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Interim Agreement on FTZ signed between the EEU and Iran minimizes risks for exporters

13 March 2019
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The bill on a interim free trade zone between the EEU and the Islamic Republic of Iran can help to solve the issue of returning Kazakhstan’s certificates of origin by the Iranian side.

Yulia Yakupbaeva, Deputy Chairman of the Board of the Atameken National Chamber of Entrepreneurs, told about it during the plenary session of the Mazhilis of the Parliament of Kazakhstan.

In 2018 the Atameken issued about 2,000 certificates, 40 per cent of which were returned for subjective reasons by the Iranian side for changes and additions.

For example, the wheat of the North Kazakhstan is sent to Iran through the seaport in Aktau. When shipping wheat in Aktau, an Iranian buyer requires the certificate of origin to be appropriate for him, that is to change the address of the shipper. In this regard, our supplier incurs additional costs in terms of returning the certificate for changes, the idle of dry cargo in the Aktau port, Yuliya Yakupbaeva explained.

“The rules for determining the origin of goods of this Agreement govern the procedure for issuing and filling in certificates. We expect that the entry into force of a Regulation, signed by the Iranian side, minimizes such situations. We had similar cases with the return of certificates with Vietnam. However, after the entry into force of the Agreement on a free trade zone in 2015, the situation has improved ” she said.

Another advantage of signing the Agreement will be the provision of customs preferences to Kazakhstani goods in Iran.

“At the moment, Kazakhstani goods do not have preferential treatment. With the entry into force of the Agreement on a number of Kazakhstani goods from Iran, customs duty rates will be reduced. For example, the rates for beef meat were reduced by 16 per cent, rice - by 11 per cent, confectionery products - by 35 per cent, etc.,” Yuliya Yakupbaeva said.

In general, the Agreement will allow Kazakhstani business to minimize risks and increase demand for domestic products in Iran.

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