Customs clearance is often where things get held up, and for automotive freight forwarding, the margin for error is slim. A wrong code, vague invoice, or unclear origin story can create a pile of problems at the border. If you’re moving parts internationally, you need more than freight coordination. You need to get the paperwork right.
1. Misclassified or Poorly Declared Parts
Automotive components are some of the most commonly misclassified items in global trade. The Harmonized Tariff Schedule (HTS) has a code for nearly every type of part and system. If you’re shipping brake pads, sensors, bumpers, or electronics, each of those has a specific code. Mislabeling them with a general “auto parts” description doesn’t cut it.
In 2022, global customs agencies flagged over 65,000 shipments due to misclassification errors. That added up to billions in delayed goods, unpaid duties, and post-entry corrections.
These mistakes often stem from outdated databases, unclear supplier invoices, or just guessing at the right code. When in doubt, companies should seek official guidance or use a broker who specializes in auto logistics.
Tips to avoid issues:
- Provide clear part descriptions with specific terminology
- Avoid catch-all phrases like “car parts” on commercial invoices
- Review your codes regularly, especially if your products change
2. Country of Origin Complications
Country of origin is about more than where a part was assembled. It refers to where the product was substantially transformed into its final form. In automotive, that is often not a simple answer.
For example, a wiring harness might include copper from Chile, sheathing from the U.S., and be assembled in Mexico. Which country counts? It depends on the rules of origin for the trade agreement you’re using.
When origin is declared incorrectly, it can cause a range of issues including disqualification from programs like USMCA or unexpected tariffs under Section 301. Some components even trigger anti-dumping duties depending on where they were made.
Common problems with COO declarations:
- Assuming the assembly location is always the origin
- Inconsistencies between invoice, packing list, and origin certificate
- Missing or incomplete certificates for preferential duty treatment
Customs officials are trained to spot inconsistencies. If documents do not align, the entire shipment can be held or penalized. In many cases, the problem could have been prevented by asking suppliers upfront for origin documentation or by working with a broker who knows the specific rules for your parts and markets.
3. Parts That Attract Extra Scrutiny in Automotive Freight Forwarding
Some automotive parts draw more attention from customs than others. If your shipment includes emissions-related components, safety devices, or high-risk items, expect additional documentation checks.
Emissions-related parts like catalytic converters, ECUs, and O2 sensors often need Environmental Protection Agency (EPA) compliance records. Safety-critical items such as airbags or lighting systems may require Department of Transportation (DOT) certification. And certain parts like steel wheels or bearings are subject to anti-dumping measures depending on the country of origin.
For example, the U.S. Department of Commerce has placed duties as high as 478% on some personal transport vehicles imported from China. [Source]
To reduce risk of customs delays:
- Gather all safety and compliance documents before booking the shipment
- Work with a broker who understands what flags different agencies look for
- Stay current on changing duties and trade investigations by product type
Final Thoughts
Customs delays are often the result of preventable paperwork mistakes. Whether it’s the wrong tariff code, an unclear origin claim, or missing compliance data, these issues are avoidable. But only if the team handling your freight knows what to look for.
If you are in need of an automotive freight forwarder, make sure you are partnered with experts who specialize in this industry. Missteps in documentation can quickly erode margins, disrupt customer expectations, and damage brand trust.
Practical steps you can take today:
- Audit your top-selling parts for accurate HTS codes and COO
- Talk to your customs broker about high-risk SKUs in your catalog
- Train your team to review invoices and documents before customs does
In the world of automotive freight forwarding, precision is not a luxury. It’s the price of entry.
