Guidance

Doing business in Iran: trade and export guide

Published 4 March 2024

Export opportunities and advice

Find more export advice and explore opportunities overseas on great.gov.uk.

Iran export overview

The UK government supports sanctions-compliant trade with Iran and we encourage UK businesses to take advantage of the commercial opportunities.

Iran has large potential for foreign trade and investment. However, market barriers and protectionist trade policies have suppressed Iran’s foreign trade and investment in recent years.

Iran offers opportunities in most sectors, but particularly in:

• agriculture
• healthcare
• food and drink

The Department for Business and Trade (DBT) focuses support for UK companies in these sectors.

Contact UK Export Finance (UKEF) about trade finance and insurance cover for UK companies. You can also check the current UKEF cover position for Iran.

Trade and sanctions – summary

Read about UK sanctions relating to Iran, UK sanctions relating to Iran (nuclear weapons), and international counter-terrorism sanctions.

UK law permits trade with Iran, though UK companies must comply with UK and UN sanctions and UK export controls. Trade is also restricted with certain individuals and entities who are designated under the UK sanctions regimes.

Sanctions mean you need to consider whether the good or service you want to trade is restricted, how payments will be made, whether the entities you are dealing with are designated under the UK sanctions regimes, and whether you are making funds or economic resources directly or indirectly available to a sanctioned individual.

Trade with Iran is also subject to UK export controls and restrictions on the export of military and dual-use items.

US primary sanctions on Iran remain in place. This means UK companies should consider their US connections, including the presence of employees holding US citizenship or green cards, before undertaking Iran-related activity. Companies employing US citizens should be mindful of the regulations applying to them.

Guidance issued by the US Office of Foreign Assets Control (OFAC) with further information on US sanctions can be found on the US Department of the Treasury website.

Benefits of doing business in Iran – summary

Strengths of the Iranian market include:

• a population of around 88 million (the second largest in the Middle East after Egypt, source: World Bank)
• a young population
• a highly educated workforce
• plentiful natural resources
• good infrastructure
• its strategic location

Total trade in goods and services (exports plus imports) between the UK and Iran was £418 million (nominal) in the 4 quarters to the end of Q2 2023.

UK goods trade to Iran is mainly in agriculture, healthcare, and food/drink. Services trade is largely in tourism and intellectual property.

Iran’s main imports are:

• iron and steel
• chemicals and related products
• machinery
• transport vehicles

Preparing to do business in Iran

To do business in Iran, UK businesses first need to:

• consider UK sanctions against certain Iranian individuals and entities
• consider their US exposure and risk of penalty under US sanctions. UK businesses must, however, comply with the UK Protection of Trading Interests (PTI)
• identify a legitimate payment route
• consider reputational, economic, and legal risks

Businesses should seek independent legal or business counsel before doing business in Iran if further advice is needed.

This will help them to best:

• take advantage of commercial opportunities
• make sure they do not violate sanctions or other legal prohibitions on business
• mitigate market risk
• avoid unnecessary costs or delay

The Iranian economy and doing business in Iran

Economic growth in Iran

Iran has large potential for foreign trade and investment. Iran is one of the largest economies in the Middle East (GDP ~US$400 billion, 2022). Iran’s economy grew by 3.8% in 2022 to 23 according to the World Bank.

However, market barriers – in particular international sanctions – and protectionist trade policies have suppressed Iran’s foreign trade and investment in recent years.

The Iranian government is taking steps to reduce inflation. In October 2023, the IMF (International Monetary Fund) estimated average inflation in Iran at 32.5% (Source: IMF, World Economic Outlook).

Structure of Iran’s economy

Iran’s economy is characterised by its oil and gas, agricultural, services, and manufacturing sectors. Iran has the second largest natural gas reserves and fourth largest crude oil reserves (source: World Bank). The economy is relatively diverse, though economic activity and government revenues rely heavily on oil revenues.

The Iranian state is both an actor and a regulator of the economy. The Iranian government owns the largest companies which are typically in the extraction, manufacturing, and financial sectors. The private sector has been growing in recent years.

The government creates regular economic plans, and these have a significant impact on the direction of the country.

