Executive Regulations for the Enforcement of the Consumer Rights Protection Law in the sector of road construction machinery, agriculture, and related equipment.
The Council of Ministers, based on the provisions of Article 4 and the powers granted by Article 21 of the Consumer Rights Protection Law, passed by the Islamic Consultative Assembly on 7/15/1388, has approved the implementing regulations of this law in the "Sales and After-Sales Services of Road Construction, Agricultural Machinery, and Related Equipment" sector, referred to as "Machinery", in order to specify the obligations and duties of suppliers, intermediaries or sales companies, after-sales service intermediaries or companies, and authorized representatives in "protecting consumer rights" as follows.
Objectives: A) Determining the minimum quantitative and qualitative requirements for sales and after-sales services provided by suppliers of goods and related services. B) Obligating manufacturers and importers to improve the quality of products and meet the needs and expectations of consumers. C) Creating a competitive environment in meeting consumer needs.
Chapter 1 - Definitions, Scope of Application, Responsibilities of Suppliers
Article 1 - In these regulations, the following terms are used in the following meanings:
1-1. Sales Services: Refers to all services such as providing information about the quantitative and qualitative specifications of the product or service, sales terms and conditions, delivery of documents, complete and timely provision of equipment and accessories, delivery conditions, and transparent notification of all sales conditions, including the above conditions, which result in better and easier sales services to the consumer.
1-2. Sales Regulations: Rules, regulations, frameworks, and conditions related to the sale of goods determined by the Ministry of Commerce and communicated to all suppliers.
1-3. After-Sales Services: Refers to all post-sale services of a product, such as warranty and commitment, (service support, repairs, and supply of standard parts), which are the responsibility of the manufacturer or importer of the goods and ensure the proper functioning of the product.
1-4. Authorized Representation: A legal or natural person authorized by the manufacturer, importer, or service intermediary as an official representative, responsible for providing sales and after-sales services, and possessing a valid license and permit from the relevant authorities.
1-5. Service Intermediary: Refers to a legal or natural person who, during the guarantee and commitment period, is responsible for sales and after-sales services (through authorized representations) on behalf of the manufacturer or importer. The service intermediary may operate as part of the manufacturer and importer or as an independent company under the supervision of the manufacturer and importer and provide its own services.
1-6. Enforced Standards: These include government approvals, the Ministry of Agriculture Jihad, the Ministry of Industries and Mines, the Ministry of Commerce, standards approved by the Institute of Standards and Industrial Research of Iran, the Environmental Protection Organization, and various manufacturers and importers of machinery.
1-7. Standard Parts and Assemblies: Parts and assemblies that are covered by a factory, national, or concurrent standard.
1-8. Standard Technical Services: Repair services that comply with a factory, national, or concurrent standard.
1-9. Warranty Period Commitments: The set of promised services, including supplying standard parts, standard technical services, or replacement of the device, which are guaranteed to be provided free of charge by the manufacturer or importer within a specified period of time (working hours, working season, month, or year).
1-10. Commitment Period Commitments: The set of services including repairs, supply of spare parts, service support, downtime costs, and royalty fees that are committed to be provided by the manufacturer or importer within a specific period of time.
1-11. Warranty Certificate: A document that is delivered to the consumer along with the machine by the supplier and contains the commitments of the manufacturer or importer during the warranty and commitment periods. The warranty certificate specifies the description of consumable and depreciable parts that are not covered by the warranty.
*Note: The warranty certificate can be in the form of printed sheets, hardware and software equipment, smart cards, or other formats, provided that the mentioned specifications are observed and considered in these regulations.
1-12. Proper use of the machine: The appropriate use of the machine is in accordance with the specifications provided by the manufacturer or importer (including operating, maintenance, and similar instructions) as explained in the warranty and consumer user manual.
1-13. Consumer user manual: It is a collection in the Persian language that contains information such as specific and general specifications and features, a list of accessories and accompanying equipment, proper use instructions, service guide including inspections and periodic services, regulations for consumer rights protection related to the machine, a list of authorized sales and after-sales service network representatives, and other items determined by the manufacturer and/or importer. It must be provided to the consumer by the supplier at the time of delivering the machine.
1-14. Provision of a similar substitute machine: By providing a substitute machine (only during the warranty period), it means providing a similar machine or, if not possible, compensating for the loss of use of the machine (machine downtime).
