Imported Cars Stuck in Customs in Iran

While thousands of imported cars are stored in Iran's customs, the status of their clearance remains uncertain. The Iranian government's cabinet recently allowed for the clearance of 13,000 cars held in customs and permitted the registration of orders for these cars without currency transfer. However, this faced opposition from the Central Bank Governor and the inability to register orders for some of these vehicles, ultimately leaving the clearance operations stalled. According to ISNA, based on a decree issued by the cabinet on January 6, 2023, the registration for the import of passenger cars (without regard to the year of manufacture) that had warehouse receipts in customs, free trade-industrial zones, or special economic zones by the date of the decree (January 6) was declared permissible without currency transfer and from the applicant's currency source with a declaration of the currency source to the Central Bank of the Islamic Republic of Iran, and it was decided that all previous vehicle orders (both bank and non-bank) would be canceled. The clearance of these vehicles could potentially lead to a slight decrease in the prices of imported cars in Iran due to the influx of new vehicles, and an increase in supply might help pull the Iranian car market out of stagnation. On the other hand, this situation could create a psychological atmosphere in the car market leaning towards price reduction. However, the clearance of these vehicles has hit a significant barrier from the Central Bank of Iran. Abdolnaser Hemmati, the Governor of the Central Bank of Iran, has opposed the clearance of imported cars that entered customs after August 7, 2018, stating that the government will not allow the entry of vehicles into customs without currency transfer from that date onward. According to Zoomit, an informed source stated that 'importing without currency transfer makes the source of currency for car imports unclear' and 'the recent decree by the cabinet allowing imported cars to enter the country without currency transfer will provide a new excuse for disorder in the currency market.' Following this, the Iranian government agreed to the proposed amendments by the Central Bank Governor regarding the clearance of vehicles in customs, and with the amendment made, the basis for the clearance of vehicles is entry into customs before August 6, 2018. However, Mehdi Dadfar, the head of the Association of Car Importers, stated that the new decree will bring more problems as it is unclear whether a customer who ordered or pre-purchased without currency transfer will be allowed clearance if the goods arrive a few days after the specified date. At the same time, it is unclear what will happen to the currencies, orders, and cars remaining in customs. Mr. Dadfar stated, 'The first decree was very effective and had the potential to completely solve 85 to 90 percent of the problems and would lead to the closure of 1,500 judicial cases, but now it can be said firmly that perhaps even 50 percent of all of them will not be resolved.'