A New Start
After more than thirty years of working as an international law office, our hope for a paradigm shift in the economic environment of Iran encourages and entices us to experience a new start by providing the public and our selected clients with bi-weekly, bi-monthly and yearly News & Analysis about the legal developments that are taking place in Iran. Our objective is to help our readers to keep themselves abreast of these developments and to remain aware of all the opportunities that are and will become available to them in the Iranian market.
“Child Labour” is specified as work that deprives children of their childhood, their capability and their dignity which is detrimental to physical and mental progress. So, if a child is engaged in an activity that is mentally, physically, socially or morally dangerous and harmful to children, and interferes with her/his education, Child Labour is occurring.
Employed women are entitled to nine-months of paid leave in case of child birth. At least 3 months of this leave period should be after child birth, and the rest could be taken during pregnancy. Two-thirds of the salary is paid by the Social Security Organization during this period; however, employers also have certain commitments during this period. For instance, new year bonus, severance payment, family-costs bonus, etc. should be paid by the employer.
In hot summer days, nothing is worse than experiencing power outage and having to resort to rather traditional ways of cooling yourself. Hand fan anyone?
Although, authorities mainly attributed the reason for such outages to slowdown of investment in the energy sector and the wear and tear of the distribution and production network, some experts were fast in jumping to conclusion that the high electricity consumption of crypto currency mining farms was the main reason for blackouts across the country.
Crypto currency mining was first regulated in 2019 but the recent By-Law re Extraction of the Crypto Currencies notified on 14 November 2022 (“By-law”) has substituted the former regulations while detailing the conditions for authorized mining of cryptocurrencies. In this article, we will have a look into some of the important provisions in this regard.
Article 2 of the By-law stipulates that any activity related to the extraction of cryptocurrency, including import, production, sale and repair of equipment, is allowed only by obtaining a license from the Ministry of Industry, Mine and Trade through legal commercial and customs procedures. It is further foreseen that in free trade-industrial and special economic zones, the Ministry can delegate the authority to issue the above-mentioned license to the organizations of the relevant zones as the case may be.
It is worth mentioning that the establishment of cryptocurrency mining centers with electricity consumption is not subject to the limitation for industrial zones to be distanced (120) kilometers from Tehran city, (50) kilometers from Isfahan city and (30) kilometers of centers in other provinces. However, for optimum use of energy, the geographical zoning is performed by the Ministry of Energy in cooperation with the Ministry of Oil to prioritize the location of cryptocurrency mining centers and take advantage of the energy price. Meanwhile, it is prohibited to use the electrical branch circuit or gas branch established for other purposes in order to extract crypto assets.
It is further stipulated that for the purpose of optimal management of extraction centers and with the aim of helping to reduce illegal extraction, the Ministry is obligated to issue the instructions related to the establishment and operation of large-scale extraction centers with the cooperation of the ministries of energy and petroleum within three months from the date of notification of the By-law
For the purpose of securing the electricity the cryptocurrency mining centers need, they are allowed to use a combination of the following methods:
1- The construction of renewable power plants or the purchase of electricity from newly built renewable power plants that will be put into operation according to the regulations approved by the Ministry of Energy.
2- Investing in energy consumption optimization projects or using a customized energy saving certificate within the framework of the energy and environment optimization market guidelines approved by the Ministry of Energy.
3- Investing in the construction and operation of a thermal power plant for electricity generation with fuel supply from the accompanying gas (flare) site.
4- To purchase electricity from the national grid by receiving electricity branching, except during the time of electricity and fuel network restrictions, the price of each kilowatt-hour of electricity consumed is equal to the average price of exported electricity based on the Nima price, minus the following discounts:
A- Reducing the voltage of the connection to the electricity network in order to expand the large-scale extraction centers based on the instructions of the Ministry of Energy and at the maximum amount of twenty percent (20%) of the average price of the export of electricity.
B – The discount related to the fulfillment of foreign exchange obligations based on this regulation is a maximum of ten percent (10%).
Note 1 – The above discounts are applied to the electricity bills issued after the announcement of the approval of the return of currency by the central bank to the Ministry of Energy.
Note 2 – The average price of exported electricity in Rials is announced by the Ministry of Energy on a quarterly basis in accordance with the Nima pricing system.
5- Construction of a thermal power plant outside the national network, whose fuel tariff is determined as follows:
Energy tariff = (gas tariff / fuel tariff)
We hope that with proper implementation of the said regulations and ensuring sanctions for the offenders, we would witness fewer power outages in the summers to come.
