TEHRAN- The trade balance of Aras Free Trade Zone, in Iran’s northwestern East-Azarbaijan province, was $32.7 million positive in the first two months of the current Iranian calendar year (March 21-May 21), the managing director of Aras Free Zone Organization announced, quoting the data released by Iran’s Free Zones High Council.

Hadi Moghadamzadeh said that the trade balance indicates the difference between the value of exports and imports and is one of the key indicators for analyzing the economic performance and trade capacities of free zones.

He said Aras Free Zone has recorded a positive trade balance of $32.7 million in the first two months of this year, with exports of $48.8 million in goods and services and imports of $16.1 million.

Iran’s Free Zones High Council has announced that the trade balance of the country's free trade zones was $69.5 million positive in the first two months of the year. The total export of goods and services from the country's free trade zones during the first two months reached $215.3 million.

In contrast, the imports from these zones, excluding machinery, were announced at $208.2 million, indicating a positive trade balance of $69.5 million, according to the Free Zones High Council.

As previously announced by the council, the trade balance of the country's free trade zones was $41.463 million positive in the first Iranian calendar month Farvardin (March 21-April 21).

The council announced that the total export of goods and services from the country's free trade zones during Farvardin reached $100.85 million. In contrast, the imports from these zones, excluding machinery, were announced at $59.207 million, indicating a positive trade balance of $41.643 million.

In mid-February, Iran’s Free Zones High Council Secretary Reza Masrour stated that regulatory restrictions in free trade zones have hindered their intended function in recent years.

He pointed to past policies, such as the ban on vehicle imports into free zones while allowing them in mainland Iran, as an example of such constraints. However, recent government efforts have led to the removal of several limitations.

He emphasized the council’s focus on enhancing the export role of free trade zones, as a significant portion of their production has historically been directed toward the domestic market, contradicting their core purpose.

The new policy framework aims to steer businesses toward export-driven production.

Masrour highlighted that while free trade zones are more service- and commerce-oriented, special economic zones focus primarily on production and exports.

To improve export performance, new incentives have been introduced for production units engaged in exports. Additionally, the council has partnered with Iran’s Trade Promotion Organization (TPO) to establish export management companies in free zones to facilitate international trade.

Masrour addressed concerns about smuggling in free zones, stating that all import processes are recorded in official systems.

He also announced a shift in trade exhibition policies, stating that foreign exhibitions, which were previously held outside free zones, have been limited due to high costs.

Moving forward, exhibitions will be held exclusively within free trade zones, ensuring they target relevant markets and yield better economic results.

The official revealed plans for a greater emphasis on technology in free trade zones, and mentioned the development of an AI assistant tailored for free trade zones. On international cooperation, he proposed the establishment of a Supreme Eurasia Trade Council within Iran’s Foreign Ministry to strengthen ties with regional economic blocs.

He noted ongoing discussions with Turkey and Pakistan about creating joint free trade zones, although such projects require parliamentary approval.

Masrour concluded by affirming the council’s commitment to enhancing the competitiveness of free trade zones, increasing exports, and minimizing smuggling, with continued government collaboration to improve policies and investment conditions.

The establishment of free trade zones (FTZs) in Iran dates back to the Iranian calendar year 1368 (March 1989 - March 1990) following the fall in the country’s oil income in the preceding year which prompted the government to promote non-oil exports.

The first two free trade zones of Iran were established in the south of the country. The first one was Kish Free Trade Zone established in 1368 on Kish Island in the Persian Gulf and the second one was Qeshm Free Trade Zone established the year after on Qeshm Island in the Strait of Hormuz.

Some five other free trade zones have been also established in the country since then, including Chabahar in southeastern Sistan-Baluchestan Province, Arvand in southwestern Khuzestan Province, Anzali in northern Gilan Province, Aras in East-Azarbaijan Province and Maku in West-Azarbaijan Province, both in the northwest of the country.

As the free trade and special economic zones have great potential to accelerate economic development, the development of existing free trade and special economic zones and the establishment of new zones has become one of the major economic approaches of the Iranian government, and the government is determined to attract investment to these zones.

As yesterday reported, during the online meetings of the Secretary of the Supreme Council of Free Zones with the Managing Directors of the Arvand, Qeshm, and Kish Free Zones, the necessity of coordination with the Islamic Republic of Iran Customs Administration (IRICA) in order to facilitate and expedite the process of goods clearance under special circumstances was emphasized.

Following online meetings between Reza Masrour, Secretary of the Supreme Council of Free and Special Economic Zones, and the managing directors of the Arvand, Qeshm, and Kish Free Zones, issues related to accelerating the process of clearing goods from customs in these zones were discussed.

In these meetings, especially considering the recent sensitive conditions and the necessity of timely supply of imported and needed goods for the country, it was decided to make the necessary coordination with IRICA Head Foroud Asgari regarding the adoption of immediate executive measures to facilitate and expedite the clearance of goods at customs offices located in free zones.

Emphasizing the key role of customs in the supply chain and supporting economic activities in free zones, especially in the current circumstances, Masrour emphasized the facilitation of procedures, reduction of bureaucracy, and closer interaction of customs with regional organizations.

He added: "This coordination can play an important role in increasing trade productivity, reducing clearance time, and preventing unnecessary warehousing of goods, and will improve the level of services in free zones, especially in critical and special circumstances for the country."

MA