Benefits of ATA Carnets

Presented by Amanda Barlow For Advanced Topics in Customs Compliance Conference

February 4, 2016

What do these have in Common? Medical device manufacturer exhibiting $400,000

worth of samples at China International Medical Equipment Fair (CMEF)

$10 million worth of mining equipment taken to Canada for a mining project

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

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

ATA Carnet

Temporary Importation The process whereby goods will remain in the importing country for a limited period of time without paying full duties and taxes.

Duty & Tax Deposit

Temporary Import under Bond (TIB)

ATA Carnet

Smuggling

ATA Carnet Benefits Eliminates posting of a financial guarantee Deposit of duties and taxes e.g., yen, euro, sterling. EU, minimum 20% of value China, minimum 17% of value Mexico, minimum 16% of value

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

What can go on ATA Carnet? 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

Real Life ATA Carnet Shipments Computer equipment Wearing apparel Billiards tables Camera equipment Aircraft, autos, boats Display booths Human skulls Theatrical scenery

Catering equipment Trade show booths Jewelry Live animals Sporting goods Musical instruments Power systems Rare books

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

• No “substantial transformation” in product or value

• No repairs nor replacements

What goods are NOT covered?

Where can Carnets be used? 75 member countries and the customs territories they administer:

France Monaco Spain Canary Islands South Africa Namibia, Lesotho, Botswana,

Swaziland

ATA Carnet Countries

New ATA Carnet Countries

New Members: 2011: UAE, Bosnia Herzegovina and Mexico 2013: Albania and Madagascar 2014: Bahrain joined June 1 2015: Indonesia joined May 15

Coming Soon: Brazil Saudi Arabia

How do you ensure an ATA Carnet is Compliant?

Green Cover USCIB logo

Unique identifying number

US CBP validates US Carnets on first trip out

Holder/Representative MUST sign

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

US3/10-2456

General List “Reasonable” written

description of goods Serial and model nos. Insured value, weight and

origin Group similar items Never amend General List

attached to cover, especially value

NEVER AMEND

US3/10-2456

U.S. Exportation Counterfoil

(yellow) 10/11/15

1 - 25

2011/10/29

Airway Bill/Bill of lading/Flight No. No EEI per 30.37(q)***License No./ITN

US3/10-2456

2720 LAX

Foreign Importation Counterfoil

(white) 1

1

1 - 25

2011/04/11

10/11/15

Airway Bill/Bill of lading/Flight No. License No.

LHR UK

US3/10-2456

Importation Voucher (white)

Holder/Representative completes boxes D-F, signs and dates

Foreign Customs completes shaded portion with same number as counterfoil, removes it

Make SAME NOTATIONS on voucher as on counterfoil

1

2010/11/15

1- 25 LHR, UK

2011/04/11

US3/10-2456

Foreign Re-

Exportation Counterfoil

(white)

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.

US3/10-2456

TXL

DE

LHR

UK

Foreign Voucher (white)

Holder/Representative 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

LHR, UK 2011/04/11

US3/10-2456

TXL, DE

U.S. 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.

US3/10-2456

4701 JFK

Airway Bill/Bill of lading/Flight No. No EEI per 30.37(q)***License No./ITN

2720 LAX

Transit Counterfoils (blue)

Used by customs to track goods “in transit,” but which are not in the commerce of that jurisdiction. Transits may be used, e.g., to move though a country, from an airport to a fair, or from one customs district to another.

Switzerland, France, Italy, Poland and Russia

The Carnet, along with the goods, must ALWAYS be

available for customs clearance!

Secret to Carnet Success

Beyond standard ATA Carnet procedures…..

Split and Partial Shipments

Partial/Split: Holder/Representative should strike out those items not being imported on the White Voucher General List

Amend ONLY the voucher copy, never the master copy attached to the green cover.

US3/10-2456

Partial Shipments Extra attention is needed on the part of Holders/Representative and Customs to ensure that the proper item numbers are noted on counterfoils and vouchers for goods entering/exiting in a piecemeal fashion. All goods must leave by expiration date.

1, 3,4, 6 - 25

1, 3, 4, 6 - 25

US3/10-2456

1 - 25

7 - 10

1 – 6, 11 - 25

2010/08/04

2010/07/15

2010/06/01

2011/05/1

1

1

Split Shipments Extra attention is needed on the part of Holders/Representative and Customs to ensure proper number of items are noted on counterfoils and vouchers for goods entering/exiting in a piecemeal fashion. All goods must exit before Carnet expiration.

US3/10-2456

1 - 25 7 - 10 1 – 6, 11 - 25

2

1

2010/08/04

US3/10-245

2010/07/15

US3/10-2456

US3/10-

Duplicate ATA Carnet Duplicate Carnet: replaces

an original that was lost, stolen or destroyed.

Duplicate Carnet bears same expiration date and General List as original.

