Complete Knocked Down and Semi-Knocked Down
What does CKD mean?
Complete Knock-Down means that a product is delivered in parts and assembled at the destination. The term originates in the automobile industry, where various components are delivered from suppliers worldwide and assembled in the importing country.
In addition to CKD, many products (especially in the bicycle industry) or almost finished vehicles are exported as Semi-Knocked-Down (SKD) or Medium-Knocked-Down (MKD) bikes; these SKD or MKD bikes are missing only very few parts that still need to be installed at their final destination.
Why are products shipped to CKD?
Why should you send a bike entirely disassembled? There is one good reason: customs. To stick to our example, it can be cheaper to export a bike broken down into its parts to another country. The parts necessary for the reassembling can be sent as well. This way the sender can avoid high tariffs. But not only for getting around customs the CKD shipment makes sense. Some countries have laws that a battery or brake fluid must be a national product. In these cases the CKD shipment and assembly in the importing country also makes sense.
What does SKD mean?
In our international business, the finished complete bike is dismantled and exported in the form of semi-finished products or parts, and then the importer assembles the finished vehicle in the country where it is located and sells it.
Why are products shipped SKD?
Adopt this way, the exporter can enjoy a certain lower import tariff than the import of complete vehicles, in addition to saving freight and utilizing the low labor force of the importing country. , and increase employment opportunities and occupy the role of the domestic market.
Whether bulk material should be CKD or SKD, we will decide in the entire export trade business based on the needs and technical capabilities of customers, or the relevant regulations or policies of the importing country.
Transport challenge
The greatest challenge with the CKD&SKD strategy is shipping. The parts must be packaged and sent individually. If something is damaged or the transport is delayed, the reassembling process in the importing country is disrupted.
MagicCycling is a recognized high-quality service provider and reliable partner in the bicycle industry in China. We are leading a worldwide distribution network dedicated to emerging brands and B2B overseas businesses in the two-wheel sector.
Our team is a tight-knit, talented group with a shared vision of delivering consistently great results for our clients.
We are professional and passionate about our careers.
Be Curious: ask questions, do some research, learn new techniques, and study our clients and their industries.
Be Together: play an active role in the team, support your colleagues, work with passion, and have fun.
Be Bold: be proactive, make decisions, take responsibility, and try new things.
Improvement: look for ways to improve, challenge yourself, never stop learning, and strive to be the best.
MagicCycling's professional foreign trade team will solve the issue and follow up on the whole procedure. From samples, production, quality inspection, packing, certifications, and logistics.
Save your time and money. Choose us, faithfully and reliably.
