How To Properly Avoid High Import Taxes - SKD Luggage

What is SKD luggage? 

Why we need to make SKD luggage?  

And how to make it?

SKD Luggage is semi finished luggage. 

There are many countries on the world charged high importing tax for the finished luggage bags which made in China, such like America and Turkey. But these countries do not charge so high cost if the luggage bags made in other countries, they only charged the luggage bags from China.  But China's supply chain is perfect and growed so many years, no other country can compare. So there are some guys build factories in their local, and buy semi finished luggage from China. Then the SKD luggage borned.

If you want to make a factory in your local, and buy accessories or SKD luggage from China, below is some professional suggestions for you. 

First, let's learn the hard luggage production process. 

1.     Making the hard shell (ABS, PP, PC, PVC) +  Cutting the shell’s edge

2.     Making the wheels, trolley, handle, feet, screws, code lock, corner, plastic pipe (PP, PVC, TPE) or metal frame

3.     Outsource the lining (print logo on it, custom color)

4.     Cutting, stick with sponge and sewing the lining according to design

5.     Assemble the wheels, trolley, handle, feet, code lock, corner (if have)

6.     Sewing the pipe frame, zipper, and lining with the shell

7.     Make the zip together, finished sewing the end.

8.     Packing.

SKD method 1: China factory finish 1,2,3,4,6,7.

Packing: make 13pcs per set,  one 40HQ can be load around 5000pcs.

Buyer's factory finished: 5. Only need some air-screwdrivers can finish the luggage, no request about the workers, no skills at all.

Unit price is no much difference, but can save delivery cost and custom tax, and easy to handle for the buyers.

SKD method 2: China factory finish 1, 2, and get all accessories together.

Packing: not counted yet.

Buyer's factory finished: 3,4,5,6,7.  Need lining cutting machine, sewing machines for fabric, air-screwdrivers, sewing machines for luggage shell, sewing machine for the end pipe.

The cost should be lower around 3 to 4 USD per piece, but it request the workers skilled and experienced, otherwise must spend much money and time to train the workers.