Regulatory Burdens Now Outweigh Sanctions for Iranian Traders

TEHRAN (Iran News) Speaking Wednesday evening at a ceremony honoring top exporters in Razavi Khorasan province, Dehnavi highlighted the growing challenges Iranian exporters and importers face. “All traders, whether exporting or importing, are entangled in a maze of cumbersome and sometimes contradictory regulations,” he said. “These regulatory obstacles now impose more pressure than the sanctions themselves.”

Despite the challenges, he noted Razavi Khorasan achieved a significant 33% increase in the value of its non-oil exports last year—more than double the national average growth of 15.6%, which amounted to $57.8 billion. Dehnavi praised this as one of the country’s most successful export years.

The deputy minister of Industry, Mine, and Trade emphasized that the TPO has three primary objectives: streamlining trade procedures, promoting free trade agreements, and encouraging investment in export-oriented production.

“Removing bureaucratic barriers is a top priority,” he stated, adding that such hurdles harm exporters more than sanctions and need to be eliminated to boost export-led growth and a dynamic economy.

He also addressed the economic relationship with neighboring Afghanistan, describing it as both vital and misunderstood. “Millions of Afghans live and work in Iran, often sending earnings back home for family support or investment. This creates a form of barter—goods exchanged for labor,” he explained.

Dehnavi questioned the logic behind demanding foreign currency returns from traders who export to Afghanistan in local currency. “Why must we impose strict foreign exchange compliance when it’s clear that financial exchanges with Afghanistan function differently? This rigid policy only restricts our exporters,” he said.

He called for urgent reforms in foreign exchange commitment regulations, arguing that government intervention in trade processes should be minimized. “We all agree that export earnings belong to the country and should return to the economy. But it should not be up to the government to dictate when, how, and at what price,” he said. “Such interference disrupts the flow of currency back into the system.”

Dehnavi said exporters should be free to repatriate their earnings without bureaucratic interference.

Regarding free trade efforts, he announced that Iran’s Free Trade Agreement with the five Eurasian Economic Union (EAEU) member countries would take effect on May 14. “This agreement presents both opportunities and challenges for our business community,” he said, adding that talks are underway with more than 10 other countries for similar deals.

The third focus of the TPO, he said, is fostering investment in export-oriented industries. “To achieve a major leap in exports, we must prioritize investment in production for export. This strategy is being actively pursued through the High Council for Non-Oil Exports and other bodies,” he added.

Dehnavi reiterated that exports to Afghanistan should be treated as barter and not be hampered by rigid currency return regulations. He also highlighted Razavi Khorasan’s potential as a leader in export-focused investment.

The TPO, he announced, will support the establishment of seven export terminals in the province, with the local export development task force approving all of them. “This delegation of authority will open a new front for exports in the region,” he said.

The event concluded with a ceremony recognizing 44 top exporters from Razavi Khorasan, attended by Dehnavi, the provincial governor, and other officials.