ATA Carnet

The ATA Carnet is an international Customs document that allows the holder to temporarily (up to one year) import goods without payment of normally applicable duties and taxes, including value-added taxes. The Carnet eliminates the need to purchase temporary import bonds. So long as the goods are re-exported within the alloted time frame, no duties or taxes are due. Failure to re-export all goods listed on the carnet results in the need to pay the applicable duties. Failure to remit those duties results in a claim from the foreign customs service to the importers home country. The acronym ATA is a combination of French and English phrases "Admission Temporaire/Temporary Admission."

According to the International Chamber of Commerce (ICC), in 2006, about 158,000 carnets were issued internationally. They covered goods valued at almost US$ 15 billion.

History and administration

In 1961 the World Customs Organization (WCO), then known as the Customs Cooperation Council (CCC), adopted the "Customs Convention on the ATA Carnet for the Temporary Admission of Goods." The specific conventions for each type of applicable good were subsequently worked out and agreed on by the CCC. Today the agreement is administered by the ICC in cooperation with the WCO. Together, the ICC, the WCO and member countries' National Guaranteeing Associations(NGA) provide what is called the ATA international guarantee chain. This chain provides reciprocal guarantees assuring member customs officials that duties and taxes will be paid when claims arise.

Appointed by each participating member's government, the NGAs administer carnets in one or more territories. The United States NGA is the United States Council for International Business (USCIB). Many countries use their national chamber of commerce as their NGA.

Member countries

According to the list posted by the [http://www.uscib.org/index.asp USCIB] , with the October 2007 addition of Pakistan, there are currently 65 international members. They range from large powers like the European Union to small island nations like Tahiti. Though all corners of the globe are represented, the list is dominated by European entities as it includes the aforementioned EU, its independent members -France, Belgium etc.- as well as several autonomous cities and regions such as Ceuta and Andorra. Other countries like Aruba have declared they will accept carnets while not becoming official members of the group. All member countries, with the exception of Taiwan, accept essentially the same documentation.

Taiwan and the US have a special carnet arrangement known as the TECRO/AIT carnet. The acronym stands for the two organizations that are parties to the agreement: the Taipei Economic and Cultural Representative Office in the US and the American Institute in Taiwan. TECRO/AITs cover only goods in the commercial samples and professional equipment categories. (See categories below in Carnet Use.)

Carnet usage

Carnets apply to three broad categories of merchandise: commercial samples, professional equipment and goods for use at exhibitions and fairs. With the exception of perishable or consumable items, the product range is nearly limitless. Carnets are regularly used to facilitate movement of everything from display booths to racing yachts.

Individuals or firms wishing to use a carnet to move goods in and out of foreign countries must submit an application and the necessary collateral to their home NGA. In the US the applicant must post cash or surety bond equal to 40% of the value of the goods traveling on the Carnet. All bonds must be issued by government approved companies as listed on the Department of the Treasury's [http://www.fms.treas.gov/c570/c570_a-z.html Circular 570] , be licensed in the State of NY, and have an AM. Best rating of A- or above.

The application, among other things, lists all countries of intended transit and all applicable goods with their assigned values. If the application is properly completed and submitted with the applicable fees the NGA will issue a carnet specifically tailored to that itinerary. The carnet document has two, green, cover leaflets denoting country of origin with instructions. Within the covers are counterfoils and vouchers for each country to be transited. The vouchers act as receipts for entry and re-export in foreign countries and are kept by foreign customs officials. The counterfoils are stamped by the foreign customs services and act as the carnet holders receipt. Upon completion of travel or expiration of the carnet's 12-month active period, the holder must return all documents to their home NGA. A review is conducted. If all documents are in order and no claims are found to be forthcoming from one of the applicable foreign countries, the collateral can be returned. If a bond was used the NGA issues notice that the bond may be cancelled. If the counterfoils, including the final one showing re-entry of all applicable goods back into the country of origin, are not in order, or if a foreign customs service notifies the NGA of a violation, the carnet holder is given notice to provide proper documentation or pay the applicable duties. If they do not, the collateral or bond are used to pay the claim. Claims that can not be amicably settled between the applicable NGAs may be referred to the ICC for Dispute Resolution Services.

External links

* [http://www.londonchamber.co.uk/lcc_public/default.asp?id=204 UK London Chamber of Commerce and Industry]
* [http://www.ficci.com/general/ata-carnet/ata-carnet.htm India Federation of India Chambers of Commerce and Industry]
* [http://www.customs.go.th/Customs-Eng/ATACarnet/ATACarnet.jsp?menuNme=ATA Thailand Customs Department]
* [http://www.chamber.org.hk/about_the_chamber/co_ata_carnet1.asp Hong Kong General Chamber of Commerce]
* [http://www.jcaa.or.jp/e/carnet-e/index.html Japan ATA Carnet System]
* [http://www.iccwbo.org/ International Chamber of Commerce]
* [http://www.uscib.org/index.asp US Council for International Business]
* [http://www.taiwanembassy.org/us/mp.asp?mp=12 TECRO]
* [http://www.ait.org.tw/en/ AIT]