corn, animal feed, coffee, soya bean, beef, pharmaceuticals, tobacco and hand tools.

Since the reinstatement of USA sanctions on Iran in May 2018, the indirect exports to Iran via the United Arab Emirates (UAE), Switzerland and Turkey have increase. This is due to the payment and transportation services provided by these two countries to Iranian traders. There are no statistics available to show the exact value of indirect exports to Iran. In 2022-2023, the UAE exported $18.4 BLN to Iran. From this value $5.1 BLN was related to soya bean, wheat, sunflower oil, palm oil, sugar, and corn animal feed.

Bilateral Trade

Diplomatic relations between Iran and Brazil dates to 1903; 120 years ago. However, it was from 1957 when a cultural agreement was signed between the two parties that relations took a promising turn. Shortly after that, Brazilian legation in Tehran was elevated to the condition of an embassy.

Following the cultural boost in relations, an economic and technical cooperation commission was established in 1975; four years before the Islamic Revolution. The years following 1979 have been full of ups and downs, but it was during the Brazilian President, Lula de Silva’s tenure of 2003-2011 those relations developed. This is in line with Iran’s continued isolation from the international arena.

Over the years, there has been a shift from trading with Europe to Eastern Asian as well as Latin American countries. Although relations between the two sides are strong, the trade relations have also shown positive trends.

List of products exported to Iran. Our source of investigation in this section is:

The HS codes taken into account are as follows:

1- HS code 020230, 020712; meat of bovine animals, frozen and chilled
2- HS code 1005; maize or corn
3- HS code 1507; soya bean oil and its fractions, whether or not refined, but not chemically modified
4- HS code 1701; cane or beet sugar and chemically pure sucrose, in solid form
5- HS code 210111; extracts, essences and concentrates of coffee,
6- HS code 902139; dental instruments and articles
7- HS code 120190; soya beans

During the years 2021 and 2022, corn was the highest export product from Brazil to Iran. Other products which were also essential feed items exported from Brazil to Iran were soya bean, sugar, and animal feed. As mentioned, the majority of Brazilian exports to Iran is related to the food sector. In the past pharmaceuticals, medical products, chemicals, auto motives and oil and gas equipment were also listed as goods traded from Brazil to Iran.

When looking into the top seven Brazilian imports from Iran during the year to March 2023, over 95% were related to food and agriculture; some $372 MLN. Only $14.2 MLN was related to wood pulp and essence extracts. The HS codes taken into account are as follows:

1 – HS code 3102; mineral or chemical nitrogenous fertilizers
2- HS code 0806; grapes fresh or dried
3- HS code 0802; other nuts, fresh or dried, whether shelled or peeled (excluding coconuts, Brazil nuts and cashew nuts)
4- HS code 2939; vegetable alkaloids, natural or reproduced by synthesis, and their salts, ethers, esters, and other derivatives
5- HS code 14002; synthetic rubber and factice derived from oils, in primary forms or in plates, sheets or strips
6- HS code 2712; petroleum jelly, paraffin wax
7- HS code 5702; carpets and other textile floor coverings, woven, not tufted, or flocked, whether or not made up, incl. Kelem, Schumacks, Karamanie and similar hand-woven rugs

The highest reduction in terms of value for Brazilian goods imports is related to HS code 1302; mineral or chemical nitrogenous fertilizers, which have experienced a reduction of over 60% compared to the year to March 2022, but remain at similar levels to that of the year to March 2021. The highest increase in terms of percentage is related to HS code 5702; carpets and other textiles, which has increased by over 150% compared to March 2020–2021 figures and hit $18,000 in the year to March 2023.

Specific Regulations:

It is worth noting that a number of goods are prohibited from being imported to Iran. This list is continually changing due to the market demand and changes in regulations.

For the latest developments please refer to (www.irica.ir).

The main groups of products that are prohibited for import into Iran are:

1- Goods that are illegal according to Islam, such as pork and alcoholic drinks

2- Goods which are being domestically made, such as kitchen appliances and clothes

3- Goods that do not meet with standards of the Iran National Standards Organization

A handful of the new additions mentioned in the latest list of prohibited goods issued by the Ministry of Industry, Mine and Trade include:

1- Lobsters

2- Packaged butter weighing less than 500 gr

3- Cucumber

4- Salmon

5- Chewing gum

6- Safes

7- Buttons

8- ATV vehicles

9- Sunglasses

In addition to the list of 1,550 prohibited goods, there is a list of temporarily prohibited goods that change on a regular basis; depending on the country’s need for a certain product, seasonality and so on.

The latest list on temporarily prohibited goods includes 660 items of which a few have been listed below:

1- Buffalo meat

2- Frozen tilapia “Oreochromis spp.”

3- Fresh or dried pineapples

4- Oregano and bay leaves

5- Peanut oil

6- Cigarettes containing tobacco

7- Tugs and pusher craft

8- Dental floss

In the case of food and pharmaceutical exporters to Iran, obtaining a Halal certificate is compulsory. The two websites that are in charge of issuing Halal certificates in Iran are www.ttac.ir & www.halal.gov.ir

Some Brazilian Halal certificate issuers include Fambras Halal (https://www.fambrashalal.com.br) and Siil Halal (https://siilhalal.com.br/en/)

The certificate issued from Iran is valid for one-year and costs differ based on product type. An applicant must submit the relevant documents and papers and pay the necessary fee for issuing and renewal of the license.

Export To Iran: Due to its convenient geographical location, it can be a suitable country for exporting your products. You can contact Atra Atlas for information and advice.