Parliament: The Volume of Smuggling in Iran is Equivalent to the Elimination of 600,000 Job Opportunities

A recent report from the Iranian Parliament's Industries and Mines Commission indicates that the current volume of smuggling in Iran eliminates nearly '600,000 job opportunities' nationwide. The report also states that 'prolonged judicial proceedings and the lack of special courts and specialized judges for smuggling cases' have rendered the fight against smuggling in Iran 'ineffective.' The commission derived its figure based on the Iranian Ministry of Intelligence's assertion that each billion dollars of smuggling equates to 50,000 job opportunities. However, the report presented in a public session of the Islamic Consultative Assembly on Wednesday, September 7, notes that the estimated total volume of smuggling, including both incoming and outgoing, has decreased from '25 billion dollars in 2013 to 19.8 billion dollars in 2014, 15.5 billion dollars in 2015, and 12.6 billion dollars in 2016.' Officials from Hassan Rouhani's government have claimed that the volume of smuggling was previously 25 billion dollars annually before this administration, which has reduced it by half. Nevertheless, some government officials have expressed doubts about the accuracy of these statistics. For instance, Akbar Turkan, head of Iran's Free Zones Organization, previously stated that the Anti-Smuggling Headquarters claimed '25 billion dollars of smuggling enters the country to emphasize the importance of their work, while these figures are not based on accurate foundations.' The report from the Industries and Mines Commission also emphasizes that the share of smuggled goods in Iran's foreign trade has not shown a 'significant change.' The report explains: 'So that 25 billion dollars of smuggling in years when the country had nearly 70 billion dollars in official imports has been replaced by about 15 billion dollars of smuggling in conditions of 40 billion dollars in imports.' The Mehr news agency reported that 'a 40% contraction in domestic demand for imported goods has also affected the demand for smuggled goods, leading to a 40% decrease.' The report also states that the existence of more than 'seven current free zones and eight proposed free zones to the Parliament, over 64 special economic zones, and the proposal of 13 additional special zones, more than 12 unofficial crossings, about 160 official customs, around 406 border cooperatives, approximately 72,000 sailor quotas, and about 34 passenger quotas along with numerous port and regional exemptions' has facilitated the organization of smuggling and the lack of transparency in imports. The Parliament also identified other effective factors in the expansion of smuggling as 'the prolonged process of drafting relevant executive regulations, including the regulations of the Anti-Smuggling Law, and the failure to utilize eight main systems and 13 subsystems planned for transparency in foreign trade processes.' According to the report, 'prolonged judicial proceedings and the lack of special courts and specialized judges for smuggling cases, along with a high volume of acquittals issued' have also led to 'inefficiency' in addressing this phenomenon and rendered the fight against smuggling in Iran 'ineffective.' The Industries and Mines Commission of the Islamic Consultative Assembly proposed measures to combat smuggling, including 'reducing the cost and time of official imports by revising policies, consolidating all tariffs, taxes, differences, and costs incurred from taxes, eliminating unnecessary permits, and reducing administrative bureaucracy.' The commission also emphasized the necessity of 'controlling funds through the banking system and fully completing anti-money laundering procedures and the currency monitoring system and completing the bill to amend the Anti-Smuggling Law in Parliament' for successful anti-smuggling efforts. One reason for the questioning of representatives from Hassan Rouhani was the 'failure of the government to control smuggling of goods and currency,' and the President's responses in this regard did not convince the Parliament. Previously, Amir Khajasteh, a representative from Hamadan in the Parliament, stated that a 'systemic smuggling mafia' has 'infiltrated' Iran, and the volume of smuggling from official channels is 'over 80 percent,' which enters with 'the coordination of the gentlemen themselves.' He called for the 'reform' of the country's customs managers and mentioned the 'disappearance' of some documents related to the investigation of smuggling in Parliament, stating, 'I do not know how powerful this smuggling mafia is... I feel this mafia has infiltrated everywhere with billions of dollars.' Hassan Norouzi, spokesman for the Parliament's Judicial Commission, also stated that 'some state entities' are directly or indirectly involved in smuggling goods, and 'rent-seeking' and 'the existence of special connections' are two factors of smuggling goods and currency in Iran. The issue of state entities and powerful individuals' involvement in the expansion of smuggling of goods and currency in Iran has been raised for years in various media and speeches by officials of the Islamic Republic. Mahmoud Ahmadinejad, during his second presidential term, implicitly referred to the Revolutionary Guards as 'brothers of smugglers,' and Hassan Rouhani has recently criticized the Guards' interference in the economic sphere implicitly. Rouhani also mentioned in February 2016, without naming any specific agency or institution, that 'a corrupt agency that... can import smuggled goods does not allow the country to grow.' Meanwhile, Ramazan Sharif, spokesman for the Revolutionary Guards, announced the readiness of this military-security institution to 'assist the government' in this regard. In Iran, numerous reports are published annually about the discovery and seizure of various smuggled goods and currency at the country's entry points, but the exact and official figure of this volume of smuggling is not available. According to officials, Iran currently has 150 customs offices, through which a significant volume of smuggling occurs from these official channels. Smuggling in Iran has become one of the most important economic problems and symbols of 'corruption' in the country, and Ayatollah Ali Khamenei, the leader of the Islamic Republic, has called for the 'burning' of smuggled goods in response to the continuation of this situation.