What are the consequences of banning the import of foreign goods with domestic samples to the hardware market?

What are the consequences of banning the import of foreign goods with domestic samples to the hardware market?

Supporting domestic production in the style of banning foreign goods is one of the policies that the government has pursued more than ever in the last year or two, and now in recent days, a number of comments from government officials show that they intend to Insist on this policy more firmly; The policy, which according to experts and economic activists in this field, contradicts the basic principles of economics and management and will lead to higher prices and more smuggling in the country. They also say that these policies are a misunderstanding of the recommendations of the leadership as the highest authority in the country.

During a visit to the production line of the selected industrial group, the Deputy Attorney General emphasized that LG and Samsung have no right to enter Iran. During the visit and in front of reporters, he said that Iranian goods have achieved world quality and therefore the judiciary and the orders of this institution have been emphasized to prevent the import of foreign goods that have similar domestic production. After that, “Jamal Arvanghi”, the technical deputy of customs, emphasized that they are an executive body and not a legislator, and announced that according to the instructions given to them, the import of goods of similar national production is prohibited and the importer must Take the goods out of the country for three months. All these remarks in the early days of the new year indicate that the Ministry of Industry last year said that they want to support national production and that “the principle is not to import foreign goods” is to be taken more seriously in the new year.

The ban on the import of foreign goods or the increase in customs tariffs in order to support domestic production in some industries has paid off, and a clear example is the automobile industry in the country, which has been associated with many problems since the implementation of this law. Since many imported products fall into the category of parts of the ICT sector, activists in the field fear that problems like last year or more will plague activists in the field. “Customs statements smell like blood,” they told Digito.

It smells of blood

“These decisions contradict the most basic principles of economics and management.”

In an interview with Digito, Mohammad Reza Faraji, president of the Tehran Computer Technicians Union, acknowledged that these decisions contradict the most basic principles of economics and management. “Unfortunately, the most superficial interpretation of this order has been made, and the fire management at the disposal of some officials is causing a large number of consumers and businessmen to suffer at the expense of a minority,” he said, referring to the leadership’s statements in support of national production. . Nowhere is it said to destroy the merchants in order to support the producers or to make the market suffer from a shortage of goods and expensive goods, and as a result, consumers suffer. “The consequences of the government’s policy, however, go back to exactly this.”

Asked how the policy of not importing foreign goods would make the market more expensive, he told Digiato: It becomes. The mentioned producer, however, in practice can not meet the needs of the market as a whole, and therefore its own material becomes scarce in the market, and the same Iranian and national material reaches the consumer at a higher price. Foreign goods also enter the country in the form of smuggling, without supervision and guarantee, reach the customer at a multiplier price. “Where does this benefit the country’s economy?”

Some manufacturers claim that they meet the needs of the market, but this claim is not verified.

Asked if the veracity of the manufacturers’ claims to claim the ability to produce goods were being weighed, Faraji told Digito that this was an unanswered question for them as well: “I have said many times in meetings with friends and officials that Ask us to provide you with a free expert to verify these claims. The expert of the Ministry of Silence enters a place where several male and female workers are sitting with a screwdriver and cannot properly evaluate the mentioned claim. “Unfortunately, this cooperation does not take place.”

“Last year, it was said that things like CPUs are also domestically produced …!”

“Last year, it was said that things like CPUs were also domestically produced, and our businessmen had serious problems,” he told Digiato, referring to the many problems that the project created last year. I myself give billions of rewards to someone who produces CPU in Iran, why do we deceive ourselves when we can not produce a product and say we can? It is a commodity that countries like Germany also have difficulty producing. “Anyway, there is an industry everywhere. The Iranian carpet under the feet of Ilan Mask is also for Iranian carpet weavers and Anwar is not produced. The CPU is not a product that any country can easily and mass-produce.”

Have mercy on the producers themselves

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Asked if there were any problems between Iranian companies and manufacturers in this regard, Faraji told Digito: “Green Company, which is one of the best case and power manufacturers in the region, has brought factory machinery that has been around for several months. Remains in customs and can not clear them. Iranian manufacturers sometimes need machines and devices to be able to advance their production line with them. Green is currently selling its goods at the approved price, but because it has been forced to reduce its product line and sell less goods, its supply does not match demand, and its 600,000-toman bags have reached several million prices, without its own involvement. . »

Faraji says that Green Company has repeatedly admitted to him and in meetings with various institutions that they have never gone to stop the import of power and cases because they believe in competition: “They say that there must be foreign goods in the market in order to compete with it. “And they do not consider it right to eliminate a global rival.”

Faraji raises the issue that if one day a manufacturer says I produce cartridges, then what happens to the thousands of cartridge models on the market for different brands: “It is not possible to work in favor of manufacturers so easily and without any study; “You have to measure the market as well.”