Coordinated by Dr. Mahnaz Mehrinfar and Sahar Sotoodehnia
According to Article 471 of the Criminal Procedure Code of Iran, the State High Court of Justice (herein after “SHCJ) through its General Committee is authorized to issue the so-called “Judgments for Setting Unified Practice” in cases when there are different judgments by the various branches of the SHCJ or the courts, are in place in relation to the same subject-matter due to different interpretations of the law.
It is often posited that limited liability companies were one of the most significant innovations of the modern era which made the capitalist revolution possible. Through them, investors could full-heartedly venture into new investments without the fear of losing everything; because, their liability would be limited to the amount of their share in the company.
The Berne Convention was adopted in the late nineteenth century and currently has 174 signing countries. For any author from any of the participating countries, this means that their work receives protection in 174 states. Protection also means that an author’s work would not be translated or adapted without the author’s authorization. Opting out of international treaties like the Berne Convention means that international authors’ works are exploited in the Persian market and somehow vice-versa.
Labor Code has been ratified in the year 1990 while other acts, circulars, amendments, etc., are in place which is strongly in favor of the workers. In this report, the following major points of this Code will be examined:
Unless you have opted to live in a cave (which to be clear we have nothing against considering the insane world we are living in), you are already following the news of Russia’s invasion of Ukraine (or so-called special military operation as Russia puts it!). There is of course a lot to discuss and have an opinion on what has been happening between the two countries for the purpose of which there are far more eligible people but, in this News & Analysis we are having a look at Ukraine’s latest legal actions before the International Court of Justice (“ICJ” or “Court”) which is the principal judicial organ of the United Nations.
The Basics of Conditions Precedent Clause
The conditions precedent (“CP”) are conditions to be fulfilled before the lender releases the loan to the borrower. Such conditions may be applicable at the time of first drawdown or any future drawdowns during the loan agreement. This clause provides a mechanism for the lender to ascertain the existence of certain documentary and non-documentary (factual) circumstances before giving out the loan. The lender, employing CP clause, tries to safeguard the fund it is going to put at risk. If there is no CP clause, the bank will be obliged to give out the loan. In this case, the bank will be defenseless unless the borrower commits a default.[1]
1.1. We are writing this topic based on the assumption that it is a website material and is not supposed to be academic research. The main question, in this writing, is whether or not a precedent, in common law, is authoritative.
Among the most evident rights of an accused person in all judicial systems, the accused’s defence rights stand at the top. As one of the fundamental principles of fair trial, it is envisaged in national laws including Criminal Procedure Code as well as the Law on Respect for Legitimate Freedom and Protection of Citizen’s rights (ratified in May 2004) which provides that “The courts and prosecution offices are obliged to observe the accused’s rights and provide them with the opportunity to take lawyers and experts.”
Civil and Criminal Liability of Directors in Stock companies
Documentary credit transactions around the world are in compliance with international practices which has been developed by the International Chamber of Commerce (ICC). Fortunately, with due attention to the revision of the Uniform Customs and Practice for Documentary Credits (UCP), there is an opportunity for merchants as a valuable resource at international level for doing businesses.
We are here yet with another update on a previously published news dated 26 July 2018 while you can revisit the article for a brief background at: https://intllaw.net/iran-to-file-a-lawsuit-before-international-court-of-justice/
It is important to cite that the “the new amendment with regards to an issuance of cheque regulation” had been ratified by Iranian Parliament on Nov. 04, 2018 while currently the Central Bank as a pioneer bureau is at the stage of the execution of this amendment related to issuance, circulation and receipt of all types of cheques.
Iran, likewise any other states within the international community has been entered into numerous bilateral treaties in terms of judicial matters in order to pave the path of legal and judicial collaboration and facilitate the enforcement of rule of law with other states with due respect to sovereignty and mutual interest; among which is the treaty signed between Iran and China which has been enacted as the law by the Iranian Parliament on 18 October 2016 under the name “The Law of Judicial Assistance in relation to Civil and Commercial Matters between Islamic Republic of Iran and People’s Republic of China” (hereinafter referred to as “The Judicial Assistance Law”/ “JAL”).
The legal basis of the trademark protection in Iran is the new Intellectual Property Law “Iran Patents, Industrial Designs and Trademarks Registration Act”, in force since May 2008 and the respective executive By-Laws. In addition, Iran is a contracting party to the Paris Convention, Madrid Agreement and the Madrid Protocol and adopted the related rules and regulations.
