Full details of import of used cars

A few days ago, it was approved that importers can import used cars. Read on for the full details of used car imports.

A few days ago, the House of Representatives approved the plan to import used cars during a public meeting. Now the new conditions for the import of the mentioned cars have been announced and should be taken into consideration by the importers. The complete details of importing used cars include obtaining various permits and approvals, which we will discuss further.

Full details of import of used cars

In the first place, for the import of used cars, it is necessary to register an order with the Ministry of Industry, Mining and Trade and get the relevant license. Among the other licenses that importers must obtain, we can mention the standard and environment and then the approval of the central bank.

Used cars are foreign cars that have been manufactured for at least five years. According to the resolution published by Baharestanis on June 28 of this year, the following items will be added to the Automobile Industry Organization Law approved in 1400 and its subsequent amendments.

Article 11 of this decree states that in order to regulate the car market, the import of used cars is allowed. In Note 1 of this article, it is mentioned that for the import of second-hand cars, the transfer of technology subject to paragraph (2) and also paragraph (3) of Article 4 of this law will not be required. Also, based on note (2):

The executive regulations of this article include matters such as how to provide the required currency and support domestic production, the technical standards of these cars (less than 5 years old at the time of entering the customs) and how to verify them and the conditions of importation by natural and legal persons to The proposal of the Ministry of Industry, Mining and Trade in cooperation with the Central Bank of the Islamic Republic of Iran, the Customs of the Islamic Republic of Iran, the Environmental Protection Organization and the National Standards Organization of Iran will be prepared and approved by the Council of Ministers within a month after the law comes into force. The Ministry of Industry, Mining and Trade is obliged to send the report on the performance of this article every 6 months to the Industries Commission and the Deputy of the Islamic Council.

Also, in Article 12 of the aforementioned law, regarding the note (6) of the single article of the law, the calculation and collection of customs import duties, commercial profit, and taxes on all types of imported vehicles and road construction machinery and their internal construction and parts have been amended, and note (8) of the single article of the law It is deleted as follows:

According to note (6), the value of road construction machinery and vehicles that are allowed to enter the country (both new and used), every year after reviewing the available documents, including the price of the manufacturing companies or the price of the main dealers in third countries Or the market price (in the case of used machines and cars) will be determined by the Ministry of Industry, Mines and Trade in coordination with the customs of the Islamic Republic of Iran and will be the basis for calculating customs duties and taxes.

It is also mentioned in Article 13 that the use of the national standards of the country or the standards of the country of origin for the imported cars subject to this law is possible with the approval of the National Standards Organization of Iran and the Environmental Protection Organization. But what are the rules for importing used cars?

Second-hand import regulations

The first thing that attracts attention in the approval of the import of used cars is the import through natural and legal entities. According to what is stated in the Executive Regulations, the method of securing the required foreign currency and the issue of supporting domestic production, the technical standards of cars and their certification, as well as the conditions of importation by natural and legal persons and determining their qualifications, should be cooperated with the Central Bank, Customs and the Organization for the Protection of The environment and the national standard organization should be determined.

Two conditions were removed from the used car import bill in the parliament, the first one was related to the agency condition and the second one was technology transfer. At present, the import of used cars must be for production cars under 5 years of construction and must obtain the approval of the standards and environment organization.

According to what is stated in the resolution, the valuation of imported machines will be determined by the Ministry of Industry, Mines and Trade and Customs based on available documents such as the price of the manufacturing companies or the price of the main agencies in third countries or the market price.

Details of entry fees for cars

Car entry fees this year depend on the size of the engine and the type of fuel, as well as the driving force. For example, the entry fees for gasoline cars will be as follows:

• Gasoline less than 1000 cc (20%)
• Gasoline 1001 to 1500 cc (70%)
• Gasoline 1501 to 2000 cc (95 percent)
• Gasoline 2001 to 2500 cc (135%)
• Gasoline 2501 to 3000 cc (165%)
• Gasoline above 3000 cc (175%)

Also, the customs fees for importing used cars are:

• 9% value added tax on imported goods
• One percent of the entry fee as the Red Crescent fee
• Residual duties are half per thousand of the customs value of imported goods
• Import duties for petrol and hybrid cars amounting to 10% of the customs value
• Rial import duties for minibuses, buses, trucks, trailers, and rides
• Passenger car import duties amounting to 5% of FOB value
• 2% tax on account for individuals who do not have a business card