NHTSA's Dan Smith addresses the safety and quality of globally sourced aftermarket parts at AAPEX

(Oct. 30, 2007) Statistics reveal that more than 850,000 importers from 150 countries around the world are importing $2 trillion worth of products into the U.S. annually. And that can be a big problem for importers, who under federal law are considered to also be the manufacturers of these products — and are responsible to initiate the recall of defective products.

Dan Smith, associate administrator for enforcement for the National Highway Traffic Safety Administration (NHTSA) addressed the risks and potential hidden costs associated with the global sourcing of automotive aftermarket parts at a seminar sponsored by the Automotive Aftermarket Suppliers Association (AASA) yesterday at the Automotive Aftermarket Products Expo (AAPEX) in Las Vegas. The seminar, "Ensuring the Quality and Safety of Aftermarket Products," took a hard look at the regulatory and civil issues connected to the importing of aftermarket products and how the aftermarket industry can work with NHTSA on these issues.

Smith cited the Foreign Tire Sales (FTS) recall of June 2007 as the event that polarized NHTSA as well as the automotive aftermarket.

"Foreign Tire Sales asked us to help with the recall of more than 450,000 tires after they realized the tires were defective," Smith says. "Unfortunately, there's nothing we could do to help them. Under law, they are considered the manufacturers of the product they import and they are responsible for conducting the recall."

Such regulations are often confusing to foreign manufacturers who want to sell their products in the U.S., Smith adds. NHTSA has created an active outreach program to make sure these companies are aware of the regulations and understand their responsibilities to the American consumer.

"The increasing pace of imports means increased scrutiny," says Smith. "Foreign manufacturers and importers need to understand U.S. standards."

Tires seem to be one of the hottest imports on the market. More than 46 percent of the car and truck tires sold in the U.S. last year were imported, with 23 percent of the imports coming from China. This contrasts sharply with statistics from just 10 years ago, when only 19 percent of tires sold in the U.S. were imported from other countries.

NHTSA's scrutiny seems to be paying off — in 2004, Smith says the organization recalled 30 million vehicles due non-compliant parts and or defects. Still, he says that NHTSA has to remain vigilant, and increase outreach efforts to major industry organizations as well as focused enforcement on certain key products. NHTSA also recently joined the Interagency Working Group on Import Safety, which was established by a Presidential Executive Order in July 2007, to investigate import safety and help craft an action plan for all foreign importers to follow in order to ensure the safety of their products.

"I think foreign manufacturers and importers have every incentive to get it right and comply with federal safety standards," Smith concludes. "They know a defect will affect their reputation and hurt their sales."