We last had a glimpse on the complaint submitted before the Competition Council (Council) against Iranian Bar Association Union, Iran Central Bar Association (ICBAR), Judiciary Center for Attorneys, legal experts & Family Advisors and other relevant bar associations in our News and Analysis back in December 2017, promising to further follow up the case. Being the man of our word, in this N & A we are going to discuss the Decision No. 421 dated 30 May 2020 issued by the Council in favor of the respondents excluding their activities from the concept of “economic activity” as stipulated within the cited regulations by the plaintiffs.
The legislature for the purpose of adjudication of each parties and the possibility of reviewing new evidences or the specific circumstances arising in the legal and criminal cases through extraordinary means predicts the required proceedings to appeal the finalized judgments, which is retrial in civil and criminal matters on the one hand and on the other hand the application of Article 477 of the Criminal Procedure Code can be remarked. Therefore, in this article, we will examine the conditions for the application of Article 477 of the aforesaid code.
In April 2013, the Penal Code of Iran (herein after “PCI”) has been subject to partial amendments in regards to discretionary punishments, among which is the concept of criminal liability of legal entities which has been adopted by the legislator in a relatively positive manner. Though, compared to the former PCI, some scholars may deem the latter step well but not sufficient enough to cover the deficiencies related to such concept, herein we would like to have a swift overview to what has been approved by the legislator in this respect.
The constitution of the Islamic Republic of Iran makes several restrictions to International agreements or contracts, especially when an Iranian governmental party is involved. The historical mentality was that, the executive branch might not be vigilant in preserving national interests when foreigners are involved, therefore the legislative branch should be involved as the supervisor. However, these restrictions create serious obstacles for international trade and the day to day business of governing. Therefore, officials and jurists have tried to circumvent these restrictions by presenting a more lenient interpretation of the relevant principles of the constitutions. We will review some of these restrictions below:
The effect of coronavirus has undoubtedly become globally predominant in international commercial domain and this note seeks to examine the consequences of this new phenomenon on legal sector particularly in terms of contract law.
It is undeniable that one of the fundamental element of each contract is parties’ obligations so the question may arise that under covid-19 situation, how the contractual obligations will be performed by the parties.
When dealing with sports law in international arena, one of the main issues to consider is the method of settlement of the disputes in this field. In a country where sports and precisely football is very dear to the hearts of the majority of the population, we need to better understand the mechanism and regulations of the dispute settlement body called Court of Arbitration for Sport (CAS) which is an independent institution facilitating the resolution of disputes involving sporting organizations and their individual members through mediation and binding arbitration.
Investing in the Exchange and Over-the-Counter (OTC) markets of Iran, is not merely confined to Iranian nationals. As the matter of fact, “Foreigners” whether individuals or legal entities may also enter such markets in accordance with the applicable relevant laws and regulations inter alia “The By-Law on the Foreign Investment in the Exchanges and OTC Markets” approved by the Council of Ministers on April 18th, 2010 (hereinafter “the By-Law”).
The Instrument in Support of Trade Exchanges (INSTEX) is a European special-purpose vehicle (SPV) established in January 2019. Its mission is to facilitate non-USD transactions and non-SWIFT to avoid breaking U.S. sanctions. It was particularly established in order facilitate trade exchange with Iran following recent US sanctions and to encourage Iran to remain committed to its commitments under JCPOA. It was introduced on January 31 by France, Germany and Britain, the three countries party to the 2015 nuclear deal.
In recent decades, while the globalization theory tends to potentially enlarge the universal jurisdictions to assist the facilitation of the cross-border interactions among different countries and nations, the question remains why some major international organizations such as WTO have put several restrictions in practice for membership of developing countries such as Iran.
If you have been following the news lately, you have most probably noticed the buzz around Iran accession to UN Convention against Transnational Organized Crime, also known as Palermo Convention which is the main international instrument in the fight against transnational organized crimes, trafficking of human beings, and terrorism.
Arbitration is an established institution in Iran. Iran has already accessed to the “New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards” on October 15, 2001 and arbitral awards (both international and domestic) are regularly being enforced by the Iranian Judicial System. However, like all legal systems, there might be situations where the courts can set aside or annul an arbitral award.
According to the World Health Organization (WHO), “Mental health is defined as a state of well-being in which every individual realizes his or her own potential, can cope with the normal stresses of life, can work productively and fruitfully and is able to make a contribution to her or his community.”
