Auto spare parts

Auto spare parts

Importing Auto spare parts from purchase to clearance

Given the growth of the automotive industry in various countries and the increasing production of vehicles, the demand for automotive spare parts has surged. This trend has made the market for importing auto parts quite hot. In Iran as well, due to population growth and the rising number of vehicles, the need for spare parts is greater than ever, contributing to the flourishing of this market.

Therefore, if you’re seeking a profitable business opportunity, importing automotive spare parts can be a suitable choice. It’s essential to note that importing these parts involves going through specific stages and adhering to relevant laws and regulations. If you lack expertise in this field, consider seeking assistance from reputable and active companies in this domain.

To import automotive spare parts, you need to familiarize yourself with the conditions and regulations in both the country of origin and the destination. Gaining relative proficiency in these requirements is essential to avoid legal complications during the process. Now, let’s delve into the steps and conditions for this endeavor:

Obtaining Import Licenses

In the world of trade, importing any goods requires the presentation of necessary licenses. Therefore, one of the most important conditions to consider when importing automotive parts is to examine the required licenses for importation and submit them to relevant organizations.

For instance, when importing specific components and parts related to airbag safety, you need to obtain a technical license (from the Commission of Article 1 of the Trade Development Organization) and a currency allocation license (from the Office of Automotive Industries).

Payment of  Import Costs

Another essential requirement for importing automotive parts is the payment of import costs, including customs duties, insurance fees, transportation costs, order registration fees, and other import-related expenses.

Compliance with Customs Laws and Regulations

Understanding customs laws and regulations, economic policies, restrictions, and trade privileges of each country is another crucial aspect that every importer must be aware of when importing and clearing automotive parts. For example, certain automotive components have restrictions, and due to international sanctions, importing these parts from specific countries may be prohibited.

Preparing and Providing Necessary Documents

Importing automotive parts requires the presentation of documents to relevant organizations. For importing these parts, it is necessary to provide documents such as invoices, bills of lading, required certificates, customs clearance documents, and more to the relevant authorities.

Review of Transportation Conditions

In general, there are three international transportation methods: air, sea, and land. Each importer should choose one of these methods for transporting goods based on factors such as time, type of cargo, and budget

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Steps for Importing Auto spare parts

To properly import automotive parts into Iran, you need to go through specific steps. Correctly following these steps will minimize import-related losses and enhance profitability.

Below, we briefly acquaint ourselves with the steps involved in importing automotive parts. For a more detailed understanding, I recommend reading articles related to import procedures.

  1. Business Card 
  2. Selecting Car Parts for Import
  3. Choosing a Supplier
  4. Supplier Sourcing and Validation
  5. Registering an Order in the Comprehensive Trade System
  6. Currency Payment
  7. Cargo Insurance
  8. International Transportation
  9. Customs Clearance for Car Parts

Required Documents for Importing Auto spare parts

Every importer should be aware that in the international trade process, they must obtain and provide documents to customs officials and other relevant organizations and authorities to ensure everything proceeds legally.

Continuing, let’s introduce the most essential and important documents for importing auto parts, some of which need to be prepared before starting the work, while others are required during the import process.

  1. Commercial Card (Business License)
  2. Proforma Invoice
  3. Goods Order Registration License
  4. Packing List
  5. Bill of Lading
  6. Cargo Insurance
  7. Performa Invoice (Invoice)
  8. Warehouse Receipt
  9. Customs Green Card
  10. Certificate of Origin
  11. Customs Declaration
  12. Goods Inspection Certificate

Profitability of Importing Auto spare parts

When importing auto parts, proper selection of components can lead to good profitability. However, in some cases, due to inappropriate part choices, purchasing from unreliable suppliers, inadequate transportation, increased import costs, and similar factors, profitability may decrease.

To optimize profitability from importing auto parts, we recommend paying attention to the following points:

  1. Thoroughly Examine Import Costs: Before initiating the process, carefully review all import costs with full details.
  2. Consider Domestic Market Selling Prices: Take note of the selling price of the product in the domestic markets.
  3. Assess Market Demand for the Desired Product: Evaluate the market demand for the specific item.
  4. Entrust Transportation and Clearance to a Reliable Company: Delegate transportation and customs clearance processes to a trustworthy and reputable company.
  5. Use Valid International Payment Methods: When paying for orders, utilize reliable international payment methods such as documentary credits.
  6. Evaluate Suppliers’ Credibility Before Bulk Purchases: Before buying large quantities of parts, assess the credibility of suppliers.

