The ruling of the Court of Administrative Justice to condemn the government in export duties
Approximately one-fifth of about 10,000 mines licensed in Iran are in the field of decorative and construction stone, and currently only 800 of the 2,100 decorative stone mines in the country are active.
According to the International Iranian Stone Exhibition, approximately one-fifth of the approximately 10,000 mines licensed in Iran are in the field of decorative and construction stone, and currently only 800 of the country's 2,100 decorative stone mines are active. Only 38% of all decorative and building stone mines in Iran are active and more than 60% of them are stagnant and inactive. While in recent years the annual export of Iranian stone is about $ 300 million, in previous decades, Iran exported twice as much as Turkey, and today, the annual export of Turkish stone has reached $ 2.5 billion.
In an interview with Engineer Ahmad Sharifi, Secretary of the Iranian Stone Association, the situation of production and export of decorative and construction stone in Iran and some competitors in the global stone markets has been explored.
* Decorative and building stone mines are part of our country's mines and have a global market. Various figures have been announced for the global stone market, with various figures ranging from $ 17 billion to $ 25 billion in recent years. Is there a definite figure for the global stone market?
The global stone market is about $ 23 billion. There are several countries that have the most stone production and the most stone exports in the world, including China and Turkey. In previous decades, the Chinese came to Iran and visited Iranian stone processing factories and were surprised, and also in previous decades, Iran exported twice as much stone as Turkey in dollars.
What is the situation that China and Turkey have become the leaders in this field and have come a long way from Iran in the field of exports?
- Twenty years ago, when we were at an exhibition in Italy and the Turks were there, our situation was much better than the Turks, but during this period, unfortunately, our work speed slowed down day by day and the Turks They have grown to the point where they are now exporting more than $ 2 billion worth of stone, and we have stopped at $ 200 million to $ 300 million a year in recent years. This situation depends on several factors, and as a result, we have not been successful in exporting stone. Part of our problems are international and national, and part is related to the expertise of the stone industry and attention to this industry. In the field of stone exports, there are some problems related to the country and the sanctions have hurt us, but even before the sanctions, we were not very successful and we could not have the necessary growth like Turkey. Our government has not paid much attention to the stone industry, but the Turkish government has always paid special attention to this industry. In the year we attended the Italian exhibition, when Mr. Mahlouji was the Minister of Mines and Metals (Hashemi Rafsanjani's government), the ministry rented a 150-meter booth, but the Turks were in poor condition. We did well in the exhibition there, and the Turks just came to us and said they had some stone. At that time, Iran had a good position in the stone industry, but slowly, we went back and the Turks were very successful because of the support of the government. The Turkish government supported and consolidated the country's stone activists in international exhibitions. The Turkish government gave a place to the unions of that country and paid them a large part of the exhibition expenses. The Turkish government also allocated some subsidies to the country's stone processing and stone industry. Accordingly, the activists of the Turkish stone industry grew and we were ignored, which means that if there is a move in the Iranian stone industry today, not only will there be no support from our government, but also a major part of the troubles and problems related to sanctions. The domestic government is responsible for the stone industry. When there is no support for the Iranian stone industry and we always have problems, it is natural that we can not expect the Iranian stone industry to grow, like the Turkish stone industry.
Q: To what extent has Turkey's proximity to Europe and the leading European countries in the stone industry affected Turkey's use of European technology?
- In my opinion, it had no effect and if we were really supported and given the necessary facilities to our stone industry, we could have the same growth that Turkey had. Most of our exports to China, Europe and other countries are now by sea. The cost of transporting goods by sea has not been very high. We could compete and even easily export stone to the United States.
The United States is a major consumer of processed stone, and we have long since lost the vast American market. The Turks have a good position and are active in that market and have tried to replace Italy and Europe in the American market. Turkey has taken many markets from its competitors such as Italy.
* The major part of the global stone production and market is in China. How has this country succeeded in this industry?
- Regarding the success of China, I must say that in the first years of the revolution, we had a trip to China with the then Vice President of Iran, and the Prime Minister of China also spoke to us at a ceremony. When we went to China, all the streets of Beijing were full of bicycles and carts, and there were no cars on the streets. While China's macro-policies have made it an economic superpower today. When China has been able to grow in this way in all areas with its right economic policies, we have tried to be practically backward with all our policies. It is natural for China's stone industry to grow like other parts of the country's industry and economy. Basically, all sectors of China's economy are balanced. China, with its grand policies, has taken over the world and is the second largest economy in the world after the United States. For the next few years, China is projected to be the world's largest economy. Accordingly, China has grown not only in the stone industry but in all fields, and China cannot be compared to Iran.
* However, Italy has been a world leader in the extraction of coupe and processed stone. What is the current state of the Italian stone industry?
