Part 1: Definitions Article 1: Definitions of terms and expressions used in this code: Organization: Road Maintenance and Transportation Organization (RMTO, hereinafter) Transit Department: The Department in Charge of Transit and International Transport within RMTO Company: Any domestic transport company in charge of transporting passengers, holding due authorizations may also get a temporary permit to transport passengers internationally, having fulfilled all the requirements. RMTO Provincial Directorate General: The provincial department of Road Maintenance and Transportation Organization where the company located. Part 2: Licensing Conditions and Requirements Article 2: To operate any international passenger transportation, a company needs a valid transport license with at least one year of experience in intercity passenger transport and meets the other conditions listed in this set of rules. Article 3: Passenger transport companies located in the provinces centers or border cities are eligible to apply for an international transportation license if they meet the daily service requirements specified in the table, based on their type of domestic operating license. Types of Company Activity Minimum distance travelled The average number of daily services during the last year Tehran Other Provinces Centers Border Cities Bus 300 km 45 24 10 Minibus-Passenger Car-Van 100 km 15 8 5 Article 4: The Provincial Directorate General Departments have to inform the relevant applicant of the rules and conditions. Within a week of receiving the company's documents and justification (explanatory) report, the administration must conduct investigations and forward the findings to the Transit Department, having the transport company complying with the regulations. Article 5: Depending on socio-economic requirements, transport connections with specific countries, routes, and other factors such as the number of existing companies, decisions will be made regarding approval or refusal of the passenger’s applications for an international passenger transport licenses. Article 6: Once approved by the Transit Department, the company may add international passenger transportation to its services. The relevant Provincial Directorate General will then assist the company to register this change with the registration authorities. After completing the necessary document, the Department issues a temporary license allowing the company to operate in international passenger transport. Note: The permit to operate international passenger transport is valid for one year. If the conditions for transporting passengers between cities are no longer met, the temporary authorization for international passenger transport will be automatically terminated. Article 7: The operating license for the international passenger transport may only be issued or extended (renewed) if the managing director, branch manager, as well as the drivers complete the mandatory training courses at the Department of Transit. Article 8: International road passenger transport companies also comply with the same regulations as other companies when establishing and operating new branches. The new managing director of these companies must have a bachelor's degree and one year of experience in the scope of road transport. Part 3: Terms and Conditions Article 9: Before the company may begin offering international services, it must obtain permission from the Department of Transit to set up these services to transport its vehicles. Additionally, they must be approved by the authorities of the countries where they plan to operate. Note 1: The company will receive a license to operate the cross-border route provides 15 services in Tehran, eight services in other provincial centers, as well as five services in border cities with all types of vehicles, according to Article 5 of the regulations. Note 2: The number of vehicle fleet (6 shares in the name of the company or board of directors' members) covered by the transport company is proportional to the number of weekly services requested and the duration of the trip as follows: Number of fleet required = Number of weekly services required × (Round trip time/7) Note 3: In calculating the required number of vehicles, all decimals will be rounded up. Note 4: It is important to note that at least 50% of the vehicles required for each route must come from the company's own fleet. Note 5: For each vehicle in this set of rules (code), the company or a member of the board of directors may transfer six shares of ownership of similar vehicles. However, they must own at least three shares of each vehicle. Note 6: Providing company vehicles rental documents maybe acceptable but only if the rental company owns them. Furthermore, the company must clearly identify those who own at least 10% of the company or its shares as vehicle Lessors. Article 10: Before a company may provide any services internationally, it must ensure to sign a contract with the foreign companies, it intends to partner with. However, if they have a branch approved by the organization of the country where they want to establish, they don't need to make (enter into) an agreement with companies or organizations in that country. Note 1: The contracts must be approved by the Department of Transit. The company has to renew it one month before expiration. Note 2: The Iranian side (participating) in the contract is the representative and successor of the foreign party. They are accountable for all the duties and obligations associated with the transport company, starting when the vehicle enters the country until it departs. This information may be clearly stated in the final contracts. Note 3: According to the principle of reciprocity, the organization may declare that it must cancel a contract based on the conditions set by the countries participating in the contract. Note 4: If the company needs to, can sign a separate contract for a domestic branch or representative office in the country or send services from the headquarters. The company central office manages all contracts. If the branch or its representative violates the rules, it will have a negatively impact on the company. Note 5: The transport company's branches and representative offices can sell tickets and customer acquisition without permission from the company's headquarters. Part 4: How do Foreign Companies operate? Article 11: Foreign international passenger transport companies wishing to collaborate with Iranian counterparts have to comply with the agreement on international passenger transport. They have to officially apply for registration through diplomatic channels. If both sides’ authorities agree, they can sign contract with Iranian passenger transport companies that licensed for international transport. Note: Foreign passenger transport companies are required to comply with the regulations and agreements when providing their services with the Iranian fleet. These rules are determined by the Department of Transit. Note 5: Other Regulations Article 12: International passenger transport companies and their branches must regularly inspect and implement in placed rules.