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Import Safety
Description: Congress, the Administration, and the news media began to focus enormous attention on the safety of imported goods during 2007 after several incidents of defective products and tainted food found on shelves around the country. The most highly-visible incidents involving automotive products concerned importation of defective tires and fuses from China. Congress began to question whether national safeguards against the import of defective or dangerous products has kept pace with expanding levels of trade, especially imports from China of automotive and other products.
Status: In July 2007, the President established an Interagency Working Group on Import Safety to study and respond to the import safety problem, particularly with respect to China. In September, the National Highway Traffic Safety Administration (NHTSA) signed a Memorandum of Cooperation (MOC) with China’s National Development and Reform Commission (NDRC) to address issues related to the safety of Chinese motor vehicles and equipment intended for export to the United States. MEMA worked with officials from NHTSA and held a series of conference calls with members to discuss import safety. On October 1, MEMA submitted comments to the Presidential Interagency Working Group on Import Safety that recommended scrutiny of automotive safety products by non-manufacturer importers, full compliance with NHTSA “manufacturer of record” reporting requirements, and increased national testing capacity devoted to automotive safety products. On November 6, the Interagency Working Group on Import Safety issued its Action Plan for Import Safety. The planfocused largely on safety of imported food, toys, and consumer non-durable goods and did not make specific recommendations about NHTSA. However, two recommendations that could have implications for automotive suppliers include:
- Increased bonds by importers of record to reflect inflation and risk.
- Legislation to provide Customs Border Patrol authority to extend Security and Accountability For Every (SAFE) Ports Act reporting requirements to all modes of transportation.
Impact on Industry: There are no quantitative estimates of the cost of the import safety problem to U.S. industry. Manufacturers of parts and components regulated by Federal Motor Vehicle Safety Standards believe that imported low-cost, non-compliant, poorly made products have deeply penetrated the American market and over time have increased market share. American manufacturers that invest in product standards and testing are working at a disadvantage to foreign producers who do not comply with safety regulations.
2008 Anticipated Action: MEMA has several actions in process on this issue in 2008, including:
- Further discussion of recommendations from the Action Plan for Import Safety as some of the recommendations could be costly and impractical.
- Broader dialogue with NHTSA on safety and impact of aftermarket.
- Investigate possible role of NHTSA Office of Defects Investigations on broader safety objectives
- Work on data and testing standards for heavy duty friction materials; seek appropriations for testing. (MEMA is working with the Heavy Duty Manufacturers Association and the Heavy Duty Brake Manufacturers Council).
- Separately, AASA is working to develop a “standard of excellence program” and to educate customers on the risks of direct importation.
MEMA Staff Contact:
Leigh Merino
Director, Regulator Affairs
Phone: 202-312-9249
Email: lmerino@mema.org
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