Industries, Mining and Trade Minister Reza Fatemi-Amin clarified ambiguities related to car import rules and regulations in a press conference on Sept. 5.
“From the very outset, we announced that the Ministry of Industries, Mining and Trade is not opposed to car imports because the car industry’s monopoly can only be broken by imports,” he was quoted as saying by Khabar Khodro.
“The supply-demand imbalance, two rates of car prices in the domestic market, determining car price based on the USD rate and considering car as a capital good were other reasons that make car imports crucial.”
The minister stressed that since there is no high-quality economy car in the domestic automotive portfolio, the production platforms are old and the release of a new product requires at least 18 months, Iran must make up for the lack of economy products through imports.
Fatemi-Amin stressed that the transfer of technology does not create restrictions on car imports.
“In view of the four-year ban on car imports, updating car import regulations was very sensitive and needed careful consideration. Adding clauses such as technology transfer has been legislated by the parliament and legally, we should have added this clause to import regulations, which the Industries Ministry agrees with,” he said.
Commenting on the proposal to list imported cars on the Iran Mercantile Exchange, Fatemi-Amin said, “.”
Stating that commercial profit is determined dynamically so that import is conducted appropriately, the minister said car import regulations have eliminated unconventional and excessive interests and rents.
On determining the country of origin of imported cars and negotiating with them, he said the Industries Ministry has not negotiated with any foreign automobile manufacturer because it is not the importer and only determines the imported car’s technical criteria and standards.
Fatemi-Amin noted that the €1 billion worth of car imports can also be undertaken with cryptocurrencies or foreign investments, explaining that instead of withdrawing foreign currency, the investor could export cars into Iran and invest the same in the country.
Economy Car Import’s Regulations
Regulations for car imports, approved by the Council of Ministers on August 17, were announced by First Vice-President Mohammad Mokhber on Aug. 25.
Although the price of imported cars has a ceiling of €20,000 freight on board and a maximum of $1 billion will be allocated in foreign currency for the purpose, cars under €10,000 FOB enjoy priority.
Meanwhile, the Ministry of Industries, Mining and Trade has also been obliged to produce economy cars worth up to €10,000 to grab a share of these imports, Donyaye Khodro reported.
As per the regulations, car imports in trade and industrial free zones are limited to hybrid or fully electric vehicles, and only certain models will be numbered in these zones. Importers are responsible for investing in and setting up the charging stations.
“As the details of the fiscal 2022-23 car import regulations required government coordination, it was proposed and approved by the Council of Ministers last week,” Economy Minister Ehsan Khandouzi said.
All imported cars will be offered on the Iran Mercantile Exchange.
One of the conditions included in car import regulations is the determination of commercial profit. First, the commercial profit will be collected by the customs office and after the sale of imported cars in IME, the difference in commercial profit will be determined.
The amount of this commercial profit will be approved by a joint committee comprising the representatives of the Industries Ministry, Economy Ministry and the Plan and Budget Organization.
Car Import Bylaws
Manouchehr Manteqi, deputy industries minister for transportation affairs, has subsequently announced bylaws for the implementation of car import.
According to the official, importers should establish or use an active after-sales service network with the following conditions: There should be one after-sales agency for every 1,000 imported cars, spare parts should be procured before importing the vehicles and the list of these spare parts must be approved by the officials concerned, importers should train after-sales service personnel and announce the transfer of technologies in after-sales services.
Importers must have an official license from the foreign manufacturer to guarantee the provision of after-sales services or technology transfer.
People who intend to import vehicles should have experience in the field, or use the services of companies with related experience.
Announcing the technical specifications of the car and its price is the final condition for importers.