- Italy has lost a part of its world stone market and Turkey and other countries have been able to replace Italy in world markets, but what Italy is doing now is interesting. Italy's exports may have declined in tonnage, but in terms of value, it has its own position. The average price of stone exports from Iran and even Turkey is low, but Italy is not. For example, the average export price per square meter of processed stone in Turkey is about $ 25, but the average export price in Italy is more than $ 50. Because the Italians have been able to maintain their brand position by branding and technical presence in the global market. The same goods that we sell for $ 20, for example, the Italians sell for $ 60.
* The same stone processing equipment that is produced and used in Italy, is also available in some Iranian stone processing companies. How successful has been in Iran in the field of stone processing and export with this new equipment?
- We export about 12 million square meters of processed stone annually. Most of this 12 million square meters of processed stone goes to Iran's neighboring countries and most of it goes to Iraq. Parts of Iran's stone exports also go to Syria and neighboring countries. Usually, our stone is exported at low prices, and especially the export of our stone to Iraq is very cheap, below $ 10 per square meter, and this price is a disaster. Of course, we have stone processing units in Iran that produce "slab stone" and can produce 2,000 square meters of standard slab stone daily. Their machines are also Italian, but now these units have many problems. I can introduce you to a factory that can produce 2,000 square meters of processed stone a day, but does not actually produce 300 square meters. Even if it produces, it cannot sell it. One of our main issues is the market. For various reasons, we have not been able to have a successful presence in global markets and we have not been able to gain a good share of international markets in the stone processing sector. Resolving this problem requires serious action and attention.
* From October 1, 2009, 20% duties were imposed on stone exports. Of course, in 1397, it was approved to collect 8% of duties in 1398 and 10% of export duties in 1399. However, in September 2009, the government imposed a 20% levy from October 1 of that year. Do the same units that have new stone processing equipment not have the power to market and export their own stone?
- The 20% toll that was imposed for the cobblestone in 2009 was based on the powers given to the Council of Heads of the three powers, and they also set these 20% tolls for decorative stones. This toll situation was a wrong thing to do, but at that time the Deputy Minister of Mines of the Ministry of Industry and Mines (Jafar Sarghini) insisted on doing so. This situation of export duties was non-expert, and we said in several expert meetings that this should not be done and it is wrong.
Finally, we pursued this issue through the Court of Administrative Justice. That authority ended at the end of 1398, and the continuation of collecting 20% tolls in 1399 was a violation. Accordingly, we complained to the Court of Administrative Justice and the verdict was notified and notified to the customs through the Ministry of Industry and Mines.
* Some time after Mr. Sarghini resigned as Deputy Minister of Mines, Mr. Ismaili, as the new Deputy Minister, criticized the 20% tax on the export of decorative stone and said that the production of Iranian decorative stone mines is in excess of domestic consumption and with the 20% tax only the market. We lose the world. Your Excellency, you say that Mr. Sarghini insisted on a 20 percent tax. After the dismissal of Mr. Sarghini and the appointment of Mr. Ismaili, no special action was taken by Mr. Ismaili to cancel the 20% levy. Why did the collection of 20% tolls continue in the whole of 1399?
- Mr. Ismaili did not have complete control over the mining and mineral industries and his management life was not long. We had a lot of meetings with Mr. Ismaili and we followed up on this issue. In many cases, he was very weak in the mining sector and the export of the mining sector and even the implementation of the mining law. We hope today with the appointment of Engineer Keshavarz as the Deputy Minister of Mining Affairs of the Ministry of Industry and Mines. He is one of the people who is honest, interested in work and specializes in the mining and mining industries. We hope that Mr. Keshavarz will solve many of the problems and difficulties of the mining sector.
* On what date did the Court of Administrative Justice find it illegal to impose a 20% duty on stone exports?
- In March 2017, the ruling of the Court of Administrative Justice was issued and those who have paid 20% duty at the time of export, must recover the duty from the government. The Iranian Stone Association is helping in this regard and we have hired a lawyer. Units that exported stone in 1399 and paid 20% tolls, this toll collection is against and their funds must be returned.
* Regarding the year 1397, it was clearly announced that one million tons of cobblestone and 581 thousand tons of processed stone were exported and the total export of Iranian stone was 305 million dollars. What happened to the situation of stone exports in 1398 and 1399, ie after the imposition of 20% duties?
- In 1399, we had a decrease of 35 to 40 percent compared to 1398, and major factors such as the spread of the Corona virus and sanctions, went hand in hand so that 1399 is not a good year for stone exports. The statistics of the first 11 months of 1399 are not good statistics, but we hope that in 1400 we will be able to compensate and make a significant move in stone exports. In the whole of 1397, we exported 578 thousand tons of processed stone and 996 thousand tons of quarry stone, and these figures decreased to 500 thousand tons (processing stone) and 650 thousand tons (quarry stone) in 1398, respectively. Exports of processed stone did not decrease significantly in 2009, but we had a significant decrease in the export of block stone.
