GlossaryEN1 min readUpdated: Jun 25, 2026

Knock-Down Kit

In vehicle exports, a knock-down kit arises whenever a manufacturer ships a car or commercial vehicle not as a finished unit but as a disassembled package of parts.

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Last updated: 25 June 2026Published: 19 June 2025

Source: https://en.wikipedia.org/wiki/Completely_Knocked_Down

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Logistics Concept

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Definition & Explanation

In vehicle exports, a knock-down kit arises whenever a manufacturer ships a car or commercial vehicle not as a finished unit but as a disassembled package of parts. The kit contains all major components – body panels, engine, transmission, chassis elements – packed in standard containers for final assembly at a plant in the destination country. The primary driver is tariff optimisation: many importing countries levy substantially higher duties on complete vehicles than on parts or sub-assemblies, making the KD kit a widely used and legitimate tool for reducing import costs. Two variants are common – CKD (Completely Knocked Down) and SKD (Semi Knocked Down) – differing in the degree of disassembly and the applicable tariff treatment. Correct classification of individual components is a critical step that freight forwarders and customs declarants must coordinate carefully.

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Find HS codeDetermine the tariff number for customsOpen Calculate customs valueWork out import duties and customs valueOpen Check demurrage/detentionCalculate standing charges and free timeOpen Check sea freight costEstimate FCL/LCL costOpen

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