ATA Carnet for export promotion
Saturday, 9 January 2010
M S Siddiqui
The contribution of industry and export to the national economy is increasing. The present marketing strategy is to attend fairs and display our products to prospective foreign buyers at their door steps. The process of exporting and re-exporting structures and samples for the purpose of a fair is elaborate and expensive because of customs regulations.
In 1961 the World Customs Organisation (WCO), then known as the Customs Cooperation Council (CCC), adopted the "Customs Convention on the ATA Carnet for the Temporary Admission of Goods". It is an international instrument designed to facilitate the importation, irrespective of the means of transport used, of goods which are granted temporary duty-free admission. The Convention specifies a form of Temporary Admission (ATA) and conditions for its use in lieu of national customs documents. A combination of French and English terms, ATA (Admission Temporairé/Temporary Admission) sets out the minimum facilities to be accorded in relation to the use of ATA Carnets. [Carnet means an official pass or permit, especially one for crossing national boundaries.]
ATA Carnets, known as "Merchandise Passports," are international customs documents that simplify customs procedures for the temporary importation of various types of goods. It applies to three broad categories of merchandise -- commercial samples, professional equipment and goods for display at exhibitions and fairs. It is used to import or export sales promotion literature, inexpensive samples for distribution, designs and works of art for exhibition, and machinery and equipment for display or demonstration. Typical articles include antiques, machinery, machine tools, catering equipment, clothing and footwear, toys, computers, office equipment, electric generators, electrical/electronic and scientific equipment, surgical and dental equipment, jewellery and precious metals/stones, sound equipment, audio-visual, photographic and filming equipment, lasers, musical instruments and records, aircraft, films, motor vehicles, racing engine machinery, heating and lighting equipment, agricultural machinery, furniture, crockery, works of art, race horses, theatrical effects and sets, sporting goods, yachts and display stands. The goods not covered by Carnets include disposable items or consumable goods, including food and agriculture products.
It is important to note that the ATA Carnets can be used neither for importation for home use, nor for the sole use as a transit or temporary exportation document.
Carnets are issued and guaranteed by trade bodies, which manage the ATA system under a set of conditions established by the International Bureau of Chamber of Commerce (IBCC), a division of the Paris-based International Chamber of Commerce (ICC). It is issued by local Chamber of Commerce affiliated to the International Chamber of Commerce (ICC). Local chambers guarantee payment of customs duties in case goods allowed under ATA Carnet are not re-exported on due date. It simplifies the process of import and export within five working days and expedited service is available for an extra charge.
The agreement is administered by the ICC in cooperation with the WCO. Together with the ICC, the WCO and member countries' National Guaranteeing Associations (NGA) provides the ATA International Guarantee Chain. This chain provides reciprocal guarantees assuring member customs officials that duties and taxes will be paid when claims arise.
The worldwide ATA Carnet system is overseen by the World Customs Organisation (WCO) in cooperation with the ICC and its networks of National Guaranteeing Associations (NGA). The Carnet allows the business travelers to use a single document for clearing certain categories of goods through customs in several different countries.
The ATA Carnet is an international customs document that allows the holder to import or export goods temporarily, up to one year, without payment of normally applicable duties and taxes, including value-added taxes. So long as the goods are re-exported within the allotted time frame, no duties or taxes are due. The normal national tax and other charges applicable in case of failure to re-export all goods listed on the Carnet results in the need to pay the applicable duties.
The application, among other things, lists all countries of intended transit and all applicable goods with their assigned values. If the application is properly completed and submitted with the applicable fees the NGA will issue a Carnet specifically tailored to that itinerary. The Carnet document has two 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 holder's receipt. Upon completion of travel or expiration of the carnet's 12-month active period, the holder must return all documents to their home, NGA. A review is done. If all documents are in order and no claims are found to be forthcoming from any of the applicable foreign countries, the collateral can be returned. If a bond was used the NGA issues notice that the bond may be canceled. 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 NGA of a violation, the Carnet holder is given notice to provide proper documentation or pay the applicable duties. If they do not, the collateral or bond is used to pay the claim. Claims that cannot be amicably settled between the applicable NGAs may be referred to the ICC for Dispute Resolution Services.
