Ban on Iranian Rug Imports

Effective September 29th the US will no longer allow textile floor coverings into the country which have originated in Iran. It is possible the cost of Persian carpets will increase due to the ban, although many rug wholesalers have a fairly large supply as the ban has been known for sometime now. The impact on Iran may be great as hand woven carpets account for nearly $500 million annually according to a Wall Street Journal report. Approximately $100 million of that total is generated from the US market. Given the ban, it would be wise as appraisers to closely monitor the effects of the embargo and its impact on supply, demand and value. The WSJ reports

American living rooms will lament Sept. 29, 2010: the day Persian carpets ceased flying into the U.S. legally. That’s when a ban on “carpets and other textile floor coverings and carpets used as wall hangings” of Iranian origin takes effect, as part of a package of sanctions issued by the U.S. against Iran over its nuclear program.

The legislation was signed by President Obama on July 1. (Click here for the announcement that will be posted in tomorrow’s Federal Register.) While the ban may irritate wealthy Americans, it is expected to really smart in Iran, where the export of hand-woven carpets generates about $500 million annually for the economy. Bloomberg recently reported that 20% of the total is earned in the U.S. market.