Changes in laws, pest of mother industries

Changes in laws, pest of mother industries
  • 2019-11-24
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As long as the rules are stable, it will be for the benefit of the manufacturer, but if the rules are to be changed, those who are subject to these rules should be given the opportunity, as immediate change of the rules will in no way be appropriate to the manufacturer, exporter and production process. Was.

According to Iran's International Stone Exhibition, the need for government or lawmakers to stabilize laws is one of the obvious things for producer planning in the medium to long term.

In the light of comprehensive laws, it is stable and expert that the manufacturer can plan for its production, sale or export, but this is obviously a challenge for manufacturers in our country to constantly challenge the laws and even the conflicting laws of various institutions.

Mining experts believe that mining is a heavy industry and that production requires a time-consuming process; hence, it needs more regulation than other industries, while manufacturers in this area are constantly seeing changes in the law. It is up to the legislators to do so.

Fixed law requires constant conditions

Majid Mahmoudi, a steel expert, said: Manufacturers need stable laws in the field of laws, including customs, tax and import and export laws, because it is in line with the law that the manufacturer can either plan in the domestic market or export or based on laws. Therefore, the stability of the rules for planning a manufacturer is a must for domestic legislators to consider.

Mahmoudi further noted: In our country there are a number of problems with the laws of instability, multiplicity of laws and sometimes even contradictory laws that make it difficult for producers to work.

He pointed out that the change in rules is due to new conditions, for example: for the past year and a half, due to sanctions and rising dollar rates, we have witnessed the instability of rules in the steel market that some laws only partially benefit the chain. And it has endangered another part, where the government has finally changed its laws by protesting and pressuring those who have suffered losses.

The steel expert cited the causes of law instability: One of the most important reasons for law instability is the lack of a holistic view by the legislator. For example, a ministry makes a law and, after a while, realizes some of its flaws and defects that if it does not change the law it may have losses to the manufacturer and the legislator is under pressure if the law is changed.

Mahmoudi continued: "In the last two years, we have seen a lot of changes in the steel sector, especially after the sanctions. For example, it was announced for some time that steel producers had to market their product at a specified rate, which was met with corporate protests, as global prices had risen and domestic steel prices were not profitable for steelmakers. In the meantime, because of low prices, the intermediaries bought and stocked the required commodities from the stock exchange and then sent them at twice the price.

He added: With such a law, big profits went into the pockets of the speculators and the producers failed to do so, and after some time the legislator changed the law, which again led to discontent among the final consumers.

Mahmoudi added: "Over the past year and a half we have witnessed a number of laws that lack stability, which has caused many losses for the manufacturer."

Referring to the conditions that have led to these laws, he said: It should be taken into consideration that the Ministry of Industry, Mining and Commerce, in abnormal conditions such as the period of sanctions, has enacted these laws and certainly in some cases comprehensive decisions It has not been and the legislator has realized its shortcomings with its implementation and over time and has sought to remedy its shortcomings by adopting new laws.

The steel expert continued: "When the country is under sanctions, there are no fixed market conditions that the statute also wants to govern, so the government is forced to change the rules." But the lack of consistency of laws hurts the investor and the producer, and the production sector in general.

Asked what the rules should be for the manufacturer to be considered a safe manufacturer, Mahmoudi said: "It is important to keep in mind that fixing rules is possible in a fixed context, as the decision-making body is given the day-to-day operating conditions. he does. The Iraqi market, for example, is one of our good export markets that Iran has counted on. On the other hand, the laws of the target countries are also important; for example, Iraq or Afghanistan will introduce a new customs law that will disrupt the status of Iran's export market, and in this case, our laws will be affected. Although these issues are not under our control, the legislator also has to respond to them and change the laws.

He said: "In general, because we are not in normal and stable economic and political conditions and situations are imposed outside of the country and the government has to make decisions based on new conditions, so the state cannot always be blamed for instability of the law."

Planning requires constant law

Amir Hossein Babaei, an expert on aluminum, said: "Generally, if the rules are fixed, the manufacturer will correctly define its status over a period of time, and this can be very beneficial to the manufacturer, as long as the rules are stable. The manufacturer has the ability to predict and plan for his work, but if the rules change constantly, the manufacturer will be confused, especially for heavy industries whose production process is time consuming.

"If the rules are inconsistent, the situation will get worse for the manufacturer," Babaii continued. Last year, for example, the government exempted the return of exported currency to its domestic systems in Afghanistan and Iraq, but later canceled the exemption, while some companies had made forecasts and plans for the exemption.

He goes on to note: Typically, companies and manufacturers plan for a one-year timeframe and need the stability of the rules.

 The aluminum expert stressed: "The laws are stable, generally for the benefit of the producer, but if the rules are to be changed, those who are subject to the rules should be given the opportunity because the rules will not change immediately. It will not be for the exporter, exporter and the production process.