New Foreign Trade Regulations Impact ATA Carnet

Latest Update: ATA Carnets are EXEMPT!

As of September 12, 2014:

We are pleased to advise that with the publication of an Interim Final Rule in today’s Federal Register (see below), ATA Carnets have been re-exempted from the filling of Electronic Export Information through the Automated Export System. Items requiring export licenses or permits must continue to file EEI/AES.

While re-exempting carnets, the notice does note that…” the Census Bureau and CBP will review these exemptions in partnership with the trade and may publish a Notice of Proposed Rulemaking to address temporary exports, carnets, and TIBs in the future.”

Please continue to visit this page for any new information that may become available.

AES Broadcast # 2014073, Interim Final Rule

September 12, 2014, Publication Announcement:

“The Census Bureau’s Foreign Trade Division (FTD) is announcing the publication of an Interim Final Rule revising the Foreign Trade Regulations (FTR), Title 15, Part 30. Specifically, this rule reinstates the previous filing exemptions in Sections 30.37(q) and (r) of the FTR for temporary exports, including carnets, and goods that were imported under a Temporary Import Bond (TIB) for return in the same condition as when imported.

In the Final Rule published on March 14, 2013 (78 FR 16366), the Census Bureau removed these exemptions. After publication, the Census Bureau received comments indicating that unless these exemptions were reinstated, it would be extremely difficult to comply with the FTR, particularly for goods moving on a foreign carnet. As a result, the Census Bureau is publishing this rule to reinstate both exemptions. Despite this change, the Census Bureau and CBP will continue to review these exemptions in partnership with the trade community and may publish a Notice of Proposed Rulemaking to address temporary exports, carnets, and TIBs in the future.”

The interim final rule can be found in its entirety here.For further information or questions about the FTR, contact the Regulations, Outreach, and Education Branch (ROEB), Foreign Trade Division.

Telephone: (800) 549-0595, select option 3;
Email: ftdregs@census.gov;
Online: http://census.gov/trade;
Blog: http://globalreach.blogs.census.gov

As of August 14, 2014:

U.S. Customs and Border Protection and the U.S. Census Bureau have confirmed to United States Council for International Business (USCIB) that ATA Carnets will be EXEMPT from filing Electronic Export Information (EEI) into the Automated Export System (AES). Until this confirmation on Wednesday, August 13, ATA Carnet users were to be penalized beginning October 2, 2014 for failure to file the EEI with most carnet shipments.

Census is working to revise the current rules to reflect the exemption. We will advise you as soon as that revision is published and additional guidance is available.

As of April 3, 2014:

USCIB has successfully confirmed the delay in enforcement of the new Foreign Trade Regulations as pertains to ATA Carnet. Therefore, USCIB anticipates that ATA Carnets departing the United States WILL NOT be required to alter their current practice on/or after April 5 as was originally reported.

USCIB received the following FTR Letter No. 8 Notice of 180 Day Informed Compliance Period for Regulatiory Changes stating that the memorandum serves to notify the trade community that the Census Bureau and U.S. CBP agree to provide an additional 180 days to come into compliance with the new requirements. During this time, no penalties will be issued for failure to comply with any new requirements found in the March 14, 2013 rule. However this does not change the EEI filing obligation for ATA Carnet shipments that require export licenses.

USCIB will continue to work with both U.S. Customs and Border Protection and U.S. Census to permanently exclude ATA Carnets from the need to complete an EEI filing through the AES system.

How the New Foreign Trade Regulations Export Requirements Impact ATA Carnet

Historically most ATA Carnets leaving the U.S. have been exempt from the filing of Electronic Export Information (EEI). Beginning April 5, 2014, and as a result of changes to the Foreign Trade Regulations, many exemptions that exist today for ATA Carnet will be greatly curtailed. These changes cover both U.S. and foreign ATA Carnets, as well as those coming from and going to Taiwan (TECRO/AIT).

Narrowing the temporary export exemption

Goods moving under the ATA Carnet are no longer automatically exempt from the EEI filling. To avoid any possible delays in your goods reaching their destination on time we are working with U.S. Census and U.S. CBP to fine-tune the acceptable equivalencies for the required data elements.

ATA Carnet Exemptions

There are still some exemptions that ATA Carnet shipments can qualify for:

  • Low Value Exemption: goods valued at or below $2500 per Schedule B/HTSUS commodity classification code do not need to be reported (15 CFR 30.37(a)). If the General List on the ATA Carnet contains multiple Schedule B/HTSUS numbers, but no single item is valued at more than $2500, then the ATA Carnet shipment will be exempted from the EEI filing requirement.  However, all goods subject to licensing or other export controls must be reported, regardless of value.This exemption needs to be recorded on the yellow exportation counterfoil in box 3 (Other remarks) as: NO EEI per exemption 30.37(a)
    U.S. ATA Carnet Example

    No EEI per Exception 30.37(a)

