What’s New in

ATA Carnets! August 9th, 2016

Donna Mullins Mullins International Solutions

Amanda Barlow Roanoke Insurance Group Inc.

What is an 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

Why is ATA Carnet Good for Your

Business?

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)

ATA Carnet Benefits continue…

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

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

What Cannot Go on ATA Carnet

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

Where Can ATA Carnets Go?

76 member countries and the customs territories they administer:

France Monaco

Spain Canary Islands

South Africa Namibia, Lesotho, Botswana, Swaziland

New ATA Carnet Countries New Members:

2011: UAE, Bosnia Herzegovina and Mexico

2013: Albania and Madagascar

2014: Bahrain

2015: Indonesia

2016: BRAZIL joined June 28

Coming Soon:

Saudi Arabia

Qatar

US ATA Carnets, US

CBP and Foreign

Customs Compliance

How do you ensure a U.S. ATA

Carnet is Compliant?

VOID VOID

1

1

2

2

ATA Carnet Best Practices

1.Box H on the Green Cover must be validated

2.General List must be clearly described include

any and all unique identifying characteristics

3.Expired US ATA Carnets must be accepted by

CBP for re-importation

4.Foreign Customs has the right to restrict entry

5.Split and Partial shipments are possible, but

require a lot of attention

6.Request a Duplicate ATA Carnet

Options to Avoid the ATA Carnet

Police!

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. Extending an ATA Carnet

7. Selling goods on an ATA Carnet

Extending the ATA Carnet

Option 1: Extending the ATA Carnet with a

Replacement ATA Carnet

Option 2: Converting to another form of

Temporary Entry

Selling the goods entered on

an ATA Carnet

Duty + Tax + Penalty

Penalty = 10% of the duty and taxes

Split/Partial Shipments: only accessed on

the total value of the items not re-

exported

Foreign ATA

Carnets and US

CBP Compliance

How do Foreign ATA Carnets Work?

Foreign ATA Carnets and US CBP

Compliance

1.Exportation Counterfoil Stamp

2.Re-importation Counterfoil stamp

3. Other Customs verified related documentation

4. Police report

5. Extending a Foreign ATA Carnet with US CBP

6. Selling goods entered on an ATA Carnet

Extending the Foreign ATA Carnet

in the U.S.

USCBP does NOT accept Replacement ATA Carnets

Two Options:

1.Convert an ATA Carnet to a Temporary Import

under Bond (TIB)

2.Six months Grace period

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/Entry number and date

Six Months Grace Period

US CBP Must stamp an expired Foreign ATA

Carnet exiting the U.S.

Late re-exportations are permitted, and mitigation

of duties will be afforded if re-exported:

Up to 90 days after ATA Carnet expiration: 25% of the

duty and 10% penalty (minimum $50)

90 to 180 days after ATA Carnet expiration: 50% of the

duty and 10% penalty (minimum $100)

Selling off of an ATA Carnet

Do not try to convert to a Consumption Entry

Request an Anticipatory Breach for Liquidated

Damages to be paid

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).

ATA Carnets and US

CBP Compliance

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

Electronic Export Information

Requirement

October 2nd, 2014 ATA Carnets were once again

exempted

Ensure to note ATA Carnet NO EEI per 30.37(q)

or (r) on the required manifest/shipping

documents where the ITN number/exemption

typically is noted.

Secret to ATA Carnet

Compliance!

The ATA Carnet Along with

the Goods are always

together for Customs

Clearance, and when in doubt

call your ATA Carnet provider!

Obtaining a U.S.

ATA Carnet for

exportation

How does a U.S. Exporter get

an ATA Carnet?

Logistics providers can apply for the

ATA Carnet on your behalf

Insurance Companies can provide ATA

Carnet service

Mullins International Solutions

The Application Process.

Six Part Process:

1.Pre-registered account

2.Info on Exporter and its Customs

Brokers and/or Freight Forwarder

3.Describe the goods

4.Countries

5.Security Deposit

6.Fees

USCIB as the US CBP appointed National Guarantee Organization requires a security deposit

Typically 40% of the value of the goods

Two options available:

Cash deposit

ATA Carnet Surety bond

What is the Security Deposit?

How much does the ATA Carnet

cost? Basic Fee: $225-$380 based on the value of the General List. Sample: $50,000 in value and posting an ATA Carnet Surety Bond.

Processing: $340

Bond Prem: $200

S & H fee: $20

Total Cost: $560

How long does it take to get the

ATA Carnet?

Standard Processing 2nd Business day

Rush Processing Next day $75

Same-Day Processing available at pick up

locations around the country $150

Additional Value Added Services

Duplicate Carnet: used for a lost, stolen or destroyed Carnet. Expiration date remains the same

Lost Document Coverage: covers the cost of obtaining a Duplicate ATA Carnet

ATA Carnet Cargo Insurance: All Risk enhanced policy that covers new and used goods tailored to the ATA Carnet shipment. Most importantly covers the duties, taxes and penalties if the goods are lost, damage or stolen.

Thank You!

Donna Mullins

Donna@MullinsIntlSolutions.com

Phone: 404.429.6341

Amanda Barlow

Amanda.Barlow@RoanokeGroup.com

212.412.9229