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Carnet: How does it simplify international shipping?

Carnet is a customs document used in international shipping to simplify procedures for temporary imports. Learn more about benefits, types and the process to obtain it in this blog.

A carnet, also known as an ATA (Temporary Admission) carnet or a merchandise passport, is a document that allows goods to be temporarily imported into a country without paying import duties or taxes. This is used primarily for trade shows, exhibitions, and other temporary events where goods are brought in and later, shipped out of the country. To obtain a carnet, exporters must provide a bond or guarantee to cover any potential duties or taxes that may be owed if the goods are not re-exported as planned.

The carnet document itself lists all of the goods that are covered and provide information on their value, origin, and destination. Using a carnet can be a cost-effective and time-saving option for businesses that need to transport goods internationally for temporary events. However, it is important to ensure that all the necessary paperwork is completed accurately and on time to avoid any issues at customs.

What is a carnet (ATA carnet)?

A carnet, also known as an ATA Carnet, is an international customs document that allows goods to enter foreign countries duty-free and tax-free for up to one year. The ATA carnet covers a range of goods, including commercial samples, professional equipment, and goods often used in exhibitions, trade shows, and fairs. This document simplifies customs procedures and reduces paperwork for importers and exporters. The carnet system is administered by the International Chamber of Commerce (ICC) and is recognized by over 80 countries worldwide¹. To obtain an ATA Carnet, businesses must apply through their local Chamber of Commerce or other designated issuing organization. The document obtained lists all the goods covered, including their descriptions, values, and quantities. It also includes a customs declaration for each country where the goods will be imported, as well as a guarantee to cover any potential duties or taxes that may be owed if the goods are not re-exported as planned.

Types of carnets

Using a carnet can be a cost-effective and efficient option for businesses that need to transport goods temporarily across international borders. However, it is important to ensure that all the necessary paperwork is completed accurately and on time to avoid any issues at customs. Below are a few common types of carnets:

ATA carnet

An ATA carnet simplifies customs procedures and eliminates the need for businesses to pay duties and taxes, post bonds, or complete other paperwork in each country where the goods will be temporarily imported.

TIR carnet

A TIR carnet is used for international transport of goods by road, allowing them to cross multiple borders without the need for custom inspections at each border crossing. It covers goods transported in sealed containers and is valid for one trip or a round trip.

Combined THC

This is a combination of origin and destination THC charges. Some ports might charge a Combined THC, which covers both the costs of handling the cargo at the port of origin and the port of destination.

What are the advantages of an ATA carnet?

ATA carnets offer many advantages to businesses including:

Simplified customs procedures:

ATA carnets simplify customs procedures for temporary imports and re-exports. They eliminate the need for businesses to pay customs duties and taxes, post bonds, or complete other paperwork in each country where the goods will be temporarily imported.

Cost-effective:

Using an ATA carnet can be a cost-effective option for businesses that need to transport goods temporarily across international borders.

Time-saving:

ATA carnets can save businesses time by simplifying the entire export procedures for temporary imports and re-exports.

Valid for one year:

ATA carnets are valid for up to one year, which provides businesses flexibility to transport goods to multiple countries for temporary events and trade shows.

Global recognition:

ATA carnets are recognized in over 80 countries worldwide, which makes them a convenient option for businesses that need to transport goods across multiple international borders2.

Reduces risks:

ATA carnets provide a guarantee to cover any potential duties or taxes that may be owed if the goods are not re-exported as planned.

What goods are covered under carnet?

A carnet shipping covers a range of goods including commercial samples, and professional equipment such as clothing, jewellery, and electronics. Professional equipment can include cameras, laptops, and musical instruments that are used by professionals while traveling. Carnet shipping can be used for goods that are intended for sale, lease, or hire, or for goods that will be used in the production process. Additionally, there may be restrictions on certain types of goods in a few countries, such as hazardous materials. It is important to check the specific requirements and restrictions for each country where goods will be temporarily imported to ensure that necessary paperwork is completed⁴.

How does a carnet work?

When a business wants to transport goods temporarily across international borders, they apply for a Carnet through their local Chamber of Commerce or designated issuing organization for the region. The document lists goods covered – descriptions, values, and quantities. At each border crossing, customs officials inspect goods and carnet documents to ensure that there are no discrepancies. When goods are re-exported, customs officials at the border crossing verify that the goods match the carnet documents⁵.

Documents required to obtain a carnet

To obtain a carnet, some of the documents that businesses need to provide are⁷:

Application form:

Businesses need to complete an application form, which can be obtained from their local Chamber of Commerce or other designated issuing organization.

Invoice:

Businesses need to provide an invoice for the goods covered. The invoice should include a description of goods, their values, and the countries they will be imported to.

