Importing tires from China to the USA. Guide

Mistakes during the importation can lead to big financial losses. Most people think importing products to the US is one of the most challenging jobs. However, it can be easier than you think, if you take the right steps with the right people.

There are some regulations that everyone should follow. The importers have to be aware of rules or work with specialists with experience.

According to the US department of commerce and the USTMA, domestic production of car tires fell by 3% in 2019, while imports rose by 3.8%. However, the overall shipments from China drop by 66.7% in 2019.

In this article, we will talk about steps that you should take during the importation of tires.

Most imported tires to the US must meet FMVSS (Federal motor vehicle safety standards). At the time of import, the certificate showing that tires meet requirements should be provided.

Who will be the IOR?

IOR is a person or organization that is responsible for customs clearance. The IOR can be a manufacturer, shipper, receiver, or third party. This means you can decide who will be the IOR.

Many newbies think that the foreign supplier will handle all the tasks. However, later it becomes that they should do all the tasks by themselves. Incoterms is one of the ways to find decide who will be the IOR.

Incoterms stands for International commerce terms. Or you can just read the agreement to determine who is responsible. There are various main terms and responsibilities that the supplier and receiver share. Here are the most used incoterms.

• CIF – Cost, Insurance, and Freight.

The seller arranges the delivery to a particular destination and covers the CIF.

• DDP – Delivery Duty Paid

In most cases, the product price includes transport, import clearance, etc.

• FAS – Free alongside.

The seller must deliver goods to the port to transfer to the waiting ship.

HTSUS code of tires

HTSUS is Harmonized Tariff Schedule of the United States.

Imported products are required to have HTSUS numbers. Each type of product has its own 10-digit number.

For example:

HTS code 4006.10 - unvulcanized rubber tires. HTS code 4012.90 – solid or cushion tires. But the majority of tires’ HTSUS subheadings are:
4011 or 4012 depending on the type.

The other 6 digits depend on different factors.

• Diameter
• Type of tread
• etc.

HTS code is really important. Ist will determine the duty rate and classification. If products have incorrect numbers, then you will pay additional costs.

Determine whether you will pay antidumping duties or not.

When a foreign supplier sells a product in the US quite below the normal value, then it can be taxed and added antidumping duty. There are many situations when investigations were opened to vehicle tire importers.

Antidumping duties can add up to 500% to the cost of the product. But sometimes, it may be profitable even after that additional expenses. Even if the importing product falls to the dumping list, it doesn’t mean that it is impossible to import that good.

Work with professional agents.

Import Secrets is a company that consists of experts in the field of importation. Our agents are aware of all aspects and details of the Chinese market.

You will be assigned an agent, who will work with you and answer your questions 24/7.

We offer:

• Sourcing the product
• Negotiating
• Organizing the shipment
• Delivering samples of products
• Developing customized products and packages
• etc.

For further information, please contact us.