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Compilation of Foreign Remanufactured Parts Import Restrictions

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US Department <strong>of</strong> Commerce, Office <strong>of</strong> Automotive Affairs <strong>Remanufactured</strong> <strong>Parts</strong> Global Report<br />

Subject: Regulations for importation <strong>of</strong> remanufactured, rebuilt, and/or used motor vehicle parts<br />

and the market prospects for such products.<br />

1. This is an action cable and has been cleared by both Commerce and State.<br />

2. Background: the U.S. automotive parts remanufacturing industry was estimated to account<br />

for about $30-35 billion in sales in 1998. The world market is estimated to be over $65 billion.<br />

Recently the president <strong>of</strong> the U.S. Automotive <strong>Parts</strong> Rebuilders Association (APRA), Mr.<br />

William Gager, asked the Office <strong>of</strong> Automotive Affairs if it had any information regarding which<br />

countries prohibit and/or otherwise restrict imports <strong>of</strong> remanufactured motor vehicle parts.<br />

Specifically, he stated his members are unable to export their products to Brazil, Argentina, and<br />

Colombia. Mr. Gager wanted to know which other countries did not allow remanufactured parts<br />

into their markets, and also which countries might be the best prospects for his members=<br />

products.<br />

3. For the purposes <strong>of</strong> this request, we consider remanufactured or rebuilt parts to be motor<br />

vehicle parts which have been fully reconditioned to original factory specifications. Used parts<br />

would be parts which have been removed from a vehicle and no additional value added has been<br />

performed with the exception <strong>of</strong> cleaning. However, we assume all countries treat<br />

remanufactured or rebuilt parts as used. If this is not correct for any particular country, please<br />

state how used and remanufactured parts are treated differently (rate <strong>of</strong> duty, importation<br />

allowed/not allowed, etc.)<br />

4. This request is somewhat similar to the action cable sent to all posts ( r 301606z apr 98) by<br />

Mr. John Bodson. However, that request is related to used equipment and not auto parts. We<br />

are aware that in many countries, a used product, such as a vehicle, may be treated differently<br />

from a used part for a vehicle, such as an engine or water pump. Wherever possible, we have<br />

used the information each post provided to Mr. Bodson, but little data/information were found<br />

specifically for used motor vehicle parts.<br />

5. In addition to information concerning outright bans, differing rates <strong>of</strong> duty, or other<br />

conditions on the importation <strong>of</strong> remanufactured auto parts, the U.S. parts remanufacturing<br />

industry is seeking information concerning the structure and status <strong>of</strong> each country=s parts<br />

remanufacturing industry. For example, if the remanufacturing industry is well developed, its<br />

emphasis would be on selling equipment, supplies, and possibly components for remanufacturing<br />

replacement parts. However, if very little rebuilding is occurring in a particular country,<br />

remanufactured parts exported from the U.S. would be a more lucrative area.<br />

6. Please respond to the questions (and any additional information/data you might provide) as<br />

follows:<br />

91

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