Loopholes in Home Appliance Import Tariffs
Economy, Domestic Economy

Loopholes in Home Appliance Import Tariffs

While official records put the import of home appliances during the past Iranian year (ended March 20) at $450 million, data provided by auditing organizations indicate that more than $5 billion worth of foreign home appliances were sold in domestic markets during the period, secretary general of Home Appliance Association, Mohammadreza Diani told Tasnim news agency.
«Only a small portion of these unregistered goods are smuggled through unauthorized ports, while the majority is officially imported by traders who take advantage of the loopholes in tariff system to avoid the high import duties,» said the official, urging authorities to investigate the issue.  
According to the official, some traders import home appliance parts through different customs terminals and later assemble the products, in order to pay lower tariffs.
«The tariff rate for parts import is about 8.15%, while tariff rate on the finished good is about 45%. The different tariff rates were imposed by the government to support the domestic industries,» said the official.
He suggested regulating the home appliance imports through audit organizations, noting that official auditors should exercise stricter supervision over the activities of foreign appliance distributors.
The Iranian home appliance market has been severely hit by smuggling and high imports, which experts believe has undermined domestic production. Many businessmen believe the government should support domestic production by improving the business environment and encouraging export of Iranian products.

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