Code share agreement is a provision where two or more airlines are allowed to share the same flight in which a seat can be bought by passenger on a flight which is functioned by another airline subject to different flight number. In general, the majority of airlines have one or further Code share agreements with other airlines. There is no doubt that Code share has a crucial role in international sphere as it certainly aims to meet the customers’ needs which advantages for both costumers and airliners are undeniable as it enables airline to enlarge its cooperation with other airlines and suggest the various flight timings for customers without bearing any further expenses.
It seems that we should finally come to realize that by misusing the environment and violating the nature’s circle, we are the ones paying the price at the end.
In It’s May 12, 2019 session the Parliament of Iran passed a bill which allows the children born to Iranian mothers to request Iranian nationality.
The International Center for the Settlement of Investment Disputes (ICSID) was established by its Founding Convention in the year 1966.
At first glance, it is worth considering that November 4, 2018 marked as the final day of the 180 days’ period regarding Donald Trump’s May 8, 2018 decision to suspend the USA participation in the Joint Comprehensive Plan of Action (JCPOA). Subsequently, on November 5, 2018, the USA re-imposed the sanctions on the Islamic Republic of Iran. The recent sanctions target the critical sectors of Iran’s economy such as the energy, shipping, shipbuilding and financial sectors.
The Circular No. 265156 dated 19 March 2019 was issued by the Ministry of Labour and Social Affairs in relation to the mandatory increases of wage and benefits of employees for the new Iranian calendar year 1398 (21st March 2019 to 20th March 2020).
The Instrument in Support of Trade Exchanges (INSTEX) was officially launched in early February 2019 through incorporation of a company in Paris. The purpose behind this channel is facilitation of financial relations and money transfers between Iran and Europe in response to new sanctions imposed by USA.
The number of Bilateral Investment Treaties (BIT) ratified by developing countries has significantly increased. BITs have actually had an important role in attracting the foreign direct investment (FDI) to signatory countries.
Incoterms is a standard set of rules creating in the year 1936 by International Chamber of Commerce (ICC) which is used by the traders, buyers, sellers, banks, governments and indeed anyone involved in the supply chain of delivering goods. In general, Incoterms covers the tasks involved in shipping, responsibility of risks, insurance duties, customs clearance and taxes.
The Ministry of Industry, Mine and Trade (the “Ministry”) has adopted a new mechanism for the importation of durable capital goods and consumables on 07 October 2018 through the Minister’s letter No. 60/187245 of the same date requiring the registration of branch(es) or representative office(s) for the purpose of importing the durable capital and consumable goods (the “Goods”).
During recent weeks, some econo-legal developments happened which might have a positive effect on the business environment:
Startup is a buzzword of our era and recently governments all around the world look at it as a hero to defeat unemployment and economic stagnation. They encourage creative young graduates to start their own business instead of looking for a monthly stipend job by easing the legal environment of startups.
According to the” Executive Direction for Opening Rial Deposit Bank Account in Iran for Foreign Individuals and Legal Entities” ratified at 227th meeting of Money and Credit Council dated January, 03, 2017, the following persons are able to open a bank account in Iran:
At international commercial Law stage, the globalisation theory has transformed the business of national laws to the emergence of multilateral and global laws, which intended to unify the rules in the international transactions.
On July 17, 2018 Iran instituted proceeding against the US at the International Court of Justice (ICJ) the principal judicial organ of the United Nations over the reimposition of heavy sanctions against Tehran by the Trump administration, claiming that the move breaches US international obligations and violates the Treaty of Amity, Economic Relations and Consular Rights, signed as far back as 1955 by the two countries.
Employment in the majority of Iranian private sector is regulated by the Iranian Labor Code (1990) and its relevant by-laws, executive orders, and judicial and administrative interpretations. The ratification of this code and its subsequent evolutions has been the product of influences by different stakeholders including representatives of both employees and employers; therefore the protection it provides is not uniform.
As far as in Iran oil was the most crucial source of government’s’ revenue in the past 100 years, understanding Iranian petroleum regulations and business environment cannot be achieved without knowing the history of Oil and Gas contracts in Iran.
Iran is one of the most famous countries in the region having resources of renewable energy.
As one of the nearly 200 countries signed the 2015 Paris climate deal that calls for cutting emissions, renewable energy is a major tool for Iran to reduce impact on the environment as it reduces the use of fossil fuels and save water. This sector is able to attract some considerable foreign investments.
