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International trade - Iran trade transactions



Author:

Tejash K Gandhi,
Manager Finance & Accounts
JBIMS MFM II
Chartered Accountant





International trade fraternity is finding it difficult to trade with Iran. For all those who are having trouble in executing transaction can take a note of the following procedure. Hope this will help to carry out transaction smoothly and with some security. Also it’s advisable to open current account with UCO Bank so that the documentation and other operational hazards can be handled.      

 

 

As per information received from Banks in India with reference to Iran trade, all are requested to note following:-

 

L/C to be opened by Iranian customer from any of these four banks - Persian Bank, Bank Pasarad, Saman Bank, E N Bank in Iran. L/C can be opened only in INR and on UCO bank –India only.

 

Four banks are involved in transaction wherein Iran customer’s local bank in Iran, Mediator Bank (4 Banks mentioned in first point above) of Iran, UCO bank from India & Indian customer’s local bank.

 

Indian customer’s banker will send documents to Iranian banks; those four authorized banks (mentioned in first point) will have arrangement with their local bank (You are requested to know the arrangement in Iran from your customer for smooth execution of order)

 

On receipt of documents from our bank authorized Iranian banks will complete formalities & give necessary instruction to UCO bank.

 

UCO Bank in India in turn will credit Indian customer’s account as per LC

 

This procedure will take about 30-40 days (approximate period)
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