KARACHI, May 5: Iran has raised import duties on various items especially rice and textiles in its New Year commencing from March 2005 and effective till March 20, 2006. According to EPB here on Thursday, Iranian Ministry of Commerce has published a new book of Export/Import Regulations and Customs Tariff for new Iranian year 1384 (March 21, 2005 to March 20, 2006). Under the new tariff, Commercial Benefit Tax (CBT) has been merged with customs duty.

Iran has a customs duty of 4 per cent and 96 per cent CBT on the import of rice, making a total impact of 100 per cent in the Iranian year 1383 (March 21, 2004 to March 20, 2005). Now the custom duty has been fixed at 150 per cent in the new year.

Similarly, on number of textile items including woven fabrics of cotton, synthetic and silk, and knitted fabrics the tariff has been enhanced from 20 per cent (4 per cent customs duty and 16 per cent CBT) during 1383 to 40 per cent in 1384.

Similarly, customs duty on articles of apparel and clothing accessories (both knitted and non-knitted) has been raised from 50 per cent (4 per cent customs duty and 46 per cent CBT) to 70 per cent.

The new import tariffs are likely to affect Pakistan’s exports to Iran as well as tend to dilute the likely impact of preferential trade agreement with Iran. However, customs duty on some items like fruits like banana, mangoes, kinnoo and oranges and spices have been slightly reduced in the new year.

On banana, the customs duty has been reduced from 70 per cent (4 per cent customs duty and 66 per cent CBT) to 65 per cent in the new year. Similarly, customs duty on mangoes and citrus fruits, fresh or dried, has been reduced from 50 per cent to 45 per cent. Customs duty on football, basketball, volleyball and handball has been reduced from 70 per cent to 65 per cent.—APP