For decades, the automotive industry has been one of the most controversial fields of Iran market either in manufacturing and importation. This, as the experts say, is an obvious outcome of the exclusivity given in practice to the mega manufacturers who are still deemed as “associated to the government” in spite of their privatisation years ago. The experts believe that unjustified obstacles and prohibitions determined for importation of competitive cars is one of the most important reasons that the local manufacturers have failed to improve the quality of their products. 

In response to the growing public expectation to ease the importation of foreign vehicles, the government was impelled in number of occasions to show kind of sympathy. However, even the same highly conservative amendments in the relevant regulations, have usually faced with barriers tailored by the lower authorities in charge. An example for this, was a circular issued by the General Manager of Automotive Industries of the Ministry of Industry, Mine and Trade on 11 April 2023 that recently was cancelled as per ruled by the General Assembly of the Administrative Justice Tribunal. 

The “circular” was issued when an Iranian company intended to import a shipment of cars under the regulations of the Bylaw of Importation of Cars approved by the Council of Ministers dated 17 August 2022 that, inter alia, allows importation of foreign cars provided that their price is less than Euro 20,000. Upon filing the said company’s request with the Ministry of Industry, Mine and Trade for taking the relevant formalities, the General Manager of Automotive Industries of the Ministry issued an order indicating that (i) only the car manufacturing companies are allowed to import foreign vehicles (ii) for the same brands that they are engaged with their local producing. 

Using the laws and regulations available for objecting the approvals made by the administrative authorities out of the scope of their powers or in spite of a law or of an approval made by an upper authority, the applicant company brought a complaint before the Administrative Justice Tribunal requesting cancellation of the “circular”. The plaintiff argued that the “circular” was placing additional limitations to the conditions specifically provided by the Bylaw of Importation of Cars approved by the Council of Ministers on 17 August 2022. 

Upon filing the case and after having and conferring the explanations of the Legal Department of the Ministry of Industry, Mine and Trade (in defence of the “circular”), the General Assembly of the Administrative Justice Tribunal issued its final obligatory decision on 13 August 2024 indicating that the “circular” which allocates the right of importation provided under the Bylaw of Importation of Cars dated 17 August 2022 to the car manufacturing companies and for the same brands that they are engaged with their local producing, is inconsistent with the law and hereby cancelled from the date of its issuance. This is a link to the Judgment issued by the AJT: http://dotic.ir/news/17155

 

 

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