Understanding ATA Carnet Terms & Conditions

Who Can Use an ATA Carnet?

ATA Carnet documents are for businesses and individuals involved in temporary imports and exports.

• Businesses importing goods for trade shows or exhibitions, business meetings, samples, testing of items/goods

• Professionals such as artists, athletes, and technicians using equipment for work abroad, livestock, film & broadcasting equipment

• Event Organisers who are moving equipment and materials for international events.

Eligibility Criteria:

• Carnet documents allow goods temporary admission. All listed items must be re-exported within a specific timeframe (usually one year).

• Goods covered include commercial samples, professional equipment, and trade show displays. Some countries have restrictions on certain intended uses

• National Guaranteeing Associations in each country determine eligibility based on goods, value, and intended use.

Not all goods qualify for the simplified import and export process offered by ATA Carnets. Understanding the eligibility criteria is important to ensure your goods can be covered. 

National guaranteeing associations (specific to each country) will determine eligibility based on the type and value of goods, intended use, and adherence to Carnet requirements.  These requirements may include detailed descriptions of the goods, their commercial value, and any necessary licenses or permits.

Undertaking Terms & Conditions

The terms and conditions associated with using an ATA Carnet outline your responsibilities as the holder.

• By obtaining the Carnet, you agree to specific conditions and terms set forth by the issuing Chamber of Commerce.

• These conditions outline your holder obligations regarding the goods listed in the Carnet.

• A core responsibility is the timely repatriation (re-export requirement) of all Carnet goods within the designated timeframe.

• You acknowledge that the declared value reflects the true commercial value of the goods.

• The goods cannot be used for commercial gain (e.g., selling) in the importing country.

Failing to comply with these terms, such as neglecting to re-export the goods, may result in consequences like duty payments, issues with customs authorities, and potential legal action.  Understanding your responsibilities as a Carnet holder means you’ll be compliant with the specific terms set out by each member country you visit.

Compliance with Customs Regulations

A Carnet simplifies customs procedures but doesn't eliminate your responsibility to comply with customs regulations in each country you visit.  The World Customs Organization establishes international guidelines, but individual countries still have their own import/export rules.

• Carnet holders are still subject to customs inspections and must adhere to all applicable regulations for customs compliance.

• Carnet documents have limitations. They don't cover duties or taxes, and some goods may require separate import/export licenses.

You must research the specific customs regulations of each country you plan to visit with your ATA Carnet.  Complying means you avoid delays or issues at the border.

Responsibilities of ATA Carnet Holders

As the Carnet holder, you assume specific responsibilities for its proper use and the goods it covers.

• You are accountable for the Carnet document and the goods listed within it. This includes its safekeeping, proper presentation to customs authorities, and timely re-export of all goods.

• As part of your Carnet holder duties, you are responsible for accurately declaring the goods listed, including a detailed description and their commercial value.

• It's your responsibility to comply with all customs regulations and to ensure proper use in each country you visit.

• You are liable for any customs charges that may, potentially, become due.

Following these guidelines ensures your goods can be transported efficiently through customs and avoids potential issues like delays, fines, or even the seizure of goods.  In case of loss or theft of the Carnet, you must immediately notify the issuing Chamber of Commerce and relevant customs authorities.

What Does an ATA Carnet Cover?

An ATA Carnet covers a broad range of goods intended for temporary importation/exportation, including:

Permissible Goods

• Trade tools and equipment. Equipment used for trade shows, exhibitions, or demonstrations.

• Professional tools needed for your profession while working abroad.

• Commercial samples of products used to solicit orders without selling them directly.

Carnet Limitations and Exclusions:

• Consumables and perishables like food, beverages, or other items meant to be used or consumed.

• Personal effects and belongings for personal use (check with customs for regulations).

• Goods intended for sale or for generating revenue within the country (duties and taxes may apply).

• Disposable items that will be thrown away/disposed of instead of re-exporting

• Goods intended for a ‘giveway’ and marketing materials

• Vehicles for driving on public roads and for personal use

• Earthmoving machinery

• Each country may have specific carnet restrictions, so it's important to consult the National Clearance Hub or check with us for details before your trip.

By understanding the ATA Carnet system, you can ensure your goods are eligible and avoid issues at the border. 

How Long is an ATA Carnet Valid?

A Carnet is valid for a set duration, for the temporary import of permitted goods.

• Generally, ATA Carnets are potentially valid for up to one year from the date of issuance. However, you are only covered for the length of security paid against the carnet. This means all listed goods must be re-exported before the deadline.

• Carnet extensions are available in some cases. If you wish to remain in a country for longer than 12 months, you must apply for a replacement; however, the following countries do not allow replacements: India, Japan, Morocco, Taiwan, USA. Additionally, some countries require you to obtain prior permission from them that the replacement carnet will be accepted before it is issued. Replacements must be issued before the original carnet expires.

• Within the validity period, you can use the Carnet for multiple temporary imports and exports across various member countries listed on your document.  Make sure you understand the individual country’s regulations and Carnet usage guidelines to avoid exceeding the allowed timeframe.

• You must re-export goods within the set timeframe to avoid penalties or duties. When planning your trip, factor in enough time for customs procedures and potential delays. It's recommended that you contact us for specific details.

