S. Korean Firm Fined $750m for Evading Iran Tariffs
ٍEghtesadOnline: The Islamic Republic of Iran Customs Administration has fined a South Korean home appliance manufacturer about 30 trillion rials ($750 million at market exchange rate) for violating Iran’s import regulations and evading tariffs.
An inter-office IRICA letter published by Iran’s semi-official Tasnim News Agency on Wednesday said a South Korean company, whose was not disclosed, has dodged the payment of 18.2 trillion rials (over $450 million) in tariffs by shipping disassembled products through separate customs bureaus.
Home appliances are subject to import tariffs of more than 50%, if shipped as final products to Iran. However, the government imposes considerably less for parts used in appliance manufacturing in a bid to support domestic industries, according to Financial Tribune.
South Korean electronics giants, Samsung and LG Electronics, lead Iran’s home appliance market. While foreign products account for 65% of Iran’s home appliance market, the two South Korean companies hold a 55% share.
Home appliances also account for 13% of all the goods smuggled into Iran.