The amount of contraband spare parts smuggled into Iran every year is the equivalent of all the money in circulation in parts manufacturing and after sales service.

Mohammad Bagher Rejal, who heads the Commission of Parts and Auto Set Manufacturers, believes that most of the parts smuggled into the country are counterfeit and thus cannot be imported or sold lawfully. He added that even though these smuggled goods have usually passed their expiry date, but they are cheaper in comparison with domestic products and are thus attractive to the consumer. Contraband imports are not taxed and their sale price in the domestic market is unsettled. This is the biggest advantage contraband products enjoy over legitimate imports.

Rejal clarified that while legal imports are reasonably marked up with consideration of their purchase price, contraband products can be sold at several times over their purchase price. Most states subsidize their producers to help them compete with foreign products, but Iran is not one of those states and this confirms the fact that the government still does not support exports.