Iran’s labour market

Iran’s labour market is characterised by:

• a young, growing, highly educated workforce
• high unemployment, at 11% of the total workforce in 2022 (source: World Bank)
• low female labour force participation, with 16% of women active (source: World Bank 2022)

Economic isolation in recent years has meant that international best practice is not always followed, and international standards have not been met, especially in technology-dependent industries such as oil and gas.

Export opportunities for UK businesses in Iran

Agriculture

Opportunities for UK exports include:

• livestock
• semen and embryos
• animal meat
• animal feed, additives, and vaccines
• seeds​
• agricultural and aquatic technologies
• agricultural machinery

Healthcare (pharmaceuticals and medical equipment)

Opportunities for UK exports include:

• specialist drugs
• generic drugs
• vaccines and serums
• dietary supplements
• medical devices
• in vitro diagnostics

Food and drink

Opportunities for UK exports include:

• raw materials for foods products (processed food and plant-based protein source foods)
• food additives and flavourings
• smart packaging
• food production machinery

Risks and challenges of doing business in Iran

The UK government continues to support expanding our sanctions-compliant trade relationship with Iran and encourages UK businesses to take advantage of the commercial opportunities that arise. But Iran can be a difficult place to do business.

UK trade sanctions

UK law permits trade with Iran. However, there are certain sanctions imposed under the Sanctions and Anti-Money Laundering Act 2018 (the Sanctions Act) that restrict trade in certain goods and services.

These include UK sanctions relating to Iran and UK sanctions relating to Iran (nuclear weapons). Trade is also restricted with certain individuals and entities who are designated under the UK sanctions regimes – these are included on the UK sanctions list. 

The Iran (Sanctions) regulations 2023 impose certain trade sanctions for the purposes of encouraging the government of Iran to comply with international human rights law, respect human rights, and to deter the government of Iran, or an armed group backed by the government of Iran, from conducting hostile activity against the United Kingdom or any other country. 

Trade restrictions imposed by the Iran (Sanctions) regulations 2023 include restrictions on certain goods and technology that may be used to repress the civilian population in Iran or to intercept or monitor communications, and the provision of interception and monitoring services to or for the benefit of the government of Iran.

These regulations also impose trade restrictions on specified goods and technology which may be used by Iran to build and improve unmanned aerial vehicle systems. For more information see Iran sanctions: guidance. 

The Iran (Sanctions) (Nuclear) (EU Exit) regulations 2019 impose certain trade sanctions for the purpose of giving effect to the United Kingdom’s obligations under United Nations Security Council Resolution 2231. 

Trade sanctions imposed by the Iran (Sanctions) (Nuclear) (EU Exit) regulations 2019 include restrictions on military goods and technology, certain nuclear and missile-related goods and technology, graphite and relevant metals, enterprise resource planning software, and other restricted goods and technology. There are further prohibitions on arrangements relating to uranium mining or certain restricted goods and technology, and on services related to certain ships and aircraft. For more information see Iran nuclear sanctions guidance. 

The trade measures imposed under these UK sanctions regimes include restrictions on the export, supply or delivery, transfer or making available of specified goods and technology to Iran, for use in Iran, to a person connected with Iran, or to other destinations where they are ultimately for use in Iran.

They also include restrictions on the provision of related technical assistance, financial assistance, brokering services, and other specified services. Trade measures also include restrictions on the import of certain items originating in, or consigned from, Iran.

UK sanctions relating to counter-terrorism impose trade sanctions in relation to designated persons. For more information see counter-terrorism international sanctions guidance. 

UK sanctions regulations on Iran set out exceptions to some trade sanctions measures which apply within certain defined circumstances. Licences may also be issued for certain trade activities that would otherwise be prohibited by the regulations. Licences will be assessed on a case-by-case basis to determine whether granting a licence would be consistent with the sanctions. The sanctions guidance references above includes lists of activities which HMG considers are likely to be consistent with the aims of the sanctions.

Licence applications for trade sanctions are administered by DBT’s Export Control Joint Unit (ECJU). Applications are submitted through the online export licensing system SPIRE. Licence applications relating to import sanctions are administered by DBT’s Import Licensing Branch.