Cryptocurrency is a digital currency in which encryption techniques are used to regulate the generation of units of a currency and verify the transfer of funds, operating independently of a central bank. Bitcoin, a decentralized cryptocurrency now provides an outlet for personal wealth that is beyond any type of restriction and confiscation.
The applicant/s for registration of GI shall refer to the website of State Organization for Registration of Deeds and Properties, Intellectual Property Center and she/he also needs to prepare the related documents (e.g. declaration of GI) for rendering to the aforesaid Center.
This year we had the pleasure of having a bright young British intern in our Law Office for about a period of one month. John Macleod a student of Middle Eastern Studies in Cambridge University who speaks Farsi in such a way that you cannot believe your ears has shared with us his experience of living in Iran for five months. Below, you can read this short memoir in his own words:
The rather recent complaint raised against Iran Central Bar Association by some of the law graduates before the Competition Council made us have a look at competition regulations in Iran’s legal system. The relevant graduates have objected the capacity limitation set for being admitted in the bar exams alleging that setting a capacity limitation as opposed to having a criteria based exam is contrary to the applicable competition regulations.
Nowadays, customers are exposing to thousands of similar products together with variety of advertisements. A creative and distinguished product-packaging would definitely attract more customer’s attention and therefore bring about more income and popularity to a company among its peers.
Like in many other industrial areas, the policy of Iranian government in tobacco industry revolves around encouragement of local production. This policy is more pronounced in tobacco industry because during the recent years a considerable amount of tax revenues have been lost due to smuggling. On the other hand, Iranian cigarette production was not able to compete with the international moguls of the industry. Due to the fact that consumers preferred well-known international brands, importation (both legal and illegal) of cigarettes was in high demand. This led to a crippling of the cigarette industry and also a huge loss of tax and monopoly incomes for the government.
Foreign nationals shall be employed to work in Iran if they have work permit in accordance with the Labor Law of Iran and in conformity with Social Security Organization “SSO” regulations.
The Party Autonomy in International Commercial Arbitration from the Delocalisation TheoryThis report will focus on the principles of party autonomy as the proper base of the delocalisation realm. It will also argue that the only legal constraint of party autonomy might be known as the public policy.
It is no secret that one of the first things a foreign investor considers when deciding to enter a new market is the taxation regime.
Iran’s taxation regulations have been defined in the Direct Taxation Act (the “Act”) which was revised on 22 July 2015 by the parliament (implemented from 20 March 2016) introducing new provisions regarding the applicable income tax for foreign real and legal persons.
In the case Mr. X vs. Aviation Company (Tehran Branch office) in 2014, the Plaintiff in his petition to the First Instance Court of Iran claimed the amount of … (confidential) as compensation for his luggage loss in 2007 alleging to be due to the Defendant’s negligence.
As Iran has paved a lot in order for the foreign investment to be eased, as well as the whole trade ambiance to be motivated, we would like to surrender an outline, as an instance, of such endeavors within the legal sphere:
Like almost everywhere in the developed and developing world, internet based start-ups are mushrooming in Iran. The services offered through virtual sphere and mobile applications range from online shopping stores to online food deliveries, e-bakeries, taxi and transportation applications, online bookstores and libraries, laundry applications, courier applications, e-ticketing for cinemas, theater performances, music concerts, etc.
“In the name of Allah”
Undeniable benefits of renewable energies for mankind as well as environment is no longer overcast for the states. As an emerging sector of international industry and investment in Iran which has casted a rapid development particularly in the recent years, renewable energy has become one of the most appealing scopes to foreign investors in a sense that over 3 Billion Dollar investment in the renewable energy sector has been requested by the foreign investors until January 2017 according to the Energy Minister of Iran which has also been registered in the Foreign Investment Deputy of Ministry of Economy and Finance.
Free Trade Zones:
According to article 1 of The Law on the Administration of Free Trade – Industrial Zones of Islamic Republic of Iran”(LAFTIZ)” the government is authorized to administer the following zones as the Free Trade-Industrial Zones in accordance with ” LAFTIZ” and the other legal principles in order to accelerate the accomplishment of infrastructures, development, economic progress, investment, increase of public income, creation of productive employment, regulating of goods and labor market, to be actively present in regional and world market and to produce and to export the industrial and processing goods as well as rendering public services.
In September 2016, the Islamic Consultative Assembly of Iran ratified[1] the Act of Membership of Islamic Republic of Iran in the Asia Infrastructure Investment Bank (AIIB), a Multinational Development which is governed under China’s leadership.
