Introduction: Hello, guys my name is Sarthak Mahajan and today I am here to explain the CBU and CKD unit term.
Description: So, When you order something I mean import something , it can be anything like car or bike, it arrives in a certain condition. That is the way in which it is arriving from any other country rather than India of course.
CBU(Complete Built Unit): CBU(Complete Built Unit) defines that the product which you are going to import is arriving infully assembled condition. There is no need to join some part or nut tight a part. It’s completely assembled , if you are importing a car just fill the fuel and get it driving . But, there is something you pay for it , you have to pay more than 100% of tax over the original price, because if you order a car or a bike there’s is no profit for the government, therefore the government applies the tax to the product. For making some profit.
CKD(Complete Knocked Down): CKD(Complete Knocked Down) defines that the product you are importing is not going to be in fully assembled condition , like if you are importing a car it won’t be fully assembled , the engine would be kept different, the chassis would be kept different and the gearbox would be kept different, like this the parts will arrive differently and it will take sometime to assemble them, so you can’t just fill it up, you have to wait for sometime, and the government also applies tax to the product but it is cheaper than the CBU(Complete Built Unit) the tax applied by the government is 40% over the original price. So there’s a profit for the government and for the manufacturer.
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