ATA Carnet: The Ultimate Passport for Goods

Paying import duties and taxes can add unnecessary burdens on you or your company. Importing items can also hold up your merchandise in port. However, if you’re a company that sends certain goods internationally, you could reduce the costs of import duties if the item will be in a foreign country for less than a year. 

One item to consider having is an ATA Carnet. This paperwork makes the import process more efficient among more than 80 countries that accept these documents. Keep reading to learn more about the ATA Carnet, how it works, and other pertinent details.

What Is an ATA Carnet?

An ATA Carnet is an international customs document that allows you to temporarily import goods for up to one year without paying duties or value-added import taxes. You might see this document called a “merchandise report” or “passport for goods,” according to the U.S. International Trade Administration. 

This multi-page, multilingual document contains:

• A green front cover with the holder’s name and address, a list of destination countries, and signatures.
• A comprehensive list of all goods.
• Multi-part forms in yellow, white, and blue, used at each customs point. Yellow sheets are used for exporting goods and re-importing them to the origin country. White sheets are used for temporary importation and re-exportation from foreign countries. Blue sheets are used for transit through countries, such as going through airports.
• A protective cover to prevent damage to the document.

The aim of an ATA Carnet is to simplify the import process when utilizing temporary import procedures between countries. It works when you send parcels overseas or carry items on your person.

How Does an ATA Carnet Work?

An ATA Carnet is designed for goods you plan on taking out of the country and then returning to that same country of origin within a year. One example is when a salesperson imports a display for a week-long international trade show. Humans who travel have passports. An ATA Carnet serves as a passport for the goods traveling with you. 

These are the steps to how an ATA Carnet works for you or your company:

1. Apply for an ATA Carnet through your national issuing authority. In the United States, that authority is the U.S. Council for International Business (USCIB).
2. Provide a detailed, itemized list of goods. Be as accurate as possible, including serial numbers on permanent markings.
3. Present the ATA Carnet at customs when departing and entering countries.
4. Get the ATA Carnet stamped and signed when traveling among countries.
5. Present the carnet to the origin country when you return.
6. The issuing authority will discharge the ATA Carnet when you return it.

Key Benefits of Using an ATA Carnet

There are several benefits of carrying an ATA Carnet with you when traveling with items:

• Simplify customs procedures when traveling with items because all of the information is in one place.
• Eliminate value-added taxes (VAT), duties, and posting security fees that you would normally pay when importing items.
• Save money by reducing the costs of traveling with items.
• Facilitate more efficient re-entry into your home country when returning.
• Remove the need to register goods with customs at the time of departure.
• Make your travel more efficient, particularly when you have deadlines to meet.

What Can (and Can’t) Be Shipped Using an ATA Carnet?

A lot of things can be shipped under the auspices of an ATA Carnet. The key to having duty-free or tax-free items is that they must return to the country of origin within one year.

What Can I Ship Using an ATA Carnet?

Items you can ship with an ATA Carnet include:

• Computers/laptops
• Electronic equipment
• Tools
• Cameras and video equipment
• Industrial machinery
• Musical instruments
• Automobiles
• Gems and jewelry
• Apparel

For instance, you are the head of the Boston Philharmonic. You need to ship instruments, stands, and audio equipment for a six-month international tour through several countries. Perhaps you are attending a trade show for a week and have TV screens and a stage set-up to bring with you. Maybe your mining company needs specialized equipment to use for a year-long project. All of these scenarios are appropriate applications for an ATA Carnet. 

What Can’t I Ship Using an ATA Carnet?

There are a few categories of items you cannot ship using an ATA Carnet:

• Consumable goods like food, seeds, fertilizer, and firewood
• Disposable items such as paper towels or toner ink for printers
• Postal traffic
• Personal vehicles for traveling in a country
• Explosives
• Goods for sale in a country

Application Process & Documentation

Applying for an ATA Carnet is done electronically. However, your application must be accurate for the best results:

1. Register with the national issuing body (in the United States, that’s the USCIB).
2. Provide detailed information including your name, address, TIN or EIN, authorized individuals or companies who present the documents to customs, purpose of the export, a list of goods, and the travel itinerary.
3. Answer any questions from the person who reviews your submission.
4. Receive the ATA Carnet, either a paper or digital copy.
5. Present the document at customs.
6. Return the carnet to the issuing body when you return to the country of origin.

