EXPLAINED: How Iran’s new ‘Persian Gulf Strait Authority’ runs the Hormuz toll transit process for vessels

Iran has formalised a permit-based transit process for vessels through the Strait of Hormuz via the PGSA, requiring detailed vessel and cargo information

hormuz-cargo-backlog-reuters - 1 Representative image of cargo on a container ship (L) and an enlarged map showing the Strait of Hormuz (R) | Reuters

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Iran has formalised a permit-based transit process for vessels passing through the Strait of Hormuz. According to a report by Lloyd’s List, which cited a form titled “Vessel Information Declaration,” Tehran created the ‘Persian Gulf Strait Authority’ PGSA to regulate maritime traffic through the Strait of Hormuz. The PGSA has set a requirement that vessels submit a detailed form about themselves before payment.

The vessel’s crew will have to submit detailed ownership, insurance, crew and cargo information before paying toll for passage.

The form and “regulations” were sent by the authority through the email info@PGSA.ir.

A report from the IRGC-backed Press TV said that all vessels  “all vessels intending to transit the Strait will receive an email from the official address info@PGSA.ir outlining the rules and regulations for passage.”

It reportedly contains over 40 questions requiring the shipping vessels to disclose the name, identification number, previous name and country of origin and destination and nationalities of the vessels' owners, operators and crew and the details of the cargo.

The authority also warned that any incomplete or incorrect information would remain “the sole responsibility of the applicant,” with any consequences borne accordingly. The PGSA said that the form must be filled out with complete and accurate information and emailed to the authority

While Tehran had not issued any statement on granting special favours to any nations, it has warned that countries complying with US sanctions would face difficulties crossing the Strait.

"Countries that comply with the United States by imposing sanctions on the Islamic Republic of Iran will certainly face difficulties crossing the strait," army official Mohammad Akraminia told Iran's official IRNA news agency on Sunday.

"We have established a new legal and security system in the Strait of Hormuz. From now on, any vessel wishing to pass through it must coordinate with us," he added.

The system, which is now in force, is expected to bring Iran economic security and political gains.

Some ships have paid up to $2 million with payment in Chinese Yuan. However, official tariffs have not been announced.

Tehran’s move is coming amid Washington's push to reopen the strait.

The move has caused concerns over a possible rise in shipping costs and the likelihood that other nations could impose similar controls over strategic waterways, which could reshape maritime norms. 

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