The ATA Carnet: Your Key to Unlocking Customs!
by Cynthia Duncan, United States Council for International Business
Have you ever had your goods delayed at customs?
Faced long procedures that waste your time and money?
Look no further—the ATA Carnet unlocks customs for temporary
exports.
WHAT IS AN ATA CARNET?
Created by international convention more than 40 years ago to
promote world trade, the ATA Carnet is a global customs document
that facilitates the duty-free, tax-free, and hassle-free
temporary entry of goods into foreign countries.
If the goods are "tools of the trade," commercial samples, or items for an exhibition, then they may travel on carnet and will be exempt from the payment of duty and taxes at the time of entry. More than 75 countries and territories throughout Asia, Australia, Europe, and North America accept the ATA Carnet. The countries of South America, Central America, and the Caribbean are not carnet convention signatories. Carnets may be accepted in these and other countries; however, the United States Council for International Business will not guarantee such acceptance as a temporary importation.
WHAT ARE OTHER BENEFITS OF THE ATA CARNET?
Not only do you avoid paying duty and VAT (15 to 25 percent of
the total value of goods in the European Union, 27 percent in
China), but an ATA Carnet also enables you to avoid the
following:
Complicated customs procedures: one document for all customs
transactions (export and import licenses must still be obtained,
where necessary);
Paying duty deposits;
Posting temporary import bonds;
Customs registration when departing the United States;
Surprises: customs arrangements are made in advance at a
predetermined cost (in U.S. dollars).
In addition, the ATA Carnet system enables you to reuse the carnet for unlimited exits from and entries into the United States and foreign countries for up to one year.
WHAT MERCHANDISE IS COVERED BY AN ATA CARNET?
ATA Carnets cover virtually all goods, including commercial
samples, professional equipment, and goods for trade shows and
exhibitions. Carnets cover ordinary goods such as computers,
repair tools; photographic, video, and sound equipment;
industrial equipment, vehicles, apparel, and jewelry. The ATA
Carnet can also cover extraordinary items such as human skulls,
Olympic horses, prototype cars, America's Cup-class yachts, and
instruments for philharmonic orchestras. Carnets do not cover
consumable goods (food and agricultural products), disposable and
hazardous items, or postal traffic.
IS A SECURITY DEPOSIT REQUIRED?
Yes, as the ATA Carnet guaranteeing association, the United
States Council for International Business requires a security
deposit, usually equal to 40 percent of the total value of the
goods. This deposit covers any customs claim that might result
from a misused carnet. The security deposit may be in the form of
a certified check or surety bond. Upon carnet cancellation, cash
deposits are returned in full and surety bonds are terminated.
HOW MUCH DOES AN ATA CARNET COST?
The cost of the carnet is determined by the value of the goods,
but a shipment equal to $50,000 will typically cost $450 (surety
bond premium included). Ancillary and expedited services are also
available for an additional fee. The carnet may be used for up to
12 months.
HOW CAN I APPLY FOR AN ATA CARNET AND HOW LONG DOES IT
TAKE?
The quickest way to apply is on-line at
www.merchandisepassport.org, where carnets can be processed and
sent to the customer in as little as 24 hours. Free carnet
application software is also available.
The United States Council for International Business is a non-profit organization that promotes an open system of world trade, finance, and investment. The council has managed the ATA Carnet system in the United States since its appointment by the U.S. Department of the Treasury and the U.S. Customs Service in 1968.
IF A COUNTRY DOES NOT ACCEPT CARNETS, WHAT ARE MY
ALTERNATIVES?
For countries that do not accept carnets, companies can apply for
a temporary import bond (TIB), a document that can be purchased
from a customs broker at the time of entry. TIB deposits and
payments are usually made in cash in the currency of the
importing country. TIBs must also be posted each time a product
is imported. Fees for posting TIBs vary across countries and
depend on the type of product being imported. Companies should
expect that it might take several months before the cash deposits
are refunded. Companies should contact a customs broker in the
importing country to post TIBs.
A partial list of countries that do not accept carnets can be found at http://www.merchandisepassport.org.
For more detail, contact:
ATA Carnet Department
1212 Avenue of the Americas
New York, NY 10036Telephone: (866)
786-5625; (212) 703-5078Fax: (212)
944-0012Email: atacarnet@uscib.org