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What is SKD and what will SKD bring us ?

Publish:2019/05/17 Company News View:143

Introduction: SKD

In the international trade, especially in the international automobile trade, the automobile companies in the exporting countries dismantle the finished products and export them in the form of semi-finished products or spare parts, and then the importer completes the finished products and sells them in the host country by self-assembly.

 

Advantages:

For the exporter, in addition to saving freight and utilizing the cheap labor force of the importing country, it can also enjoy a lower import tariff than the whole vehicle import. For the importing country, it can promote the development of its own industry, increase employment opportunities and occupy its own market. Among them, SKD (semi-bulk parts) refers to the major components of automobiles (such as engines, chassis, etc.) are basically packed and exported separately in the form of semi-finished products, while the importing countries will pack them into the whole vehicle locally.


The so-called “bulk assembly” is referred to as KD (Knocked Down) according to the international common saying. Generally speaking, KD has three forms: CKD, SKD and DKD. CKD (Complete Knocked Down) is a full-component assembly, SKD (Semi-Knocked Down) is a semi-component assembly, part of the assembly is ready-made. What’s more, DKD (Direct Knocked Down) is directly assembled or finished product assembled.

When exporting in the form of CKD parts, all parts of a product are packed and packed separately, and shipped to customers together. Such an export form is equivalent to purchasing spare parts in China (taking advantage of the local synergistic purchasing ability and low cost advantages of materials in China’s whole plant), which will save customers a lot of costs.

Existing forms of SKD and CKD bulk export are more common in less developed countries than China, such as Vietnam, Thailand, and poor and backward countries such as Africa.

The useing of SKD

With the increasingly severe trade war between China and the United States and the dramatic increase of trade tariffs, traders between China and the United States can choose SKD to import parts from China and assemble them in the United States. This will not only save costs and reduce tariffs, but also promote the development of domestic industries, increase employment opportunities and get more support from local governments. And we WYN-WORLD INT’L LIMITED  , As a senior Bluetooth audio manufacturer in Shenzhen, We hat will spare no effort to provide the best Bluetooth speaker assembly technical guidance. Welcome the cooperation of purchasers.

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