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The automobile industry stands as one of the three core industries in our district, playing a vital role in driving local economic growth. In the first quarter of this year alone, the industrial sales value of the automobile manufacturing sector reached 5.167 billion yuan, with numerous companies engaged in international exports. However, despite these positive developments, the export of auto parts from our district has recently faced significant challenges.
Since last year, the export of auto parts has been plagued by frequent return shipments, accounting for 63% of all mechanical and electrical product returns during the same period. This alarming trend has raised concerns among both businesses and authorities. One example is Xiaoshan Wanxiang Import & Export Co., Ltd., which purchased four batches of spare parts for export and has already encountered four returns, totaling $119,000 in losses.
In response to this issue, the Xiaoshan Inspection and Quarantine Bureau initiated a traceability investigation. Preliminary findings revealed no major discrepancies, only minor surface defects. To uncover the real cause, experienced inspectors were sent to the company for further analysis. The investigation ultimately identified several key issues: the materials used did not meet required standards, product dimensions were inconsistent, leading to installation problems, and some inspection equipment had not been properly calibrated, contributing to batch rejections.
With the support of the inspection and quarantine department, the company was able to stabilize its product quality and reduce future returns. However, this is not an isolated case. According to statistics, from 2013 to the first half of 2014, a total of 46 batches of auto parts were returned from Xiaoshan, representing 63% of all mechanical and electrical product returns in that time frame. These returns totaled $1.034 million, with the most common items being hub units, bearings, brake friction plates, and drive shafts, primarily destined for Europe and the United States.
According to officials from the inspection and quarantine department, the main reasons for these returns include non-compliance with the latest import standards, production process flaws, mismatched sizes, surface rust, and burrs—essentially, poor quality control. While there are many auto parts manufacturers in the district, these products are not included in the legal inspection catalog, resulting in fewer random checks. Additionally, some manufacturers lack awareness of foreign technical standards, increasing the risk of product rejections.
“More and more auto parts exporters are seeking assistance,†said one official. “There is a pressing need to understand foreign technical regulations, standards, and conformity assessment procedures to overcome technical barriers and improve market competitiveness.†In response, the department is working on developing countermeasures.
On one hand, they are actively establishing an early warning system for technical trade barriers, gathering relevant information on technical regulations, standards, and labeling requirements from major exporting markets, and promptly sharing it with local enterprises. On the other hand, given the high rate of auto parts returns from Xiaoshan, they are also seeking funding to conduct spot inspections on auto parts outside the legal inspection catalog. A sampling plan has already been developed, laying the groundwork for a comprehensive understanding of the quality of exported auto parts from the district.