The Volume of Smuggled Goods and Currency in Iran Reaches Over $12 Billion

On Tuesday, July 2, the spokesperson for the Anti-Smuggling Headquarters announced that the volume of smuggling in Iran has reached $12.6 billion, indicating a decrease in this index compared to previous years. According to Tasnim News Agency, Qasem Khorshidi compared the volume of smuggled goods over recent years, stating: 'In 2013, it was $25 billion, in 2014, $19.8 billion, and in 2015, the volume of smuggled goods and currency was $15.5 billion.' According to this official from the Anti-Smuggling Headquarters, both the volume of incoming and outgoing smuggling from Iran were considered in these estimates. He added that the outgoing smuggling in 2016 compared to 2013 had decreased by over 95%, primarily due to the reform of energy carrier prices domestically, the use of fuel consumption control systems, gas supply to various parts of Iran, and the decrease in global energy carrier prices. Khorshidi further acknowledged the 'deficiencies in the implementation of legal exemptions' regarding how this volume of smuggled goods enters Iran, stating that 'border gaps and the entry of smuggled goods through official channels are among the methods exploited by smugglers to bring this volume of smuggling into the country.' The spokesperson emphasized that there is no exemption for porters in the law, and only the Ministry of Interior has a resolution in this regard. The announcement of over $12 billion in smuggling and officials' acknowledgment of the entry of smuggled goods through official channels comes as the spokesperson for the Judicial Commission of the Parliament stated on Saturday, July 1, that 'some state entities' are directly or indirectly involved in smuggling. Hassan Norouzi mentioned in an interview with Fars News Agency 'smuggling by the daughter of one of the ministers and the business activities of some ministers' as examples of this phenomenon in Iran. Previously, reports had surfaced regarding the involvement of the Minister of Education and his daughter in clothing imports, which were denied by officials of Hassan Rouhani's government. Additionally, the secretary of the Anti-Smuggling Headquarters of Tehran Province announced on June 5 that the acquittal of the Minister of Education's daughter regarding clothing smuggling charges had been confirmed. Ali Akbar Pour Ahmad Nejad told Tasnim News Agency that the acquittal was issued 'after investigations and inquiries' by the Government Trading Organization. According to Tasnim, the spokesperson of the Anti-Smuggling Headquarters mentioned 'rent-seeking' and 'the existence of special connections' as two factors in smuggling goods and currency in Iran, stating that 'some individuals benefit from their previous work experiences in the field of smuggling goods and currency into the country.' This parliamentary representative did not name any specific individual or group but added that those 'who have previously worked in banking or ministries or have been redeemed are sometimes seen utilizing their experiences in this regard.' The involvement of state entities and powerful individuals in the expansion of the phenomenon of smuggling goods and currency in Iran has been raised in media and various speeches by officials of the Islamic Republic for years. Mahmoud Ahmadinejad implicitly referred to the Revolutionary Guards as 'brother smugglers' during his second presidential term, and Hassan Rouhani has recently criticized the Revolutionary Guards' interventions in the economic sphere implicitly. The President of Iran stated in February 2016 without naming any specific agency or institution that 'a corrupt agency that... can bring in smuggled goods does not allow the country to grow.' In Iran, numerous reports are published annually regarding the discovery and seizure of various smuggled goods and currency at the country's entry points, with no exact and official figure for this volume of smuggling available. According to officials, Iran currently has 150 customs offices, through which a significant volume of smuggling occurs. The Intelligence of the Revolutionary Guards in Tehran announced on Tuesday that it had successfully discovered hundreds of organizational radios, listening and eavesdropping equipment in northern Tehran. According to Tasnim News Agency, citing an informed source, a gang was organized to sell these devices, and four of its main members were identified and arrested by the Revolutionary Guards' intelligence. According to this unnamed source, the discovered equipment had been smuggled into Iran from border provinces.