Do you wonder how Olympians carry their gear around the world? Or how companies ship massive exhibitions to global trade fairs?
The answer is the ATA Carnet. Known as the Passport for Goods, the Carnet is a customs document that simplifies border crossings for imports and exports of commercial goods not meant for resale.
For commercial cargo that will be in a country only temporarily, such as trade show exhibits, product samples and specialized equipment, there’s no need to pay customs duties and related taxes. If you ship these types of goods, here’s an overview of the ATA Carnet and how it can help lower costs and reduce customs complexity.
What is an ATA Carnet?
An ATA Carnet is a customs document that allows a traveler or business owner to import or export goods to and from a country without paying customs duties or value-added taxes. It’s essentially a merchandise passport.
The Carnet serves as a guarantee for payment of customs duties that arise on goods that are not re-exported within the allotted time limit.
Under the terms of the Carnet, goods must be exported within 12 months. Goods listed on the Carnet can be imported and exported as many times as needed during the life of the Carnet. A one-year extension is available and must be applied for before the original Carnet expires.
The term originates from a combination of French and English words: Admission Temporaire/Temporary Admission and the French word for notebook.
When Should You Use an ATA Carnet?
The Carnet allows companies to temporarily import goods by nonresident individuals.
Typically, a Carnet is used for three primary types of commercial products:
- Commercial Samples
- Professional Equipment
- Exhibitions and Fairs
The Carnet applies to ordinary goods such as electronics and sporting gear, and extraordinary items such as valuable artwork and circus animals.
Goods Not Allowed on a Carnet
- Personal use items
- Agricultural products
- Consumables
- Giveaways
- Items for sale
- Postal traffic
More than 90 countries and territories accept the use of an ATA Carnet. Temporary imports between the U.S. and Taiwan use the TECRO/AIT Carnet.
Benefits of an ATA Carnet
Carnets reduce travel friction and costs for international shipments. You’ll see the benefits in two key areas:
1. Tax and fee savings: Goods can be exempted from paying duties and other taxes during temporary import and export. For goods with a high value or those that need to enter and exit the country multiple times, this can save consignors a considerable amount of money.
Carnets satisfy an importer’s obligation to post a security bond in Carnet participating countries and territories.
2. Time savings: With a Carnet, you reduce the risk of your trade show exhibit being delayed at customs. Your shipment bypasses the customs procedures for temporary admission of goods. A single document clears the goods listed on the Carnet through customs in multiple countries. During the one-year life of the Carnet, goods may be imported and exported an unlimited number of times.
Compared with conventional complex customs declaration procedures, it can significantly shorten the time that goods stay at the customs, improving the efficiency of logistics transportation.
Requirements for Obtaining an ATA Carnet
Government-approved domestic associations in participating countries issue Carnets to their residents, usually through an authorized service provider. Each issuing organization will charge a fee for the initial Carnet and a replacement Carnet if needed. Expedited service and rush processing may be available for an additional fee.
To obtain a Carnet, you must provide the following information:
- Purpose for importing the merchandise
- Company ID information
- Contact details of authorized representatives who will be responsible for the Carnet documents
- List of destination countries
- List of the countries the goods will transit through
- Outbound and inbound modes of transportation
- Merchandise details, including model number, serial number, value, quantity, weight, origin country, etc.
- Expected delivery date of the Carnet
- Payment details
Challenges of Carnet Shipments
Properly executing Carnet shipments presents some challenges that require an experienced guide to navigate successfully.
1. Complexity of laws and regulations: Countries and regions operate with differences in the relevant laws, regulations, policies and specific operation procedures of the ATA Carnet.
2. High guarantee requirements: To ensure that the goods under the ATA Carnet can be re-exported on time, the applicant is required to provide a guarantee that meets the requirements, generally in the form of a certain percentage of the value of the goods or a bank guarantee.
3. Document management: Accurately completing documents, properly keeping the customs declaration forms, and promptly canceling the verification.
4. Transportation timeliness: Goods transported using the ATA Carnet often have strict time requirements.
Reduce Risk With an ATA Carnet
As long as the goods listed on the Carnet are re-exported in their original state within the specified time limit, there will be no additional taxes or other legal risks.
The ATA Carnet centrally records the import and export information of goods in one document, making it convenient for consignors to track and manage the flow and status of goods.
At the same time, it also facilitates the enterprise’s financial accounting and cost control, improving the efficiency of its internal operations and management.
Failing to comply with the Carnet requirements could be costly. If the Carnet holder sells or otherwise disposes of any of the listed goods, the national guaranteeing association (NGA) will be obligated to pay 110% percent of the import duties and taxes. The guaranteeing association will attempt to collect the funds from the holder of the Carnet who violated the terms. Additional penalties may be assessed in case of fraud.
If a Carnet expires before the goods can be exported, there may be penalties from the country where the goods are located.
Freight Forwarders’ Role in Obtaining an ATA Carnet
While you can obtain a Carnet on your own, you don’t have to go it alone. A freight forwarder or customs broker may obtain a Carnet on behalf of a client. Or, you can get the Carnet and then give it to your broker or forwarder.
If you have a smaller shipment of goods across an international border, you can hand carry the Carnet with you.
The forwarder will manage the Carnet during the round-trip transportation of the goods and will carry out the cancellation and verification procedures after the exhibition ends.
ATA Carnet Successes
Dimerco has managed Carnets for a variety of consignors, with our offices around the world going above and beyond to ensure shipments arrive on time.
We regularly transport products from Xi’an Brilliant Additive Technology to exhibitions around the world, assisting them with smooth customs clearance and tax-free import and export.
For one ATA Carnet shipment, the Carnet document was lost by the airline carrier. The customer paid to reprocess the document and the guarantee deposit. Our dedicated team at the Xi’an office went to the Trade Promotion Committee to personally pick up the document and send it out. Three days later, it arrived at the Dimerco offices in the U.S.
Our experienced agents can handle almost any type of shipment worldwide and will cooperate with you to solve any problems that might arise.
Manage ATA Carnet Complexity with Dimerco
Don’t let temporary exports and imports hamper your marketing and expansion plans. Dimerco’s comprehensive global logistics network and rich experience in handling ATA Carnets ensure your impressive trade show exhibit reaches its destination with minimal customs delays.
With a presence in over 130 offices across Asia and a comprehensive logistics platform, Dimerco is your exhibition and event partner.
When you’re ready to take your show on the road, let Dimerco take the driver’s seat. Let’s talk before you plan your next exhibition schedule.
Want to make your next international shipment even smoother? Download our Global Shipping Guide for advice on customs processes, documentation, and cross-border freight planning