Bangladesh scenario: Bangladesh is a member of the World Customs Organisation (WCO), the intergovernmental organisation of customs administrations responsible for the administration "ATA Carnets", namely the "Istanbul Convention". But, Bangladesh is not yet a Contracting Party to the "Istanbul Convention" itself. As such Bangladesh and its national business community as well as its foreign trading partners are deprived of taking advantage of the benefits and facilities offered by ATA Carnets as "Passports for goods."
The introduction of ATA Carnet System in Bangladesh will have a positive impact on the country's foreign trade by enabling the local exporting firms to compete with those of other trading nations under equal terms on the world market. It will also facilitate Bangladesh's integration into the global economy. Carnets save time, effort, and money. Carnets are used for unlimited exits from and entries into foreign countries. Valid for one year, Carnets are accepted in over 75 countries and territories eliminating value-added taxes (VAT), duties, and the posting of security normally required at the time of importation. Simplifying customs procedures, Carnets allow a temporary exporter to use a single document for all customs transactions, make arrangements in advance, and at a predetermined cost, without obtaining an export permit from the Chief Controller of Import and Export. It would save time and money.
Carnets waive the need for Temporary Importation Permit (IP) applicable in certain countries. An exporter must secure the export (EXP) at the time of entry into each foreign country and must meet foreign customs requirements. These requirements vary from country to country, making it more difficult to plan and prepare.
The Carnet application process is done in English. As an internationally recognised customs document, a Carnet also can limit the possibility of confusion or miscommunication posed by language barriers when entering a foreign country.
Over 75 nations and territories in Europe, North America, South America, Africa, Oceania and Asia, including Pakistan, India and Sri Lanka, have ratified the Istanbul Convention to get the facilities of ATA Carnets. Bangladesh should not waste any more time and join, as early as possible, the ATA Carnet system.
The writer, a Part Time Teacher at Leading University, can be reached at
shah@banglachemical.com
The contribution of industry and export to the national economy is increasing. The present marketing strategy is to attend fairs and display our products to prospective foreign buyers at their door steps. The process of exporting and re-exporting structures and samples for the purpose of a fair is elaborate and expensive because of customs regulations.
In 1961 the World Customs Organisation (WCO), then known as the Customs Cooperation Council (CCC), adopted the "Customs Convention on the ATA Carnet for the Temporary Admission of Goods". It is an international instrument designed to facilitate the importation, irrespective of the means of transport used, of goods which are granted temporary duty-free admission. The Convention specifies a form of Temporary Admission (ATA) and conditions for its use in lieu of national customs documents. A combination of French and English terms, ATA (Admission Temporairé/Temporary Admission) sets out the minimum facilities to be accorded in relation to the use of ATA Carnets. [Carnet means an official pass or permit, especially one for crossing national boundaries.]
ATA Carnets, known as "Merchandise Passports," are international customs documents that simplify customs procedures for the temporary importation of various types of goods. It applies to three broad categories of merchandise -- commercial samples, professional equipment and goods for display at exhibitions and fairs. It is used to import or export sales promotion literature, inexpensive samples for distribution, designs and works of art for exhibition, and machinery and equipment for display or demonstration. Typical articles include antiques, machinery, machine tools, catering equipment, clothing and footwear, toys, computers, office equipment, electric generators, electrical/electronic and scientific equipment, surgical and dental equipment, jewellery and precious metals/stones, sound equipment, audio-visual, photographic and filming equipment, lasers, musical instruments and records, aircraft, films, motor vehicles, racing engine machinery, heating and lighting equipment, agricultural machinery, furniture, crockery, works of art, race horses, theatrical effects and sets, sporting goods, yachts and display stands. The goods not covered by Carnets include disposable items or consumable goods, including food and agriculture products.
It is important to note that the ATA Carnets can be used neither for importation for home use, nor for the sole use as a transit or temporary exportation document.
