A Trade Official: We Assemble a 15 Million Toman Foreign Washing Machine Locally and Sell It for 25 Million Tomans

A trade official in the home appliance sector states that "officials insist" on selling a locally assembled version of a 15 million toman foreign washing machine, which has "very high quality," for 25 million tomans, and they are also planning for its export. According to the newspaper "Donya-e-Eqtesad," Mohammad Hossein Eslami, the vice president of the Home Appliance Sellers Union, emphasized that "the reality is that we are importers of technology" and mentioned that "we assemble parts based on that technology, and interestingly, we want to export the same products." Eslami pointed out that "today we assemble a washing machine whose technology is imported, with a significantly lower quality than the original model; however, its price is higher than the global price of the product." He stated, "Currently, the price of a washing machine that has the highest global quality and is welcomed in many countries is $200, while Iranian washing machines with significantly lower quality are sold for no less than 20 million tomans." Restrictions and bans on the import and sale of foreign brands in the Iranian market, justified by the need to "support domestic production," have not only failed to strengthen domestic production due to the impact of other policies, including monetary and financial policies, but have also led to a decrease in the quality of domestic products and an increase in the smuggling of foreign goods. In October 2021, Ali Khamenei issued a ban on the import of home appliances to prevent the adverse collective consequences of individual decisions in the economy from crippling the people. This order was issued after the initial prohibition of home appliance imports until the end of 2021, following currency restrictions that began in 2018. A group of home appliance manufacturers requested Khamenei's support against the potential "opening of imports" of products from certain South Korean companies. In response to this request, Khamenei wrote to Ebrahim Raisi: "If this news - the opening of imports from two South Korean companies - is true, it means breaking the back of domestic home appliance companies that have just managed to stand on their feet. Please seriously prevent this problem." In justifying this order, the Fars news agency reviewed the restrictions and supports for domestic industries in European and American countries, a comparison made without considering political, economic, social conditions, individual and economic freedoms, and important development indicators to provide a "scientific and rational" basis for Khamenei's order. In March of the previous year, after Khamenei's order banning home appliance imports, the government newspaper reported that this order had turned into an opportunity for abuse instead of supporting domestic production and preventing currency outflow, and that home appliance imports would be allowed from the following year. The state newspaper "Iran" reported on March 21 that Khamenei's order resulted in either unguaranteed foreign home appliances available in the market or "substandard and sometimes unbranded products from underground factories." The newspaper emphasized that an even more painful event is occurring in the market, where second-hand foreign appliances are being refurbished in workshops and sold to the public as foreign products, a fact confirmed by some members of the Home Appliance Union. The report stated that in recent years, home appliance manufacturers have pressured policymakers that if imports are allowed, their industry will face a crisis. Since 2018, home appliance imports have been banned until the end of 2021. After the expiration of this decree, it was expected that imports would be allowed based on market needs; however, the Ministry of Industry, Mine, and Trade announced that producers, numbering over 1,500 small and large units, could meet market demand and even have export plans. Therefore, the ban on home appliance imports was once again extended.