    Foreign ATA Carnet Example

    No EEI per Exemption 30.37a

  • Hand Carried Tools of the Trade: Goods covered by a U.S. ATA Carnet that are not being shipped, but instead are being hand-carried by the Holder, its sales representative or other authorized representative are NOT required to complete the EEI filing.  When hand carried or checked as excess baggage on a commercial airline samples, professional equipment and goods for exhibitions and fairs are all exempt from filing EEI.The ATA Carnet and its goods must meet all of the following conditions to qualify for this exemption:
    • Are owned by the individual U.S. Principle Party in Interest (USPPI) or exporting company, AND
    • Accompany the individual USPPI, employee, or representative of the exporting company, AND
    • Are necessary and appropriate and intended for the personal and/or business use of the individual USPPI, employee, or representative of the company or business, AND
    • Are not for sale, AND
    • Are returned to the U.S. within one year from the date of export, AND
    • Are not shipped under a bill of lading or an air waybill (i.e., hand carried or checked baggage on a commercial airline)

    To benefit from the Hand Carried Tools of the Trade exemption you will need to write in box 3 (Other remarks) the following: NO EEI per Exemption 30.37(b)
    No EEI per Exception 30.37(b)
    Foreign ATA Carnets that are being hand carried still have to fulfill the EEI filing requirement if any Schedule B number’s total value exceeds $2,500. For items traveling with an export license certain restrictions still apply (15 CFR 740.9).

  • Canada: For shipments originating in the U.S. and where the country of ultimate destination is Canada, an EEI filing is NOT required (see 15 CFR 30.36 (a)). If the goods are going to Canada and then onto another country before returning to the U.S., an EEI will need to be filed.  Indicate on the ATA Carnet number the following:

Export Licenses: New requirements for goods subject to export licenses on ATA Carnet

EEI filings will now require the value of the licensed good to be reported.  This makes it easier to track the value of goods subject to licenses and accurately decrement exports from the licenses (see CFR 15 30.69(b)).

ATA Carnet Interpretation for EEI filing in AES

All ATA Carnet shipments that do not fall under the low valuation, or hand carry tools of the trade exemption, and are not destined for Canada must file EEI using the Automated Export System (AES). A filing must be executed for departure from the U.S. even if the ATA Carnet number and its goods (general list) are the same.

The following list will help you complete some data requirements in AES. These are not all the required and conditional fields, but the ones that require interpretation for ATA Carnet shipments.

  • E-mail Response Address: the completion of an EEI filing will generate an ITN (Internal Transaction Number). The ITN will be emailed to the address (es) provided.
  • Origin State: where the goods begin their journey en route to the port of export.
  • Port of Export: seaport or airport where the goods are loaded on the exporting carrier.
  • Country of Destination: for a U.S. ATA Carnet this will be the first country the ATA Carnet and the goods are traveling to. In the case of a foreign ATA Carnet, the country of destination is the country where the ATA Carnet was issued, for example Germany.
  • Departure Date: the date the goods will leave the U.S.
  • Mode of Transport: the method by which the goods are exported from the U.S.
  • USPPI: for the U.S. ATA Carnet this will be the company listed in box A (Holder) on the ATA Carnet’s green cover. For a foreign ATA Carnet this will also be the holder. Foreign holders may enter their passport number instead of an Employer Identification Number (EIN).
  • Are the USPPI and Ultimate Consignee related companies?: yes, for both enter the Holder listed on the ATA Carnet.
  • Cargo Origin: address of the USPPI where the merchandise actually began its journey to the port of export. For a foreign ATA Carnet, this will be the hotel, or local representative’s address or trade show venue in the U.S.
  • Ultimate Consignee: for U.S. ATA Carnets use the Holder’s company name and contact, but the address will be the hotel or local representative’s address or the trade show venue in the foreign country. In the case of the foreign ATA Carnet this will be the holder company and its address.
  • Schedule B or HTS number: required to be entered in AES for the EEI filing. Schedule B/HTS numbers do not need to appear on the list of goods (general list) on the ATA Carnet. Schedule B/HTS are only necessary for any commodity line whose value exceeds $2,500. U.S. Census has a tool to help you find the correct Schedule B number for your item: Schedule B Search Engine.
  • Commodity Description: general description of the merchandise per Schedule B number. It is not necessary to be as detailed as the general list on the ATA Carnet. A basic description of the type of merchandise will suffice.
  • Value: value of the goods at the U.S. port of export. This means the selling price or cost of goods sold if not sold plus inland or domestic freight, insurance and any other charges. 15 CFR 30.6(a)(16)
  • Export Code: for all ATA Carnet shipments select CR.

Once the EEI filing is submitted you will receive an email confirmation containing your unique Internal Transaction Number (ITN).  This must be recorded on the exportation counterfoil in the box for remarks.

U.S. ATA Carnet Example

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Foreign ATA Carnet Example

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Penalties

Failure to file the EEI is sufficient grounds for US CBP to potentially issue penalties against the exporter for violations of the Foreign Trade Regulations.

Help and reference

To learn about the changes to the Foreign Trade Regulations, especially how terms are defined and how information is to be reported, Click here.

Staff Contact:   Derek Leite

Director, Trade Services and Carnet Service Liaison
Tel: 212.703.5094

Derek Leite oversees the Trade Services Department which includes ATA Carnet, International training and International bookstore. Additionally, he manages the relationship with our two appointed Carnet issuing Service Providers Roanoke Trade and Corporation for International Business. Derek has been in sales, account and relationship management, and product development for over 20 years. Derek has a degree in Economics from North Carolina State University.
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