FAQs | VAT | Airports-West Coast | Airports-Midwest | Airports-East Coast
Here are some of the most commonly asked questions about Carnets:
Obtaining and Using a Carnet
1. What options do I have if I am taking goods out of the country and planning to return them?
All countries have procedures allowing for the temporary importation of goods for across their borders. Such importations are generally valid for less than 12 months. Importers may choose from three options when considering a temporary importation:
Duty refund, temporary importation under bond (TIB), and Carnet.
· Duty refund is the process by which an importer registers the goods at the time of entry, and deposits the applicable duties and taxes. In Europe, duty and taxes range from 20-30%, Australia 50%, China 40%, of the value of the goods. (Check VAT chart for details.) At the time of departure, the exporter presents the goods and appropriate paperwork to a customs inspector. Exporters can expect to receive a full refund of the duties and taxes posted at some future point. (For Europe, refunds are generally made 2-6 months after departure. Payments are made in local currency, e.g., South African Rand.)
· To use a TIB, importers are required to secure the TIB from a customhouse broker at the time of entry into the foreign country. The purchase of a TIB is required for each country visited on every trip. Fees for TIBs vary widely.
· Carnets: May be used for unlimited exits from and entries into the U.S. and foreign countries; are accepted in over 75 destinations worldwide; eliminate value-added taxes (VAT), duties, and the posting of security normally required at the time of importation; and simplify customs procedures. Carnets allow temporary exporters to use a single document for all customs transactions, make arrangements in advance, and at a predetermined cost. Carnets facilitate reentry into the U.S. by eliminating the need to register goods with U.S. Customs at the time of departure.
2. Why must a security deposit be provided?
The ATA Carnet conventions require it. Equally important, security deposits provide financial stability to the ATA system. There is one designated Guaranteeing Association in each country where Carnets are accepted. The role of the Guaranteeing Association is to guarantee the payment of duties and taxes to customs authorities (both domestic and foreign) that present valid claims. In the case of the U.S., the USCIB must pay all valid claims (resulting from Carnets originating in the U.S.) to foreign authorities and to U.S. Customs on all foreign Carnets.
3. How specific do the descriptions need to be on the General List?
The more specific the better, as customs has the right to stop goods from entering its border for lack of adequate description. Include serial numbers or model numbers whenever possible. An imprecise or incomplete description may cause a customs inspector to question the importation (or re-exportation) and possibly seize the goods.
4. Some items on my Carnet will travel to country A and others to country B a week later. Do I need multiple Carnets?
Not necessarily, split shipments are possible. Depending on amount of time between the two shipments a second Carnet may be advised. Call your Carnet Service Bureau for details.
5. Who in my company should sign section "F. Obligation" on the application and the General List?
Someone who possesses the authority to obligate the company to payment of duties and taxes should they come due.
6. Are there specific regulations for goods entering India?
India will only accept goods under Carnet if the intended use is for exhibitions and fairs.
7. Do I still need a export license when using a Carnet?
Yes, please click here for more details.
Avoiding a Claim – Cancellation and Claims
8. When do I return the Carnet?
The Carnet should be returned to USCIB after its final use or immediately after its expiration whichever comes first.
9. To where do I return the Carnet?
The Carnet holder should make and keep a clear copy of the whole Carnet booklet (all used and even un-used sheets), and return the original via receipted mail to Carnet HQ:
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USCIB
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1212 Avenue of the Americas
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New York, NY 10036
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Attn: Carnet Cancellation & Redemption
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10. We have lost our Carnet. What shall we do?
Call the office that issued your Carnet. If you wish, a duplicate will be issued. Additional fees will apply.
11. I received a duplicate Carnet after I lost the original. The duplicate was sent back to you. Why am I still getting reminder letters?
In order to cancel a Carnet, both the duplicate and the original must be returned. Reminder letters will be generated on any Carnet not returned to us. Carnets not returned to us will be considered “open”. Security deposits on “open” Carnets will not be returned or cancelled until 13 months after Carnet expiration
12. Can I sell the goods covered under Carnet?
Carnets should be used for goods NOT intended for sale. However, it is possible to sell off a Carnet. In addition to the payment of duties and taxes, goods sold off Carnet are subject to a penalty equal to 10% of the amount of the duties and taxes. A USCIB Claims Handling Fee may also apply.
For goods sold off Carnet, it is recommended that you contact a local customs office to determine the procedure best suited to your circumstance. Some countries, e.g., U.K. and Australia tightly control the sale of goods off Carnet. Generally, local customs will request that the goods and Carnet be brought to the local office prior to Carnet expiration so that the Carnet may be properly discharged and duties, taxes, and penalty paid.
BE SURE TO OBTAIN AN ITEMIZED CUSTOMS RECEIPT noting the: items sold, amount paid, and Carnet number. Send the original Carnet and a copy of the Customs receipt to USCIB (see question 8 above). Be sure to retain a clear copy of the Carnet for your records.
For more information contact Anna Zhang, Director, Claims Administration at 212.703.5075 or azhang@uscib.org.
