Tuesday, July 17, 2012

Trading In Car Parts

Recent reports suggest that automotive parts import total value was around $90 billion in the year 2011 mostly from Mexico, Scotland, Japan, Germany, and China. Of these countries, the share of import from China is growing rapidly over the last few years.

There are two types of automotive parts that are imported, the first type being the bulk import of parts to be supplied to merchants and automotive service centers. In this type the most popular consumable parts like brake shoe, tires, head lamps, automotive electronics etc are made as per the OEM specification and imported by registered importers.

Second type is the import of custom parts and rare parts that can be obtained only from a foreign producer. This does not involve bulk volumes, but it does involve cumbersome permit and import licenses.

Importing car parts from China seems to be a good enterprise proposition now. Considering the 2009 recession, the automotive industry is on the up beat and it is in fact good to get into a new enterprise when that industry is on the upward progress curve.

Rules On Auto Parts Importing

Before you decide to start out importing car parts into the USA, make sure that your producer makes parts that conform to the Department of transportation (DOT) and Environmental Protection Agency (EPA) regulations.

To import auto parts, you have to be first licensed as an importer with Department of transportation. Then you need to get a DOT and EPA release for the parts you want to import. Environmental Protection Agency (EPA) plays a role in the emissions from engines and Federal Trade Commission (FTC) looks after packaging, promoting and labeling in automotive parts.

Most of the imported auto parts must meet the FMVSS requirements and should be certified by the producer. Safety parts like child restraint systems, rear impact guards, warning devices and brake hoses must be manufactured to the FMVSS specifications before they are allowed to be imported to the USA.

Japanese Car Parts

Japan is the market leader and technical innovators in the Automotive field in the past century, so importing Japanese car parts may be necessary in some circumstances. It might seem intimidating at first, but concentrate on the specifics of import procedures, regulations, emission norms and how you pay for the imported parts.

Authenticity of the auto parts and current updated data are important aspects when importing auto parts from Japan.

Chinese Car Parts

Due to Chinese Government's support for their part producers, China is establishing its presence in the auto parts market of the USA. One of the main parts to be imported from China is the Automotive Tires because of the price difference between US and China rubber raw material.

China is also trying hard to make all auto parts just like it is doing in any other manufacturing market and will very soon replace Japan as the foremost automotive parts supply. Like in every single other Chinese industry, be aware that there are plenty of fake producers and goods made below requirements are prevalent here.

Importing authentic auto parts at the correct price needs a lot of research and experience. If your import enterprise is related to the automotive Industry, you may as well register as a parts importer too. Make sure you deal with the right agencies and the parts you import are of high quality. Sourcing auto parts may be necessary only when there are compelling good reasons like lower price and better availability.