Fifty-seven founding members have signed the Articles of Agreement since it was opened for signature on June 29, 2015. Remaining Signatories that have not yet deposited their instruments of ratification but they are expected to do so shortly and become members thereafter.[2] The Articles were signed in English, Chinese and French texts, which are equally authentic and consists of 60 Articles.
The delocalisation of international commercial arbitration has been known as a consequence of the need for the harmonisation of the world economy, and in the trend away from national jurisdiction. The growing number of international transactions causes an increase in the occurrence of the application, notably by arbitral tribunals. Delocalisation theory is based on the idea of freeing international arbitration from the law of the place of arbitration, or the lex arbitri.
One of the key policies of the IRI government in the recent years has been towards combating smuggling in a way that different directives have been adopted by the Ministry of the Industry, Mine and Trade with the aim of protection of consumers and regulating the market specially in terms of importation of the foreign branded products.
International Joint Banks of Iran, 5th Bi-Monthly N & A (January 29, 2015) According to wantchinatimes.com on January 28, 2015:
Iran and Russia are mulling a joint bank to settle their mutual trade payments, said Iran’s ambassador Tuesday on Press TV.
“Both sides plan to create a mutual bank or a mutual account to make payments in (Iranian) rials and (Russian) rubles,” ambassador Mehdi Sanaei said.
Sanaei’s remarks came two days after Gholamali Kamyab, the deputy governor of the Central Bank of Iran (CBI), announced Iran’s plans to sign “bilateral monetary treaties” with some countries.
Iran is not using the dollar “in its transactions with different countries,” Gholamali Kamyab said, adding that “Iran is using other currencies like China’s renminbi, Turkey’s lira, Russia’s ruble and South Korea’s won in its trade transactions with the countries.”
Biosimilars and Protection of Their Ownership, 20th Bi-Weekly N & A (January 22, 2015)It is reported on the website of http://cinnagen.com:
Signature of the first technology transfer contract in the field of biopharmaceutical production between Iran and Turkey with presence of Iran food and drug organization president.
For the first time, CinnaGen pharmaceutical company as the leading biopharmaceutical producer in Iran and the Middle East has managed to transfer the production technology of MS (Multiple Sclerosis) medicine known as ReciGen® from Iran to Turkey.
Iran-Turkey Preferential Trade Agreement, 19th Bi-Weekly N & A (January 7, 2015) According to Tehrantimes.com on December 31, 2014:
TEHRAN – The preferential trade agreement, which was signed last year between Iran and Turkey, goes into force on January 1, 2015….
In January 2014, Iran and Turkey signed the agreement with the goal of boosting bilateral trade. The agreement was signed during Turkish Prime Minister Recep Tayyip Erdogan’s visit to Iran.
According to the agreement, 125 items of Iranian goods and 140 items of Turkish goods will be traded based on preferential tariffs as of January 1, 2015.
According to Zawya.com on December 20, 2014:
Iran-China Joint Chamber of Commerce Chairman Asadollah Asgaroladi said that China has financed several Iranian projects.
“We agreed to receive our money in the form of goods and finance,” the official explained, Iran’s Mizan News Agency reported on Dec. 16.
“The country has no debt to us anymore, except for the goods,” he said.
“Bank of Industry and Mine, Parsian, and Pasargad banks are currently working in this regard,” the official explained.
It is reported on the website of egfi.org on November 30, 2014 that:
Within the visit of Alexey Ulyukaev, Minister of Economic Development of the Russian Federation, to Islamic Republic of Iran, with the invitation of Mohammad Reza Nematzadeh, Minister of Industry, Mine and Trade of I.R. of Iran, Export Insurance Agency of Russia (EXIAR) and Export Guarantee Fund of Iran (EGFI) entered into a Framework Agreement aimed at developing trade and investment between Russia and Iran. The timing of this signing follows several high level agreements between the two countries.
Lex Petrolea & International Commercial Arbitration, 4th Bi-Monthly N & A (November 29, 2014)According to Shana.ir on October 15, 2014:
Managing director of the National Iranian Oil Company (NIOC) Roknoddin Javadi has said that he thinks an independent arbitration and supervisory body should be established to oversee oil industry contracts.
Speaking at the third national conference on upgrading contractual frameworks in oil industry, Javadi said Tuesday that it was necessary for the congress to prepare a contractual roadmap through sharing views between outsourcers and contractors.