Financial sanctions

UK regulations made under the Sanctions Act relating to human rights in Iran, nuclear weapons, and international counter-terrorism impose financial sanctions through a targeted asset freeze on designated persons and prohibitions on making funds or economic resources available. This involves the freezing of funds and economic resources (non-monetary assets, such as property or vehicles) of designated persons and ensuring that funds and economic resources are not made available to or for the benefit of designated persons, either directly or indirectly.

More information on financial sanctions can be found in the OFSI guidance.

Check the HM Treasury Consolidated List of Targets to identify which Iranian organisations and individuals are subject to an asset freeze in the UK as a result of UN and UK legislation. UK businesses must ensure that they do not deal with designated individuals or entities that are subject to an asset freeze, either in the supply of material or services or in the payment route used.

UK businesses must also take independent legal advice on sanctions compliance and risk and undertake their own due diligence on their Iranian business partners. Enquiries relating to asset freezing or other financial sanctions should be submitted to the Office of Financial Sanctions Implementation (OFSI).

UK businesses are not permitted to make funds and economic resources available to UK sanctioned persons and/or entities, directly or indirectly, without a licence from OFSI. To deal with an entity or person subject to financial sanctions you must submit a licence application to OFSI with information about the proposed dealings and the relevant grounds for licensing in advance of making any payments. OFSI would then consider whether a licence can be issued.

Applications for a licence from OFSI with respect to financial sanctions should be made by email to ofsi@hmtreasury.gov.uk.

Protection of Trading Interests

The UK Protection of Trading Interests (PTI) legislation protects UK businesses from laws and sanctions with extraterritorial effects, including US secondary sanctions on Iran. This is by:

• prohibiting compliance with specific sanctions, both directly and indirectly
• requiring UK persons to inform the Secretary of State for Business and Trade within 30 days of discovering that their economic and/or financial interests have been affected by the proscribed sanctions
• allowing the recovery of damages arising from the application of the legislation imposing the proscribed sanctions
• allowing protected persons to request an authorisation from the Secretary of State for Business and Trade to comply with the legislation imposing the proscribed sanctions, which would otherwise cause serious damage to their interests or the interests of the UK

The legislation applies to a UK national resident in the UK, a non-national resident in the UK, any legal person incorporated in the UK (and a few additional situations relating to transport services, more details are available on the PTI guidance page).

Non-compliance with PTI regulation is a criminal offence in the UK. 

For more details on your obligations under the regulations, how to report affected interests and request authorisations to comply with extraterritorial sanctions, see the Protection of Trading Interests guidance page.

Export controls

Trade with Iran is subject to UK export controls and restrictions. These include an arms embargo and restrictions on certain goods and technology and the provision of certain services.

An arms embargo applies to the export of military goods, software, and technology (as specified in Schedule 2 to the Export Control Order 2008) to Iran. Export controls also apply to dual-use goods, software, and technology (as specified in retained Council Regulation (EC) No 428/2009 and in respect of Northern Ireland, Regulation (EU) 2021/821).

There are export controls on additional dual-use goods, software, and technology to Iran. These are listed in Schedule 3 of the Export Control Order 2008 and include:

• certain telecommunications equipment
• certain marine vessels
• aircraft
• related technology

Items subject to export controls are listed in the UK Strategic Export Control Lists. An export licence is required before the export of any of these items from the UK to Iran.

The UK also imposes trade controls on trafficking and brokering of military goods moving from an overseas country to Iran. Article 20 of the Export Control Order 2008 sets out what trade controls apply in respect of embargoed destinations. Controls apply to trading or any activities around the supply or delivery of controlled military goods from one third country to another.

Restrictions include the provision of related technical assistance, financing and financial assistance, and brokering services. A licence is required for activities subject to trade controls.

Controlled goods transiting the UK are also regarded as being exported when they leave the country and are therefore subject to a licence requirement. Article 17 of the Export Control Order 2008 provides for an exception where a licence is not required in certain circumstances. However, this exception does not apply to goods destined for Iran, meaning a licence is required to transit goods through the UK or to tranship them in the UK with a view to re-exportation to Iran. 

Use the Goods Checker Tool to determine whether your goods require a licence to export.

If your items are not listed on the UK Strategic Export Control Lists, you may still need a licence under the weapons of mass destruction (WMD) end-use controls, or under the UK’s military end-use controls See more information on end-use controls.

