U.S. Import and Export Compliance Considerations

Next time you turn on your car’s windshield wipers, you might want to take a minute to consider the global journey those wipers very likely took to arrive on your windshield.

Today’s automobile parts supply chain, both for new car manufacture and replacement parts, is more global, with parts moving around the world faster and with greater precision than ever before.

At the same time, it’s important to note the fundamental changes taking place within the auto parts sector.

On the one hand, the Wall Street Journal reports that U.S. auto production is “nearing all-time highs,” with strong domestic and international demand fueling a tremendous comeback of the U.S. auto industry.

But, the Journal notes, those U.S.–made cars are built from record-high levels of imported parts.

The Ford Escape, for example, includes 55 percent of U.S. and Canadian parts in its 2015 model, down from 90 percent used in 2010 models.

Similarly, the U.S.-built Honda Accord contains 70 percent domestic parts, down from 75 percent.

U.S. auto manufacturers imported a record $138 billion worth of auto parts last year, a figure the Journal equates to $12,135 of content in every American-made car.

Mexico and China lead the list of international auto parts suppliers. Mexican imports accounted for 34 percent of total imports during 2014, an 86 percent increase since 2008. China accounted for 13 percent of total auto parts imports, a level that has more than doubled during that same time period.