In the ME&A Market, sales of CKD vehicles account for about 20% of total sales.The markets where CKD vehicles are marketed/developed (see attachment) have high customs duties. In Morocco, customs duty on CBU vehicles were 23-29%, while it is just 2.5% for CKD kits.Now the Gouvernement has decided to lower the Custom duties for CBU vehicles and IVECO doesn’t exports CKD vehicles in Morocco. In Tunisia, the market share per Manufacturer limits CBU imports. Supplies of CKDs kits avoids the problem of the market share.The Iveco product range is currently concentrated on Daily light commercial vehicles, which are obviously supplied as CKD kits, and assembled by ICAR ( ex STIA co.) in SOUSSE.In Libya, customs duty for CBUs is 27%, and 4% for CKD kits. The market primarily absorbs Off-Road vehicles (Trakker H), and cyclically light vehicles for passenger transport. The vehicles are assembled by Iveco’s partner TB&Co in Tripoli.In Iran, customs duty for CBU vehicles <5 tonnes is 90% and 30% for those >5 tonnes; for CKD kits it is 15%. The market assembles CKD kits of Heavy Off-road, Medium duty and Minibus PowerDailys made in China.In Kenya, vehicles from the Off-Road range (Trakker H) are imported by Iveco’s customer CMC and assembled by the KVM company until 2007.