1-15. Expert valuation price: The expert valuation price of the machine will be based on the opinion of the expert from the relevant field of the Official Judicial Experts Association (based on the first time the defect leading to machine replacement is announced).
1-16. Inspection company: It is a legal entity determined to evaluate the performance of the manufacturer, importer, sales intermediary, after-sales service intermediary, authorized representatives, in accordance with the applicable regulations and guidelines, prepare periodic and case reports, and provide them along with the necessary expert opinions to the relevant specialized consumer rights protection association and consumer protection organization, and manufacturers.
1-17. Safety parts: Parts that, if defective or faulty, may pose a risk of bodily injury or death to individuals and are subject to national mandatory standards and included in the list of safety parts.
1-18. Standard repair time and cost manual: This manual contains information on standard repair time, services, and estimated time-related costs at authorized representatives' locations and also at the machine's workplace. It is presented to the relevant support association by the manufacturer or importer for validation and approval before introducing any type of machine and annually.
1-19. Product price: The product price refers to the amount stated in the official sales document (invoice) issued by the supplier, bearing its seal.
1-20. Service Rate: It is the fee or remuneration received by service providers, post-sales service intermediaries, and authorized representatives in accordance with the regulations and guidelines of the rate-setting authorities and current legal provisions, in exchange for providing services to the consumer through the issuance of an official invoice.
1-21. Mobile Services: Emergency and repair services provided to consumers on site where the machine or related equipment is located, outside of authorized dealerships and at the location where the machine is stationed.
Article 2: The scope of application of these regulations includes all suppliers, including manufacturers, importers, sales intermediaries, post-sales service intermediaries, and authorized representatives of various road construction and agricultural machinery, such as loaders, bulldozers, graders, rollers, mechanical shovels, tractors, combines, and autonomous machines on farms, as well as various related equipment such as tractor trailers, pre- and post-harvest agricultural equipment, and equipment related to poultry farms, livestock farming, forestry and rangelands, fisheries, and aquaculture that are produced domestically, imported through official channels or free zones, or introduced into the country in compliance with current regulations.
Article 3: All importers and manufacturers covered by these regulations are obliged to comply with the provisions of other relevant implementing regulations of this law, obtain necessary permits, and adhere to environmental, safety, and quality standards, as well as the standards of the Iranian Standard Organization and Industrial Research Institute. They must fulfill all the duties and obligations mentioned in these regulations.
Article 4: The executive responsibility for implementing the provisions of these regulations lies with the manufacturers and importers of various machines.
Article 5: The responsibility for conducting periodic assessments of importing and manufacturing companies, sales intermediaries, post-sales service intermediaries, authorized representatives, and submitting periodic reports rests with the inspection company whose qualifications are approved by the Consumer Protection and Standardization Organization and the relevant Consumer Rights Protection Association.
*Note 1: The expenses of conducting inspections are the responsibility of the relevant consumer protection association and are covered by its budget.
*Note 2: The qualifications of the inspection company must be approved by the Iranian Standardization and Industrial Research Organization and the Consumer Protection and Standardization Organization. The inspection company must hold relevant certification in this regard.
Paragraph 3: Until the formation of specialized support associations, the determination of inspection companies is done by the Consumer Protection Organization, and the cost of evaluation is borne by the manufacturer and importer.
Article 6: The responsibility for addressing consumer complaints and enforcing their rights and satisfaction with the services provided during the "guarantee" and "commitment" period initially lies with the supplier. In case of a dispute between the supplier and the consumer, the matter shall be pursued according to the provisions of the third, fourth, and fifth chapters of the Consumer Rights Protection Law passed on 15/7/1388 (October 7, 2009), as well as the implementing regulations and relevant guidelines.
Chapter 2: Duties and Responsibilities in Sales Services
Article 7: Suppliers are required to comply with all regulations, rules, and guidelines related to various types of sales (cash, installment, leasing with conditions for ownership, etc.) and pricing.
*Note: Regulations, rules, and guidelines related to sales services announced by official government and non-governmental authorities should not contradict the Consumer Rights Protection Law and its implementing regulations.
Article 8: Manufacturers and importers are obliged to adhere to the applicable standards regarding the safety, quality, health of machinery and related equipment, and ensure their compliance with the provided guarantee to the consumer.
