Iranian President Mohammad Khatami has vowed to root out smuggling, which is estimated to cost his country $2 billion every year, reported the BBC Online.
He said the fight against the illegal trade would form a crucial part of his second term in office.
Khatami has asked the intelligence service to investigate the problem, said the report.
Reformist politicians have accused conservatives of being behind the trade, with the aim of undermining Khatami's government, according to the BBC.
The president's opponents have challenged him to name those responsible, the news service added.
The smuggled goods include alcohol, cigarettes, household appliances and electronic equipment.
Iran has a geographic location that makes it a link between Asia, Europe, and the Gulf region. The country is fighting a bitter war against drug trafficking, since Iran is a transit corridor between Afghanistan on the one hand, and the Gulf and Europe on the other.
Over 3,000 members of the Iranian security forces have died in shootouts with gangs during anti-trafficking operations – Albawaba.com
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