FOB
Free On Board
Price at the origin port (e.g., Shanghai), loaded onto the ship. Seller covers export clearance and loading costs. Buyer pays ocean freight, insurance, and import duties from that point.
Example: "FOB China $14,568" means the vehicle kit costs $14,568 loaded at port in China.
CIF
Cost, Insurance & Freight
Price delivered to the destination port (e.g., Chittagong). Includes the goods, ocean freight, and insurance. Buyer pays import duties and inland transport from port.
CIF = FOB + shipping + insurance. Bangladesh customs duties are typically assessed on CIF value.
CFR / CNF
Cost & Freight
Same as CIF but without insurance. The buyer must arrange their own marine cargo insurance separately.
CKD
Completely Knocked Down
Vehicle shipped as a kit of unassembled parts for local assembly. Attracts the lowest import duty (10–37.5% TTI in Bangladesh). Fits 3× more units per container than CBU, dramatically cutting freight costs.
Palki's strategy: import CKD kits from China and assemble locally in Bangladesh.
SKD
Semi Knocked Down
Vehicle shipped partially assembled — e.g., body-on-frame with engine/interior needing installation. Duty rate falls between CBU and CKD. Less assembly labor than CKD but fewer container savings.
CBU
Completely Built Up
Fully assembled vehicle, ready to drive off the ship. Attracts the highest import duty (100–150%+ in Bangladesh). Fewer units fit per container, so freight cost per unit is much higher.
A CBU pickup fits 2–3 per container vs 6–8 CKD kits.
TTI
Total Tax Incidence
The combined percentage of all import taxes and duties (customs duty, supplementary duty, VAT, advance tax, etc.) applied to the CIF value. Determines the final landed cost.
CKD EV TTI in Bangladesh: 37.5% standard, ~10% with SRO concession.
SRO
Statutory Regulatory Order
A directive from Bangladesh's National Board of Revenue (NBR) granting concessionary duty rates. Recent SROs have cut EV raw material duty to 1%, reducing effective TTI from 37.5% to ~10%.
Landed Cost
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The total cost of a vehicle once it has "landed" in Bangladesh: FOB price + ocean freight + insurance + all import duties and taxes (TTI). This is the true cost before markup.
FOB $14,568 × 1.375 TTI = ~$20,031 landed (at 37.5% TTI).
40ft HQ
40-foot High Cube Container
Standard shipping container (12.03m × 2.35m × 2.69m). "HQ" or "HC" means high-cube — about 30cm taller than standard. Most common container for vehicle shipments.
CD
Customs Duty
First-layer import tax applied directly on the CIF value. Bangladesh rates: 10% for EVs and heavy trucks, 25% for passenger cars and light commercial vehicles.
SD
Supplementary Duty
Second-layer tax applied on CIF + CD. The single biggest cost driver in vehicle imports. Ranges from 0% (EVs, concession) to 500% (cars over 4000cc). Waived entirely for electric vehicles under current EV policy.
For a car over 4000cc: 500% SD makes the tax incidence exceed 800% of CIF.
ATV
Advance Trade VAT
Advance payment of trade-level Value Added Tax, typically 5%. Applied on the base of CIF + CD + SD.
AIT
Advance Income Tax
Advance income tax collected at the point of import, typically 5%. Applied on CIF + CD + SD base. Adjustable against annual income tax liability.
RD
Regulatory Duty
Additional regulatory surcharge applied directly on CIF value, ranging from 0% to 3%. Waived for electric vehicles under current policy.
HS Code
Harmonized System Code
International product classification code maintained by the World Customs Organization. Bangladesh uses 8-digit HS codes to determine which duty rates apply. Key vehicle codes: 8702 (buses), 8703 (cars), 8704 (trucks), 8711 (motorcycles).
HS 8704.90 = Electric goods transport vehicles. Gets 0% SD vs up to 20% for conventional.
Lakh (L)
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South Asian numbering unit equal to 100,000. Used for prices in BDT (Bangladesh Taka). 1 Lakh BDT ≈ $820 USD at current rates.
৳30.31L = 30,31,000 BDT ≈ $24,845 USD.