Small assembly [1] [2] [3] or CKD assembly (from English omplete k nockd own - “ fully collapsible ”) is a technology for assembling cars, tractors and other agricultural machinery, in which the vehicle is assembled from individual parts and subassemblies imported from the manufacturer, with the implementation of a number of technological operations at the production site, for example: welding , painting , interior decoration , etc. In addition, with CKD, parts, assemblies and subassemblies can be ordered from local suppliers.
Small-assembly is an alternative to driving cars assembled in the country of manufacture of parts, as well as large-assembly (SKD), in which the assembly of the vehicle is completely assembled from a limited number of large assemblies brought in advance from the manufacturer.
As in the case of large-assembly, this type of assembly is focused on circumventing high duties or excise taxes, both for exporters and importers, as well as a significant reduction in transport costs when importing finished tractors, cars and other equipment. The benefit consists in paying lower customs duties for components than for the finished product, as well as other expenses that may be lower at the place of assembly of the equipment than in the country of the exporter (labor, energy, rental property, etc.). In addition, savings in transportation costs are possible if the total volume of production is greater than parts.
Industrial Build Mode
By order of the Ministry of Economic Development of the Russian Federation , the Ministry of Industry and Energy of the Russian Federation and the Ministry of Finance of the Russian Federation of April 15, 2005 [4], a procedure was established that defines the concept of “industrial assembly” and establishes the application of this concept for the import into the Russian Federation of components for the production of motor vehicles of heading 8701-8705 HS, their nodes and assemblies. This order introduced restrictions on the possibility of importing components for industrial assembly with a customs duty of 0%. The main restrictions apply to:
- output of at least 25,000 cars per year;
- painting, body welding and other mandatory operations;
- localization of costs for imported automotive components up to 50% of the total import volume of automotive components.
When using the “industrial assembly mode”, a car and agricultural equipment manufacturer is entitled to import components at preferential rates of customs duties (for most components, the rates are 0%).
Decision of the Supreme Eurasian Economic Council dated May 29, 2014 No. 72 established new conditions for the application of the concept of “industrial assembly of motor vehicles” in the territories of the Member States of the Customs Union and the Common Economic Space .
Notes
- ↑ small assembly CKD
- ↑ Scania began production of new generation trucks at a plant in St. Petersburg | Scania Russia
- ↑ Where are you from? What models of cars are produced in Russia - RIA Novosti, 09/27/2017
- ↑ Order of the Ministry of Economic Development and Trade of the Russian Federation, Ministry of Industry and Energy of the Russian Federation and Ministry of Finance of the Russian Federation No. 73/81 / 58n dated April 15, 2005