Is CKD Domestic or Imported?

[McAriana]

CKD belongs to the import category. CKD is a specialized term referring to vehicle models imported in completely knocked-down form. Local production of components benefits from lower tariffs and wages, utilizing local labor for assembly into complete vehicles, which are then sold at relatively lower retail prices. Below is the relevant introduction: 1. Introduction: CKD stands for "Complete-Knocked-Down," which includes parts ranging from a single screw to large pre-formed body panels, none of which have undergone any assembly process. 2. Tariff Reduction: Importing such parts into the country can reduce tariffs. The current national tariff standard sets the import duty rate for parts at 10%, while the import duty rate for complete vehicles is 25%. Additionally, the import of complete vehicles may incur higher tax rates based on engine displacement, along with consumption tax and value-added tax, among others.