The Department for Business and Trade (DBT) has overall responsibility for export controls and trade sanctions licensing.

Licence applications related to export controls are administered by DBT’s Export Control Joint Unit (ECJU). Applications are submitted through the online export licensing system SPIRE.

In making decisions on whether to grant a licence, ECJU will assess each application on a case-by-case basis against the Strategic Export Licensing Criteria. Particular facts and circumstances of each case will be assessed to determine whether it amounts to a prohibited activity and whether a licence can be granted.

Some applications, such as those for nuclear-related activities, would require an advance approval from the UN Security Council (UNSC) through the procurement channel. ECJU will consider the application and where appropriate seek the required authorisations from the UN (via the Foreign, Commonwealth and Development Office).

Overlap between trade sanctions and strategic export controls

The export of and trade in military goods and technology is controlled under both the Export Control Order 2008 and the sanctions regulations under the Sanctions Act. Similarly, the export of and trade in dual-use goods and technology is controlled under the Dual-Use Regulation, the Export Control Order 2008 as well as the sanctions regulations under the Sanctions Act.

Where items are controlled under both export control and sanctions legislation, a single licence application will be required. ECJU will consider the application under all relevant legislation and if a licence is granted it will be valid under all relevant legislation.

US withdrawal from JCPoA

On 8 May 2018, the then President of the United States of America announced the withdrawal of the US from the Joint Comprehensive Plan of Action (JCPoA). On 5 November 2018, the US re-imposed nuclear-related sanctions on Iran.

In a joint statement on 8 May 2018, the leaders of the UK, France and Germany emphasised their continued commitment to the JCPoA.

On 2 November 2018, the Foreign and Finance Ministers of France, Germany and the UK issued a statement reiterating their support for the JCPoA.

The UK fully implements UN sanctions into domestic law. Separately, it has created domestic sanctions regimes through domestic law.

The re-imposition of US sanctions against Iran may have commercial and legal implications for UK businesses and individuals dealing with Iran. Where necessary, legal advice should be sought.

Consult guidance issued by the US Office of Foreign Assets Control (OFAC) on the US Department of the Treasury website if you have any queries relating to US sanctions.

Bureaucracy in Iran

Iran is a highly centralised country and the government regulates nearly all activities. Basic requests can require complex forms, administrative processes, and stamps of approval and these can lead to delays.

State regulation of Iran’s economy

The dominance of the state in Iran’s economy means that it has complex regulations, often giving consumer and employee protection precedence over ease of doing business.

Foreign businesses operating in Iran may also find their actions opposed by vested political and economic interests.

Corruption in Iran

Iran is ranked low (149th of 180 countries) in the Corruption Perceptions Index, meaning there is significant public sector corruption perceived.

Iran is on the Financial Action Task Force’s (FATF) blacklist, meaning Iran is considered high-risk for money laundering, terrorist financing, and financing of proliferation.

Before you engage in business in Iran, ensure you’ve carried out due diligence measures. Seek legal advice if you have any doubts about whether you’re exposed to compliance or reputational risks.

You should ensure you take the necessary steps to comply with the requirements of the UK Bribery Act.

Banking and finance in Iran

On the whole, banks in the UK remain cautious of facilitating Iran-related transactions, due to remaining sanctions on Iran and the cost of fulfilling compliance requirements. As a result, many European banks including those in the UK may judge that re-engaging with Iranian entities falls outside of their risk appetite, except in a few cases for existing customers.

This presents a challenge for UK business seeking banking services to facilitate trade with Iran. This could include services such as processing transactions, trade finance, and lending facilities.

Iran will need to make progress to meet international regulatory standards and to build confidence with international banks for them to re-engage in Iran-related business.

Exchange rates in Iran

Banking and money transfer problems in Iran are exacerbated by the unpredictable exchange rate for the Iranian rial (IRR). The rial has been volatile in recent years and has seen marked depreciation due to high inflation and international sanctions.

When large sums of foreign capital are transferred in and out of the country, it is conducted by the Central Bank of Iran (CBI) at the official exchange rate.

Smaller sums of money can be handled in the private exchange market, with transactions conducted at the market rate.

Finance for exporting to Iran

UKEF, the UK’s export credit agency, offers cover to support UK companies seeking to compete for business in Iran.

