Carnets are
“Merchandise Passports.” They are
international customs documents that simplify customs procedures for the
temporary importation of various types of goods. In the U.S., two types are issued: ATA and TECRO/AIT Carnets.
ATA Carnets ease the temporary
importation of commercial samples (CS),
professional equipment (PE), and
goods for exhibitions and fairs (EF). They facilitate international business by
avoiding extensive customs procedures, eliminating payment of duties and
value-added taxes (minimum 20% in Europe, 27% in China), and replacing the
purchase of temporary import bonds.
TECRO/AIT Carnets, used between the
U.S. and Taiwan only, appear similar to, and serve the same function as the ATA
Carnet. TECRO/AIT Carnets result from a bilateral agreement between the US and
Taiwan, covering only commercial samples
(CS), and professional equipment
(PE). Merchandise entering
countries in addition to Taiwan may also be accompanied by an ATA Carnet.
Benefits of Carnets
Carnets save time, effort, and
money. They:
§
May be used for unlimited
exits from and entries into the U.S. and foreign countries (Carnets are
valid for one year),
§
Are accepted in
over 75 countries and territories,
§
Eliminate value-added
taxes (VAT), duties, and the posting
of security normally required at the time of importation,
§
Simplify customs
procedures. Carnets allow a temporary exporter to use a single document for all
customs transactions, make arrangements in advance, and at a predetermined
cost,
§
Facilitate reentry into
the U.S. by eliminating the need to register the goods with U.S. Customs at the
time of departure.
Merchandise Covered by Carnets
Virtually all goods, including
commercial samples, professional equipment, and items for tradeshows and
exhibitions, including display booths.
Ordinary goods such as computers,
tools, cameras and video equipment, industrial machinery, automobiles, gems and
jewelry, and wearing apparel.
Extraordinary items, for example,
Van Gogh Self-portrait, Ringling Brothers tigers, Cessna jets, Paul McCartney's
band instruments, WorldCup class yachts, satellites, human skulls, and the New
York Philharmonic.
Carnets DO NOT cover: consumable or
disposable goods (e.g., food and agriculture products) giveaways, or postal
traffic.
Carnet Countries
(Countries in CAPITAL LETTERS represent members of the European Union)
Countries
are added to the ATA system periodically.
Call to determine if the country to which the goods are traveling
accepts Carnets. *TECRO/AIT
Carnets are accepted for goods traveling between Taiwan and the U.S. only.
Fees and Processing Time
There
are three basic components to the Carnet
application process:
2.
Carnet application, and
3.
Security deposit.
Basic
processing fees are determined by the value of a shipment. Fees range from $210-$350 and the normal
processing time is two working days, if the application and security deposit
are received by 4:00p.m. ET. Applications received after 4:00pm will be
processed the following business day or will incur an expedited service fee.
Payment can be made in the form of a check, money order, or credit card (up to
$1000 on Visa, AmEx, Mastercard).
As the National Guaranteeing Association, USCIB is required to take security,
usually 40% of shipment value, to cover any customs claim that might result
from a misused Carnet. Acceptable forms
of security are certified check or
surety bond. Cash deposits are
returned in full and surety bonds
are terminated upon Carnet cancellation.
To apply for a Carnet, click here.
January 7, 2010