Transit Transport, Iran & its Neighbouring Countries, 16th Bi-Weekly N & A (November 22, 2014)According to Bloomberg.com on November 4, 2014:
China plans a $16.3 billion fund to finance construction of infrastructure linking its markets to three continents as President Xi Jinping pushes forward with his plans to revive the centuries-old Silk Road trading route.
The fund, overseen by Chinese policy banks, will be used to build and expand railways, roads and pipelines in Chinese provinces that are part of the strategy to facilitate trade over land and shipping routes, according to government officials who participated in drafting the plan.
Tax Havens, Tax Evasion and Banking Secrecy, 15th Bi-Weekly N & A (November 7, 2014)According to Bloomberg.com on October 29, 2014:
Governments around the world closed in on tax evaders with an automatic data-sharing agreement that broadens efforts by the U.S. and the five biggest European Union economies to more than 50 countries and territories.
Finance ministers signed the agreement in Berlin today in a signal of global determination to capture tax revenue, after the U.S. pursued banks such as Credit Suisse Group AG (CSGN) for helping Americans cheat on their taxes and German authorities bought CDs containing stolen bank data.
Turkcell v. I. R. Iran & BITs, 14th Bi-Weekly N & A (October 22, 2014)On October 16, 2014, the website of Noodles.com published the Turkcell company’s “Announcement regarding the Arbitration Case in relation to the GSM License Tender in Iran”:
Our Company had been awarded with the GSM license following the tender initiated to operate a GSM network in Islamic Republic of Iran. However, on the grounds that the license had been awarded to another company by Islamic Republic of Iran in an unlawful way, Turkcell have filed an ad hoc arbitration on January 11, 2008.
Tribunal awarded that it has no jurisdiction to entertain Turkcell’s claims. Our company is assessing possible legal options against the Tribunal’s award.
I. Foreign Direct Investment (FDI)
According to Jones and Wren in Foreign Direct Investment and the Regional Economy (2012):
The standard definition of foreign direct investment is given by the Organization for Economic Cooperation and Development (OECD, 1996). A key aspect of this is that it represents the notion of one enterprise in a particular country having a degree of control over another enterprise in a different country, as opposed to just the provision of financial capital. It is classed as, “investment that adds to, deducts from or acquires a lasting interest in an enterprise operating in an economy” arising from outside the country in order to “have an effective voice in the management of the enterprise” (OECD, 1996, p. 7). In the event that a foreign investor does not have an effective voice in the management of the company, then the investment is classified as „portfolio investment‟ (emphasis added).
Gist of the news
Presstv.ir reported on September 19, 2014 that:
A top European court has struck down restrictions imposed by the European Union against the Central Bank of Iran (CBI) on an alleged charge of circumventing US-led sanctions against the Islamic Republic.
In a judgment on Thursday, the Luxembourg-based EU‟s Court of Justice said it “annuls…the EU March 23, 2012 [ruling] concerning restrictive measures against Iran in so far as it listed Central Bank of Iran.”
“The reasons relied on are so vague and lacking in detail that the only possible response was in the form of a general denial,” the court ruled on Thursday, adding that “those reasons therefore do not comply with the requirements of the case-law.”
It said the charge leveled against the CBI is “insufficient in the sense that it does not enable either the applicant or the Court to understand the circumstances which led the [European] Council…to adopt the contested act.”
The Financial Times reported one day earlier that:
Gist of the news
Tehrantimes.com reported more than two years ago on April 3, 2012 that:
A bill to join the Universal Copyright Convention has recently been completed by Iranian Ministry of Culture and Islamic Guidance, an official of the ministry said on Tuesday. The bill has been submitted for discussion in the cabinet, the ministry’s Legal Department Director Ahmad-Ali Mohsenzadeh told the Persian service of the Iranian Students News Agency.
Almost two years later on April 15, 2014, the website of yjc.ir reported that according to Hasan Noushabadi, the Deputy Minister of Culture in Legal and Parliamentary Affairs:
“…Iran is preparing a bill to join the Bern convention as well as the Rome Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organizations.”
Executive summary
The interpretations of article 968 of the Civil Code of Iran (CCI) can be subdivided into two groups. Under the first one that is supported by few lawyers, article 968 is a mandatory provision of the CCI. This means that all obligations arising out of contracts are subject to lex loci contractus, wherever they are concluded. The only exception to this rule is where both of the parties are foreign citizens who have explicitly or implicitly declared that their contract shall be subject to a law other than lex loci contractus. The second interpretation is a more liberal and more popular one. Under this interpretation, article 968 is a facultative provision of the CCI authorizing the Iranian as well as the foreign citizens to subject their contracts to any law that they deem appropriate.
