Doing Business with Iran

Frequently Asked Questions

Is it legal for New Zealanders to do business with Iran?

New Zealanders wishing to do business with Iran must comply with the United Nations (Iran) Sanctions Amendment Regulations 2010. In particular, New Zealanders who intend to do business with Iran must be registered by the Ministry of Foreign Affairs and Trade in order to do so.

Why is this necessary?

The Amendment Regulations implement United Nations Security Council Resolution 1929. Paragraph 22 of Resolution 1929 obliges all United Nations member states to require their nationals to “exercise vigilance” when doing business with people in Iran, or with people or entities that are subject to Iranian jurisdiction or control, where that business could contribute to violations of specified Security Council Resolutions relating to Iran. New Zealand has decided to implement the requirement to exercise vigilance through a compulsory registration regime.

Who is required to register?

The registration requirement applies to persons in New Zealand, New Zealand citizens in any place outside New Zealand, and any entity incorporated or constituted under New Zealand law, or that is otherwise subject to New Zealand’s jurisdiction. Such persons must register if they intend to do business with:

• people in Iran,
• Iranian companies or entities (whether private or state-controlled), or
• any person or entity acting on behalf of a person or entity in Iran.

What kinds of business are covered?

The registration requirement applies to New Zealanders that “do business” with Iran. The Amendment Regulations define “doing business” to mean “being in any way involved (even if not for reward) in any provision or receipt of any goods or services.”

Do the regulations apply to importers and exporters?

Yes. The registration requirement applies to both importers and exporters.

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Do the regulations apply to goods and services?

Yes. The registration requirement applies to the import and export of both goods and services.

Are there any exceptions to the registration requirement

It is not necessary to register if you are importing or exporting exempt household or personal effects, or gifts. The Government can also exempt specified classes of goods or services from the registration requirement. There are currently no such exemptions in force.

How do I register?

New Zealanders wishing to do business with Iran must download an application form from the MFAT website, that will become available from 25 January 2011. The registration form requires applicants to provide:

• The full name of the applicant
• A description of the general nature of that business (so not necessarily every transaction, nor the precise volumes and values)
• The identity of every person or entity with whom or with which the business is to be done.
• The steps taken to ascertain the identity of every person or entity with whom or with which the business is to be done

In addition, the application form will require the applicant to complete a declaration stating that that he or she believes, on reasonable grounds, that the business to be done could not contribute to violations of applicable United Nations sanctions concerning Iran.

Is there a registration fee?

No. There is no fee for registration.

Do I need to re-new my registration every year?

No. However, it is necessary to notify MFAT of any material changes to the business being conducted.

Do I need to notify changes to the nature of the business with Iran?

Yes. The Amendment Regulations require anyone who is registered to inform MFAT about, first, any material changes to the identity of the person or entity in Iran with which business is being done, and second, the general nature of that business.

Do I need to register every transaction?

No. Once registered, it is not necessary to notify MFAT of every transaction with someone in Iran or with an Iranian-controlled company. This is so long as those transactions fall within the description of the general nature of the business for which you are registered. Nor is it necessary to provide MFAT with specific volumes or values of the business.

What if I export or import goods or services without being registered?

It is an offence for New Zealanders to do business with Iran, from 1 March 2011, without being registered. Attempts to import goods from Iran, or to export goods to Iran, without being registered may result in those goods being intercepted by New Zealand Customs in accordance with applicable legislation.

Do I need to keep records of my business dealings with Iran?

Yes. Registered individuals or companies must create, and maintain, records relating to their business with Iran. Those records must be kept for at least 7 years after the business concerned is concluded, and must be provided to MFAT upon request.

How does this registration requirement fit with the export controls regime?

The requirement to register in order to do business with Iran does not change the operation of the export controls regime under the Customs and Excise Act 1996. For example, if a New Zealander is proposing to export strategic goods (as that term is defined for export controls purposes), he or she must be registered under the Amendment Regulations. Once registered, he or she must also apply for an export permit from the Secretary of Foreign Affairs and Trade.

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