Article 9: All manufacturers and importers are obligated to provide the required information and statistics upon request by the Consumer Protection Organization, consumer support associations, and relevant specialized associations.
Article 10: Entering into a sales contract with consumers is mandatory. The sales contract must include the specifications of the desired machine, the selling price, the profit participation rate, and late delivery penalties, the delivery date of the machine (specific day), and the names of all requested accessories by the consumer. The supplier is obliged to deliver the desired machine on the agreed-upon date in the contract while complying with the specified standards.
*Note: The supplier is required to provide a copy of the original contract to the consumer.
Article 11: Cash sales and immediate delivery are contingent upon the absence of any outstanding obligations on the same machine. The maximum delivery time is 30 calendar days after the contract is concluded. Delay in delivery (after 30 calendar days) will subject the buyer to pay delay damages at a rate of 5.2% per month (30% annually), calculated on a daily basis.
Article 12 - The producer or importer must obtain the relevant license from a committee composed of representatives from the Ministry of Commerce and the relevant support association before proceeding with pre-sales.
Article 13 - In pre-sale contracts, the producer and importer are obligated to pay profit-sharing from the date of receiving the deposit until the date of delivering the machine to the buyer. *Note 1 - The delivery time shall be determined at the latest within 30 calendar days after the date of depositing the supplementary amount (the remaining contract amount). *Note 2 - Delay in delivery shall incur damages to the consumer at a rate of 1 percent per month (12 percent annually), in addition to the profit-sharing stated in the contract, based on the total amount paid by the consumer. *Note 3 - In case of a change in the consumer's opinion regarding the type of machine and its related accessories, the price and the new delivery date shall be registered and signed by mutual agreement between the producer or importer and the contract parties. *Note 4 - In special circumstances where the producer or importer is unable to deliver the machine specified in the contract, obtaining written consent from the consumer for any changes in the contract is mandatory.
Article 14 - The consumer's withdrawal is accepted until 30 calendar days after the conclusion of the contract, but no profit-sharing will be granted. In case of announcing the withdrawal after one month, the repayment of profit-sharing will be calculated based on a maximum of 3 percent less than the profit-sharing stated in the contract, and the principal amount and profit-sharing will be refunded to the buyer within a maximum of 15 days.
*Note - If the principal amount and profit-sharing are not calculated and paid on time, the payment conditions must be based on the agreed contract terms (without deducting a maximum of 3 percent).
Article 15 - The provisions of this regulation apply to contracts concluded by the machine producer and importer, and the omission of these provisions in the contract text does not exempt the responsibilities stated in this regulation.
Article 16 - Non-payment of profit-sharing, delay damages in delivery mentioned in the regulation, and failure to fulfill obligations are subject to legal action and can be addressed in the mentioned authorities.
Chapter 3 - Duties and Responsibilities in After-Sales Service during the Warranty Period and Commitment Period
Article 17 - The manufacturer or importer of the machine is obligated to deliver the following documents to the consumer at the time of delivery: a user manual in Persian, warranty certificate in Persian, technical specifications (specific and general) of the machine, sales document, customer satisfaction evaluation questionnaire and survey, and the names and addresses of authorized representatives throughout the country.
*Note 1 - In addition to providing the user manual, the manufacturer or importer is required to conduct a training course for the consumer and/or their representatives, lasting at least one working day, to familiarize them with the use and maintenance of the machine.
*Note 2 - The machine's user manual and warranty terms, including the description of consumables and spare parts, are prepared and verified by the relevant support association in collaboration with the inspection company.
Article 18 - Compliance with the regulations stated in the warranty certificate and user manual is necessary for the consumer.
Article 19 - The minimum guarantee period for road construction machines is one year (12 months) or 1500 operating hours, whichever comes first. For agricultural machines, it is two years (24 months) or 2400 operating hours, whichever comes first. For other tools, attachments, and agricultural equipment, it is one year (12 months) or 1200 operating hours, whichever comes first.
*Note - The manufacturer and importer may extend the warranty period based on their trade policy and to enhance consumer satisfaction, subject to the relevant commitments. In this case, the details of the conditions must be clearly communicated to the consumer.
Article 20 - The warranty covers all parts and equipment of the machine, including tires, batteries, and electrical components, except for consumables and expendable items.
*Note - Replacement of consumables and expendable parts due to defects in any of the machine assemblies is the responsibility of the manufacturer or importer and is covered by the warranty.