Gist of the News
It is reported on the website of http://www.hellenicshippingnews.com/suezmax-tanker-with-european-insurance-cover-calls-at-iranian-port-sources/ on August 7, 2014 that:
Gist of the News
In a new development reported by en.haberler.com on July 22, 2014, Ebrahim Shoushtari, Deputy Head of the Civil Aviation Organization for Aeronautical Operations announced that:
Gist of the News
According to the Tower Magazine on June 29, 2014:
On Tuesday the United States District Court for the District of Columbia issued an order for the Internet Corporation for Assigned Names and Numbers (ICANN) to seize Iran‘s internet domain (.ir) and IP addresses in order to recover more than $1 billion in damages that the Islamic Republic owes for its sponsorship of global terror.
Introduction
Let us start this News & Analysis with the following paragraph taken from Céline Lafontaine‟s book titled „Le Corps-Marché‟ published by Édition du Seuil in April 2014 (at page 246):
“Un article du Monde intitule »Médicament: épidémie de pénuries«, paru en novembre 2013, tirait la sonnette d‟alarme sur le fait que la course aux profits qui gouverne l‟industrie biopharmaceutique a maintenant des répercussions directes sur l‟accès aux traitements pour certains patients au sein même des pays développés.”
Introduction
One of the most complicated fields of law is the law of sanctions. It would be almost impossible to handle the legal issues related to the sanctions imposed on Iran without understanding the existing and the invented interactions between the international law, the EU law, the US law, and the law of Iran. We have tried to look at few aspects of these interactions in this News & Analysis.
Executive summary
Since 1931 when Article 4 of the Corporate Registry Act of Iran recognized two distinct legal forms for activities of foreign companies in Iran, namely establishing a branch office or appointing a representative, all of the Iranian laws and regulations have remained loyal to this dichotomy as if no other option exists. Even the new Commercial Code of Iran (2014) could not succeed in creating a modern business law for regulating the activities of foreign companies in Iran.
Executive summary
At least 184 foreign companies have entered agency agreements with Iranian agents. Foreign companies need to know more about the agency law of Iran before entering into an agreement with the Iranian companies.
New development
The number of international companies that are either negotiating, or planning, or at least considering a return to the Iranian market is increasing. Sooner or later, foreign companies need to initiate the process of negotiating an agreement with their Iranian counterparts. In that case they have to respond to few difficult questions: What are the crucial issues of concern during the negotiation process? Later, when the parties start the process of drafting their agreement(s), what are the key issues that the foreign party must take into consideration? What are the legal sources of international commercial contracts in the Iranian legal system? Is there any specific law that determines the limits of the contract law of Iran? How the laws of Iran interact with its jurisprudence? Would it be necessary for a foreign party to learn about Sharia rules, as far as international commercial contracts are concerned?
Where two or more persons, whether natural or juridical, put together their assets to start a business activity in order to reap the benefits and to avoid the losses, they form a joint venture. Due to complexity of joint ventures, on the one hand, and strong desire of the partners to a joint venture to agree on every aspect of their venture, on the other, it is necessary that the partners found their relationship on a well-drafted and sufficiently detailed joint venture agreement.
Executive summary
The term “foreign corporation” is composed of two parts: corporation, and foreign. To understand the real and actual sense of these two terms in the law of Iran, we need to explain how, why and when these two concepts came to existence, lived their life, and finally took their current shape in the legal environment of Iran. After getting to know about their history, we need to look at what they actually are. This requires that we explain their legal functions in the socio-economic context of Iran. These functions, in their turn, are subject to the laws and regulations of Iran
New development
The number of economic laws of Iran is very limited. A major reason for this shortcoming is that the general principles of the civil and commercial law of Iran are believed to respond to all possible questions in the field of international trade and economic law. In other words, the Civil Code and the Commercial Code of Iran are considered by majority of the Iranian lawyers as jus communes of the Iranian legal system. This understanding in its turn is based on a basic rule of Islamic law that fiqh (teachings of Sharia) shall respond to all legal queries forever.
Message of a ‘New Start’
After more than thirty years of working as an international law office, our hope for a paradigm shift in the economic environment of Iran encourages and entices us to experience a new start by providing the public and our selected clients with bi-weekly, bi-monthly and yearly News & Analysis about the legal developments that are taking place in Iran. Our objective is to help our readers to keep themselves abreast of these developments and to remain aware of all the opportunities that are and will become available to them in the Iranian market.
