Summary
- Iran’s parliament approved a bill to impose transit fees in the Strait of Hormuz at the committee level, paving the way for implementation if it passes a plenary session.
- The bill says vessels passing through the Strait of Hormuz would be required to pay fees billed as environmental and security service charges in Iranian rials.
- The proposed law includes provisions for a ban on passage by vessels from hostile states, the seizure of ships that violate the rules, and the confiscation of 20%% of cargo value.
Forecast Trend Report by Period
Committee approves bill to impose Strait of Hormuz transit fees
Measure also bars vessels linked to hostile states
A bill to impose transit fees in the Strait of Hormuz has cleared a standing committee in Iran’s parliament, moving it into the formal legislative process.
Press TV, Iran’s state broadcaster, reported on April 21 that Vahid Ahmadi, a member of parliament’s National Security and Foreign Policy Committee, said the panel had approved the 12-article "Law on Establishing Iran’s Sovereignty Over the Strait of Hormuz."
The bill sets out which vessels may pass through the strait, designates safe shipping lanes and includes penalties for ships belonging to or linked with hostile states.
If the measure passes a plenary session of parliament, Iran would be able to levy fees on ships transiting the Strait of Hormuz under environmental and security service charges, Ahmadi said.
Mohammad Reza Rezaei Kouchi, another lawmaker, said the bill requires ships passing through the strait to coordinate their transit in advance with Iranian authorities and pay for services in Iranian rials.
He added that the 12-article measure would also ban passage by countries and entities hostile to Iran and its regional allies, as well as countries and entities that do not use "Persian Gulf" as the official name for southern Iranian waters in shipping documents.
Under the proposed law, Iran would seize vessels that violate the rules and confiscate about 20% of the value of their cargo, he said.
Iran has continued to assert control over the Strait of Hormuz even after a two-week ceasefire was reached on April 8 through Pakistani mediation.
Lee Jung-woo, Hankyung.com reporter, krse9059@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
