The Challenge: Struggles to Keep Up 

I’m often reminded of this exemplary spotlight on how compliance can make or break a business’s operations. A tier-one automotive supplier with annual imports valued at $280 million across 14 countries found itself in a precarious situation. Despite a strong industry reputation, the company struggled to keep up with evolving trade regulations.  

The breaking point came when a key shipment of specialized transmission parts was held at the border due to incorrect classification. The delay threatened to halt production at a major automaker’s facility—an outcome that could have resulted in millions of dollars in lost revenue and contractual penalties. 

Further investigation revealed broader compliance weaknesses: 

• Outdated import processes leading to frequent customs delays. 
• Insufficient risk assessments exposing the company to regulatory scrutiny. 
• Limited supply chain visibility, increasing the risk of forced labor violations and sanctions.[1] 

Recognizing the urgency of the situation, the company sought out our Star USA team to overhaul its import compliance strategy and safeguard its role in the global automotive supply chain. 

The Solution: Task Force Assessment 

The company engaged our specialized import-export compliance team to conduct a deep-dive assessment of its compliance practices. Given the complexity of the challenges, we assembled a dedicated task force—bringing together automotive industry experts, customs specialists, and compliance auditors. 

Rather than relying on a single consultant, this collaborative approach ensured: 

• Faster problem-solving by leveraging multiple areas of expertise. 
• Comprehensive coverage of USMCA regulations, customs classifications, and risk management. 
• Stronger long-term compliance strategies tailored to the company’s needs.[2] 

Unlike traditional audits that focus solely on past errors, I’m proud that our tactics were proactive and results-driven. It prioritized solutions that would prevent future compliance failures. 

The Approach: Rapid Resolution of the Customs Hold 

Within 24 hours, our team identified the classification error, worked directly with customs authorities, and provided the necessary documentation to release the shipment. This prevented costly production stoppages for the automaker and reinforced the supplier’s reliability.  

In my experience, other companies facing customs holds benefit from adopting these best practices: 

• Maintain clear communication channels with customs agencies. 
• Invest in accurate product classification tools to prevent discrepancies. 
• Establish a rapid-response compliance team to resolve urgent trade issues. 

Process Overhaul for Long-Term Compliance 

We implemented key improvements that transformed the supplier’s compliance operations: 

• Redesigned entry filing processes, reducing errors by 92% and accelerating clearance times. 
• Intensive training for 75% of compliance and logistics staff on import regulations and classification. 
• Established an internal audit program that identified and rectified $1.8 million in potential duty underpayments before they became regulatory violations.

By addressing both immediate risks and systemic inefficiencies, these measures ensured long-term compliance stability for the supplier. 

The Impact: Major Operational Crisis Avoided 

The results of our intervention were transformational. 

• Customs-related delays were reduced by 87%—allowing the supplier to maintain just-in-time delivery to automakers. 
• Compliance-related costs dropped by 62%, minimizing penalties and administrative overhead. 
• An ongoing compliance audit was successfully closed without penalties, reinforcing trust with regulators. 
• A new duty drawback program was implemented, unlocking a potential recovery of $950,000 in the first year.

The supplier not only avoided a major operational crisis but also emerged with a more resilient and cost-efficient compliance strategy. 

Lessons for the Industry 

If you’re a player in any part of the automotive industry supply chain, you’ve likely felt the squeeze of import or export compliance. Here are my top two tips for consideration.  

1. Know When to Seek External Compliance Expertise

Many automotive suppliers attempt to manage compliance in-house, but there are clear warning signs that external support is needed: 

• Persistent customs holds and delays that disrupt supply chains. 
• High compliance staff turnover leading to knowledge gaps. 
• Repeated audit failures with unresolved control weaknesses. 
• Inability to keep up with regulatory changes, particularly USMCA updates and forced labor laws. 

Recognizing these red flags early can prevent costly penalties and reputational damage. 

2. Follow Best Practices for Sustainable Compliance

To future-proof compliance processes, I believe businesses should: 

• Invest in ongoing staff training to keep pace with regulatory shifts. 
• Develop strong relationships with customs agencies to streamline issue resolution. 
• Implement internal audits to identify compliance risks proactively. 
• Leverage the growing importance of trade facilitation programs like CTPAT (Customs Trade Partnership Against Terrorism) & AEO (Authorized Economic Operator) certifications for smoother customs clearance.[3] 

By taking these steps, automotive suppliers can ensure operational continuity, reduce compliance risks, and maintain strong partnerships with automakers. 

Thrive in the Fast-Paced Automotive Industry 

In the fast-moving automotive industry, precision and efficiency are paramount and compliance failures can have devastating consequences. I’m proud that the dedicated Star USA team helped this tier-one supplier avoid a crisis, enhance operational stability, and recover significant cost savings.  

With trade regulations evolving rapidly, businesses must take a proactive approach to compliance—leveraging both internal best practices and external expertise when necessary. By staying ahead of regulatory shifts and prioritizing supply chain visibility, accurate classification, and risk management, suppliers can strengthen their global trade operations and maintain a competitive edge. 

For businesses navigating similar challenges, consider reaching out to Star USA for tailored compliance solutions that drive real results. 

[1] U.S. Senate Finance Committee – Automakers and Forced Labor in Supply Chains 

[2] Reuters – Trump's 2025 Auto Tariffs and USMCA Compliance Challenges 

[3] U.S. Department of Commerce – Authorized Economic Operator (AEO) Certifications 

[4] https://www.cbp.gov/border-security/ports-entry/cargo-security/CTPAT