How much does Tariffs Increment Help the Local Production
Increasing importation tariffs of tires have worried some of businessmen and importers but producers think that this increasing is right for supporting Iranian products. Which group is right in this situation, importers or local producers?
Khodrocar – About 70 percent of the country’s requirement is supplied by local producers and the rest is supported by importation. According to experts and governmental officials, producing some types of tires like mining tires, are not beneficial so it is better to import them into the country. Meanwhile, we are importing cars and buses, tires because there is a market for them in Iran. But the dollar and tariff increment are worrying importers. The car’s tire importation tariff has increased to 40 percent from 32 percent and for buses and trucks this number has increased to 26 percent.
"We have more than 20.3 million cars in the country expect from military vehicles and they need about 400 thousand tons of tires. Local production is 250 thousand tons and the rest of needs will support by importation. Right now, 40 % if car’s tire, 80% of buses and trucks Radial and 100% of constructing and mining, tires are supplied by importation. There is only one factory in Iran which produces bus and truck, radial tire and we don’t have any local production in any range of the car’s tires. " Mohammad Mir Abedini, the secretary of tire importers association told Khodrocar reporter.
"Tariff increment sets for those tires, which have local production and this is right because our companies are producing the same tire and the foreign one should have higher tariff.” Mohamad Reza Taghi Ganji told Khodrocar reporter. "Tariffs for those tires with no local production like special tires, remain at 4 or 5 percent and importers are using this advantage but they are saying that tariffs are increased.”"A long side of tariffs increment, producers and companies are increasing their prices for 8 to 10 percent. Also, dollar price increment is another reason for final price increment.” The secretary of importers association added. "We had 108 thousand tons of tires importation in the previous 2 years and 40 thousand tons are smuggled into the country. Last year the number reached to 126 thousand tons and that means the number of smuggled is lower. By today’s condition, smuggling is most economic beneficial way.
"For producing a tire, producers have to obey a national standard. Importers have their own standards and they shouldn’t import products with Iran’s standard and they have to import some tires with better quality. "Head of the tire industry association told Khodrocar. "Iran’s national standard is rewriting and after changes, local producers must obey imported tire standards too.”
"People can buy Iranian tires with lower prices. Tire’s importing tariffs increment is encouraging people to buy Iranian products. We are not asking to ban tire importation in order to keep customers satisfy. We have production in the section of bus and truck tires and Iranian factories have capacity to produce more tires and in this situation increasing the importation is not logical because the infrastructures are available.” Ganji said. "Iranian tires have highest international standards because Iran’s standards is a mix of European and American standards. As we said before, Yazd Tire has the standard of Europe and export tire to European countries and it means that they are really good in quality.
Importers, businessmen and local producers are struggling with their own problems but we hope to reach a stable economy condition to see the solvation of all problems in different fields.
Khodrocar Reporter: Sepideh Ghazi Nejad
Khodrocar Translator: Shahab Red
"We have more than 20.3 million cars in the country expect from military vehicles and they need about 400 thousand tons of tires. Local production is 250 thousand tons and the rest of needs will support by importation. Right now, 40 % if car’s tire, 80% of buses and trucks Radial and 100% of constructing and mining, tires are supplied by importation. There is only one factory in Iran which produces bus and truck, radial tire and we don’t have any local production in any range of the car’s tires. " Mohammad Mir Abedini, the secretary of tire importers association told Khodrocar reporter.
"Tariff increment sets for those tires, which have local production and this is right because our companies are producing the same tire and the foreign one should have higher tariff.” Mohamad Reza Taghi Ganji told Khodrocar reporter. "Tariffs for those tires with no local production like special tires, remain at 4 or 5 percent and importers are using this advantage but they are saying that tariffs are increased.”"A long side of tariffs increment, producers and companies are increasing their prices for 8 to 10 percent. Also, dollar price increment is another reason for final price increment.” The secretary of importers association added. "We had 108 thousand tons of tires importation in the previous 2 years and 40 thousand tons are smuggled into the country. Last year the number reached to 126 thousand tons and that means the number of smuggled is lower. By today’s condition, smuggling is most economic beneficial way.
"For producing a tire, producers have to obey a national standard. Importers have their own standards and they shouldn’t import products with Iran’s standard and they have to import some tires with better quality. "Head of the tire industry association told Khodrocar. "Iran’s national standard is rewriting and after changes, local producers must obey imported tire standards too.”
"People can buy Iranian tires with lower prices. Tire’s importing tariffs increment is encouraging people to buy Iranian products. We are not asking to ban tire importation in order to keep customers satisfy. We have production in the section of bus and truck tires and Iranian factories have capacity to produce more tires and in this situation increasing the importation is not logical because the infrastructures are available.” Ganji said. "Iranian tires have highest international standards because Iran’s standards is a mix of European and American standards. As we said before, Yazd Tire has the standard of Europe and export tire to European countries and it means that they are really good in quality.
Importers, businessmen and local producers are struggling with their own problems but we hope to reach a stable economy condition to see the solvation of all problems in different fields.
Khodrocar Reporter: Sepideh Ghazi Nejad
Khodrocar Translator: Shahab Red
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