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Facing Challenges in Exporting Auto Parts to the U.S.? This Comprehensive Guide Will Help

In recent years, despite challenges such as trade friction, China's auto parts exports to the U.S. have maintained a steady growth trend. From January to August 2024, China's auto parts export value reached approximately 438.406 billion RMB, marking a 7.9% year-on-year increase and continuing its strong momentum. Key exports include critical components and consumables for traditional fuel vehicles such as braking systems, transmission systems, and engine parts. Additionally, exports of new energy vehicle parts, including batteries, motors, electronic control systems, and charging stations, have also been on the rise. Here, we present a comprehensive guide to exporting auto parts to the U.S., offering valuable insights to support your export journey.

Exporting auto parts to the United States

I. Process Guide

1. Contract Signing

Enter into a detailed international sales contract with U.S. importers, clearly defining both parties' rights and obligations, including product specifications, quantity, price, delivery schedule, and payment terms.

2. Document Preparation

Prepare essential documents such as commercial invoices, bills of lading, packing lists, and certificates of origin. Additional certifications, such as quality inspection certificates or export licenses, may be required for specific products.

3. Packaging and Labeling

Choose suitable packaging materials and methods based on product characteristics and transportation requirements to ensure the products remain undamaged during transit. Label the products and packaging in compliance with U.S. regulations and importer requirements, including information such as product name, specifications, quantity, origin, and manufacturer details.

4. Booking and Transportation

Select appropriate carriers for sea, air, or land transport and book shipping space. Arrange for the cargo to be transported to the designated port or airport and complete shipping formalities, obtaining transportation documents such as bills of lading.

5. Export declaration

Submit export declarations to the local customs office within the required timeframe, along with relevant documents such as declarations, commercial invoices, packing lists, and contracts. Cooperate with customs for inspections and reviews. Upon approval, completeExport tax refundprocedures.

6. Import customs clearance

Upon arrival at the U.S. port, the importer handles customs clearance. They must submit relevant documents, such as bills of lading, commercial invoices, packing lists, and certificates of origin, and pay duties and other taxes. U.S. Customs inspects and reviews the goods to ensure compliance with import regulations.

7. Delivery of goods

After customs clearance, the goods can be delivered to the importer or their designated consignee. Arrange for inland transportation and delivery according to the agreement between both parties.

II. Regulatory requirements

1. Motor Vehicle Safety Act

It is stipulated that the National Highway Traffic Safety Administration (NHTSA) of the United States will be responsible for the management of automobile after-sales and repair parts, and implement a "self-verification system" (DOT certification), requiring companies to ensure that their products comply with relevant US standards.

2. National Traffic and Motor Vehicle Safety Act

Provisions are made for the discovery, notification, recovery and management system of defective vehicles.

3. Clean Air Act

A series of management technical regulations have been formulated separately for automobile emission control, mainly including automobile technical regulations on emissions and noise of components.

4. State and Local Regulations

States and local jurisdictions in the U.S. can set their own safety laws and regulations as long as they do not conflict with federal standards.

III. Certification Standards

1. DOTCertification

A mandatory certification from the U.S. Department of Transportation for vehicles and parts sold in the U.S. Products must carry the DOT marking and comply with safety standards across areas such as auto parts, tires, and lubricants.

2. EPACertification

An environmental certification targeting emissions performance, applicable to diesel/gasoline engines and components. Companies must submit technical specifications, test reports, and undergo rigorous laboratory testing and on-site verification.

3. FMVSSStandard Certification

The Federal Motor Vehicle Safety Standards (FMVSS) define minimum safety performance requirements for vehicles and equipment. These include safety-critical components like tires, lights, brake hoses, and crash performance standards.

4. ULCertification

For automotive electronic parts involving electrical safety, UL certification ensures compliance with safety and performance standards, often requiring extensive testing.

5. FCCCertification

Automotive devices using radio frequency technology must obtain FCC certification to ensure electromagnetic compatibility and compliance with radio frequency regulations.

IV. Export Challenges

1. Trade Friction and Tariff Barriers

The U.S. imposes high tariffs on some Chinese auto parts, with rates ranging from 25% to 60%, increasing export costs and reducing price competitiveness in the U.S. market.

2. Stringent Technical Regulations and Certification Requirements

The U.S. continuously updates and refines safety and environmental regulations such as DOT, EPA, and FMVSS certifications, requiring significant time and financial investment to ensure compliance.

3. Intense Market Competition

The global auto parts market is highly competitive. In addition to international rivals, U.S. domestic auto parts companies are advancing in innovation and development, necessitating constant improvement in quality and technology from Chinese companies to remain competitive.

If you have further questions or need additional support, feel free to contact Zongdai Service!

Thailands automotive parts market explodes, mastering export links is key
? Previous January 7, 2025
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