A total of 241 vehicles worth $5.6 million were imported in the first quarter of the current fiscal year (March 21-June 21), according to the latest statistics released by the Islamic Republic of Iran.
The imports registered a 517% and 452% increase in terms of number and value respectively, compared with 39 imported cars worth $1.01 million in the corresponding period of last year.
IRICA only accounted for vehicles subjected to the tariff code 8703, which mostly includes ambulances, hybrid passenger cars and pickup trucks grouped as “others,” IRNA reported.
Ambulances and Zoyte, Changan and Benz passenger cars were the main cars imported during the period.
Statistics indicate that imported cars reached 246 from January 21 to June 21.
Pars Khodro was the main car importer during the period, as it imported 90 vehicles worth $965,835. It was followed by Pakro Sabz Qeshm Company that imported 23 vehicles worth $698,953 and the Health Ministry’s import of 10 ambulances worth $687,294.
During the five months, owners of 768 vehicles worth $12.5 million were unable to clear them from customs as they failed to receive clearance permits, a bank tracking code, or pay entry fees, according to the data released by the Comprehensive Trade System.
The highest value of vehicles that could not be cleared from customs belonged to Kerman Khodro Trading and Logistics (also known as KTL) which had 300 vehicles worth $5.98 million in the customs. The company’s vehicles accounted for 39% of the total number and 48% of the total value of cars that could not be cleared from customs.
It was followed by SAIPA with 327 vehicles (43%) worth $3.66 million and Koosha Khodro with 53 vehicles worth $1.13 million. SAIPA’s vehicles accounted for 43% of the total number and 29% of the total value of the cars stuck in customs, while that of Koosha Khodro accounted for 7% and 9% respectively.
Most of the passenger cars in the clearance procedures were shipped through Shahid Bahonar Port in Bandar Abbas and West Tehran customs offices. These customs offices accounted for 48% and 30% of the value of cars stuck in the clearing procedures.
IRICA’s report does not include the imports of other kinds of vehicles, such as the cars imported by SAIPA. The automaker imported 1,108 cars produced by Changan Automotive Company during March 21-May 21, according to the manager of the Industries Ministry’s Car Import Project.
“With the efforts of the Ministry of Industries, Mining and Trade and related organizations, SAIPA imported its first series of imported cars after five years, which have been cleared from the Aprin Customs Office,” Mehdi Zeighami was also quoted as saying by Khabar Khodro.
The official stated that due to problems caused by car import laws devised before the reimposition of international sanctions, the clearance of imported cars faced many hurdles.
“With the cooperation and support of related organizations, we were finally able to clear the first series of imported cars and this will definitely speed up the import and clearance process of the next series,” he said.
Zeighami announced that another batch of 1,500 foreign cars are in the process of receiving customs clearance permits and standard approvals.
“These cars are of Fiat, Zotye, Hyundai, Kia and Mitsubishi brands, which will be released gradually,” he said.
According to Koroush Kamankesh, the deputy head of SAIPA’s Purchase Department, by the end of the current fiscal year (March 19, 2024) 100,000 Changan cars (CS35 Plus, CS55 Plus and UNI-K models) will enter the country.
Forex Supply Poses Biggest Hurdle to Used-Car Imports
Problems related to foreign exchange allocation are the main hurdle to the import of used cars, according to the former spokesperson for the Ministry of Industries, Mining and Trade.
Omid Qalibaf also told the Persian automobile daily Donyaye Khodro that the import of used cars will take place, if the required forex is allocated by the Central Bank of Iran.
However, much remains to be done in terms of procedures before used cars could be imported.
“The Majlis ratification can be implemented with the approval of the Guardians Council and the State Expediency Council. The next step is to announce the law to the government, prepare executive regulations and finally notify the Ministry of Industries, Mining and Trade for implementing it, which will take time. So it is unlikely that this will materialize in the next two months,” he said.
The former Industries Ministry spokesperson said obtaining permits from the Department of Environment and the Institute of Standards and Industrial Research of Iran is also problematic.
“Therefore, the import of used cars will not be easy, assuming that the currency and sanctions situation in the country remains the same, but it is possible,” he said.
Referring to the impact of this law on the car market, Qalibaf said, “The important issue is how the executive regulations are devised. If real buyers are allowed to import cars without a commercial card, as it was previously stated in the draft proposed by the Industries Ministry, we could be optimistic about the regulatory effect of this law.”
The approval of the law to import used cars had made people optimistic about a fall in car prices.
“But if strict regulations are set, the law itself will become an obstacle to its implementation. In any case, the psychological impact of the law was apparent in the last two or three days with the decline in the prices of used foreign cars,” he said.
Qalibaf stated that if these obstacles are not taken care of, it could again lead to a price hike.
Asked why the import of used cars did not materialize when it was raised last year, he said, “Last year, there was a good resolution regarding the import of used cars from free zones, but it was rejected by the State Expediency Council.”