Cover is available on a case-by-case basis in pounds sterling and euros for exports in all sectors.

UKEF will also consider applications for direct lending to purchasers of British exports to Iran.

UKEF is only prepared to consider sterling or euro denominated contracts to reduce risks due to continuing US sanctions on Iran.

UKEF can support UK firms to win export contracts provided the transaction meets minimum risk standards.

Legal system in Iran

Iran is an Islamic Republic and its legal system is based on Sharia principles.

Codified areas of business law in Iran include:

• 1990 labour law
• 1990 copyright law and 2009 intellectual property law
• Foreign Investment Law 1956 (regulations enacted in 1999)

Labour law in Iran

Employment in Iran is governed by the Labour Code of 1990 which applies to both Iranian and foreign employees. The code is broadly similar to employment laws in other Middle Eastern countries. It differs in that resignation requires a month’s notice. However, employees are permitted to change their mind about the resignation within 15 days.

Non-Iranian nationals need immigration permission and work permits to be able to work in Iran. There are strict rules on employment of non-Iranian nationals if Iranian citizens are similarly qualified and able to perform the work in question.

Foreign investment in Iran

Iran’s foreign investment laws:

• allow 100% share ownership except in a number of industries
• enable a free choice of legal form provided under Iranian Commercial Law

Foreign investment is subject to limitations in 3 sectors:

• nationalised oil and gas sector
• real estate where land ownership is forbidden in certain geographical locations (determined by the Ministry of Interior)
• banking and insurance (unless investment is made offshore)

Foreign Investment Promotion and Protection Act 2002 (FIPPA)

FIPPA protects non-Iranian investors and incentivises foreign investment by:

• protecting the investor throughout their operation in Iran
• guaranteeing privileges to foreign investments, such as an equal treatment standard
• allowing the transfer of capital and dividends out of Iran
• providing for compensation in the case of nationalisation or expropriation
• allowing for easier and faster investment licensing and approvals
• giving access to foreign dispute resolution forums
• assisting foreign investors in their relations with the Iranian authorities
• giving foreign investors the same protections afforded to local investors

Under FIPPA, foreign capital is defined broadly and can be in cash, in kind, or shareholder loans.

FIPPA allows investment across most industries and fields including major infrastructure projects and tends not to restrict:

• the manner, type, and volume of investment
• percentage of shareholding or profit
• capital repatriation
• internal relations between the parties
• foreign investment in all sectors open to private sector

Foreign direct investment via FIPPA can be through:

• equity participation in the share capital of Iranian companies
• through contractual arrangements, such as buy-back arrangements or project financing

Indirect investment is permitted in closed areas of the market if the investor does not have an equity stake, but a FIPPA licence is required for protection.

A FIPPA licence also gives privileges relating to visas, residency, and work permits.

Foreign investors need a licence from the Organisation for Investment, Economic and Technical Assistance of Iran (OIETAI) first to operate under FIPPA.

Licences are usually issued promptly if you can demonstrate your business activities are eligible. A business plan may also need to be submitted.

To get an investment licensing permit under FIPPA you must submit a formal application with supporting documentation to the OIETAI.

The OIETAI present the application to the Foreign Investment Board and the relevant ministry. The Foreign Investment Board review normally takes up to 15 days with foreign investors representatives usually invited to take part.

You will be sent a draft licence to review, and if agreeable, the investment will be issued a licence.

This process will usually be complete within 60 days.

Dispute resolution in Iran

Iranian law allows for the freedom of choice of law only in circumstances where the contractual agreement was signed outside of Iran.

If a contract is signed in Iran, Iranian law applies.

If the contract between an Iranian and a foreign national includes an arbitration clause, the law chosen by the contracting parties will be recognised. This includes provisions under business law regulating the import of goods or pharmaceutical products, but also mandatory contractual provisions.

Non-Iranian companies can choose to resolve disputes through:

• the courts of Iran
• arbitration
• the courts of another jurisdiction (if the contract was concluded abroad)

The Iranian legal system is a civil law system, which means that case law does not act as a binding precedent. However, the judgments of the General Assembly of the Supreme Court in respect of similar cases constitute case precedent to be followed by other courts.