13. I have a Carnet, but the goods will not leave before it expires. What do I do?
For goods that must remain in the foreign country beyond the Carnet expiration date, it may be possible to obtain a “replacement Carnet.” A replacement Carnet has a new Carnet number but contains the same General List as the original Carnet. The Replacement is typically good for one year. The Replacement and original Carnet are presented to foreign customs at which time the original is ‘closed’ and the Replacement is ‘opened’ thus allowing the goods to remain past the date of expiration on the original document. For details, contact the office that issued your Carnet or Glendy Sung at gsung@uscib.org
or 212.703.5073, 30 days before expiration.
14. My Carnet was never used. Do I still have to return it?
Yes, all Carnets must be returned even if they were never used. Carnets that are returned to Carnet HQ will be considered ‘open’ and thus, the associated security deposit will remain in effect until the time during which a customs claim may be submitted to USCIB has ended.
15. Advisory on Importing Jewelry (Jade/Rubies from Myanmar)
Please be advised that as of 1 October 2008, no rubies or jaderie of Burmese origin may be imported into the US, whether mounted or unmounted. Any such shipments will be seized upon importation by US Customs. If the rubies or jaderie were imported prior to the embargo and have not under gone any change since importation they may go on a US carnet as long as there is substantial proof to support this claim. This proof of importation must be presented with the carnet when exiting and re-entering the US.
Foreign Carnets
16. My goods need to stay in the U.S. beyond Carnet expiration. What are my options?
According to U.S. Customs regulations, foreign-issued Carnets may not be extended beyond expiration. However, to keep the merchandise in the U.S. beyond the expiration of the Carnet there are two options:
1) File a T.I.B. (Temporary Importation under Bond / Temporary Import Bond) through a customs broker with U.S. Customs before the expiration of the Carnet. This will allow the merchandise to remain in the country for an additional year. The Carnet number must appear on the TIB paperwork and the merchandise description, weight, and value must be the same as those on the Carnet General List. The Carnet’s reexportation voucher should be presented and validated by U.S. Customs referencing the TIB number and date. Copies of both bond and Carnet should be kept so that upon final reexportation and reimportation into the country of issue, customs may clear the goods without unnecessary assessment of duties.
2) Mitigation of duties may be afforded if the merchandise is reexported after Carnet expiration:
a. Reexportation validated in the Carnet up to 90 days after Carnet expiration will result in the collection of 25% of the duty and 10% penalty within the case of a claim made on the Carnet, with a minimum of $50; or
b. Reexportation validated in the Carnet between 90 and 180 days after Carnet expiration will result in the collection of 50% of the duty and 10% penalty, with a minimum of $100.
Goods re-exported 181 days after Carnet expiration are subject to the imposition of 110% of the duty.
17. May I use a foreign Carnet to enter Puerto Rico, Guam or the U.S. Virgin Islands?
Foreign carnets may be used for entry into Puerto Rico, but not for Guam or the U.S. Virgin islands (St. John, St. Croix, or St. Thomas)
18. I would like to sell my goods imported into the U.S. on a foreign-issued Carnet. How should I proceed?
If the Carnet has not yet expired, contact, either directly or through customs broker, the Entry Team at the Customs port of importation and request an anticipatory breach of the carnet.
Documents required to accompany the anticipatory breach are:
1. A letter on the Carnet holder letterhead itemizing the goods that will not be reexported and requesting to pay liquidated damages
2. Copy of the front cover of the Carnet, the General List, and the Importation Counterfoil validated by U.S. Customs.
Once a case number is issued by U.S. Customs and payment received, a receipt referencing the U.S. Customs Case number should be sufficient to discharge the items in the U.S.
If the Carnet has already expired, contact the U.S. Customs Claim Examiner at USCIB Headquarters to see if a claim for duties has already been issued by U.S. Customs or to have a claim issued for the items not reexported.
19. Advisory on Importing Jewelry (Jade/Rubies from Myanmar)
Please be advised that as of 1 October 2008, no rubies or jaderie of Burmese origin may be imported into the US, whether mounted or unmounted. Any such shipments will be seized upon importation by US Customs.
General Information
20. What do the acronyms ATA and TECRO/AIT represent?
The initials ATA are an acronym of the French and English words Admission Temporaire/Temporary Admission. TECRO is the acronym for the Taipei Economic and Cultural Representative Office in the United States (TECRO) and AIT is for the American Institute in Taiwan. They represent the contracting parties to this agreement between the U.S. and Taiwan.
21. What is the origin of the ATA Carnet System?
To encourage world trade by reducing the obstacles caused by varying national customs regulations, the Customs Co-operation Council, now the World Customs Organization, adopted in December, 1961, the "Customs Convention on the ATA Carnet for the Temporary Admission of Goods." Carnets are issued and guaranteed by national groups, which administer the ATA Carnet System under a set of conditions established by the International Bureau of Chambers of Commerce (IBCC). The IBCC is sponsored by the International Chamber of Commerce (ICC) in Paris. Customs authorities in over 75 destinations accept the Carnet as a guarantee that all duties and taxes will be paid if the Carnet is misused.
The U.S. Council has managed the ATA Carnet System in the United States since its appointment by the U.S. Customs Service in 1968. The U.S. issues approximately 13,000 Carnets per year, covering goods valued at over one and one-half billion dollars.
22. How do I learn about Carnets around the world?
Visit the website of the International Chamber of Commerce (ICC), www.iccwbo.org.
March 3, 2009
