New Directives of Iran Auto Import Released

Reporting "Asre Khodro", Last year, with the implementation of Joint Comprehensive Plan of Action and lifting of sanctions, Ministry of Industry, Mine and Trade began developing new Auto import directives.
However, due to some foreign problems, during sanctions, some Auto import companies, had attempted to receive privileges of representing foreign Auto brands and import these products from their intermediary firms.
In this case, the new directives developed by the Ministry of Industry, Mine and Trade requires all auto importers to receive their representation licenses from the brand owner auto companies or the official representatives of the foreign companies.
Another crucial element in these directives is the obligation of auto import companies to establish production lines for imported cars in the country or to export locally manufactured cars or parts in exchange for auto import.
providing after-sales services by auto import companies and limiting foreign automaker companies to have only one business partner or producer in Iran, is the other requirement of these new directives.
The following text indicates full details of "Auto import directives and cooperation with foreign automakers" drawn up by the Ministry of Industry, Mine and Trade; according to the latest data, right now, the directives are being reviewed by market regulator center which is a subsidiary of presidential administration so that it can be presented to the cabinet for final approval: In order to regulate auto imports in the post- JCPOA environment and logistically support domestic production and prevent non-specialized importing of vehicles (causing consumer dissatisfaction), the Ministry of Industry, Mine and Trade, hereby states the import regulations of passenger cars, following the directives No. 60.248832 dated 02.19.2015 and No. 60.138063 dated 09.13.2015;
1. In the case of passenger car imports, according to Article 4 of the Law on Protection of Consumers' Rights Act 2009, all importers while observing Technical Regulations of importation of vehicles Act. 2003 and subsequent amendments are required to have equipment and facilities to provide after-sales services.
In addition, all importers must obtain an official certificate of representation from major producers or regional representatives having permission to offer representation to other; besides, they need to observe regulations and administrative provisions of the Law on Protection of Auto consumer rights (dated 04.16.2016 approved by the Council of Ministers).
2. Foreign companies in any category of vehicles shall only sign business and production contracts with one domestic company. (categories of vehicles include: passenger cars and vans, heavy cargo commercial vehicles, passenger-carrying commercial vehicles).
3. The registration of passenger cars in a full CBU form shall be permitted by observing the following conditions from the date of notification of this directive;
3.1. If the importer has manufacturing facilities in the country or has the ability to produce automobiles by contracting with one of the domestic manufacturers (with at least 20% of domestic production since the beginning), it can import vehicles for 50% of the value of its domestic production.
3.2. If the importer of the vehicles, does not manufacture any vehicles, personally or through contracts with domestic producers, it only can import vehicles for 40% of the value of exporting or domestically manufactured parts of vehicles, according to paragraph one.
4. Importing passenger vehicles with the same brand of the domestic production, solely shall be conducted by the same domestic brand producer, unless domestic producer declares their unwillingness to import. "