Scrapping Process for Old Trucks Needs Reform; Where Is the Bottleneck in Renewal?

A trade official said the requirement to buy an old truck and provide a scrappage certificate to register an order has made renewal difficult. Their proposal is a payment of 5% of the customs value and a 10-year ban on selling imported trucks.

According to Mehr reporter, the modernization of the country's commercial fleet, especially the trucks active in international transportation, is considered among the requirements to improve productivity, increase the competitiveness of Iranian companies in foreign markets, and comply with the standards of the destination countries. However, the scrapping process of worn-out trucks and the requirements for obtaining an order registration permit are still among the issues that activists in this field want to review and facilitate.

In this context, Ehsan Malekzadeh, the Chairman of the Board of Directors of the Trade Union of International Transport Companies of Iran, in a conversation with the Mehr reporter, emphasized the necessity of modernizing the country's road transport fleet, and announced the submission of proposals to the Trade Development Organization to facilitate this process, and said: the requirement for applicants to buy used trucks and provide scrapping certificates before placing an order is one of the obstacles to renewing the fleet, which has led to the formation of the market for buying and selling used trucks.

Explaining the proposals of this association to facilitate the modernization of the international fleet, Malekzadeh stated: The trade association of international transport companies of Iran has recently presented its proposals to facilitate the process of fleet modernization during a correspondence with the trade development organization.

He added: Some of these suggestions are also mentioned in the "P" paragraph incentives regulations, but the main issue still comes back to the scrapping mechanism of used trucks and how to get the related certificate.

the requirement to buy a used truck; An obstacle in the way of fleet renewal

Referring to the current process of fleet renewal, the Chairman of the Board of Directors of the Trade Union of International Transport Companies of Iran stated: In the current situation, to place an order, the applicant must first purchase an old truck, present it for scrapping, and after receiving the scrapping certificate, follow up the order registration process.

Malekzadeh continued: This requirement has caused the purchase of used and worn trucks to become a part of the renovation process, and as a result, the market for buying and selling these cars has been formed. While it is possible to facilitate the modernization of the fleet by modifying the executive mechanism.

Explaining the association's proposal in this regard, he said: Our proposal was that according to the correct text of the law, it would be possible to pay 5% of the customs value or at least receive a certificate related to this amount, so that the applicant can find the truck needed for scrapping at the right time and then carry out the legal procedures for renovation.

In the current situation, the applicant must first purchase an old truck, submit it for scrapping, and follow up the order registration process after receiving the scrapping certificate; This requirement has made the purchase of used and worn trucks a part of the renovation process, and as a result, the market for buying and selling these cars is formed.

The proposal to ban the sale of imported trucks for 10 years

Malekzadeh, referring to another consideration raised about fleet renewal, said: One of the concerns of the Trade Development Organization is that imported trucks will eventually be bought and sold and not necessarily used in order to increase the efficiency of international transportation.

He reminded: "To solve this concern, we have proposed to ban the sale of imported trucks for 10 years in order to provide the basis for the use of these vehicles in the way of fleet renewal."

The Chairman of the Board of Directors of the Trade Union of International Transport Companies of Iran emphasized the need to accelerate the implementation of modernization programs and stated: Even if the buying and selling of trucks is done inside the country, the fleet will eventually be renewed and the existing capacity to replace worn out vehicles cannot be ignored.

Referring to the number of trucks in the country, he said: Currently, there are about 600,000 to 700,000 trucks in the country. If we assume that 10 to 20 percent of this fleet has been modernized, considering that this amount has not yet been achieved, there is still a significant opportunity for modernization.

The necessity of strengthening the competitiveness of Iranian trucks in international markets

Emphasizing that the modernization of the road transport fleet is a necessity, Malekzadeh said: conditions must be provided so that Iranian trucks can operate with greater strength outside the borders of the country and the possibility of a more effective presence in international transport for the country's fleet.

In response to a question about the effect of wear and tear of trucks on the possibility of their traffic in other countries, he stated: the wear and tear of the fleet can definitely affect the international traffic of trucks; Because different countries have specific standards for commercial vehicles that must be followed.

Referring to the requirements of European countries in this field, the chairman of the board of directors of the trade association of international transport companies of Iran added: European countries have considered certain standards for the traffic of trucks, and commercial vehicles must meet the specified conditions to operate in these countries.

In the end, he noted: Usually, trucks that operate on international routes have the necessary standards, but due to the difference in requirements between countries, if the desired standards are not met, there is a possibility of restricting the traffic of these trucks.