Foreign clothing brands that wish to obtain a license and export to Iran must produce their product within the country. Taadol newspaper reports that these conditions, alongside the high rates of foreign currency and tariffs dissuade foreign clothing manufacturers from legally entering the market and lead to further trafficking of goods. In order for a clothing manufacturer to be issued a license to export to Iran, they must sign an agreement promising to produce 20% of their products in Iran of which at least half should then be exported to other markets. From the third year onwards the foreign manufacturer must increase production in Iran by 5% each year. Even though these laws have been set to support domestic producers, their only effect has been that of more than 400 foreign clothing brands active in the Iranian market, only 17 are legal. Iran has a market need for 510 tons of clothing annually and domestic capacity can cover 62% of the need.