The video on the left shows our Ghana KD plant. The advantages of automobile KD assembly plant are as below :
1. Save customs duty, this is one of the most important factors, usually, in most of the countries, the customs duty rate for the KD parts (knocked down auto parts) is much less than that for the complete vehicle, the government wants to protect or develop their own industry, for example, in Nigeria, the tax rate on CBU (complete vehicle) is 35%, while only 5% for SKD, and zero percentage (0%) for CKD, this is a very good policy
2. Save other taxes (tax exemption) in your country for importing such a vehicle in KD parts instead of complete built unit,eg, to exempt the VAT for 10 years
3. Save shipping cost, FYI, usually, one 40HQ can load more units of SKD/CKD than of CBU form, thus the cost is brought down
4. Earn your own intangible assets: with the vehicle assembly project, you can have, create and develop your own auto brand, logo and also expand to the neighboring countries by using the preferential tariff policy among your communities
5. Create job opportunities for your country and drive your country's industry to develop thus you can get preferential policies from your government.