Free Trade Zone Plate Conversion Fee Rises to 100% of Customs Value; Up From 90% Under Iran's 1405 Budget (Saturday, July 4, 2026)

The fee to convert a vehicle registered under Iran's free trade zone plates (Kish, Qeshm, Arvand, Chabahar, and Mako) into a national plate has risen as of the 1405 (2026/27) Iranian calendar year. According to reports published on June 29, 2026 (Tir 8, 1405), the basis for calculating this fee changed from an import duty of 90% of a vehicle's customs value (the previous rate) to 100%, matching the import duty rate set for imported vehicles in 1404 (2025/26). The change has noticeably raised the cost of formally registering a free zone vehicle for use outside the zones.

Background

Free zone plated vehicles are cars brought into Iran's free trade and industrial zones under limited customs exemptions, and are, in principle, only licensed to operate within that zone's geography, not the Iranian mainland. To travel legally across the country, an owner must convert the vehicle to a national plate by paying the applicable import duty and customs fees. Through the end of 1404, that import duty stood at 90% of the vehicle's customs value; under the 1405 budget law, the basis was tied to the same 100%-of-customs-value import duty rate applied to imported vehicles in 1404. Separately, amid the recent war, traffic police temporarily allowed vehicles carrying plates from these same five free zones to travel nationwide without converting to a national plate; authorities have said that permission was limited to that period and does not amount to a permanent lifting of travel restrictions.

Key figures

The figures above are cited from automotive press reports published June 29, 2026; the sample amount is illustrative of the calculation method only, not the price of a specific vehicle.

Drivers

The fee increase stems from the 1405 budget law, which tied the import duty basis for free zone plate conversion to the prevailing import duty rate for imported vehicles, a rate set at 100% of customs value for all imported vehicles in 1404. On top of this base fee, owners must also pay ancillary costs including value added tax, municipal and renovation fees, standards and environmental certification costs, transfer tax, and traffic police and plate issuance administrative fees. Separately, the temporary traffic police permit for nationwide travel without plate conversion was issued during the recent war to ease pressure on owners; but after social media reports characterized it as a permanent, complete lifting of restrictions, the traffic police chief for Sistan and Baluchestan province denied this, saying regulations governing free zone plated vehicles continue to apply under existing rules and that no change has been officially communicated.

Outlook

The higher plate conversion fee means a steeper cost for formally registering free zone vehicles and legally bringing them onto the Iranian mainland, a trend that could reduce the near term incentive to convert plates while keeping demand high for extensions of the temporary travel permits. Any further change to the 1405 import duty rate for imported vehicles will directly affect this conversion fee as well. This is a reading of published regulations and statements, not a definitive Sahmino forecast.

What to watch

In the coming days and weeks, watch for official notices from Iran's Customs Administration and the Free Zones Organization on the new fee's implementation details, any extension or revocation of the traffic police's temporary nationwide travel permit for Kish, Qeshm, Arvand, Chabahar, and Mako plated vehicles, and fresh announcements about newly introduced free zone plates.

Disclaimer

This report is for informational and educational purposes only and does not constitute investment advice. All figures carry a specific as of date and may have changed; verify information against official, up to date sources before making any decision.