The Iranian parliament passes the law on organizing and importing cars

Nouraei & Mostafavi Law Offices -14 June 2022 -Tehran-Iran The spokesman of the Iranian parliament, notified the law for organizing and importation in the car industry to the president for implementation. This law was approved in the parliamentary session on 1400/08/26 (17 November 2021) and later ratified by the Expediency Discernment Council, which is the highest adjusting authority for legislation. 

Excerpts of the Law:

*The government is obliged to set customs duties for importing cars based on their engine size, fuel consumption plus the degree of causing pollution.

*Car in this law refers to all manner of passenger cars, pickup trucks, mini-buses, buses, trucks, vans, trailers and includes motorcycles.

*The government is allowed to impose duties on an escalating scale for owners of high fuel-consuming vehicles (relative to the volume of the cylinder) or the producers of vehicles with higher consumption than permitted, and to allocate the income from these duties to the expansion of public transportation.

*The import of cars is permitted from the date of notification of this law, in accordance with the implementation regulation proposed by the Ministry of Industry, Mines, and Trade and approved by the Council of Ministers, which contains the following conditions (as described in Article 4 of the law)1- Providing after-sale services and technology transfers.2- Determining the technical and professional qualifications of the importers and they’re having the official agency of the foreign automaker.3-On  Determining the ceiling of car imports with regard to market adjustment, supporting high-quality domestic production in addition to observing the country’s foreign exchange resources with the priority of consuming foreign currency for primary and essential goods.

Note 1- The import of necessary non-commercial items, of which the examples are determined by the Council of Ministers, is not subject to this article. Note 2- The ruling of this article is valid for a period of five years from the date of notification.

* The Ministry of Industry, Mines & Trade is obliged to provide the necessary grounds for introducing new automotive technologies for production in cooperation with reputable automotive companies in the world or as a joint venture with existing active companies.

* The Iran National Standards Organization  (INSO) for the purpose of implementing the approved standards on imported cars, domestically produced ones, and their spare parts, is annually obliged to plan adequately in order to prevent the import and production of cars that do not fulfill the above standards.

*Domestic car manufacturers are required to install a label indicating the percentage (ratio) of domestically produced parts on each of their units, in accordance with the instructions issued by the Ministry of Industry, Mines, and Trade.

* The Ministry of Industry, Mines, and Trade after this law takes effect is obliged to act on organizing and improving the quality of other imported and domestically produced heavy vehicles, including those for road construction, mining, agriculture, and natural resources.

* Carriage, freight, and passenger transport by motor vehicles will be prohibited in metropolitan cities after aging to the point of depreciation.

Source: Farsi Official Gazette dated 1401/03/24(14 June 2022)

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