Possibility of car manufacturers entering car imports
According to Eqtesadonline, the citizen wrote; The plan to organize car imports has been sent to review and announce the final opinion of the Guardian Council. The notes envisaged in the plan, such as the entry of the Competition Council into car imports, will be the source of corruption, such as the warming of the market for buying and selling car registration sheets. We have talked about this with Ahmad Nematbakhsh, the secretary of the Iranian Automobile Manufacturers Association.
What is the approach of domestic automakers to the car import plan?
Not only have automakers never opposed car imports, but managed car imports of up to 5 percent of total industry output can benefit not only automakers but any other industry. In fact, this method of importing helps people and manufacturing companies such as automakers to get acquainted with the quality of foreign products. By creating competition in production and the market, it helps the growth of industries, and in this regard, car manufacturers do not have a problem with importing cars. But there are fundamental ambiguities and problems in the new parliamentary plan to import cars, which has made the plan inefficient. It should also be noted that car imports with a reasonable tariff, not zero tariffs, will be efficient, while increasing the car import tariff in the budget law of 1400 to 86% by the parliament actually means an effective 13% tariff for car imports, which is not very high; Because the basis for calculating the price of imported cars in customs is 4200 Tomans. Multiplied by the dollar rate of 4200 Tomans and 86% of this figure is calculated as the car import tariff.
In your opinion, how efficient is the parliament’s plan to import cars?
This plan has many ambiguities and drawbacks. Although the plan envisages the import of cars versus the export of cars, parts and propulsion, which are among its advantages, but the main drawback and ambiguity of this plan is the import of cars without currency transfer. Why not import without transferring currency to industrial machinery, spare parts and industrial consumption? Also, importing cars without transferring currency has many ambiguities and escape routes that have damaged the country’s foreign exchange market and the first consequence is the increase in the exchange rate, because according to the plan, all individuals and legal entities can illegally and informally and outside the central bank. Pay Rials in the country, receive the currency needed to import cars in other countries and return them to the country in the form of car imports. This increases demand and exchange rates in the informal market and damages the government’s monetary, banking and economic policies by fueling inflation. In fact, this plan will lead to the illegal production of currency, money laundering and money laundering, and the central bank will not be able to control the source of the car import currency. In the formal method of currency transfer, a company exports goods legally. With this export, it is committed to the Central Bank and the Tax Affairs Organization to meet its foreign exchange obligations and return the foreign exchange earned from exports to meet the country’s foreign exchange needs. In addition, the entry of foreign capital of Iranians or foreign nationals into the country with the import of cars is nothing more than a dream; Because these people will never convert their foreign currency assets into Rials, because it is not possible to convert the Rials of this investment into foreign currency and return such foreign currency investments after entering Iran. Importing a car without transferring currency has many escape routes, and Iranians who have foreign exchange capital abroad, instead of using it to import a car, are able to offer it in the Senate system and make the necessary profit. In this way, some people who have succeeded in acquiring foreign currency assets through illegal methods such as smuggling or money laundering, bring this currency into the country by implementing this plan and creating a market for speculation and money laundering.
What is the effect of imports without car currency transfer on the central bank’s supervision of the foreign exchange market?
Issuing a car import license without transferring currency will lead to the creation of an illegal network parallel to the central bank, and some people can import cars by paying digital currency in unconventional ways that are not subject to tax; This means that such people transfer their digital currency to countries targeted for car imports, which could lead to a warmer cryptocurrency market. However, due to such problems, the central bank has not even allowed the shortage of machinery and parts required by factories to be imported without transferring currency. With this process, the parliament’s decision to import cars without transferring currency has not been considered, and we hope that the Guardian Council will reject this part of the decision due to such problems.
Is it possible for any natural or legal person to import a car?
It is not possible to import cars by all natural and legal persons, because it requires passing the 85 standards that must be passed in the reference laboratories of the standard organization for a fee of 200 to 300 million Tomans, and finally cars imported by individuals may pass the mandatory standards of this organization. Does not. However, if several importers are allowed to mass-import a car brand and these importers are required to provide after-sales service, repair tools, spare parts, necessary training, etc., this method of car import by some people Or companies will be profitable; Because the customs randomly selects one of the 100 imported cars, for example, and by performing the necessary tests, gives permission to import the rest of these cars. With this process, importing a car by any natural or legal person with a limited edition will be uneconomical and very time consuming.
What is your opinion on determining the circulation of imported cars by the Competition Council?
The main problem with this plan is the entry of the Competition Council into the field of car imports. The question is that with the increase in the price of Pride from 35 to 150 million Tomans, what has this council done to the domestic car market that should also intervene in car imports? Determining the number of imported cars by the Competition Council once every 6 months is the source of corruption and the formation of a kind of false competition for car import. The result is the launch of the market for buying and selling car order registration sheets? If they want to give quotas to different people to import cars, it will also lead to the heating of the golden signature market.
Can this plan reduce the price of domestically produced or imported cars?
If the basic problems of this plan are solved, it can affect the market of imported cars; However, the impact of this plan on the market of imported cars also depends on the number and price of imported cars. But the car import plan will be ineffective in reducing the price of domestic cars, because by existing standards, importers can not import cheap cars that compete with these cars, and the price of an imported car in this way is about 10 to 12 thousand dollars and other costs more than It will be 400 to 500 million tomans, which can only be a competitor for some Chinese or assembled cars in the country. In order to organize the market for low-volume cars, it should be allowed to be offered in the margins of the market in order to prevent the supply of double rates and rents resulting from the current way of selling cars.
Given the conditions of production and the market, is it possible for individuals to export cars and parts?
Although it is possible for some traders to export cars and parts by examining the export markets, but considering the conditions of production and supply of multi-price cars in our country, such a possibility is weak. Despite this goal, the production of 3 million vehicles in our country is not possible; Because the market needs for cars are not more than one million units, and if such a growth in production is realized, it should be possible to export it or absorb this surplus by implementing projects such as replacing worn-out cars, otherwise the existing conditions can be exported by supplying cars from car companies. Or the car market with competitive prices in export markets is very low.
What is the probability that car manufacturers and parts manufacturers will enter the field of car import?
In a situation where automakers are faced with defective vehicle depots on production lines due to shortage and high cost of raw materials and parts and losses due to competitive pricing ordered by the Competition Council, and on the other hand have an extensive after-sales service network, automakers and parts manufacturers may export their products to Car imports are driven, too much. Nevertheless, we should wait for the review and possible changes of this plan in the Guardian Council; However, given the drawbacks and ambiguities, approval of the plan by the Guardian Council is unlikely.
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