* As part of the association, you performed a pathology in the field of decorative stone mines. What were the results of the stone industry?
- In the field of pathology, we have prepared a detailed report and sent it to the Ministry, but the fate of this work is the same as the rest. Ministry and government officials receive and read the reports, but in practice the report is archived.
We have not taken any positive action on the part of the government to resolve the issue, and of course we do not expect any more. We are in a place where we are telling the government to stop production units and let them do their job.
The government does not or does not want to help the production units. As a result, we believe that the nation should do its job and that the government should not just interfere and remove the obstacles. The government should not create obstacles and throw stones. If the government officials do not create obstacles and do not throw stones, we will thank them. Government officials should leave us to do our job.
* In recent years, it has been repeatedly said that there are 2,100 licenses to operate decorative and building stone mines, and half of these mines have been closed. Officials of the Ministry of Industry and Mines in 1399 emphasized that they want to rehabilitate and activate 25% of the 4400 closed mines in the country this year. Were mines in the field of decorative stone revived in 1399?
- We had several meetings with Dr. Ismaili (Deputy Minister of Mining at the time of the Ministry of Industry and Mines) regarding the discussion of small mines, which was one of the good actions of the Ministry in 2009. We also promised to identify inactive decorative stone mines. And introduce to the Council of Mines. Mr. Vajihollah Jafari, who is currently the Head of Imidor (Holding of the Ministry of Industry and Mines), was at that time the CEO of Imidor Mineral Production Company and the Chairman of the Small Mines Rehabilitation Project Working Group. He did not accept the working group and the mining rehabilitation plan. Unfortunately, he did not appreciate or support any of the approvals of the mining rehabilitation plan. When this kind of conflict arises between the internal institutions of a ministry, we can not expect that Implement development plans and mining rehabilitation plans.
Q: What resolutions were there about reviving the mines that Mr. Ismaili did not accept?
- In 2009, the then Minister of Industry and Mines had given authority to Imidro to rehabilitate the mines, and Imidro was in charge of implementing the mining rehabilitation plan. In this context, a working group was formed in Imidro "Minerals Production and Production" company. The Mining House and Mining Associations were members of this working group and a representative of the Ministry of Mines was also present. It was planned to rehabilitate about 300 to 400 mines annually, ie to evaluate the problems and challenges of these mines and to solve the problem and remove the obstacles so that these inactive mines can be rehabilitated. The Deputy Minister of Mines of the Ministry of Industry and Mines coordinated this plan No, but on the other hand, many of these problems had to be resolved by the Deputy Minister of Mines and the High Council of Mines. When there is inconsistency, the passive mining rehabilitation plan will not be implemented. Unfortunately, at that time, Dr. Ismaili, as the Deputy Minister of Mines, did not pay any attention to the rehabilitation of mines.
* But Mr. Ismaili emphasized that in 1399 we will rehabilitate at least 25% of the closed mines.
- They only mentioned this in their interviews, and in practice, they were exactly in opposition to this plan.
* You recently predicted that a better outlook for 1400 would emerge. Why did you predict that?
- My feeling is that the presence of a committed, honest and expert person in the Ministry of Mines, named Mr. Keshavarz, can create a great change in the mining sector. Based on that, I am very hopeful.
* What to mine and what to export stone?
-For all matters. Because he has been the director general of exploration of the ministry for a long time and we in the Stone Association were in constant contact with him. I saw that in every issue and problem we had in the mining sector, he sought to solve the problem with a positive and committed attitude and, like some officials, did not cause problems. Some officials in the ministry and its deputies were problematic and Their directives created obstacles. For example, what was done in the period before Mr. Ismaili, in the time of Mr. Sarghini, was that a memorandum of understanding was signed between the natural resources and the ministry. Today, in practice, the Ministry of Industry and Mines has no role in the mining sector, and all authority is in the hands of the Natural Resources Organization. This situation is due to a memorandum of understanding that was signed during Mr. Sarghini's term, and today the Natural Resources Organization determines the extent to which mining activities will be carried out, and if it acts contrary to the organization's opinion, it will issue an order to stop operations. Due to the signing of that memorandum, the provincial industry and mining organizations act very poorly and move in the direction of accepting the decisions of the Natural Resources Organization and the Environment Organization. While Articles 19, 24 and 26 of the "Mining Law", It has given good and clear powers to the Ministry of Industry and Mines and the provincial industry and mining organizations, but with this memorandum, they have delegated all legal powers to the Natural Resources Organization and the Environment Organization, and it seems that there is no mining law.