Official: Transit tax negates effect of IRI-Turkey preferential trade

Tabriz, Jan 3, IRNA – Transit tax collected at Iran-Turkey borders overshadows and diminishes the positive impact and effects of two countries’ just applied preferential trade agreement, head of Joint Iran-Turkey Commerce Council Reza Kami said here Thursday. “Customs clearance tariffs for 265 items of good are decreased from 30 to 60 percents by implementing the preferential trade agreement, which is aimed at boosting the bilateral trade and achieving the predicted trade volume in defined period,” said Kami in an interview with IRNA. He said that the Turkish trucks’ fuel tanks are no longer sealed upon arrival in Iran and the conditions have returned to gaining the fuel rate difference by the Iranian side in this side of the border. Kami said that the transit tax deducted by both sides currently is 50 Euros per each 100 kilometers, which has led to doubling the transportation costs, and is contrary with the two countries’ objective in implementing the preferential trade agreement and is therefore in need of more talks between the two countries’ concerned officials. The head of Joint Iran-Turkey Commerce Council said that Iran and Turkey have also signed the electronic TIR Convention, arguing that establishment of a “solid customs window” is a necessity in Iran-Turkey trade, whose annual volume is near $15 billion today. “Inclusive of Iran’s oil and gas exports, the trade volume is 80% in Iran’s favor today,” he added. The Iran-turkey preferential trade agreement, which was earlier approved by the Iranian government was confirmed by the Turkish Parliament and put in effect bilaterally as of Thursday, January 1, 2015. According to this agreement, the tariffs of 125 items of Iranian goods are decreased in Turkey’s favor and those of 140 Turkish goods in favor of Iran. Signing preferential trade agreement with different countries is one of the measures that can pave the path for Iran to join the World Trade Organization (WTO). Iran has so far signed nine such agreements with different countries./end