10/10/2017

Proposal of IAIA on the minister’s table

The Iran’s Automobile Importers Association insists that it is seriously pursuing its complaint from the Export and Import Bureau of the Organization for Development and Trade, so as to recover the rights of importers, and that the IRR 450 billion damage to this sector should be pursued. This is despite the fact that about 7,000 imported vehicles are still in the customs territory and are not subject to registration plate and clearance. In addition to these, car importers are seriously looking for trading. We hope that Minister of Industry, Mines and Trade, Mohammad Shariatmadari, opens the knot of the imported problem. In the same vein, Farhad Ehteshamzad, chairman of the board of directors of the Association of Automobile Importers in an interview with the "Donyaye Khodro" newspaper, mentions the obstacles facing importers as follows. What were the results of the complaint of the Association of Automobile Importers about closing the record? The first discussion is that the website has been closed down for more than three months. The demanded of the association is still acting according to the current law of the country, it is obligatory for everyone, including citizens, economic activists and the state, so this obligation must be observed and everyone is obliged to observe the current law of the country. Naturally, this is a violation of the law taken by the Office of Export and Import Regulation and the Organization for Development and Trade and we are seriously pursuing our complaint through legal channels. Because there are laws that have been disordered. In parallel, we have sent IAIA’s proposal to the Minister of Industry, Mines and Trade, as we consider him logical and law-abiding, and we are in the process of collecting the views of various institutions, we hope to have a good decision on how to manage imports. Taken. Naturally, this decision should be in line with the laws of the country verified by the Islamic Consultative Assembly and approved by the Guardian Council. How long do you think it takes to get favorable result? Importers are faced with more material and moral disadvantages every day. According to the Association's estimate, so far, nearly IRR 450 billion have been damaged to importers due to the illegitimate closure of the order registration system. At the moment, even modifications to existing orders are no longer possible, such as the year of construction, and they are stopped on customs for very unreasonable reasons. The Association of Automobile Importers will definitely defend the rights of its members, and we will pursue this complaint until the last step in order to achieve the whole redress. What is the reason of closing the website for a long time? There are many analyzes on this subject but regardless of what is causing this, we should also consider that compliance with the current law of the country is binding on everyone as long as new probable changes are not approved yet. That is, regardless of the root of this non-compliance, is that we must return to the correct implementation of the law in the country. Whatever the reason for this, such as slogans to protect consumer rights, support for production, support for producers, but the reality is, based on the analysis we have, not only consumer rights have not been met, but the consumer has suffered the most. Of course, internal production may also have been affected by the gap that existed in the imported car market, as cars with same range of price of imported cars have been increased between IRR 30 and IRR 50 million during this period. What is the rate of increase in prices for imported cars during this period? The prices of imported cars on the market has the average of 30% bubble growth. The delivery terms of most dealerships are also 60, 90 and 120 days due to the fact that their cars stopped at the customs and the continuation of their ordering is also disrupted, after that the cars on the market are sold at a much higher price and all of these issues is due to the inflammation that the government has created in the import market in recent months, and it is consumer who pays. Unfortunately, this increased bubble of the price is the cost of non-compliance done by the Development and Trade Organization. According to Iran's 20-year vision plan, we are committed to foreign investment in the automotive industry. Given the length of the site's stoppage, what is the look of foreign companies for this? The recently released "Global Competitiveness Report for 2017" lists major trade issues in Iran. The first issue with access to financial resources is 16.6%. The second issue, with a 10.9% portion, is a government inefficient bureaucracy, and the third problem with a 10.4% portion of government policy instability has been summed up. The issues that make business problems in Iran more difficult are completely related to government decisions. Naturally, the growing instability in government behavior in the country will diminish the ability to attract foreign investors, which is due to the unstable and inefficient business conditions of the state system. Not paying attention to the capital involved in imports in the last quarter indicates a lack of attention to the private sector, which causes the Iranian businessmen to be unable to negotiate internationally. Such government behaviors give a bad message first to the domestic investor and, in the second place, to the foreign investors.   You announced a loss of IRR 450 billion due to the closure of website. Do importers want only to open the site or follow up to achieve the lost money? These cases are the rights of economic activists in this area. Resolving the problem and achieving the fine for illegal decisions is the responsibility of the decision maker. However, the person who caused the loss is obliged to pay for damages. This number is reported to be more than seven thousand imported vehicles stopped at the customs. Is it true? Yes Seventy thousand imported vehicles have now been stopped in the country's customs, and customers are waiting to receive cars in the queue. What is the September import figure? The reference is the Customs website, which, due to some ambiguities and deficiencies in the statistics, we requested accurate statistics from the Customs. But the total survey revealed a total of 41,000 vehicles in the first six months of this year. The growth rate of six months was 25% from the previous year, and the main import from the first four months was due to an inflammation caused by the government's mistake in stopping the activities of non-exporter companies, and the Association strongly supports the reactivation of non-representative companies to create a free competitive market. On the other hand, domestic production also grew by 21% during the first six months of this year, indicating an increase in market size. Considering only a significant increase in imports of cars in the corresponding period of the past year is a big mistake, and the portion of imported car market is still 6% relative to the share of domestic producers.

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