Understanding ATA Carnets | Your Passport to Global Import/Export Success

Kate SunSeptember 30, 2024

Reading Time: 6 Min.

ATA Carnets, like passports, are essential for international travel and the temporary movement of goods across borders. They eliminate the need for customs duties and taxes and include pre-prepared, uniform customs declaration forms that can be used at all participating customs border offices.

Beyond the technical details, Carnets are a simpler way to facilitate certain types of international business by avoiding extensive customs procedures.

So, let’s explore the fundamentals of ATA Carnets to demystify the process and find out how to approach this facet of temporary imports.

Contact TecEx to Optimize Your Carnets

What Is an ATA Carnet?

An ATA Carnet, unofficially dubbed a “passport for goods” or “merchandise passport,” is an international customs document that facilitates the temporary duty-free and tax-free import of goods and their subsequent re-import back to the origin country. It functions as a travel document for goods to move freely across certain borders without incurring additional costs.

Ultimately, a Carnet is a customs document for temporary imports that aims to simplify and reduce costs for non-permanent importation and subsequent exportation of goods.

Who Needs an ATA Carnet?

Carnets are traditionally used as temporary admission documents for businesses involved in international trade.

Three main categories of goods typically require ATA Carnets:

Commercial Samples

Exhibition Goods

Professional Equipment

If your company deals with equipment, samples, or other merchandise that needs to be temporarily imported into various countries (parameters may vary per country), an ATA Carnet can be a significant advantage.

For tech companies that regularly ship goods overseas for conferences, fairs, exhibitions, or sales, ATA Carnets are especially useful.

Carnets, as opposed to non-permanent imports, are popular because of the VAT implications. While they may initially be more complicated to obtain than a standard non-permanent import, there are several benefits for importers.

For more specialized shipments, check out our solutions for all industries.

ATA Carnets and VAT: A 0% Rated Event

Value-Added Tax (VAT) is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. In many countries, including those in the European Union, ATA Carnets are considered 0% VAT-rated events. This means that no VAT is charged on the goods imported under the Carnet since these goods are intended for temporary use and are expected to be re-exported within a specified timeframe.

This system, based on international customs conventions, allows goods to enter a country without becoming part of its economic circuit, thereby avoiding VAT charges. The Carnet acts as a guarantee of re-exportation, eliminating the need for VAT collection on items not intended for sale or consumption in the importing country.

This arrangement yields multiple benefits:

It improves cash flow by removing the need for upfront VAT payments on high-value equipment,
Reduces administrative burdens by simplifying accounting processes and administration, eliminating the need for VAT registration in-country
Generates cost savings by avoiding VAT-related fees and foreign representation/registration costs, and,
Often results in faster customs clearance due to the VAT-free status.

These advantages make ATA Carnets an invaluable tool for tech companies engaged in international trade shows, demonstrations, or temporary projects, streamlining the cross-border movement of valuable equipment, and optimizing global operations.

What Is the Difference Between a Temporary Import and an ATA Carnet?

ATA Carnet

There are usually no taxes levied when goods arrive in-country (will differ per country destination).
An importer of Record (IOR) is not mandatory. However, specialist import knowledge facilitates quicker and smoother processing.
Carnet allows no modification to goods.

Temporary Import

Duties and taxes will be charged upon arrival and could be partially refunded upon export.
Need an Importer of Record (IOR).
Goods can possibly be altered in country (destination country).

Deciding between them depends on your specific needs, the nature of the goods, and the countries involved.

Generally, ATA Carnets offer the significant benefits of cost, efficiency, and flexibility, making it the top choice for businesses involved in global trade over traditional non-permanent imports.

The consequences for mishandling a Carnet vary based on its value, typically resulting in a penalty ranging from 10% to 40% of the Carnet’s worth, along with any applicable customs duties and taxes. – in addition to any due duties and taxes.

Benefits of The ATA Carnet

The ATA Carnet is a valuable tool for temporary imports, offering several key benefits. These benefits include:

ATA Carnet Streamlines Customs Procedures

Reduces paperwork and processing time.
Facilitates easier clearance in over eighty countries.
Acts as a single document for multiple border crossings.

