Temporary Exports

and the

ATA Carnet

Presented by Amanda Barlow USCIB

NTDEC QUARTERLY EXPORT FORUM

April 16, 2013

Temporary Importation

The process whereby goods will remain in the importing country for fewer than 12 months without paying full duties and taxes.

Duty & Tax Deposit

Temporary Import under Bond (TIB)

ATA Carnet

Smuggling

What do these have in

Common?

Texas based medical device manufacturer taking $400,000 worth of samples to exhibit at CMEF in China

A car dealer shipping an antique $10 million automobile to the Classic Motor Show in Birmingham, UK

A technician carrying specialized tools worth $20,000 to repair Moscow airport’s radar system

A rock band touring Europe with $100,000 worth of musical equipment

ATA Carnet

Merchandise Passport

International development tool

International customs document

Allows temporary entry of items, duty-free

and tax-free, whether shipped or hand-carried

Established by international ATA convention

Governed by:

World Customs Organization

International Chamber of Commerce and its World

Chambers Federation

Where can Carnets be used?

73** member countries and the customs territories they administer:

France Monaco

Spain Canary Islands

South Africa Namibia, Lesotho, Botswana, Swaziland

New members: 2011: UAE, Bosnia and Mexico

2013: Albania and Madagascar**

Except for Chile, South America does not accept Carnets

What can go on Carnets?

Not Trade Show items only!

3 Primary Categories:

1. CS--Commercial Samples

2. PE--Professional Equipment (tools

of the trade)

3. EF—Goods for Exhibitions and Fairs

• NOT covered: giveaways, food items, plants, consumables, disposable items, postal traffic and personal autos for touring

• No “substantial transformation” in product or value

• Member countries choose which categories of goods they will accept, e.g., India accepts only Exhibition and Fairs

What goods are NOT covered?

What are the Benefits

of ATA Carnet?

Eliminates posting of a financial guarantee Deposit of duties and taxes e.g., yen, euro, sterling.

EU, minimum 20% of value

China, minimum 17%

Mexico, 16%

Temporary importation under bond (TIB)

One document for all customs transactions (Exception: export/import licenses)

Additional Carnet Benefits

Unlimited entries/departures for up to one year

Acts as U.S. Customs registration (CBP4455)

Minimizes language problems

Split and partial shipments possible

Arrangements made in advance and

in U.S. dollars

How the ATA Carnet Works?

Consisting of colored-sheets: Green—front and back covers

Yellow—exporting/re-importing the “home” country

White—importing/re-exporting the foreign country

Blue—transit operations

Sheets are comprised of: Counterfoils—Holder control document

Vouchers—Customs control document

Shaded areas are for use by Customs (U.S. or foreign)

U.S.

Carnet

Green Cover

USCIB logo

Unique identifying number

US CBP validates US Carnets upon first exit

Holder or rep should sign

Acts as registration of goods returning to the U.S.

Does not exempt user from licensing controlled items

US1/10-2456

General List

“Reasonable” written description

of goods

General List should match

License commodity description,

commercial invoice line items,

packing list, etc.

Serial and model nos.

Insured value, weight and origin

Group similar items

Never amend General List

attached to cover, especially

value

NEVER

AMEND

Exportation Counterfoil (yellow)

10/11/15

1 - 25

2011/10/29

Airway Bill/Bill of lading/Flight No.

License No.

US1/10-2456

5501 DFW

Importation Counterfoil (white)

12345

1

1

1 - 25

2011/04/11

10/11/15

Airway Bill/Bill of lading/Flight No.

License No.

LHR UK

US1/10-2456

Importation Voucher

(white)

• Holder completes boxes D-F, signs

and dates

• Foreign Customs completes

shaded portion of voucher with

same number as counterfoil,

removes it, and files with

appropriate department

• Enter port of entry on re-

exportation voucher, item H(e)

• Make SAME NOTATIONS on

voucher as on counterfoil

1

12345

2010/11/15

1- 25

LHR, UK

2011/04/11

US1/10-2456

Foreign Country Counterfoil (white)

12345

1

1

1 - 25

2011/04/11

1 - 25

10/11/15

10/11/29

1

Airway Bill/Bill of lading/Flight No.

License No.

Airway Bill/Bill of lading/Flight No.

License No.

