Details of tire import tariff increase
Details of the increase in tire import tariffs / change of import duties from 32 to 55 percent, the head of the Tehran Tire Traders Union announced the government’s decision to increase tire import tariffs from 32 to 55 percent and said: 45% of domestic demand will be met from imports.
He continued: “This demand has been raised while domestic producers in the best conditions can meet 55 to 60 percent of market needs and 40 to 45 percent of the country’s tires are supplied from imports.” And Tehran Filter Manufacturers added: “In a situation where domestic production can not meet the needs of the country, to make such a demand in a situation where the market is calm and stable, is an irrational and incorrect request.”
“Unfortunately, a significant part of domestically produced tires are not in good condition in terms of quality,” he said. “The competitiveness of the market has led to a balanced price of domestic and foreign tires. The consumer respected and gave them the right to choose.
Saadatinejad said: “Currently, smuggling has a small share of the market, but with the increase in tariffs, illegal imports will become economically viable and a significant part of legal imports will certainly be replaced by smuggling.”
He pointed out that the lack of control over illegal imports causes any type of product to enter the market, he explained: the entry of expired and stock tires is a serious threat to the consumer and in the event of tariff increases and subsequent increase in smuggling, the growth of traffic accidents is avoided. It will be impossible.
The official in charge of the union continued: “Another issue that should be considered is the lack of production of tires in the country, as the production of tires required for buses, heavy vehicles and mining vehicles is limited and some do not have domestic production at all. Consumers of these types of tires face serious problems.
He said that at present the price gap between domestic and foreign tires is reasonable and appropriate, he said: in case of tariff increase, the price gap between foreign and domestic passenger car tires will increase to 400 thousand tomans, and in the case of heavy car tires, doubling the price will be avoided. It is impossible.
Saadatinejad added: “Currently, domestic producers deliver buyers’ orders with an interval of 25 to 30 days, and if the tariff and price of imported tires increase, the demand for domestic products will increase, and due to the inability to supply the market in this sector, we will see an increase.” “We are going to be the prices.” They want to sell them at a loss to intermediaries.
The head of the union of sellers of rubber, oil, puncturizers and filter makers in Tehran said: “What is certain is that the importers provide the imported tires to the guild units based on the cost price and the guilds sell them considering the allowed profit and in the meantime increase the price.” It is imposed on consumers.
Emphasizing that the guilds support domestic producers, provided that they also pay attention to increasing the quantity and quality of their products, he explained: “Unfortunately, most of the tires are made of cotton and are produced with technology and machinery decades ago, while all imported tires are wired.” And are produced with the latest technology.
In the end, Saadatinejad said: “All imported tires are from reputable brands of European countries and the import of Chinese tires has been minimized due to low quality.”