ATA Carnet

The ATA Carnet is an international, unified Customs document which, under a series of Customs Conventions, provides for the temporary duty-free admission of three main categories of goods traded internationally, i.e. (1) Goods for presentation or use at trade fairs, shows, exhibitions or similar events (2) Samples of value (3) Professional equipment.

The acronym ATA is a combination of French and English phrases "Admission Temporaire/Temporary Admission."

The ATA Carnet System offers the following advantages for business people wishing to prospect outlets for their products in foreign markets:

1. The ATA Carnet eliminates the need for a customs declaration at border points and the deposit of a personal or real guarantee by the exporter in the country of temporary importation.

2. The ATA Carnet can be used for a business trip covering more than one country and including numerous exits and re-entries into the country of origin during the one-year validity period of the document.

According to the International Chamber of Commerce (ICC) - the world business organization which manages the ATA Carnet international guarantee chain - in 2008, about 165,500 Carnets were issued internationally. They covered goods valued at almost US$ 20 billion.

History and administration

In 1961 the World Customs Organization (WCO), then known as the Customs Cooperation Council (CCC), adopted the "Customs Convention on the ATA Carnet for the Temporary Admission of Goods." The specific conventions for each type of applicable good were subsequently worked out and agreed on by the CCC.

On 26 June 1990, the WCO adopted a new Convention on temporary admission and named it the « Istanbul Convention ». The Istanbul Convention incorporates in one single instrument all existing Conventions or Recommendations on temporary admission. It consists of a Body and Annexes setting out specific provisions applicable to certain types of goods.

In each of the 66 countries/territories where the ATA System is currently in force, the issue and guarantee of ATA Carnets is ensured by the national guaranteeing organizations which have duly been appointed by their Governments/Customs administrations and are members of the international customs sureties chain set up for that purpose by the World Chambers Federation (WCF) of the International Chamber of Commerce (ICC).

Each guaranteeing body affiliated with the WCF/ATA chain guarantees that, in case of non re-exportation from its country of goods covered by a foreign ATA Carnet, within the period stipulated by the customs office of temporary admission (the validity period of the Carnet is limited to one year), it will pay to its customs authorities all import duties and taxes payable on those goods.

Since the inception of the ATA Carnet System, the WCO and the WCF have developed a very close co-operation to ensure the smooth operation of the System and resolve all the legal and practical problems which have inevitably arisen regarding the daily application of the procedure or differing interpretations of certain provisions of the ATA Convention.

Member countries

At present the ATA System is applied in the 66 following countries/territories: Algeria, Andorra, Australia, Austria, Belarus, Belgium/Luxembourg, Bulgaria, Canada, Chile, China, Côte d'Ivoire, Cyprus, Czech Republic, Croatia, Denmark, Estonia, Finland, France, Germany, Gibraltar, Greece, Hong Kong, Hungary, Iceland, India, Iran, Ireland, Israel, Italy, Japan, Republic of Korea, Latvia, Lebanon, Lithuania, Macedonia, Malaysia, Malta, Mauritius, Mongolia, Montenegro, Morocco, Netherlands, New Zealand, Norway, Pakistan, Poland, Portugal, Romania, Russia, Senegal, Serbia, Singapore, Slovak Republic, Slovenia, South-Africa, Spain, Sri Lanka, Sweden, Switzerland, Thailand, Tunisia, Turkey, Ukraine, United Kingdom, United States of America.

A system similar to the ATA Carnet System also operates on the basis of bilateral agreements between Chinese Taipei and the followng countries Contracting Parties to the ATA and Istanbul Conventions: European Union Member States, Australia, Canada, Israel, Japan, Korea, Malaysia, Norway, Singapore, South Africa, Switzerland, the United States of America.

Carnet usage

Carnets apply to three broad categories of merchandise: commercial samples, professional equipment and goods for use at exhibitions and fairs. With the exception of perishable or consumable items, the product range is nearly limitless. Carnets are regularly used to facilitate movement of everything from display booths to racing yachts.

Individuals or firms wishing to use a carnet to move goods in and out of foreign countries must submit an application and the necessary collateral to their home national guaranteeing organizations.

The procedure for obtaining an ATA Carnet is quite straightforward and comprises:

(1) The completion of an application form and payment of the issuing fee to the issuing chamber: the application form contains a declaration by which applicants accept liability for non-repatriation of any goods and unconditional liability to reimburse all costs, etc. should the terms of the ATA Carnet be breached.

(2) The lodging of adequate security to cover customs duties and taxes: the issuing chamber usually fixes the amount of security required on the basis of the highest rate of duties and taxes applicable to the goods in any country of temporary admission and transit, plus a further 10%.

The security can be given by the applicants (insurance indemnity, bank guarantee or cash deposit) and/or a general insurance policy taken out by the issuing chamber.

All such security provisions are required to be valid during the entire contingent liability period/guarantee period, i.e. for a minimum of 33 months from the date of issue of the ATA Carnet.

The ATA Carnet is made up of several loose sheets. The number of sheets will depend on the number of countries to be visited (countries of temporary admission and/or transit). The Carnet is devised to permit the appropriate number of the various kinds of sheets to be assembled according to the requirements of the holder.

The carnet document has two, green, cover leaflets denoting country of origin with instructions. Within the covers are counterfoils and vouchers for each country to be transited. The vouchers act as receipts for entry and re-export in foreign countries and are kept by foreign customs officials. The counterfoils are stamped by the foreign customs services and act as the carnet holders receipt.

Upon completion of travel or expiration of the carnet's 12-month active period, the holder must return all documents to their home national guaranteeing organization.

A review is conducted. If all documents are in order and no claims are found to be forthcoming from one of the applicable foreign countries, the security can be returned.

If the counterfoils, including the final one showing re-entry of all applicable goods back into the country of origin, are not in order, or if a foreign customs service notifies the national guaranteeing organization of a violation, the carnet holder is given notice to provide proper documentation or pay the applicable duties. If they do not, the security is used to pay the claim.

Claims that can not be amicably settled between the applicable national guaranteeing organizations may be referred to the ICC for Dispute Resolution Services.

The ATA Carnet is a perfect illustration of how close co-operation between business and Customs (the public and private sectors) can contribute to facilitate and stimulate international trade.

External links

• ATA Carnet World Chambers Federation
• UK London Chamber of Commerce and Industry
• India Federation of India Chambers of Commerce and Industry
• Thailand Customs Department
• Hong Kong General Chamber of Commerce
• Japan ATA Carnet System
• International Chamber of Commerce
• US Council for International Business
• TECRO
• AIT