ATA Carnet Promotes Flexibility and Convenience

Typically, it is valid for up to one year.
Covers a wide range of items (e.g., professional equipment, commercial samples).
Simplifies the re-export process, ensuring smooth return of goods.

ATA Carnet Enables Cost Savings

Exempts goods from duties and taxes when re-exported within the validity period.
Provides cost predictability for international shipments.
Eliminates the need for temporary import bonds in many cases.

ATA Carnet Has Broad Applicability

Ideal for international exhibitions, events, and short-term projects.
Useful for businesses frequently engaged in cross-border activities.
More efficient than setting up separate processes for each item type.

While there are some limitations (such as associated fees and restrictions on eligible items), ATA Carnet’s benefits often outweigh these constraints for many users. It offers a practical solution for managing multiple temporary imports across various classifications, making it an attractive option for businesses and individuals involved in international trade or events.

It’s important to note that Carnets do not exempt holders from obtaining necessary licenses or permits. Carnets also do not cover consumable or disposable goods, giveaways, or goods subject to repair.

Which Countries Accept an ATA Carnet?

The ATA Carnet system is widely recognized, and popular ATA Carnet countries and markets include:

- United States – As the world’s largest consumer market, this region is a popular destination for trade shows, fairs, events, and exhibitions.
- European Union countries – The region is a focal point for trade fairs and shows, exhibitions, events, and conferences across sectors. Top destinations in the EU include Germany, France and Italy.
- Japan—Tokyo, among other cities in Japan, is a popular destination for technology and consumer electronics exhibitions and thus is a popular destination for ATA Carnets.
- South Korea – Particularly Seoul, is a well-established destination for international trade and exhibitions, fortifying it as a popular center for ATA Carnets.
- Australia – As a central hub for other countries in Oceania, Australia is a popular destination for trade fairs, exhibitions, and events that require temporary imports.

This global reach makes it a convenient and efficient option for tech companies and other industries operating on a temporary basis in multiple markets.

Countries are added to the ATA Carnet system periodically. If you are unsure about your destination, make sure to check with your trade representative.

Contact TecEx for a Consultation

How to Get an ATA Carnet with TecEx

Carnets can be complicated documents due to features such as dual-use goods or destination-specific parameters.

At TecEx, we specialize in navigating the complexities of ATA Carnets or “merchandise passports” and non-permanent imports out of the United States, the United Kingdom, and the Netherlands. Our team is equipped to assist you in obtaining and managing your Carnet requirements, ensuring compliance with the Carnet, logistics, and in-country representation for both import and re-export movements.

Our ATA Carnet services include expert guidance on Carnet applications, handling all paperwork and customs interactions, real-time shipment tracking, and support in destinations around the world.

Let us manage your ATA Carnets so you can focus on what matters.

Let’s simplify your international shipping today!

FAQs

How long is an ATA Carnet valid?

An ATA Carnet is typically valid for one year from the date of issuance. They may very depending on the destination country.

Can I extend my ATA Carnet?

Extensions can sometimes be arranged, but it’s best to plan your imports within the original timeframe. In extenuating circumstances, chat with a specialist importer such as TecEx, who will advise you based on the specific parameters of the goods and their destination.

What happens if I don’t re-export my goods?

Failing to re-export can lead to customs duties and penalties. Always ensure you understand your obligations.

Understanding ATA Carnets | Your Passport to Global Import/Export Success

What Is an ATA Carnet?

Who Needs an ATA Carnet?

ATA Carnets and VAT: A 0% Rated Event

What Is the Difference Between a Temporary Import and an ATA Carnet?

ATA Carnet

Temporary Import

Benefits of The ATA Carnet

ATA Carnet Streamlines Customs Procedures

ATA Carnet Promotes Flexibility and Convenience

ATA Carnet Enables Cost Savings

ATA Carnet Has Broad Applicability

Which Countries Accept an ATA Carnet?

How to Get an ATA Carnet with TecEx

FAQs

Further Reading

Shipping Lithium Batteries | Essential Safety and Labeling Guidelines

SLA Fulfillment

A Guide to Temporary Imports

Optimize Your Temporary Imports and Carnets with TecEx!

Solutions

Knowledge

Tools

About

TecEx Newsletter