Chongqing - The nation's pioneering batch of automobile parts, exported in Knocked Down (KD) form, was shipped from Chongqing's Yongchuan Comprehensive Bonded Zone in southwestern China on July 11th.
"We have established the KD packaging production and operation center in the Yongchuan Comprehensive Bonded Zone, marking the first automotive KD parts factory within a bonded zone in China," said Zhang Guoxin, General Manager of the Great Wall Motor Company Limited's Chongqing Branch.
Scene of the first batch of automobile parts clearing customs at Chongqing Yongchuan Comprehensive Bonded Zone. (Photo/Chen Keru)
The initial batch of goods includes 60 components for the Great Wall POER, headed for Ecuador, and 60 for the Tank 300 SUV en route to Thailand. The total value of both shipments is approximately 40 million yuan (about USD 5.56 million).
Upon arrival at their destinations, these packaged components can be swiftly assembled into complete vehicles for local sales. This process enables overseas assembly plants to bypass high import tariffs.
Zhang mentioned that, in comparison to most KD parts factories located outside bonded zones, they benefit immediately from export tax refund policies after customs clearance in the Yongchuan Comprehensive Bonded Zone. The timeframe for securing tax refunds is two to three months earlier than that of KD parts factories outside the bonded zone, ensuring more robust working capital.
"The overseas market of Great Wall Motor is on a growth trajectory," Zhang added. Great Wall Motor has set up five KD factories overseas to meet the demand for parts exports and assembly of complete vehicles overseas.
From January to June this year, Great Wall Motor reported cumulative overseas sales of 123,900 vehicles, reflecting a year-on-year growth of 97.27%. Several models, including the Haval H6 HEV, Euler Good Cat, Tank 300, and Tank 500, have been successfully launched in a range of overseas markets such as Jordan, Australia, Oman, Madagascar, Saudi Arabia, Philippines, Chile, Cambodia, and the United Arab Emirates.
Workers are packaging automobile parts at the Wall Motor KD parts facility in Yongchuan Comprehensive Bonded Zone on July 11th. (Photo/Chen Keru)
In an effort to efficiently minimize enterprise logistics costs, Chongqing Customs District, Yongchuan Customs, and Yongchuan Comprehensive Bonded Zone have spearheaded a customs clearance mode known as "decentralized checkpoint registration with automatic release into the zone, centralized classification of complete sets for unified customs declaration."
The key approach involves supporting companies to set up KD parts consolidation centers within the bonded zone, where vehicles can be automatically released into the zone one by one. Yongchuan Customs has implemented a method of consolidating components into assembled parts for shipment to navigate the challenge of different products entering and leaving the zone.
For instance, diverse parts and materials such as doors, electronic components, interior trim, and sound insulation cotton enter the zone. Upon exiting, the doors have assembled all the components and materials into a complete unit, which is then loaded into a single container for transport, simplifying customs supervision.
"Our goal is to establish the Yongchuan Comprehensive Bonded Zone as the KD packaging production and operation center for Southwest China, with a projected export value of 1 billion yuan (about USD 139.13 million) in the second half of this year," Zhang affirmed. Once the project is fully up and running, it is expected to achieve an annual shipment of 30,000 KD parts and 13,500 containers.
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