Tire Smuggling Rate Might Increase

Khodrocar – Price increments and outselling some tires dragged some car owners to the tire market to buy tires in advance, as they are worried that their desired tires might get more and more expensive and even rare.

The same story is a bit different for trucks and buses owners. They were striking recently due to some parts price increments, including tire and now they are more worried than before. Although tire is included in the list of essential goods and they have been told that their tires will be provided with government exchange rate but needless to say, there will be some middlemen and profiteer to take advantage of the opportunity.

Chairman of Transportation Committee of the cabinet, Shadnehr Kazemzade said before that 5 million tires are needed annually, out of which 1.5 million is produced domestically, 500 thousand required for transportation are imported officially and the rest is smuggled to the country.

Mohammad Mirabedini, Chairman of Tire Importers Association had warned before that tire import rate was decreased in the second two moth of this year in comparison to the last. He also warned that if the import rate decreases more than this, it would lead to increment of contraband and the tire market will face troubles as well.

Mirabedini referred to tire import figures of 2015 and 2016 with 108 thousand tons of official tire import along with 40 tons smuggled. There were no shortage in the market. Then in 2017 the number increased to 126 thousand tons that means there was less contraband. Now with the new import tariffs and expenses there will be a good ground for smugglers to take part in again.

Now the new regulations of commercial and heavy trucks tires along with domestic tire production was announced by ministry of industry, mine and trade.

”A system is created that is used to register the daily amounts of tire produced and sold in the country. This used to be done every month but now it has become a daily job. The import registration system has not opened up yet but authorities promised that it will be open today and it does not seem that we face a problem.” Said Mohammad Reza Taghi Ganji, chairman of Tire Industry Association of Iran.

"Any trouble in importing tire raw material will cause that much trouble in tire production. But there is no reason to be some sort of trouble in importing raw tire materials because tire is considered as essential goods and has its own dedicated facilities.” Said Ganji.

"Any tire that is not domestically produce in Iran is totally ok to be imported. Tires banned from import are those that local tire makers can produce them.” Said Ganji regarding the import ban of some tires.

"It is not just about tire industry but all the other fields experience the very same problem. Companies cannot sell their products more expensive. They sell their products with the predetermined price tag to their mass dealers and it is the dealers that either hoard the goods or sell them with a higher price tag. It is up to authorities to observe such acts.” Said Ganji regarding the high price tag of some tire sizes.

"Domestic tire makers are fully functional and the tire production rate has increased 10 percent comparing to the last year’s production figures. Tire raw materials have been added to the list of essential goods and we will have no problem regarding this matter.” He said.

Khodrocar – roughly 70 percent of required tires of the country is produced by local tire makers and other 30 percent is imported by official merchants. Some specific tires are banned from imports and it is now unclear how it would affect the tire market. Let’s have fingers crossed that this presses does not lead to contraband and people are not forced to buy smuggled tires.

Khodrocar Journalist: Sepide Ghazinejad

Khodrocar Translator: Shahab Anisi