Arbitration in Iran

Under Iranian law, an arbitration clause can be agreed as part of a commercial contract.

Arbitration clause should reference internationally accepted arbitration rules such as those of the (International Chamber of Commerce International Court of Arbitration, the Swiss Chambers Arbitration Institute or the German Institute of Arbitration.

Under the Iranian constitution, the Council of Ministers and the Parliament has to approve the referral of disputes concerning public and governmental parties to arbitration.

A judicial decision has found approval should have been sought before entering into a contract.

While this may not be binding on an international arbitration tribunal, an arbitration award may be unenforceable in Iran.

Intellectual property (IP) in Iran

Iran is a signatory to the International Convention for the Protection of Industrial Property of the World Intellectual Property Organisation (WIPO) known as the ‘Paris Union’.

The Iranian Industrial Property Office promotes IP protection and encourages accession to international agreements and treaties.

Patents and trademarks in Iran

Patents in Iran are valid from 5 to 20 years. The length of patents is decided by the inventor who pays an annual fee. Patent applications are examined only for the correctness of documents and compliance with patent specifications.

Trademark registrations are effective for 10 years following the date of filing and are renewable. Trademark infringements can be challenged for up to 3 years.

Rejected applications for registration of trademarks and patents can be appealed in the Iranian courts.

Copyright in Iran

Copyright is not regulated under Iranian law. Iran is not a party to the Berne Convention for the Protection of Literary and Artistic Works.

The law for protection of the rights of authors, composers and artists can be invoked if it has been determined that someone’s work has been published without their permission.

The national law also protects foreign nationals, who create artistic, literary, or technical works in the Islamic Republic of Iran.

Tax and customs considerations in Iran

Taxation in Iran

The UK has no double taxation agreement with Iran, which means you may not be able to claim tax relief if taxed in Iran and the UK.

Tax in Iran is calculated through a self-assessment system.

Company profits are taxed at the corporate level in Iran and dividends distributed to shareholders are exempt from tax.

Iranian residents are taxed on worldwide income. Foreign entities are taxed on income derived from sources in Iran or from activities performed in Iran.

A company is resident in Iran if it’s established under the Iranian Commercial Code, or if it is managed from Iran. For tax purposes, the Iranian calendar year, starting 21 March and ending 20 March of the following year is generally used, but a company or branch may use its own accounting year if different. Tax filings in Iran are based on a company’s fiscal year.

All Iranian entities and branches of foreign companies must file an annual corporate income tax return and submit their balance sheet and ‘profit and loss’ account within 4 months of the end of the fiscal year.

Iran has no rules on tax on transactions between connected companies and there are no specific rules about capital gains tax.

Tax registration in Iran

Companies must register with the State Tax Organisation and Social Insurance Organisation for:

• value added tax
• corporate income taxes
• customs related tariffs
• social taxes and employment-related taxes

You must have an economic code (similar to a tax identification code) to operate in Iran. This is either a commercial code for companies registered in Iran or a comprehensive commercial code for foreign companies. This comprehensive commercial code is needed for these companies to let Iranian customers pay them.

Any payment made to a supplier without an economic code will be added back to the profit and loss account of the Iranian entity and no tax deduction will be allowed for the expense.

Value Added Tax (VAT) in Iran

The standard VAT rate in Iran is 9%. VAT rates applied to special goods are:

• 12% on cigarettes and tobacco products
• 20% on gasoline and aircraft fuels

Some types of goods and services are VAT-exempt including basic food, medicines, agricultural products, financial services, immovable property, and handmade carpets.

Corporate tax rate in Iran

The corporate tax rate is 25% and applies to both resident and foreign entities.

Income tax in Iran

Income tax is levied at progressive rates up to 35%.

Income tax is levied on salaries, allowances, and all types of remuneration.

Non-Iranian nationals are subject to Iranian tax on any income earned in Iran.

Customs in Iran

Duty rates in Iran can be as high as 75%.

The customs value of imported goods is generally calculated on the basis of the cost, insurance, and freight value.

The Islamic Republic of Iran’s Customs Administration is responsible for customs laws and regulations.