Carnet Customs Procedures

It's essential to follow the specific Carnet customs procedures at the border of each country you enter. Here's a basic overview:

• Upon arrival and departure, present your Carnet to customs officials for inspection and endorsement.

• You may need to complete additional documentation or customs declarations alongside your Carnet.

• The carnet includes vouchers and counterfoils.  Vouchers are filled in by the carnet holder or representative and then retained by customs.  Counterfoils are stamped by customs at each border and remain within the carnet, as the carnet holders record the movement of goods.

• Ensure all information on the Carnet and any additional forms is accurate and complete.  Customs officials may also inspect your goods.  Any irregularities with the Carnet document or non-compliance with regulations could lead to delays or further scrutiny.

It’s the Carnet holder’s responsibility to understand and adhere to border formalities in the host country to avoid unnecessary complications.

Conditions of Guarantee

The Conditions of Guarantee for ATA Carnets outline the rules and obligations related to the financial guarantee that the Carnet holder must provide. This serves as a guarantee to cover any potential duties, taxes, or charges that may arise in case the goods covered are not re-exported within the stipulated period or if there are any violations of customs regulations.

These conditions typically outline:

• The amount of the guarantee, which is calculated based on the highest total amount of customs duty, taxes, and additional charges that the goods covered by the Carnet would become liable for upon importation into any of the countries covered by the Carnet, plus a further percentage (usually 10%) as a buffer.

• Responsibilities of the Carnet holder and their agreement to reimburse the issuing authority (often a Chamber of Commerce) for any duties, taxes, or charges incurred, as well as any fees associated with the issuance or regularisation of the Carnet.

• An agreement to promptly repay any sums owed upon demand by the issuing authority.

• Discharge conditions that allow the guarantee to be released or cancelled under certain circumstances if specific requirements are met within a certain time frame.

Carnet Return and Your Responsibilities

Your responsibilities as a Carnet holder extend beyond using it for temporary imports.

• You must return the Carnet to the issuing Chamber of Commerce following the Carnet return procedures. This typically involves timely surrender upon completion of your temporary imports.

• You remain responsible for the Carnet throughout its validity period. This includes reporting any loss or theft immediately for replacement purposes.

• You may be liable for any professional fees, costs, or expenses incurred by the Chamber due to your actions. These could include replacement fees for lost Carnets or penalties resulting from misuse.

Carnet Violation Penalties and Consequences

Failing to comply with the terms of each country's customs authorities can lead to severe consequences.

• Misuse or non-compliance with Carnet regulations can result in significant penalties.

• You could be accountable for settling duties and taxes on goods that are not re-exported.

• You could be liable for any fines, goods may be confiscated, or you may be blocked from using the Carnet system in the future. In extreme cases, you will be subject to legal repercussions.

How to Resolve Carnet Disputes

While uncommon, disputes regarding Carnet usage can arise.

• A formal process exists to address carnet complaints or disagreements with customs authorities or other parties.

• We can guide you through the claims process. This might involve mediation or arbitration.

Alternatively, consult The National Guaranteeing Association for specific procedures.

Additional Carnet Terms and Conditions

While we've covered the essential aspects, there are some additional points to remember about ATA Carnets:

• There are associated fees for applying for and using a Carnet. These can vary depending on the issuing authority.

• Guarantee/deposit calculations are based on an estimate of the duties, taxes, and other potential charges that could apply to the goods being temporarily imported or exported. The amount is meant to cover these costs in case the goods aren't re-exported or customs rules are violated.

• The standard one-year Carnet validity might differ for specific goods in some countries.

• Each issuing Chamber of Commerce may have additional terms and conditions.

You should also:

• Thoroughly examine all terms and conditions before submitting your Carnet application.

• Research any specific requirements for the countries you'll be visiting, including potential exclusions or limitations.

• Understand the dispute resolution process in case of disagreements.

Businesses and individuals must familiarise themselves with the terms and conditions of ATA Carnet usage to ensure compliance with customs regulations, avoid financial liabilities, and ensure ongoing cross-border trade operations.

Contact our team of experts for help in understanding your commitments as an ATA Carnet holder.

FAQs about Acceptable ATA Carnet T&Cs

What are my key responsibilities as a user of an ATA Carnet?

The main responsibilities are the timely re-exportation of goods, ensuring accurate declaration of goods and their true commercial value, adhering to customs regulations, and promptly reimbursing any duties, taxes, or charges incurred.

What happens if I lose or damage my ATA Carnet?

You must notify us immediately to secure a replacement and ensure you do not violate temporary import/export processes.

Do I need to present my Carnet at customs every time I enter or leave a country with temporary goods?

Yes. To remain compliant with temporary import and export rules, you must show your ATA Carnet document to customs each time you enter or exit a country with temporary goods.

What documentation do I typically need to present along with my ATA Carnet at customs?

You may be asked for a detailed list of the goods, proof of ID, and any relevant invoices or permits requested by the destination country's customs authorities. Our team will let you know each country's specific requirements.

Do I need to pay any security deposits when using an ATA Carnet?

No, security deposits are generally not required. Instead, the Carnet serves as a guarantee to customs authorities that any applicable duties and taxes will be paid if the goods covered by the Carnet are not re-exported as required.  You can pay a non-refundable premium fee which is significantly less than the amount required for a deposit.  Also, there is no “freezing of funds”