Free Trade Zones and Special Economic Zones in Iran

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.

–  Free Trade – Industrial Zones of the Islamic Republic of Iran are as follows:

  1. Kish
  2. Qeshm
  3. Chabahar
  4. Aras
  5. Anzali
  6. Makou
  7. Arvand

–  The areas which might be considered as free trade zones in the near future are as follow:

  1. Ardabil
  2. Inche Boroun
  3. Baneh –Marivan
  4. Jask
  5. Sistan and Baluchestan
  6. Mehran


–  Advantages of investing in free trade zones:

  1. Tax exemption for 20 years from the date of operation for all economic activities (this exact duration shall be changed by the” LAFTIZ”).
  2. Possibility of foreign investment without limitation.
  3. Freedom of entry and exit of capital and profits.
  4. Protection and guarantees for foreign investments.
  5. Abolition of entry visas and easily issue of residence permits for foreigners.
  6. Facilitated regulation on labor relations, employment and social security.
  7. Transfer of part manufactured goods to the mainland without paying customs duties.
  8. Elimination of pay customs duties on imports from outside to the region and vice versa.
  9. Employing trained and skilled manpower in all different skill levels and professions.
  10. Utilization of raw materials, oil and gas as feedstock and fuel for all industrial activities.


Special Economic Zones:

According to article 1 of The Act on Establishment and Administration of Special Economic Zones of Islamic Republic of Iran “AEASEZ” The government is authorized to establish zones as Special Economic Zones in the cities that have the necessary capability and capacity In order to support economic activities, to establish international commercial relations and to stimulate regional economy, production and processing of goods, to transfer technology, non-oil exports, to provide a generative employment, to encourage domestic and foreign investment, re-export, foreign transit and trans-shipment.

       –  Special Economic Zones of the Islamic Republic of Iran are as follows:

  1. Salafchegan
  2. Persian Gulf
  3. Lorestan
  4. Persian Gulf ship building
  5. Behshahr Amir Abad Port
  6. Bushehr port
  7. Bushehr Shahid Rajaee port
  8. Sarakhs
  9. Sirjan
  10. Yazd
  11. Sahlan
  12. birjand
  13. Zarandieh (Iranian)
  14. Dogharoon


–  Advantages of investment in special economic zones:

  1. Import of goods from the above mentioned zones for domestic consumption would be subordinate to export and import regulations, and export of goods from these areas will be carried out without any formalities.
  2. Import of goods from abroad or free trade zones or industrial area-would be carried out with minimal customs formalities and good internal transit cases would be performed in accordance with the relevant regulations.
  3. Log entry of merchandise subject to this article will be done without any customs formalities.
  4. Goods imported from outside or industrial areas or other commercial zones can be exported without any formalities of the country.
  5. Management of the region is allowed to assign the region to qualified natural or legal persons after classification and valuation.
  6. Owners of goods imported to the region can send all or part of their goods for temporary entry in to the country after doing customs clearance regulations.
  7. If the processing of imported goods is to some extent that changes the tariff of goods, the rate commercial benefit of the goods would be calculated equal the commercial benefit of raw materials and spare parts of the country.
  8. Importers of goods are allowed to hand over to others part or all of their products against warehouse receipt to be issued by the district administration, in this case the breakdown warehouse receipt holder would be the owner of the goods.
  9. The management of each district is authorized to issue certificated of origin for goods per applicant out of the area with the approval of the customs.
  10. All the goods imported to the region for the required production or services are exempted from the general import-export laws. Imports of goods to other parts of the country will be subordinated to export and import regulations.
  11. Percentage of goods produced in the zone, based on paragraph (d) of clause (25) of the law of the second economic, social and cultural development plan of the Islamic republic of Iran imported to the country, the proportion of total value added and domestic parts and materials used in the total price of the commodity production is allowed without any limitation and in addition to not having to order and open letter of credit.
  12. Goods manufactured in special economic zones, as well as raw materials and imported CKD parts into the country is not subject to price regulation due to unutilized resources and allocated currency.


      Coordinated by Dr. Mahnaz Mehrinfar & Ms. Khatereh Shahbazi