Import Tariffs for Auto spare parts in Iran

Each automotive part imported to Iran has its specific tariff, and it’s not possible to apply the same tariff code to all auto components. For instance, even though both spark plugs and oxygen sensors have an electronic nature, their customs tariffs differ.

In general, the customs tariff for automotive parts is specified in Section 87, Row 8708 of the Export and Import Regulations Book.

Here are the customs tariffs for some car parts:

  1. Safety belts: 87082110
  2. Brake pads for vans: 87083011
  3. Suspension springs for vans: 87088011
  4. Radiators and related components: 870891
  5. Steering wheel airbags for cars and vans: 87089411
  6. Specific airbag components: 87089510
  7. Power steering hoses for cars and vans: 87089412
  8. Automatic transmission boxes: 87084015
  9. Complete brakes for cars and vans: 87083022
  10. Roof hatches for cars (sunroofs, moonroofs, etc.): 87082950
  11. Airbags: 870895
Auto spare parts

Import Statistics for Auto spare parts

According to Iranian customs statistics, in the first three months of 1401 (2022-2023), the import of automotive parts ranked eleventh in terms of volume. Comparing this data with similar statistics from 1400 (2021-2022), it indicates a significant 198% growth in the weight of imported car parts. The results of these statistics and analyses reveal that most of the imported auto spare parts come from China.

From which countries are auto spare parts imported?

In terms of automotive parts, they can be imported from various countries. However, due to economic and political sanctions, Iran faces limitations in conducting trade with many nations, which affects the import of car parts.

The countries known for being among the top producers of automotive parts worldwide include China, Germany, South Korea, Japan, and the United States. Despite these limitations, Iranian traders recognize China, the United Arab Emirates (UAE), and Turkey as primary destinations for importing auto parts.

In recent years, China has held the largest share in automotive parts imports, followed by Dubai (UAE) and Turkey. The UAE, with its access to global markets, plays an intermediary role in trade relations between Iran and European countries.

Given that China remains Iran’s most significant trading partner for automotive parts, let’s delve into the specialized details of how car parts are imported from China.

Why Import Auto spare parts from China?

As you may know, the number of cars in the country has been growing, and this trend has heated up the market for automotive spare parts more than ever before.

You might assume that China is solely a producer of car parts for Chinese vehicles. However, it’s essential to recognize that China manufactures not only parts for Chinese cars but also components for other brands, including German and American cars.

Moreover, China doesn’t face limitations in producing heavy-duty and semi-heavy-duty vehicle parts. In addition to manufacturing parts for passenger cars, they produce various components for heavy-duty trucks, semi-trucks, and road construction vehicles.

Considering the high profitability of importing car parts from China, the increasing demand for auto spare parts in our country, the wide variety of parts produced in China, and the reasonable prices of locally manufactured components have all contributed to substantial profits in this endeavor.

Key Points for Importing Auto spare parts

If you want to import car parts from China without worries and minimize the risks associated with imports, consider the following essential points:

  1. Before purchasing goods, pay attention to the manufacturer and the quality of the parts they produce.
  2. Before bulk purchases, request sample products from the manufacturer for greater assurance.
  3. To prevent transportation issues, entrust the shipment from China to Iran to a reliable company.
  4. To streamline the customs clearance process, acquire comprehensive knowledge of import regulations for car parts and delegate the clearance procedures to trustworthy customs brokers or reputable clearance companies.

Import of car spare parts by Tata Trading Company

With years of experience in the field of import and export of goods, Tata Trading Company has had extensive activities in the field of importing spare parts for various Iranian and foreign cars, and imports the best car spare parts with the highest quality for you from different countries. You too, if you are active in the field of selling car spare parts, you can entrust the import of your desired goods to Tata Trading Company and experience the pleasure of an easy and profitable trade with our experienced team.