“These policies bring with them pain, not cure,” he said, referring to customs talks and decisions. “We, in turn, have sent several letters in this regard, and other departments should also help to develop better protection policies.”

Smuggling is more to the detriment of the producer

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On the other hand, “Masoud Shokrani”, a member of the network commission of the Computer Guild Organization, in a conversation with Digito, acknowledged that these laws increase the problem of smuggling in the country and ultimately to the detriment of the Iranian producer:

“Sometimes smuggled goods are cheaper than domestically produced goods, with a $ 150 labor wage and the 4,200 tomans that some producers received. Why does this happen? “Because their supply is low and their goods are subconsciously expensive in the market, but Chinese goods are smuggled and have lower prices.”

Sometimes smuggled goods are cheaper than domestic goods, with a salary of $ 150 and a currency of 4,200 Tomans.

Shokrani says the law has sometimes led a low-capacity production plant to claim to produce a commodity and then take control of the market exclusively by banning imports of its competitors’ goods:

“In the meantime, sometimes there is a game broker and the current law opens the way for brokers. The government should not allow this to happen in industry. Such things almost happened in cars or appliances and now they can not collect the many problems behind them; “If the scope of these errors reaches all goods, both IT and non-IT, there will be a mess.”

A member of the Nasr Network Commission, in response to a question from Digito about whether the Nasr Organization had taken any action in this regard, said that they had several meetings with the institutions, but “unfortunately policies have been formulated by the ministries that need to be changed.” »

Shokrani emphasizes that they have suggested many alternative models during the meetings but have not gone far enough. Referring to the lack of student tablets last year, he told Digito: “When we saw that there was no way and student tablets did not reach the consumers who needed them, we launched a scan ourselves and were able to scan a few seedlings. “We will supply tens of thousands of devices, but this certainly does not meet the needs of the whole country.”

“If a company claims to produce a product or part, that company must be given a chance to prove itself.”

Asked if he finds this way of supporting national production troublesome, then what is the right way to do it, Shokrani told Digito that the support should be done step by step, not that the rules of trade change all at once:

“If a company claims to produce a good or a part, it must be given the opportunity to prove itself and be able to become self-sufficient in the production of that good or part. Believe me, Iranian companies tend to buy from Iranian manufacturers, but the problem is that under government law, a small producer suddenly falls on a market in the market and he can not fulfill his obligations properly. “We need to create better conditions for them little by little, and support them during this period so that they can reach the production stage.”

The member of the network commission believes that the creation of a working group in the Ministry of Silence consisting of members of Nasr, experts, relevant unions, supply commission and other carbald members should be formed so that they can make better decisions and have more precise policies to support local products. To be.

IT-based product discussion is separate from other products

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Manouchehr Parchami, an economist, told Digito that such laws are an ax to eradicate the country’s economy. He blames global violence with international companies to the detriment of the country’s economy and knowledge, and tells Digito:

“Food products are different from products like the IT field from earth to sky. In IT-based products, we need up-to-date knowledge and up-to-date equipment, but maybe a food item will not change in a hundred years. “All goods and products should not be placed in the same category for the government, and anything similar to what existed in Iran should be banned.”

Asked whether the departure of some foreign companies in Iran in recent years has not boosted national production, and whether we have really become self-sufficient in some goods, Parchami said: “The departure of foreign companies should be understood to some extent, however. They are not willing to leave the billion dollar market of the countries of the world because of the Iranian market with this amount of low purchasing power of the people to supply their branded goods. Their sales in the Iranian market were less than half, how can they be persuaded to continue their activities as before with this low sales in the shadow of threats from other countries? “Were conditions set for them, or did we just want them to stay in Iran despite the threats?”

Create wealth, by all means, not just production

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He says that terms such as self-sufficiency and independence have positive characteristics, but they can also be just as deceptive: “We should not think that self-sufficiency and independence come with world sanctions. The world boycotted us and we boycott them, what will happen in the end? Iranian businessmen are known around the world for finding a way to circumvent sanctions anyway. I know many importers who gambled their lives and imported technology goods such as servers into the country and are now under the most severe sanctions. “They are arrested wherever they go in the world, but they did it so that technology would remain in the country. Shouldn’t this group of businessmen be grateful to the producers as well?”

Pointing out that the main goal of the economy is not only “production” but also “wealth creation for all sections of society”, Parchami says that production is a means to an end, but not just an existing means: “what is higher productivity and therefore Prosperity brings with it wealth. More wealth and more income for the country will lead to cheaper markets and production lines; “It can be said that it will lead to a win-win situation for everyone.”

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