Article 21 - Repair of the machine and associated equipment or replacement of parts resulting from damage caused by accidents or incidents that are not due to technical faults are not covered by the warranty.
*Clause - If defects in any of the components of the device cause an incident, according to the opinion and judgment of an official judicial expert, the relevant services are the responsibility of the manufacturer and importer. Article 22 - If the warranty repair of the device (which is not caused by damage from an incident or accident) takes longer than the specified time in the standard repair manual for both time and cost, the manufacturer and importer are obliged to provide a replacement machine of the same type, and if not possible, to compensate for the machine downtime as stated in these regulations. Article 23 - The period of machine downtime for compensation payment after the specified time in the standard repair manual, for all days of downtime (including both holidays and non-holidays, without considering internal processes of the supplier), begins and ends after the necessary repairs have been carried out and readiness for delivery to the consumer has been announced. *Clause - In the event that the consumer visits the authorized dealership or any other dealership for the second time to rectify a recurring fault, the downtime is calculated from the date of acceptance for compensation payment. Article 24 - For all types of machines, from the time the defect is reported by the consumer to the manufacturer, importer, and/or after-sales service intermediary or authorized dealership, or if possible, from the time the machine is delivered to the authorized dealership or after-sales service intermediary or the manufacturer and importer, for each day of downtime exceeding the specified time in the standard repair manual, the compensation paid to the consumer is equivalent to the value of the machine's non-operational status during that period, based on the opinion of an official judicial expert in the relevant field. *Clause 1 - If the downtime of any type of machine for potential breakdowns during the "warranty period" exceeds the specified time in the standard repair manual, for each day of downtime exceeding the specified time, the manufacturer or importer is required to pay one-thousandth (0.001) of the machine value according to the sales document, in addition to the previous amount. *Clause 2 - Regarding the payment of compensation for downtime under this article, the manufacturer or importer may act through their after-sales service intermediary. Article 25 - During the warranty period, if the consumer contacts the manufacturer, importer, after-sales service intermediary, or authorized dealership and it is not possible for the authorized dealership to completely rectify the machine's faults within the remaining period of the warranty, the supplier must, in addition to providing a written statement to the consumer, take necessary measures to rectify the defects under warranty at the earliest opportunity.
*Note: All services provided and parts replaced during the warranty period are subject to the warranty mentioned in these regulations.
Article 26: The manufacturer or importer is obligated to extend the guarantee period by the equivalent duration of any downtime exceeding the standard repair time.
Article 27: During the warranty period, loading, transportation, installation, and commissioning costs are the responsibility of the manufacturer or importer.
Article 28: The minimum service commitment period includes providing all spare parts and repair services for a minimum of ten years after the sale of the last device of the relevant type and model by the manufacturer and importer.
Article 29: During the warranty and commitment period, the manufacturer, importer, authorized after-sales service intermediaries, or representatives are obliged to accept all machines and equipment under their responsibility. The invoice related to the repair or replacement of all reported defective parts and assemblies by the consumer must be documented based on the information provided in the standard repair time and cost manual prepared by the manufacturer or importer and approved by the relevant support association in cooperation with the inspection company and presented to the consumer.
*Note: The importer, authorized after-sales service intermediaries, or representatives are obliged to accept all imported machines similar to those for which there is an official representation in the country and comply with all the regulations of this directive and the Ministry of Commerce in this regard.
Article 30: During the commitment period, if the rectification of defects in machines and equipment takes longer than the determined time in the standard repair time and cost manual, for each additional day of delay (on the farm, consumer site, or authorized repair shop), the payment will be made to the consumer based on the value of the non-operational device calculated over the time period according to the opinion of an official judicial expert in the relevant field.
Article 31: The manufacturer or importer must communicate the standard repair time and cost manual to their authorized after-sales service and representatives after its preparation and approval, so that the consumer's invoice can be issued based on it and delivered to the consumer. Authorized representatives should provide facilities to compare the issued invoice with the mentioned tables if requested by the consumer.
Article 32: The manufacturer and importer are obliged to require authorized representatives to guarantee their replaced parts and/or services for a period of 6 months or 500 hours, whichever comes earlier, by providing an invoice in accordance with the provisions of these regulations.
Article 33: Authorized representatives are obliged to accept machines and equipment subject to these regulations under any circumstances if they are unable to move due to safety reasons.
