U.K. Exporters Benefit from Lower Costs & Efficiency

Fri, January 19th, 2018

Broader Acceptance of ATA Carnets Helps UK Exporters Promote Products

Central Asia, Asia and South America Expand Acceptance of ATA Carnets

Cost matters to exporters. So, shipping or carrying samples or demo equipment to a foreign country shouldn’t be costly (or a hassle). Fortunately, broader acceptance of the ATA Carnet temporary export document reduces costs and increases the efficiency of getting product samples and test and demo equipment into some of the largest world economies. U.K. small and medium-sized exporters especially stand to gain from the increased acceptance of the ATA Carnet since, typically, they don’t have in-house trade compliance and logistics departments.

The ATA Carnet allows goods and equipment to be temporarily exported, without paying import duty and tax, for up to 1 year. Countries that have either joined the ATA Carnet system recently or expanded acceptance of temporarily imported goods are: Brazil, China, India and Kazakhstan, a major gateway to Russia.

Kazakhstan Is the Newest ATA Carnet Country
Kazakhstan joined the ATA Carnet system in 2017. While a relatively small economy, and a landlocked country, Kazakhstan is a major transit and logistics channel into Russia. The ability to use an ATA Carnet for shipments going to Russia via Kazakhstan makes temporarily importing to Russia vastly easier and more efficient. Kazakhstan accepts ATA Carnets for commercial samples, professional equipment and goods for fairs and exhibitions. Depending upon shipment logistics, blue transit certificates may be required if the ultimate destination is Russia. An ATA Carnet Specialist can advise applicants regarding certificate use and country-specific guidelines.

India Expands Scope of ATA Carnet Acceptance
India has significantly increased the scope of what it will accept under the ATA Carnet Exhibitions and Fairs provision. Beginning in 1990, India would only accept ATA Carnets for government-approved, ITPO events. As of 2017, Indian customs has expanded the scope of what it will accept under carnet, not only to include private exhibitions and fairs but also meetings, demonstrations and similar shows or displays. The emphasis is on “meetings, demonstrations and similar shows or displays.” Previously, only goods and equipment entering specifically for fairs and exhibitions would be allowed to use an ATA Carnet into India. It is still advisable to present a letter of invitation from the host in India, along with the ATA Carnet, when presenting the carnet and goods/equipment to Indian customs upon entry. Adopting the commercial samples and professional equipment annexes would be the next step toward expanded acceptance of the ATA Carnet in India.

Brazil Corrects Regulatory Constraints on Carnets
Brazil began accepting carnets in 2016 however their customs regulations did not allow carnets to be used for hand-carried shipments. This restriction increased the cost and complexity of using a carnet into Brazil. In late 2017, the International Chamber of Commerce (ICC) announced that Brazilian customs regulations were amended to include “goods carried by the traveler.” Additionally, at first, Brazil was not accepting carnets originating from certain ATA Carnet countries due to a regulatory technicality. This has also been amended. These changes remove the last regulatory hurdles to using carnets to Brazil and expands South America for carnets. From 2005 until 2016 Chile was the only South American country to accept ATA Carnets. The ICC anticipates that additional Latin American countries will join the carnet guarantee system within the next few years, particularly Peru, which has expressed a strong interest.

China Announces Big Increase in ATA Carnet Acceptance
China limits acceptance of carnets to Exhibitions and Fairs however they recently announced the intention to accept the Commercial Samples and Professional Equipment provisions of the ATA Carnet convention. Carnet issuers have always had a large demand from carnet users for both commercial samples and professional equipment going into China due to the desire to enter the Chinese market with foreign goods. Opening the doors to these additional uses of the carnet into China should significantly increase ATA Carnet activity into that growing economy. A formal announcement is expected to be made by the ICC in February of 2018.

The ATA Carnet system is 87 countries and territories joined by a reciprocal guarantee program. Adding countries, like Kazakhstan, and expanding acceptance, as in India, Brazil and China, are annual occurrences. Stay current on changes that may impact export opportunities by signing up online for the Liverpool Chamber of Commerce (LCC) carnet newsletter, Exportise, or checking the boomerang carnets blog. LCC now issues over 1000 ATA Carnets annually to U.K. businesses and organizations with its partner, boomerang carnets LTD.

To apply for an ATA Carnet or make an inquiry contact Sarah Woolley at the LCC: Sarah.Woolley@LiverpoolChamber.org.uk.

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