Iran has observer status at the World Trade Organization (WTO) and is a signatory to international treaties including:

• the customs convention on the Admission Temporaire/Temporary Admission (ATA) Carnet for the temporary admission of goods
• the Convention on International Transport of Goods Under Cover of Transports Internationaux Routiers (TIR) Carnets
• the harmonised system convention

Iran’s main customs legislation comprises:

• the Export-Import Regulation Act
• the Executive Ordinance to the Export-Import Regulation Act
• the regulations on exports, imports, and customs in the free trade industrial zones

Customs regulations in Iran

Importers must register with the Ministry of Economic Affairs and Finance for customs duty and tax payments and must also register online with the Trade Promotion Organisation of Iran. Iranian customs regulations distinguish 3 categories of goods in terms of import procedures:

• permissible goods which are given a licence or approval provided import criteria are met
• conditional or restricted goods requiring a licence or authorisation such as foodstuffs and telecommunications equipment
• prohibited goods which are forbidden under Islamic Sharia law or other Iranian law, for example alcoholic drinks

Restrictions and conditions can also apply to imports that are similar to locally manufactured goods. Storing goods in bonded warehouses is allowed in Iran, for a limited period and as long as applicable customs procedures are followed.

Free trade zones (FTZ) in Iran

Goods imports from outside Iran into its FTZs are not subject to import duties provided they’re sold within the FTZ or re-exported from Iran.

Imports of items such as construction materials, production equipment, spare parts and tools are duty free provided they are used for production or construction within the FTZ.

Goods manufactured in the FTZs are subject to customs duties when imported into mainland Iran in proportion to the amount of non-Iranian raw materials and components used in their production.

Entry requirements for doing business in Iran

The Foreign, Commonwealth and Development Office (FCDO) advises British nationals against all travel to Iran. Read the travel advice for further information.

The Iranian government doesn’t recognise dual nationality. This means that if you travel to Iran as a dual national and you encounter difficulties or are detained, the British Embassy will be unable to offer consular assistance or get access to you.

You need a visa if you decide to visit Iran. Iranian visas:

• are denied to travellers with Israeli stamps in their passport
• are complex to acquire with waiting times of months
• are only available to female applicants wearing a hijab (a scarf covering the hair) in passport application photos
• can complicate entry into other countries such as the US and Saudi Arabia

Visas for visiting Iran

Business trips can be made to Iran using:

• a single, double, or multiple-entry visa for business visitors for non-fee earning trips of up to a month
• an entry visa for business visitors with right to work
• an investor visa of up to 3 years, for employees of companies investing in Iran under FIPPA

Get in touch with the British Embassy in Tehran for further advice.

Work permit rules in Iran

Work permits are only granted to foreign nationals if:

• there are no qualified Iranian citizens able to perform the role
• the foreign national has sufficient skills and expertise for the role
• the role can be filled by an Iranian after skills transfer and training

Advice on travelling to Iran

The FCDO advises British nationals against all travel to Iran. For more information, visit the Foreign Travel Advice.

Contacts

Contact the MEAP Export Support Service (Department for Business and Trade).

Companies can also contact their local International Trade Adviser.

ECJU contact details

General queries about strategic export licensing

Export Control Joint Unit

Department for Business and Trade
Old Admiralty Building
Admiralty Place
London
SW1A 2DY

Email exportcontrol.help@businessandtrade.gov.uk

Telephone 020 7215 4594

OFSI contact details

Office of Financial Sanctions Implementation

Office of Financial Sanctions Implementation
HM Treasury
1 Horse Guards Road
London
SW1A 2HQ

Email ofsi@hmtreasury.gov.uk

General enquiries 020 7270 5454

Enquiries relating to asset freezing or other financial sanctions should be submitted to the Office of Financial Sanctions Implementation.

Enquiries relating to the Oil Price Cap on Russian oil should be submitted to oilpricecap.ofsi@hmtreasury.gov.uk

OTSI contact details

Office of Trade Sanctions Implementation (OTSI)

Office of Trade Sanctions Implementation (OTSI)
Old Admiralty Building, Admiralty Place
London
SW1A 2DY

Email DBT-OTSI@businessandtrade.gov.uk

If you have an enquiry relating to the establishment of the Office of Trade Sanctions Implementation (OTSI), please contact us.

Otherwise, please continue to use existing channels in government for all other trade sanctions enquiries.