Carnets are issued and guaranteed by trade bodies, which manage the ATA system under a set of conditions established by the International Bureau of Chamber of Commerce (IBCC), a division of the Paris-based International Chamber of Commerce (ICC). It is issued by local Chamber of Commerce affiliated to the International Chamber of Commerce (ICC). Local chambers guarantee payment of customs duties in case goods allowed under ATA Carnet are not re-exported on due date. It simplifies the process of import and export within five working days and expedited service is available for an extra charge.
The agreement is administered by the ICC in cooperation with the WCO. Together with the ICC, the WCO and member countries' National Guaranteeing Associations (NGA) provides the ATA International Guarantee Chain. This chain provides reciprocal guarantees assuring member customs officials that duties and taxes will be paid when claims arise.
The worldwide ATA Carnet system is overseen by the World Customs Organisation (WCO) in cooperation with the ICC and its networks of National Guaranteeing Associations (NGA). The Carnet allows the business travelers to use a single document for clearing certain categories of goods through customs in several different countries.
The ATA Carnet is an international customs document that allows the holder to import or export goods temporarily, up to one year, without payment of normally applicable duties and taxes, including value-added taxes. So long as the goods are re-exported within the allotted time frame, no duties or taxes are due. The normal national tax and other charges applicable in case of failure to re-export all goods listed on the Carnet results in the need to pay the applicable duties.
The application, among other things, lists all countries of intended transit and all applicable goods with their assigned values. If the application is properly completed and submitted with the applicable fees the NGA will issue a Carnet specifically tailored to that itinerary. The Carnet document has two 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 holder's receipt. Upon completion of travel or expiration of the carnet's 12-month active period, the holder must return all documents to their home, NGA. A review is done. If all documents are in order and no claims are found to be forthcoming from any of the applicable foreign countries, the collateral can be returned. If a bond was used the NGA issues notice that the bond may be canceled. 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 NGA of a violation, the Carnet holder is given notice to provide proper documentation or pay the applicable duties. If they do not, the collateral or bond is used to pay the claim. Claims that cannot be amicably settled between the applicable NGAs may be referred to the ICC for Dispute Resolution Services.
Bangladesh scenario: Bangladesh is a member of the World Customs Organisation (WCO), the intergovernmental organisation of customs administrations responsible for the administration "ATA Carnets", namely the "Istanbul Convention". But, Bangladesh is not yet a Contracting Party to the "Istanbul Convention" itself. As such Bangladesh and its national business community as well as its foreign trading partners are deprived of taking advantage of the benefits and facilities offered by ATA Carnets as "Passports for goods."
The introduction of ATA Carnet System in Bangladesh will have a positive impact on the country's foreign trade by enabling the local exporting firms to compete with those of other trading nations under equal terms on the world market. It will also facilitate Bangladesh's integration into the global economy. Carnets save time, effort, and money. Carnets are used for unlimited exits from and entries into foreign countries. Valid for one year, Carnets are accepted in over 75 countries and territories eliminating value-added taxes (VAT), duties, and the posting of security normally required at the time of importation. Simplifying customs procedures, Carnets allow a temporary exporter to use a single document for all customs transactions, make arrangements in advance, and at a predetermined cost, without obtaining an export permit from the Chief Controller of Import and Export. It would save time and money.
Carnets waive the need for Temporary Importation Permit (IP) applicable in certain countries. An exporter must secure the export (EXP) at the time of entry into each foreign country and must meet foreign customs requirements. These requirements vary from country to country, making it more difficult to plan and prepare.
The Carnet application process is done in English. As an internationally recognised customs document, a Carnet also can limit the possibility of confusion or miscommunication posed by language barriers when entering a foreign country.
Over 75 nations and territories in Europe, North America, South America, Africa, Oceania and Asia, including Pakistan, India and Sri Lanka, have ratified the Istanbul Convention to get the facilities of ATA Carnets. Bangladesh should not waste any more time and join, as early as possible, the ATA Carnet system.
The writer, a Part Time Teacher at Leading University, can be reached at
shah@banglachemical.com