ATA Carnet: The Passport for Goods
ATA Carnet: The Passport for Goods
Read MoreWhat is a carnet
An ATA Carnet (pronounced “kar-nay”)—often referred to as a merchandise passport—is an international customs document that allows goods to enter and exit multiple countries duty-free and tax-free for up to one year.
This documentation is meant to simplify the customs clearance process by replacing temporary import paperwork in the 90 participating countries and territories. The system, governed by the International Chamber of Commerce (ICC), is supported by customs authorities around the world.
What merchandise is covered
Most goods and equipment are accepted under an ATA Carnet, including commercial samples, professional equipment and tools, and goods for fairs, tradeshows, and exhibitions.
These categories make carnets ideal for demo units, machines, electronics, displays, and film or broadcast equipment that travels but is not sold abroad.
Carnetsdo not cover consumable or disposable items (such as foods, seeds, and pesticides), goods intended for sale, and postal traffic. If these items are sold, donated, or disposed of abroad while under a carnet, duties and taxes—plus penalties—may apply.
Key benefits when using a carnet
Using an ATA Carnet can deliver real savings and simplicity, as it:
- Eliminates duties and value-added taxes (VAT)
- Simplifies customs with a single document for multiple entries and exits
- Allows unlimited cross-border movements for up to one year
- Serves as the US Certificate of Registration for re-entry
- Removes the need for Temporary Importation Under Bod (TIB) or multiple national bonds
And although you would think larger companies and corporations have a bigger target on their backs, Small and Medium-Sized Enterprises (SMEs) are most at risk due to nuances of export compliance.
Obligations when using a carnet
Carnet holders must present both the goods and carnet to customs officials at each border crossing for export, import, re-export, and final re-import. Not completing these steps properly can lead to being held liable for duties and taxes as if no carnet were used.
What happens is a carnet expires
A carnet’s validity generally lasts up to one year from the issue date. It cannot be extended, though in some countries and territories, they may issue a replacement carnet if applied for before expiration. If a carnet expires while the goods are still abroad, foreign customs could assess penalties.
Why carnets matter for your business
Carnets are a proven tool to cut costs and streamline customs processes when goods must be temporarily transported across borders. They are especially impactful for companies in sectors like manufacturing, tradeshows, media, and technology.
Avoid unnecessary duties and delays and plan your cross-border movements with an ATA carnet where applicable.
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