“Scrap metal is transported to the country under the guise of cars”
The “Autograph” magazine informed its readers that AADA, which unites official importers and dealers of approximately 40 foreign car brands, as well as local car manufacturers, has made a number of proposals to introduce new rules on car imports and improve the situation in the automotive sector in general. The letter was addressed to the Cabinet of Ministers and relevant government agencies.
According to the information received by our editorial office, the association received the first reply letters. What were AADA's proposals and how did the authorities respond? AADA Chairman N. Zarbaliyev clarifies these and other questions.

AG: How do you assess the composition of today's car fleet in Azerbaijan and in what direction does this composition change?N.Z .: Our research shows that the number of cars over the age of 10 in the country is dangerously close to the 1 million mark and makes up about 80% of the total fleet. Of course, if these cars are properly operated and serviced in a timely manner, they are still serviceable. However, if we take into account that more than 300,000 cars used in the country were produced 20 years ago, more than 130,000 - 30 years ago, and more than 100,000 - 40 years ago, it is not difficult to imagine the state of the total fleet.The problem is that the number of unusable cars is growing, not only due to the obsolescence of the domestic fleet, but also due to the already large number of imported vehicles growing every day. Although relatively new vehicles have recently been imported in large numbers, these are mainly cars that have either been in accidents or have previously been damaged or drowned. To see this, you do not need to go too in-depth, just stand at the "Meyveli" entrance for 30 minutes.Large numbers of vehicles do not meet any safety requirements and environmental standards. In most cases, neither the airbags work nor the "catalyst" is in place. As a result, the number of serious accidents is high, and the corridors of the oncology center are full of our citizens suffering from lung cancer. Let's say we were able to prevent old (by the year of manufacture) cars, but what about cars that were released only 5-6 years ago but got crashed in accidents?Can you imagine how harmful is the import of cars without hoods, doors, bumpers, and sometimes even fully ruined vehicles? These broken cars are then welded, painted and sold on the car market and various websites. In my opinion, a car imported from abroad should not be able to enter the country without a document confirming its serviceability. I would like to emphasize that I am not in favor of setting a penalty on previously imported cars currently in use, for example, due to the lack of a "catalyst" or an "air-bag". After all, it is not the fault of its owner: the car was imported, sold, inspected and registered by someone else; the buyer is simply a customer - not at fault.
AG: Regardless of income, everyone wants to own a car to drive their family around or use in their business. The prices of new cars are rather intimidating. What should one do then?N.Z .: In the letter we sent to the CM, we offered to look for answers to these questions together as well. First of all, there are specific reasons new cars are being sold at unaffordable prices. Let me list them. Restrictions on car loans from February 2014, two devaluations from January and December 2015 in connection with the global economic crisis, new excise taxes on cars from January 2015 and 2017, from January 2018 - new customs duty, from January 2019 - the introduction of another new excise tax…All of this has resulted in the price of cars doubling in the national currency, and many brands have become inaccessible to the majority of citizens. For this reason, the influx of old cars that have been decommissioned in foreign countries has begun in our country. It turns out that today, on the one hand, we are thinking about the program of utilization of old cars, and at the same time, we are transporting cars sent for disposal in Europe and America to Azerbaijan by double-decker trucks. In developed countries, recycling programs are implemented from time to time.The goal is to increase transport safety, improve the environmental situation, develop the local car industry and renew the car fleet. It turns out that the problem can be solved in a complex way. First of all, both the selling price of new cars and credit conditions must be affordable for the population. Only then can we talk about recycling and fleet renewal. An acquaintance of mine, who works as a taxi driver, complained to me that his car is old and often has to be serviced, costing 300-350 manat per month for repairs and spare parts. I asked if he would like to pay the same amount as a loan and drive a new car. Of course, that would be a dream come true, but the high price, 40-50 percent down payment, bank interest to be paid within 3 years make this dream unattainable.
AG: What are AADA's specific proposals?NZ: In the framework of the State Program on Road Safety in the Republic of Azerbaijan for 2019-2023, approved by the decree of the President of the Republic of Azerbaijan Ilham Aliyev, AADA members will undoubtedly take the issues of renewal, rehabilitation, road safety and improvement of the environmental situation as seriously as possible. Exploring ways out of the current situation, our association has developed a number of proposals to achieve sustainable development in the country's automotive sector, increase sales, increase the flow of taxes to the government, save jobs, and actively participate in the life of the country and society. The most important of them are:

1. Facilitation of the import of new cars from abroad (provided the protection of local manufacturers). Distinguish car loans from consumer loans, give banks freedom in the field of car loans, abolish the minimum down payment requirement. Improve regulations for the application of financial and operational leasing in the transport sector.
2. Promotion of the import and operation of new environmentally friendly vehicles, exemption of EV and Plug-in types of cars from all duties and taxes, import duty and VAT exemption of hybrid and CNG cars.
3. Application of graded import duties by year of manufacture of cars, ban on import of cars older than 5 years, development and strict application of homologation rules, regulations for imported used cars, complete ban on import of damaged cars, regardless of the year of manufacture. 
4. Creating a fair competitive environment for official dealers in the formation of a civilized second-hand car market in the country, simplification of procedures, abolition of VAT on used cars.
5. Prohibition of the import of counterfeit spare parts into the country, prevention of illegal use of trademarks.

AG: These are highly relevant proposals, they are indeed very interesting, what does the answer you received from CM say?NZ: This time we have received a detailed explanation, and I must say that this letter gave us a lot of hope, it turns out that the issues we raised are also in the focus of the relevant government agencies, and positive changes in the automotive sector should be expected soon.The reply letter reads: “Necessary measures to renew the car fleet in our country, stimulate the use of environmentally friendly vehicles, prevent the import of damaged and crashed vehicles, any spare parts, accessories and consumables that do not meet technical regulations, as well as increasing the number of cars with electric motors. We consider it expedient to discuss incentive projects for the import of motor vehicles into the country… »The end of the reply letter is as follows: "… We also note that the relevant proposals submitted in your application are being discussed with the relevant government agencies in the framework of the implementation of the State Program and the implementation of the National Priority"
Of course, the participation of representatives of the automotive sector in these discussions will only benefit the process. I’d like to remind you, that before this appeal, AADA conducted preliminary research and we are sure that if the relevant decisions are made on the basis of the proposals, the automotive sector of the economy, safety in transport, ecology, car culture in society, etc. will have a positive impact on the issues. It is clear that all measures to be taken must be thoroughly analyzed and economically justified, and AADA members are ready to work on this together.
Source: Autograph.az Online Magazine