The three shipping modes for Chinese vehicle exports, explained for dealers who need to actually decide — not for customs textbooks.
Choosing the wrong shipping mode is the single most expensive mistake a first-time importer makes. The wrong choice can add 20-40% to your total landed cost, or in the opposite direction, add weeks of unnecessary local assembly work that you didn't need. This page explains the three options and when each one is right.
The vehicle arrives at your port fully assembled, ready to start and drive off the ship. This is the simplest mode and the default for most markets. Factory quality control is complete. Homologation documentation is for a single finished vehicle. Destination-side work is limited to customs clearance and registration.
UAE and other Gulf states, most of Europe, Russia (new vehicles), most of Latin America, Singapore, Hong Kong, Japan (for vehicles that don't meet JDM type-approval easily), sub-Saharan Africa for most destinations.
The vehicle is partially disassembled at the factory before shipping. Typical removals: bumpers, wheels, headlights, some interior trim, sometimes the entire battery pack for EVs. The customer (or their local assembly partner) reinstalls these components after clearance. SKD classification usually qualifies for a lower tariff rate in markets that protect local assembly.
Bangladesh (huge advantage vs CBU), Pakistan (required by Engineering Development Board policy for many models), some Southeast Asian markets with local-content incentives, parts of Africa with "knock-down" preferential tariffs.
SKD is not a way to import stolen vehicles, fraudulent vehicles, or anything that avoids homologation. Your destination customs will inspect and verify the shipment against manufacturer documentation. SKD is a legitimate tariff-optimization mode, not a customs bypass.
A full parts kit. Every component is separate: chassis, body panels, engine/motor, battery cells, wiring harnesses, interior parts. Local assembly is required — ground-up construction of the vehicle using the kit. CKD classification receives the lowest tariff treatment in almost every market that recognizes the category, because it represents the highest local-content value-add.
Pakistan's Auto Industry Development and Export Policy explicitly promotes CKD; Egypt's local-content requirements favor CKD; Russia's "industrial assembly" (промышленная сборка) framework has structured CKD programs; Indonesia's LCE (Low Carbon Emission) vehicle program rewards CKD EVs. For most small-to-mid dealers, CKD is a tier above your current operation — it's a decision you make when you're ready to build a local brand.
| Your situation | Recommended mode |
|---|---|
| First shipment, 1-3 units, moderate-tariff market | CBU |
| First shipment, 1-3 units, high-tariff market | CBU — SKD overhead not justified at this volume |
| 10-20 units, high-tariff market, you have a local assembly partner | SKD |
| 10-20 units, high-tariff market, no local partner | CBU and absorb the tariff, or find a partner before scaling |
| 100+ units annually, high-tariff market, you operate an assembly plant | CKD |
| Any volume, ASEAN markets with local-content incentives | SKD or CKD depending on incentive structure |
Tell us your destination market and target volume. We'll model the landed-cost math for CBU vs SKD vs CKD specifically for your situation and recommend the mode that minimizes your total cost.
CBU (Complete Built Unit) is a fully assembled vehicle. SKD (Semi-Knocked Down) is a partially disassembled vehicle — typically bumpers, wheels, some interior trim removed. CKD (Complete Knocked Down) is a full parts kit meant for ground-up local assembly. The primary reason to choose SKD or CKD over CBU is to qualify for lower tariff classification in the destination market.
It depends entirely on your destination. In markets like Bangladesh, Pakistan, and parts of Southeast Asia where CBU duties are punitively high but SKD/CKD classifications receive preferential treatment, the savings are substantial — often 30-60% on total duty burden. In markets with flat tariffs regardless of assembly state, SKD offers no advantage and just adds complexity. We quote the mode that actually saves you money, not the mode that sounds technical.
Not after production has started. CBU and SKD require different factory preparation — the disassembly for SKD happens at the factory, not in the container. Lock the mode in during the quotation stage.
Generally no. SKD/CKD classifications apply to factory-new vehicles shipped with manufacturer disassembly documentation. Used vehicles ship as CBU or, in specific regulated programs, as certified pre-owned CBU.
Send an RFQ via WhatsApp or email. Our Shanghai export desk will scope your requirements and return a qualified FOB / CIF / DDP quotation — typically within one Shanghai business day.