USMCA Compliance for Automotive Parts Manufacturers

Navigate USMCA automotive rules with 75% RVC requirements. Calculate qualification for auto parts, engine components, and vehicle accessories. AALA compliance tools.

75%
RVC Threshold
MEDIUM
Section 301 Exposure
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Automotive Parts Tariff Challenges

Importers and exporters in the automotive parts industry face unique compliance hurdles:

75% RVC threshold is the highest across all industries

Complex tracing requirements for steel and aluminum content

Labor Value Content (LVC) calculations add complexity

OEM customers require compliant certificates for supply contracts

Key Tariff Concerns for Automotive Parts

  • Highest RVC threshold in USMCA at 75%
  • Labor Value Content (LVC) requirements
  • Steel and aluminum tracing requirements
  • Core parts vs. complementary parts rules

Common HS Codes in Automotive Parts

8708.298409.918708.994016.998708.30

How We Help Automotive Parts Companies

Meet OEM certificate requirements to win supply contracts

Automated RVC calculation for complex BOM structures

Steel/aluminum content tracing tools

Generate USMCA certificates that satisfy Tier 1 supplier requirements

Auto Parts Supplier Case Study

Before

Losing contracts due to inability to provide compliant certificates

After

Documented 78% RVC, won contracts with 3 major OEMs

$180,000 in new contracts won annually

Automotive Parts USMCA FAQs

Q: Why is the automotive RVC threshold 75%?

USMCA increased the automotive RVC from NAFTA's 62.5% to 75% to encourage more North American manufacturing. This is the highest threshold in the agreement, reflecting the strategic importance of the auto industry.

Q: What is Labor Value Content (LVC) for automotive?

LVC requires that a certain percentage of automotive content come from workers earning at least $16/hour. This provision aims to level the playing field between US/Canada wages and Mexico wages.

Q: Do I need to trace steel and aluminum origins?

Yes, USMCA requires that 70% of a vehicle's steel and aluminum be sourced from North America. This tracing requirement applies to automotive parts containing significant steel/aluminum content.

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