Article 34: If an authorized representative determines that a machine has another defect in addition to the defects listed on the acceptance form, they must contact the consumer and obtain their consent before repairing them.
Article 35: During the warranty period, authorized representatives must deliver hot spare parts to the consumer.
Article 36: If the consumer incurs any damage due to the use of non-standard parts by the supplier and/or due to poor quality repairs or negligence, the relevant supplier is obligated to compensate the consumer according to the provisions of these regulations.
Article 37: All services provided by the manufacturer and/or importer, whether free of charge during the warranty period or for a fee thereafter until the end of the commitment period, must be carried out in a mobile manner in accordance with the current regulations.
Chapter Four - Other Obligations
Article 38: The manufacturer or importer must take action to communicate these regulations to all authorized representatives through after-sales services and through them.
Article 39: The manufacturer and importer must prepare and communicate acceptance regulations, the workflow of services that can be provided, and the clearance procedure to authorized representatives, and supervise their proper implementation.
Article 40: Authorized representatives are required to install a dealership ranking sign (if obtained) in terms of consumer rights compliance, as well as a consumer rights sign that is visible at the reception area.
Article 41: The producer or importer subject to these regulations must provide the necessary implementation documents to provide services for each machine. This includes all technical instructions, repair manuals for different sections of the machines and equipment, training on the use of specialized equipment and special tools, either directly or through authorized after-sales service providers to all authorized dealerships.
Article 42: The producer or importer must supply the necessary tools, equipment, and spare parts required by authorized after-sales service providers and dealerships for new machines and equipment. They should also provide the necessary training for their technical staff prior to delivering the machines to the consumers.
*Note: The operator and service personnel introduced by the buyer must undergo the provided free training and obtain a certificate of completion from the source designated by the producer and importer in order to operate the equipment. This certificate is necessary for providing warranty services.
Article 43: The producer or importer is obligated to establish a system for timely supply and distribution of spare parts to authorized after-sales service providers and dealerships and monitor the required spare parts.
*Note: The producer or importer must provide secure access to the mentioned system for relevant governmental and non-governmental authorities to protect consumer rights and support suppliers.
Article 44: The producer or importer must establish a parts tracking system, especially for safety components installed on the machine, so that in case of identifying any technical defects in any group of installed parts that may cause damage, there is the possibility of recalling the relevant machines and rectifying the said defect.
Article 45: The producer and importer are obligated to establish a consumer complaint resolution system within the company and all authorized dealerships, and provide periodic performance reports to the designated inspection company.
*Note: In the aforementioned system, the final determination of the consumer complaint should not exceed seven working days from the receipt of the complaint by the supplier.
Article 46: The producer and importer must establish a system, either directly or through sales intermediaries and after-sales service, for compensating consumers for damages in a manner that informs the consumer about the extent and method of receiving compensation.
Article 47: The producer and importer are obligated to implement and coordinate a customer feedback system through authorized representatives under the supervision of the Inspection Company. They must also reflect a version of the reports to the Consumer Protection Organization, manufacturers, and relevant support associations and apply effective corrective actions based on the results obtained.
Article 48: The producer and importer are required to establish a monitoring system for authorized representatives according to the defined responsibilities in these regulations and implement it at specified intervals.
Article 49: The producer and importer must develop and implement guidelines for the appointment and termination of authorized representatives based on specified criteria.
Article 50: The producer and importer, either directly or through sales intermediaries and after-sales services, are required to take measures to incentivize and penalize authorized representatives during the warranty period based on the return rate of products (unrepaired defects).
Article 51: The producer and importer have the right to transfer or use a reclaimed vehicle before repairing it. The transfer of the vehicle after repair, with explicit declaration of repaired or unrepaired defects in the transfer documents, is permissible.
Article 52: Providers are obliged to determine their service fees in accordance with the pricing regulations and guidelines of the Ministry of Commerce (Consumer Protection and Manufacturers Support Organization), oversight commissions, and other legal authorities.
Article 53: In case of any failure to fulfill obligations, the monetary equivalent of the unfulfilled commitment is determined as the value of the violation by the relevant support association. If necessary, it will be handled in government disciplinary branches and may result in a verdict.
Note: If it is not possible to use the entire machinery set due to defects and shortcomings, and if the producer and importer fail to take appropriate action and safeguard consumer rights, the total value of the machinery or related equipment will be considered as the value of the violation.