Proof of ownership:

Businesses need to provide proof of ownership of goods covered like purchase receipts, bills of sale, or other documentation.

Customs bond:

Businesses may need to provide a carnet customs bond to cover any potential duties or taxes that may be owed if the goods are not re-exported as planned.

Identification:

Businesses must provide identification for the person who will be transporting goods across international borders.

How to obtain a carnet document?

Following are the steps to obtain a carnet document¹⁰:
1. Determine if a carnet is required for your shipment by checking with the destination country’s customs authority.
2. Contact a carnet provider, such as the International Chamber of Commerce or a recognized issuing authority to apply for a carnet.
3. Provide the carnet provider with information about your shipment, including type of goods, their value, and countries of origin and destination.
4. Pay carnet fees, which vary depending on the value of goods being shipped.
5. Receive the carnet document from the provider and attach it to your shipment before leaving the country.

Format of a carnet

Carnets are typically issued in a multi-colored booklet format, which includes green, yellow, white, and blue pages. These colors represent different parts of the process and help customs officials quickly identify relevant information.

Green cover page

The green cover page includes general information about the carnet, such as issuing organization, carnet number, and the countries where the goods will be temporarily imported to.

Yellow exportation voucher:

The yellow exportation voucher is used when goods are leaving the country of origin. Customs officials will stamp the voucher to verify that the goods have left the country as planned.

White importation voucher:

The white importation voucher is used when goods are being imported into the temporary destination country. Customs officials will stamp the voucher to verify that the goods have entered the country.

Blue re-exportation voucher:

The blue re-exportation voucher is used when goods are leaving the temporary destination country. Customs officials will stamp the voucher to verify that the goods have left the country as planned.

Which countries accept and use carnets?

Over 80 countries across the world accept and use ATA carnet documents.

ATA carnet vs Temporary Importation Bond (TIB)

Both ATA and TIB carnets are administered by the International Chamber of Commerce (ICC) and are recognized across 80 countries worldwide. The ICC has a network of national guaranteeing associations in each participating country that issues and manages carnets. An ATA Carnet and a Temporary Importation Bond (TIB) are both options for temporarily importing goods into a foreign country. A TIB requires a cash deposit or surety bond, whereas an ATA carnet does not require a cash deposit and is accepted in more countries.

The ATA carnet simplifies the customs procedures for temporary imports and re-exports, saving time and money for businesses. However, to export from India, it is important for Indian businesses to obtain all necessary documentation and choose the most suitable method of exporting for hassle-free operations. In recent years, e-commerce exports has become a popular method to sell internationally from India, thanks to its ease and expert support.

Amazon Global Selling: Your passport to easy exports

Amazon Global Selling – an e-commerce exports program – enables Indian exporters to reach hundreds of millions of Amazon customers shopping on its international marketplaces like Amazon USA, UK, UAE, etc. Simplifying international trade, the program provides support at every step from registration to logistics and compliance, allowing Indian exporters to sell their products worldwide. With Amazon’s fulfillment centers and distribution channels, businesses can reach new customers across 200+ countries and territories.

Frequently Asked Questions

What merchandise is not covered by carnets?

Consumable or perishable goods are not covered by carnets.

How long is a carnet valid for?

A carnet is valid for up to one year.

Can a carnet be extended?

Yes, carnet documents can be extended.

How long does it take to get a carnet?

It typically takes 7-10 business days to get a carnet.

How much does a carnet cost?

The cost of a carnet varies by issuing organization and country.

Who issues a carnet?

Carnets are issued by authorized organizations and Chambers of Commerce.

Published on April 17, 2023.

Sources:
1. https://iccwbo.org/resources-for-business/ata-carnet/
2. https://iccwbo.org/world-chambers-federation/chamber-services/ata-carnet/
3. https://www.atacarnet.com/what-is-ata-carnet
4. https://iccwbo.org/resources-for-business/ata-carnet/what-are-the-advantages-of-ata-carnet/
5. https://www.chamber-international.com/exporting-chamber-international/documentation/ata-carnets/how-does-an-ata-carnet-work/
6. https://www.chamber-international.com/exporting-chamber-international/documentation/ata-carnets/what-merchandise-is-covered-by-ata-carnets/
7. https://www.atacarnet.com/how-ata-carnet-works/documents-required
8. https://www.boomerangcarnets.com/ata-carnet-basics/carnet-documents/
9. https://www.atacarnet.com/what-is-an-ata-carnet/step-by-step-guide-to-obtain-an-ata-carnet/
10. https://www.atacarnet.com/what-countries-accept-ata-carnets
11. https://www.roanoketrade.com/resources/tib-vs-ata-carnet/

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