ARTICLE 1
For the purpose of developing and increasing the exports of the country by means of securing the credits and investments in relation to the exported goods and services; and for providing necessary facilities and supports for the exporters of goods and services for their claims against Buyers abroad regarding the risk emanate from the hazards not usually insured by commercial insurance companies ,“EXPORT GUARANTEE FUND OF IRAN” hereinafter called as the “FUND” is seceded from, the Export Development Center of Iran and shall be administered according to the provisions and regulations of the present Act.
ARTICLE 2
The “FUND” has independent legal, financial and administrative entity and shall be managed as a state – owned company under the supervision of the Ministry of Commerce and according to this Act and the company articles of association which shall receive the approval of the council of minister upon the proposal of the Ministry of Commerce and unpredicted issues if any, shall be subject to the Commercial Act. The laws and general regulations of the companies and institutions owned and affiliated by the government shall be applicable if expressly referred thereto.
N.B >>
The joint employment regulations of the insurance companies and central Insurance of Iran and the modifications thereto shall be applicable in the FUND. The amendments required by the “FUND” shall be exercised when proposed by the Ministry of Commerce and approved by the Council of Ministers.
ARTICLE 3
The authorized capital of the “FUND” is one hundred billion (100,000,000,000) Rials divided by one hundred thousand registered shares each with the value of one million (1,000,000 ) Rials, all of which owned by the Government. Increase and decrease of the Fund’s capital shall be subject to the provisions of the articles of association.
ARTICLE 4
The “FUND” consists of following organs whose powers and duties shall be specified in the articles of association:
A) GENERAL ASSEMBLY:
The members of the General Assembly shall be:
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Minister of Commerce Who presides over the general Assembly,
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Minister of Finance,
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Minister of Foreign Affairs,
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Minister of Industries,
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Head of the plan and Budget Organization,
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President of the Central Bank of the Islamic Republic of Iran.
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President of the Iran Export Development Center.
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Two members of Islamic Consultative Assembly as supervisor, from the Commercial and Distributions as well as the Finance and Cooperation Commissions nominated by the said Assembly.
The “FUND managing Director shall participate in the General Assembly meetings as the secretary without the right of voting.
B) Board of Directorsand Managing Director
The Managing Director and members of the board of Directors, Consist of five persons as proposed by the Minister of Commerce and approved by the Fund General Assembly Shall be appointed for a period of five years. The managing Director can be the chairman as well.
The Minister of Commerce can dismiss the Managing Director.
C) Inspector or Legal Inspectors:
The "FUND" shall have one or two principal inspectors and also one or two alternate inspectors appointed by the General Assembly for one year period.
NB.>>The directors and inspectors may be re- appointed.
ARTICLE 5
The guarantee covers of the “FUND” as specified in the related bye-laws shall include:
A) The claims regarding goods and services of exporters from the buyers abroad which are not received on due date based on following reasons but not resulted from non-performance of commitments by the exporter:
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Buyer’s failure to accept the exported goods & services.
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Non – payment of the price of goods & services on due date.
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Buyer’s protracted default due to bankruptcy, insolvency or lien.
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Outbreak of war or state of war.
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Straining or severance of diplomatic relations with the buyer’s country as a result of which the exporter is unable to collect his receivables on the due date.
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Imposition of economic policies in the buyer’s country which may block the exporter’s receivables.
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Imposition of restrictions on imports or foreign exchange transfer in the buyer’s country.
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Confiscation & Nationalization of the buyer’s properties as a result.
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Other hazards being beyond the control of the exporter and the buyer, which at the discretion of the Board of Directors result to non-payment of the exporter’s claims.
B) The facilities allocated to the exported goods or services.
C) Other issues which at the discretion of the Council of Ministers be essential and beneficial for development of export.
ARTICLE 6
The “FUND” should take action to vindicate its rights for receiving the claims after accepting or paying the damages caused by the said factors.
ARTICLE 7
The “FUND” shall receive a commission against the rendered services. The amount of commission shall be specified by the proposal of the General Assembly and approval of the Council of Ministers.
NB.1->> The government should collect one percent (1%) of CIF value of the goods from all private importers and submitted it the “FUND” to be deposited in a contingency reserve account.
NB.2->>Balance amounts of the contingency reserve of each year shall be allocated for the increase of the contingency reserve. Utilization of the contingency reserve shall be regulated by a bye-law to be proposed by the General Assembly and approved by the Council of Ministers.
NB.3->>Annual net profit of the “FUND” shall be transferred to the contingency reserve after deducting all costs, technical and legal reserves. tax and other legal deductions.
NB.4->>If the incomes of the “FUND” fail to meet payment of damages and cover technical reserves, the deficit shall be Included in the annual budget of the country for the account of the “FUND”. The amount and calculation methods of technical reserves shall he determined by the General Assembly.
ARTICLE 8
Registration fee of mortgaged instruments related to the FUND Shall be point three per thousand (0.3/1000).This act composed of 8 Articles and six notes ratified in the public meeting of the Islamic Consultative Assembly on Sunday dated 15/7/1375 (October 6, 1996) and verified by the Guardian council on 29/711575(October20, 1996).
[ President of the Islamic Consultative Assembly ]
Ali Akbar Nategh – Nouri
