Smuggling of goods and currency

Smuggling of goods and currency

It is a transnational crime and, contrary to the criminal law, which is based on its territoriality, easily breaks international borders, this crime targets the economy of society.

According to paragraph A of Article 1 of the Law on Combating Commodity and Currency Smuggling, smuggling of goods and currency is any act or omission that violates the legal procedures related to the entry and exit of goods and currency, and according to this law or other laws, smuggling should be considered and a punishment has been determined for it and should be discovered at the points of entry or anywhere in the country, even where it is offered in the domestic market. Paragraph B of this article defines goods as “anything that has an economic value in custom” and paragraph C of the said article defines currency as “the currency of foreign countries, including banknotes, coins, currency remittances and other written documents.”Or it is electronic that is used in financial transactions.”

Smuggling of authorized, conditional and subsidized goods

Any person who commits smuggling of goods and currency and its transportation or storage, in addition to confiscation of goods or currency, will be sentenced to the following fines:

If the goods are allowed, a fine of one to two times the value of the goods
If the permitted goods are conditional, a fine equal to one to three times the value of the goods
If the goods are subsidized, a fine equal to two to four times the value of the goods

According to Article 18 of this law, the fine of incoming currency is one to two times its pecuniary value and the fine of outgoing currency is two to four times its pecuniary value. If the smuggled goods subject to Article (18) of this law are mixed with other goods and it is not possible to separate them, all the goods shall be confiscated and after deducting the fines of the said article and other legal expenses in proportion to the non-smuggled goods returned to the owner. There is a possibility of seizure of vehicles used in the smuggling of goods subject to Article (18), including land, sea and air.

Organized smuggling of currency and permitted goods, conditional permits and subsidies:

In case of smuggling of permitted goods, conditional permits, subsidies or currency in an organized manner, in addition to the penalties subject to Article (18) of this law, the perpetrator shall be sentenced to the following punishments, as the case may be.

If the value of the permitted or conditionally permitted goods is up to one hundred million Rials, to ninety-one days to six months imprisonment and if the value of the goods is more than the mentioned amount to more than six months to two years imprisonment
If the value of the subsidized goods or currency is up to one hundred million Rials, to two to five years imprisonment and if the value of the goods is more than the amount mentioned, to the maximum penalty mentioned in this paragraph.

Also, those who have the role of organizing, directing or leading the organized group in the above crimes are sentenced to the maximum punishments provided in paragraphs (1) and (2).

Smuggling of prohibited goods:

Whoever commits the smuggling of prohibited goods or keeps, transports or sells the prohibited goods, in addition to confiscating the goods, shall be punished as follows: Articles (23) and (24):

If the value of the goods is up to ten million Rials, a fine equal to two to three times the value of the goods prohibited from smuggling.
If the value of the goods is from ten million to one hundred million Rials, a fine equal to three to five times the value of the goods prohibited from smuggling.
If the value of the goods is from one hundred million to one billion Rials, imprisonment for more than six months to two years and a fine equal to five to seven times the value of the goods of smuggling.
If the value of the goods is more than one billion Rials, from two to five years imprisonment and a fine equal to seven to ten times the value of the goods prohibited from smuggling.

Also, the place of storage of prohibited smuggled goods that is in the possession of the perpetrator, if it is not subject to the sentence mentioned in Article (24) of this law, will be seized or sealed, and if the convict fails to pay a fine within two months from the date of final verdict, it is from the place of sale and the rest will be returned to the owner.

Smuggling of prohibited goods in order to oppose the regime of the Islamic Republic of Iran

If the smuggling of goods and currency is done individually or in an organized manner with the intention of confronting the system of the Islamic Republic of Iran or with the knowledge of its effectiveness and leads to widespread disruption in the country’s economic system, is subject to the law. The country’s economy is approved on December 10, 1990 and the perpetrator is punished according to the provisions of the law. If it is found that the perpetrator of the crime of smuggling goods and currency knowingly and intentionally, the proceeds and profits from these crimes directly or indirectly allocated to finance terrorism and action against national security and strengthen groups opposed to the system or has been sentenced, in addition to the punishments provided in this law, is sentenced to the punishment of warlord or corruptor on earth.

Crimes related to smuggling of goods and currency

Everyone in positive customs documents, whether written or digital, seal or customs seal and other documents such as documents of the Organization for the Collection and Sale of Proprietary Property, National Institute of Standards and Industrial Research of Iran, Ministry of Health and Medical Education , Order registration and other licenses required for export and import, commodity identification and interception, commit forgery or use them knowing that they are forged, as is sentenced to two to five times the value of the goods subject to forged documents. Those who buy and sell genuine customs documents previously used in the clearance of goods or reuse these documents are also sentenced to the above penalty.

Competent authority to investigate the crime of smuggling of goods and currency

According to Article 44 of the Law on Combating Commodity and Currency Smuggling, “Investigation of organized and professional smuggling of goods and currency, smuggling of prohibited goods and currency requires imprisonment or dismissal from government services within the jurisdiction of the Revolutionary Court and the Revolutionary Court.” Other cases of smuggling of goods and currency are considered violations and are within the competence of the Government Penitentiary Organization. “If a case has several defendants and the trial of one of them is within the jurisdiction of the judicial authority, the charges of other persons will also be heard in these authorities.”

The jurisdiction of the Revolutionary Court and the Revolutionary Court is:

Organized and professional smuggling of goods and currency, whether the subject of smuggling is covered by Article 18 or Article 22 or not.
Smuggling of prohibited goods (Article 22 and notes and other laws prohibiting the import or export of goods).
Smuggling of any kind of goods and currency that is subject to imprisonment or expulsion from government services.
Financial penalties for fines.
Confiscation of funds resulting from the smuggling of prohibited goods.
Recorders and devices used to make prohibited goods for the purpose of smuggling or to facilitate the smuggling of prohibited goods.
Refrain from violations and examples and its definition, other crimes in the field and territory and the crime of smuggling of goods and currency, whether they are subject to Article 18 or 22, but committed in an organized way or by a professional smuggler.

The jurisdiction of the State Penitentiary Organization is:

The act committed is not punishable by imprisonment.
The act committed does not have the penalty of dismissal from government service.
The financial penalty should be a fine, not a cash punishment.
Not be a professional trafficker.
The perpetrator is not a member of an organized group to commit a crime or later change the goal towards it.
Not be a government official.
The subject of smuggled goods is authorized, conditional, subsidized and foreign exchange (Article 18).

According to Article 50, the verdicts of the primary branches of the penitentiary regarding the smuggling of goods and currency, the value of which is less than twenty million rials, are final. In other cases, the verdicts of the primary branches can’t be appealed within one day from the date of notification (real) at the request of the convicted person and other judicial authorities.

If you have any questions about the crime of smuggling goods and related legal provisions or you need help in preparing and implementing the provisions of the petition and the bill on the crime of smuggling goods and currency, our experienced consultants and lawyers at the Asian Bar Association will answer your questions.