“/S,” for second ATA Carnet document

US3/10-2456/S

TECRO/AIT Carnets (US issued to Taiwan)

Tecro/AIT Carnets issued for goods traveling ONLY between U.S. and Taiwan; only 2 countries in Box P

Chinese and English Holder going to Taiwan and an

ATA country will need, 1 TECRO/AIT, and 1 ATA. Both should be validated by US CBP

Connected to ATA Carnet…

Extending US ATA Carnets

Option 1: Replacement ATA Carnet Issued to lengthen the time frame

goods can stay in a foreign country References original Carnet number Issued only in NY; green cover

initiated at JFK, EWK, Pier 92 No replacement will have a validated

yellow exportation counterfoil US CBP validates upon re-entry

REPLACEMENT ATA CARNET TO BE CONNECTED TO US3/08-01618 GUARANTEED BY THE USCIB

US61/09-00381

Extending US ATA Carnets Option 2: Converting to another form of

Temporary Entry

Option 3: Selling the goods entered on an ATA Carnet

Duty + Tax + Penalty (10% of the duty and taxes)

Extending the Foreign ATA Carnet in the U.S.

Yes it is possible! Two Options:

1.Convert an ATA Carnet to a Temporary Import under Bond (TIB)

2. Six months Grace period 3. Selling the goods entered on an ATA Carnet

Extending Foreign ATA Carnets Issued to extend the time frame goods can stay in a foreign country

REPLACEMENT ATA CARNET TO BE CONNECTED TO US3/08-01618 GUARANTEED BY THE USCIB

US61/09-00381

THE U.S. DOES NOT Accept

Replacement ATA Carnets!

Option 1. Converting an ATA Carnet to a TIB

Before expiration date of the ATA Carnet Allows an additional year to remain in the U.S. ATA Carnet Number must appear on the TIB paperwork Merchandise description, weight and value must match

the ATA Carnet General List ATA Carnet’s re-exportation voucher should be

presented and validated by U.S. Customs referencing the TIB number and date

Converting to a TIB

Procedures 1

1

1 - 25

2015/04/11

1 - 25

14/11/25

15/04/11

1

Airway Bill/Bill of lading/Flight No. License No.

ORD

3901

4701 JFK

Converted to TIB Customs Entry Number

Option 2: Six Months Grace Period US CBP Must stamp an expired Foreign ATA Carnet exiting

the U.S. Late re-exportations are permitted, but…

Notations must be made on both voucher and counterfoil that the ATA Carnet has expired: e.g. “Carnet has expired, duties are payable.” Duties will be assessed depending on the date of re-export

Compliant Re-

Exportation 1

1

1 - 25

2015/04/11

1 - 25

14/11/25

15/04/11

1

Airway Bill/Bill of lading/Flight No. License No.

ORD

3901

4701 JFK

Duties Payable to USCBP for late re-exportation

Mitigation of duties may be afforded if the merchandise is re-exported after ATA Carnet expiration as follows:

Up to 90 days after ATA Carnet expiration will result in 25% of the duty and 10% penalty (min $50)

Between 90 and 180 days after ATA Carnet expiration will result in 50% of the duty and 10% penalty (min $100)

Goods re-exported 181 days after ATA Carnet expiration will result in 100% of the duty and 10 % penalty

Six Months Grace Period

Option 3: Selling off of an ATA Carnet Merchandise on a foreign Carnet has been sold! Do not try to convert to a Consumption Entry Anticipatory Breach or Liquidated Damages A CBP F 5955A penalty notice must be issued (by Entry

Division), generating a Customs case number and listing the ATA Carnet details, and citing applicable duty. (A flat $100.00 for duty-free or low-duty ATA Carnets).

A standard consumption entry can rarely be traced back to a specific ATA Carnet or its merchandise and will not be sufficient to discharge the ATA Carnet after the fact.

Stay Compliant with Participating Government Agency

Export Licenses and US CBP requirements!

Stay Compliant with Export Licenses and CBP requirements!

ATA Carnets do not substitute for export licenses

Seek licenses with appropriate authorities and present them with the ATA Carnet at time of customs clearance

Last Port of Export no longer enforced 10/28/2011

Importer Security Filing (ISF) 10+2 ATA Carnets are NOT exempt from 10+2 ATA Carnets ARE exempt from the 10+2

Bond requirement when returning to the U.S. by ocean

CBP modified its system to accept 9 types of coded transactions ATA Carnet is 06

HTSUS is still required

New EEI regulations October 2nd ATA Carnets were re-exempted Ensure to note Carnet NO EEI per 30.37(q) or (r)

on the required manifest/shipping documents where the ITN number/exemption typically is noted.

Avoiding the ATA Carnet Police

Avoiding ATA Carnet Claims 1.Exportation Counterfoil Stamp 2.Re-importation Counterfoil stamp 3.Certificate of Disposition (CBP 3227) 4. Other Customs verified related documentation 5. Police report 6. Converting to a TIB 7. Selling goods on an ATA Carnet

How does an Exporter get an ATA Carnet?

U.S. Exporter can obtain an ATA Carnet From:

Logistics providers Insurance Companies

Contact

Amanda Barlow Vice President ATA Carnet

212.412.9229 Amanda.Barlow@RoanokeGroup.com www.RoanokeTrade.com/ATA-Carnet

1.800.CARNET (1.800.227.6387)

Thank you!