US1/10-2456

LHR UK

LHR UK

Foreign Voucher

(white)

Holder completes sections

D – F

Foreign Customs completes

shaded portion of voucher

Foreign Customs validates &

removes voucher with same

number as counterfoil

Make SAME NOTATIONS on

voucher as on counterfoil

1 - 25

1

2010/11/29

12345

LHR, UK

2011/04/11

US1/10-2456

Re-importation Counterfoil (yellow)

1 - 25

10/11/15

1 - 25

2011/10/29

10/11/29

Airway Bill/Bill of lading/Flight No.

License No.

Airway Bill/Bill of lading/Flight No.

License No.

US1/10-2456

5501 DFW

5501 DFW

The Carnet, along with the goods,

must ALWAYS be available for

customs clearance.

Secret to Carnet Success

The Application Process.

Six Part Process:

1. Pre-registered account

2. Info on Exporter and its Freight Forwarder

3. Describe the goods

4. Countries

5. Security Deposit

6. Fees

How much does the Carnet

cost?

Cash deposit

Surety bond

Security Deposit: 40% of the General List

Basic Fee: $225-$380 based on the value of the General List. Sample: $50,000 in value

Processing: $325

Security: $200

Total: $525

How long does it take

to get the Carnet?

Standard Processing 2nd Business day

Rush Processing Next business day

$75/$100

Same Day Pick up $150/$200

Additional Services

Extra Sets: additional counterfoil/voucher sets

enable more country visits. Purchased

subsequent to initial application

Duplicate Carnet: used for a lost, stolen or

destroyed Carnet. Expiration date remains the

same

Replacement Carnet: by foreign customs

approval, extends time during which goods may

remain in-country

ATA Carnets

in

Action

Export Licenses and other

CBP requirements

Carnets do not substitute for export licenses

Seek licenses with appropriate authorities

and present them with the Carnet at time of

customs clearance

Importer Security Filing, 10+2

Carnets to Mexico

Suggested GL translation

Limited to 6 months

Limited to 11 accepting ports: Tijuana

Juarez

Nuevo Laredo

Altamira

Veracruz

Manzanillo

Monterrey

Guadalajara

Cancun

Mexico City Airport

La Paz (Cabo San Lucas)

Pre-

Shipment

Registration

for all

Carnets to

Mexico

www.CarnetsToMexico.org

CBP Update

Last Port of Export

October 28, 2011 Muster from CBP HQ stating CBP’s

policy on last port of export

Excerpt:

“Effective immediately, when a foreign carnet (and its goods) is

presented at an intermediate port where the goods will be

surrendered to the air carrier, and proof established that the holder

will not have access to the goods covered by the carnet in another

U.S. port before departing foreign, the carnet shall be validated. “

Avoiding the

Carnet Police

Avoiding Carnet Claims

1.Exportation Counterfoil Stamp

2.Re-importation Counterfoil stamp

3.Certificate of Disposition

4.Other Customs verified related documentation

Certificates of Disposition (CBP F 3227)

Who is the USCIB?

Business organization formed in 1945. Represents member views on trade and trade-related

issues at major intergovernmental organizations and

provides services to facilitate trade

Trade Services:

ATA Carnet

electronic Certificates of Origin

International Trade Books

Strategic Partner of the U.S. Department of

Commerce

Visit: www.merchandisepassport.org

USCIB electronic

Certificates of Origin

Demystifying COs

International trade document

Confirms origin of goods

May be required by customs authority of the

importing country

May be required by a financial institution to

comply with a letter of credit

Two types :

Non-Preferential: standard rules of origin and duty

Preferential: Free Trade Agreements

Demystifying COs

COs DO NOT need to be notarized

NOR do they need a raised seal

May be issued for goods of non-U.S. origin

Multiple origins on one CO is acceptable

Paper forms are NO LONGER the only way to

present a CO

Third party endorsement required

USCIB eCOs

Trusted provider of export documents for over 40 years

Strong international recognition and trade

documentation network

Compliant with the CO Guidelines of the International

Chamber of Commerce: Standard UN layout

Third party verification

Applicant authentication

Full electronic processing and delivery Eliminate messenger costs and administration costs

Reduce errors

Provide fast turnaround

What USCIB Needs

U.S. corporations with Federal ID numbers

eCO applications must be accompanied by a

commercial invoice

We will certify additional documents that

support the CO

Online applications only

Supply supporting

documentation for a CO

one of two ways

Contact

Amanda Barlow

Director, Marketing

Carnet and Trade Services Department

abarlow@uscib.org 212.703.5078

www.TradeServicesUSCIB.org