Two laws on scrapping age and scrapping age limit are being used by different organizations with contradictory results.
The two laws were devised to get rid of worn-out cars, but they are not achieving the same result, according to the head of the Management of Used Car Scrapping and Recycling Centers Association.
“The Clean Air Law was very clear about the scrapping age of worn-out cars, which was canceled by the Administrative Court of Justice,” Mahmoud Mashhadi Sharif was also quoted as saying by Khabar Khodro.
“According to the Clean Air Law, any car that has reached the scrapping age should be sent to the junkyard, but the application of scrapping age has turned the criterion related to dilapidation into a technical inspection item,” he explained.
“In other words, if the car has reached the limit of wear and tear, it can still be used by taking it to a technical inspection center, irrespective of the vehicle’s age.”
The official noted that as the technical inspection centers follow different strictures, they make it easier to obtain a technical inspection certificate and avoid scrapping.
He also pointed out that the Law on Organizing Automobile Industry mentions the scrapping age but not the scrapping age limit.
The approval of this law took three years before it was officially promulgated on June 11, 2022, but it has not been implemented yet.
Sharif further said scrapping centers use the information provided by the Iranian Law-Enforcement Forces’ Road Headquarters to the Fuel Transportation Management Headquarters.
“As a result, the age limit of wear and tear is not a criterion for scrapping, but if the car reaches the age of wear and tear, it can be registered in the Setad Iran system,” he said.
“The Law on Organizing Automobile Industry has not been implemented, but because the age of wear and tear was the criterion for scrapping in the past, scrapping age is only used for registration by the Fuel Transportation Headquarters that does not check the car’s technical status.
The official stressed that both the laws can be used to scrap a worn-out car, such that even if the car has not reached the age of scrapping could be scrapped with the certificate from the technical inspection centers, but the scrapping age law is only applied in big cities.
Commenting on the recent ratification of the parliament mandating the payment of 1.5% of the passenger car price for scrapping and numbering light and heavy domestic cars and motorcycles, and the payment of 5% for imported trucks and tractors, he said, “In order to support domestic production, this figure was set at 1.5%, but the association believes that according to the law and to achieve 500,000 certificates per year, this figure should increase to 3%. Because at 1.5%, only 70,000 to 80,000 certificates will become available, and for imported trucks and tractors, it should increase to 12-15%.”
Sharif said there are about 14 million worn-out cars and motorcycles in Iran.
“Actually, accurate statistics on worn-out motorcycles are not available due to the lack of license plates, or as a large number of them are dumped in parking lots. According to traffic police statistics, there are about 9-10 million derelict motorcycles, 3-3.5 million derelict cars and 250,000 worn-out trucks and diesel vehicles in the country,” he said.
Equalization Table Could Help Remove Car Scrappage Snags
An automotive expert believes that most of the problems facing the vehicle scrappage plan can be solved, if the Department of Environment were to accept the equalization table.
The old vehicle scrappage plan was launched to alleviate air pollution, reduce fuel consumption and renovate the domestic automotive fleet.
However, the plan lost momentum following the parliamentary ratification that mandated the registration of a heavy vehicle against the same type sent for scrapping. Consequently, the Department of Environment also insists on the same requisite for accepting the vehicle scrappage certificate.
“The scrapping centers have enough certificates for passenger cars and if the Department of Environment agrees with the equalization table, they can meet the needs of car manufacturers,” Jalal Amini-Fard, a member of the Board of Directors of the Isfahan Scrapping Centers Association, was quoted as saying by Donyaye Khodro.
“The Department of Environment has announced that diesel cars should be scrapped for the registration of diesel cars and gasoline cars for gasoline cars. If this restriction is removed with the equalization table, the problem of companies like Bahman Diesel will be solved. This issue has also been announced to Hossein Khezri, the CEO of Bahman Diesel, who has written a letter to the Department of Environment so that the condition of the type of fuel for scrapping could be eliminated,” he added.
The expert noted that the equalization table was considered for alleviating the shortage of scraps in heavy or light vehicle sectors.
“Currently, the Department of Environment opposes this table and only accepts the scrap certificate of each segment for the same vehicle, which we consider an obstacle. As a result, we are facing a shortage of scrap certificates in the commercial and heavy vehicle sectors, but we can provide this certificate issued for cars if the department accepts the table of equivalence,” he said.
“The parliament has proposed that the cost of scrappage should be 1.5% of diesel cars, in which case no one will be willing to participate in the scrappage of heavy vehicles.”
Amini-Fard said passenger vehicle scrap certificate is available and if the equalization table is implemented, it will be applicable for both diesel and gasoline vehicles.
