The Pezeshkian administration is set to implement a regulatory framework for overseeing border trade practices, specifically kulbari (manual border transport) and tehlanji (small-scale maritime trade). Under this framework, the government plans to manage $4 to $7 billion worth of annual imports conducted through kulbari.

Abdolnaser Hemmati, Minister of Economic Affairs and Finance, announced during a mid-Aban (early November) cabinet meeting that a final resolution had been passed to regulate goods brought in by kulbars. He explained that within five years, these goods will be integrated into customs regulations. Kulbars will initially pay minimal customs fees, which will gradually increase over time.

Given the significant role that local production and importation play in this issue, the execution of this framework is essential. Governors of each province are tasked with implementing the system, marking an important step toward addressing—not necessarily resolving—the challenges of kulbari.

Details of the Border Trade Regulation Bill

In Dey 1401 (December 2022–January 2023), the Vice President for Parliamentary Affairs announced the submission of an urgent bill titled Regulation and Oversight of Border Trade (Kulbari and Maritime Commerce) aimed at creating sustainable employment for border residents. The bill was placed on the agenda of the Islamic Consultative Assembly, and its details were published alongside the submission.

The bill prioritizes transparency in imports, distribution, and sales of goods traded by border residents. It seeks to strengthen border economies, reduce informal trade along land and sea borders, and ensure that imported goods meet customs and trade standards after five years. Exceptions apply only to goods required for the immediate needs of border residents and local businesses in border areas.

Article 2 of the bill permits the government to implement complete or graduated customs and commercial tax exemptions for these imported goods, in line with regulations approved by the cabinet.

A New Revenue Stream for the Treasury

According to Article 3, all customs and tax revenues generated under this law will be deposited into a dedicated account in the national treasury. These funds are fully allocated to the respective border provinces and used to enhance security and economic infrastructure, including:

• Equipping border markets.
• Closing illegal crossings.
• Clearing unauthorized and contraband-prone routes.
• Enhancing and equipping small ports and customs facilities.

Additionally, these funds will be directed toward targeted subsidies, improving livelihoods, and creating sustainable jobs for border residents.

To oversee implementation, a task force will be formed under the Ministry of Industry, Mines, and Trade, including representatives from the Anti-Smuggling Headquarters, the Ministries of Interior, Intelligence, Economic Affairs and Finance, and Roads and Urban Development, as well as the Iranian Law Enforcement Force. The group will draft and approve executive guidelines, specify import quotas, and oversee the gradual increase of customs duties for these goods.

Parliament’s Reaction to the Bill

In Shahrivar 1402 (August–September 2023), parliament completed its review of the kulbari regulation bill. Representatives approved the full allocation of customs and tax revenues from border trade regulation back to the originating provinces. This measure effectively placed responsibility for implementation on provincial governors.

A provision within Article 3 stipulates that these funds will also be used to promote job creation in the affected provinces. While some representatives proposed expanding the role of the Ministry of Economy in supervising border trade alongside security agencies, others opposed this, arguing that the Ministry of Economy, as the superior body overseeing customs, could face accusations of facilitating smuggling.

Supporters of strengthening official border terminals and marketplaces argued that doing so would stabilize populations in deprived border provinces, encouraging residents to remain in their hometowns rather than migrate. Ultimately, the bill passed with urgency and without substantial amendments from the Economic Commission.

The Value of Goods Imported Through Kulbari: $4–7 Billion

According to studies by the Research Center of the Iranian Parliament, approximately $4–7 billion worth of goods are annually imported via kulbari and tehlanji. These imports bypass technical, monetary, and health standards, as well as government tariffs.

The bill submitted by the government aims to regulate these unregistered practices, which currently lack legal frameworks. Kulbari, for instance, remains undefined within the country’s commercial and customs laws. Attempts by the cabinet in 2017 and 2018 to address these issues failed due to legislative gaps and other challenges.

Challenges of Addressing Kulbari Through Legislation

One of the primary challenges in regulating kulbari and tehlanji is the entry of goods that fail to meet health, security, and safety standards. Other issues include:

• Loss of public revenues due to unpaid customs duties.
• Circumvention of import restrictions designed to protect domestic production or control currency demand.
• Increased demand for foreign currency outside Central Bank regulations.
• Minimal benefit to kulbars and local traders compared to the significant profits made by intermediaries.

Kulbari and tehlanji remain critical to the economies of many underprivileged border towns, with entire local industries dependent on these practices. Government measures against kulbari often face economic and security challenges due to the lack of alternative employment opportunities.

Tragic Deaths of Kulbars and the Struggles of Female Kulbars

According to Kulbar News, 444 kulbars in West Azerbaijan, Kurdistan, and Kermanshah provinces were killed or injured in 1402 (2023–2024) due to shootings, avalanches, frostbite, landmines, or falls from cliffs.

Female kulbars, often starting in their teenage years, represent one of the most marginalized segments of the working class. They face not only economic deprivation but also exclusion from broader social transformations. Reports indicate that many female kulbars are undercounted in workforce statistics and often receive lower wages than their male counterparts.

Economist Parviz Sadaqat highlights that kulbari is a class issue, though it also intersects with patriarchal and ethnic oppression in the case of female kulbars. He emphasizes the need for deeper and more serious attention to their plight.

References:

1. “Economic Minister: Kulbari regulation finalized by cabinet,” IRNA, Aban 18, 1403 (November 9, 2024).
2. “Bill on Regulation of Border Trade and Sustainable Employment for Border Residents,” Iranian Parliament Research Center.
3. “Parliament completes review of kulbari regulation bill,” IRNA, Shahrivar 27, 1402 (September 18, 2023).
4. Annual report, Kulbar News, Farvardin 1403 (March–April 2024).