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

What goods are NOT covered? • 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 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 US1/10-2456

  

 



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

General List  “Reasonable” written description of goods

NEVER AMEND

 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

Exportation Counterfoil

(yellow)

US1/10-2456 1 - 25 2011/10/29 Airway Bill/Bill of lading/Flight No. License No. 5501

DFW

10/11/15

Importation Counterfoil 12345 US1/10-2456

1 - 25 2011/04/11 Airway Bill/Bill of lading/Flight No. License No. 1

1

LHR

UK

10/11/15

(white)

Importation Voucher (white)

1

•

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 reexportation voucher, item H(e)

•

Make SAME NOTATIONS on voucher as on counterfoil

US1/10-2456 12345

2011/04/11

LHR, UK 1- 25 2010/11/15

Foreign Country Counterfoil 12345 US1/10-2456

1 - 25 2011/04/11 Airway Bill/Bill of lading/Flight No. License No. 1

LHR

UK

10/11/15

1 - 25

1

Airway Bill/Bill of lading/Flight No. License No. LHR UK 1 10/11/29

(white)

Foreign Voucher (white)

1 US1/10-2456 12345

2011/04/11

LHR, UK

1 - 25 2010/11/29

 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

Re-importation Counterfoil US1/10-2456 1 - 25 2011/10/29 Airway Bill/Bill of lading/Flight No. License No. 5501

DFW

10/11/15

1 - 25

Airway Bill/Bill of lading/Flight No. License No. 5501

DFW

10/11/29

(yellow)

Secret to Carnet Success The Carnet, along with the goods, must ALWAYS be available for customs clearance.

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? Security Deposit: 40% of the General List  Cash deposit  Surety bond 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)

PreShipment 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 [email protected] 212.703.5078 www.TradeServicesUSCIB.org