ATA Carnet vs. Duty Drawback vs. Temporary Import Bonds

Don’t confuse an ATA Carnet with a duty drawback and temporary import bonds. 

What Is Duty Drawback?

A duty drawback occurs when a company imports goods, pays an import duty, and then gets a refund when the goods leave the country or are destroyed. How to qualify for duty drawback ranges from using items to manufacture goods to destroying them as part of the goods’ normal life. One example is an automobile manufacturer that imports parts but then the finished vehicles leave the country as an export.

Meanwhile, temporary import bonds (TIBs) are a financial guarantee that allows certain goods to be imported without paying duties or fees, so long as they are re-exported after a certain timeframe. TIBs in the United States can be for up to three years. For instance, you need a specialized crane for a construction project in Seattle, but it has to be imported from Vancouver, British Columbia, Canada.

Common Compliance Pitfalls (and How to Avoid Them) 

You don’t want your items to be stuck in export limbo if there is a problem with your documentation. The consequences of non-compliance include:

• Delays
• Additional costs
• Forfeiting the security deposit
• Penalties
• Seizure of goods
• Fines

Our team strives to help you have your ATA Carnet ready for your travels. These are the most common problems some exporters have experienced:

• Inaccurate or incomplete documentation
• Failing to re-export goods before the carnet expires 
• Misusing the carnet by using it for ineligible goods 
• Failing to get goods properly stamped by customs
• Using the carnet in countries with special entry requirements
• Not accurately describing items, especially serial numbers for electrical goods

We recommend taking these steps to avoid problems by following customs compliance best practices:

1. Double-check your document’s accuracy.
2. Confirm that each item is eligible for an ATA Carnet.
3. Train your personnel in how to handle the document.
4. Make copies before you travel.
5. Plan ahead for customs checks and leave plenty of time to get through potential lines.
6. Have a company with experts in customs brokerage services help you get ATA Carnet documents in order.

Why Choose J.M. Rodgers for Carnet & Customs Solutions?

J.M. Rodgers has more than 70 years of customs brokerage experience as a family-owned company. We have deep relationships in the export, import, and logistics sectors. Our team understands what it takes to make sure ATA Carnet documents pass muster at ports. We’ll work with your staff to make sure the paperwork is accurate, and we can advise you on how to use these passports for goods during your travels. We have an unwavering approach to compliance in all our operations.

As a customs broker, J.M. Rodgers has expertise in customs best practices, partners with clients to make sure customs compliance is in working order, and evolves with changing geopolitical landscapes. J.M. Rodgers’s continuous improvement approach and proprietary technology give you a compliance advantage. 

Our stability is ideal in an unpredictable industry. Investing in our ATA Carnet and duty drawback services can help you save money and make your imports/exports more efficient. We consult with you to explain customs brokerage in a way your team can effectively navigate multinational laws and regulations.

FAQs About ATA Carnets

How long does it take to get an ATA Carnet?

Once the documentation is submitted, it can take one to two business days to obtain an ATA Carnet.

How long is an ATA Carnet valid?

One year from the date of issue.

What happens if an ATA Carnet expires?

If a U.S.-issued carnet expires, there will be no penalties or duties assessed by the United States. However, there may be penalties assessed by a foreign government if you do not export the merchandise from those countries before the one-year deadline.

How does a customs broker help me get an ATA Carnet?

A customs broker acts as an intermediary between you and the issuing authority, managing the application process from start to finish. Hiring a customs broker can help you avoid costly errors and actually save you money.

Request a Consultation With J.M. Rodgers Today

Ready to move forward? Request a one-on-one consultation with our team. In the meantime, we invite you to look over our case studies to see some client success stories about how they saved money or added value through our compliance services. Feel free to download our free e-book on duty drawback as an introduction to what our team can do for you. Stay in the know when you sign up for our newsletter updates to read about upcoming regulatory deadlines, market updates, or changes to import/export laws.