Tempor emporar ary y Expor Exports ts and and the the ATA A - PowerPoint PPT Presentation

Tempor emporar ary y Expor Exports ts and and the the ATA A Car Carnet net 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 A Car Carnet net  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 Car Carnets nets 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 Car Carnets nets? Not Trade Show items only! 3 Primary Categories: CS --Commercial Samples 1. PE --Professional Equipment (tools 2. of the trade) EF — Goods for Exhibitions and Fairs 3.

What goods are NO NOT T 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 Car Carnet net?  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 Car Carnet net 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 Car net Works? Carnet  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)

.S . U.S Car Carnet net

Gr Green een Co Cover er 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

Gener General List al List  “Reasonable” written description of goods  General List should match License commodity description, NEVER NEVER commercial invoice line items, AMEND AMEND packing list, etc.  Serial and model nos.  Insured value, weight and origin  Group similar items  Never amend General List attached to cover, especially value

Exporta Expor tation Counterf tion Counterfoil oil (y (yello ellow) w) US1/10-2456 1 - 25 2011/10/29 Airway Bill/Bill of lading/Flight No. License No. 5501 DFW 10/11/15

tion Counterf Impor Importa tation Counterfoil oil (w (white) hite) 12345 US1/10-2456 1 - 25 2011/04/11 Airway Bill/Bill of lading/Flight No. License No. LHR UK 10/11/15 1 1

Impor Importa tation tion Vouc oucher her (w (white) hite) • Holder completes boxes D-F, signs 1 US1/10-2456 and dates 12345 • Foreign Customs completes shaded portion of voucher with same number as counterfoil, removes it, and files with 2011/04/11 appropriate department • Enter port of entry on re- LHR, UK exportation voucher, item H(e) 1- 25 • Make SAME NOTATIONS on 2010/11/15 voucher as on counterfoil

For oreign eign Count Country Count Counterf erfoil oil (w (white) hite) US1/10-2456 12345 1 - 25 2011/04/11 Airway Bill/Bill of lading/Flight No. License No. 10/11/15 LHR UK 1 1 - 25 1 Airway Bill/Bill of lading/Flight No. License No. LHR UK 1 10/11/29

For oreign eign Vouc oucher her (w (white) hite) 1  Holder completes sections US1/10-2456 12345 D – F  Foreign Customs completes 2011/04/11 shaded portion of voucher  Foreign Customs validates & LHR, UK 1 - 25 removes voucher with same number as counterfoil 2010/11/29  Make SAME NOTATIONS on voucher as on counterfoil

Re Re-impor importa tation tion Counterf Counterfoil oil (y (yello ellow) w) US1/10-2456 1 - 25 2011/10/29 Airway Bill/Bill of lading/Flight No. License No. 10/11/15 5501 DFW 1 - 25 Airway Bill/Bill of lading/Flight No. License No. 10/11/29 5501 DFW

Secr Secret to et to Car Carnet net Succes Success The Carnet, along with the goods, must ALWAYS be available for customs clearance.

The Application Pr Process ocess. 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 Car Carnet net 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 Car Carnet? net?  Standard Processing 2 nd Business day  Rush Processing Next business day $75/$100  Same Day Pick up $150/$200

Additional Ser Services vices  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 Car A Carnets nets in in Action 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 Me Mexico xico 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)

Pre- Shipment Registration for all Carnets to Me Mexico xico www.CarnetsToMexico.org

CBP Update Last Por ort of of Expor 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 oiding the Car Carnet net Police olice

Avoiding oiding Car Carnet net Claims Claims 1.Exportation Counterfoil Stamp 2.Re-importation Counterfoil stamp 3.Certificate of Disposition 4.Other Customs verified related documentation

Certificates of Dispos Disposition ition (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 e USCIB electr lectronic onic Cer Certifica tificates of tes of Origin 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