ATA Carnet (Passport for goods)
WHAT IS AN ATA CARNET ?
An ATA Carnet is an international customs document issued by 70 countries. It is presented when entering a Carnet country with merchandise or equipment that will be re-exported within 12 months.
The Carnet permits the equipment or merchandise to clear customs without the payment of duties and taxes upon presentation. Thus the use of a Carnet as a “passport for goods” is a way of temporarily importing into foreign countries without payment of duties and taxes.
Carnets are solely issued by Malaysian International Chamber of Commerce And Industry (MICCI) in Malaysia, which is an affiliate of the International Chambers of Commerce (ICC) Paris. ATA Carnets can be used for hand-carried instruments and equipment as well as freight.
USE AN ATA CARNET TO SAVE MONEY AND TIME
ATA Carnet (Temporary Admission) covers merchandise such as commercial samples, professional equipment, scientific equipment and goods for display or use at events, fairs and exhibitions.
What are the Advantages of Using an ATA Carnet?
- When using the international customs document, The Merchandise Passport, it:
- Reduces costs to the exporter. Eliminates value-added taxes (VAT), duties, and the posting of security normally required at the time of importation.
- Simplifies customs procedures. Allows a temporary exporter to use a single document for all customs transactions, make arrangements for entry to many countries in advance, and do so at a predetermined cost.
- Facilitates re-entry into the U.S. Eliminates the need to register goods with U.S. Customs at the time of departure.
TRADE SHOWS, TRADE FAIRS, TRADE MISSIONS AND OVERSEAS EXHIBITIONS
ATA Carnets can be used for equipment and merchandise that is shipped overseas for trade shows to avoid paying customs duties and import taxes and also to ease customs clearance. An ATA Carnet also eliminates the need to post a bond or cash with foreign customs, which may take months to be returned.
INDUSTRIAL AND DEFENSE APPLICATIONS
Aerospace exhibitions, water purification projects, electrical power plants, telecommunications installations and transportation development in foreign countries can benefit from using ATA Carnets as temporary exports to ship equipment to and from project site. Professional equipment which is solely for use by, or under the personal supervision of the holder or his nominated representative can also benefit from using ATA Carnets.
MERCHANDISE THAT IS EXCLUDED FROM THE ATA CARNET SYSTEM
Perishable goods, merchandise and samples to be sold or given away are not permitted to be listed on an ATA Carnet as they are entering the commerce of host country.
NON-COMPLIANCE WITH CONDITIONS OF TEMPORARY IMPORT
The holder must comply with the customs regulation of the foreign countries. Goods imported under a Carnet must not be sold and must be re-exported within the period approved. Improper use of a Carnet may result in an assessment of duties, taxes and penalties. Follow the rules governing the use of a Carnet before your departure or ensure your authorized representatives, customs brokers or freight forwarders handle your shipments within the prescribed guidelines of foreign countries.
WHO MAY USE AN ATA CARNET?
Traveling Business/Sales Executives
Technicians
Fair Exhibitors
Professional Individuals and Teams
- TV & Film Crew
- Surgeons
- Architects
- Entertainers
Engineers
Freight Forwarders etc
COUNTRIES ACCEPTING ATA CARNETS
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HOW TO USE A CARNET
An ATA Carnet consists of green covers (front and back) and counterfoils and vouchers.
Front green cover:
The principal page of a Carnet, which includes the holder and Carnet information, customs certificate to initiate the Carnet, and the original General List. Foreign customs may deny entry of goods under a Carnet if the green cover is neither signed by a Holder/authorized representative nor validated by Malaysian Customs for initial departure. Back green cover contains “Notes on the Use of the Carnet.”
Counterfoils and vouchers (colour-coded) are control documents. Counterfoils should remain in the Carnet for use by the holder. Vouchers are removed and kept by customs. Counterfoils and vouchers are always issued in sets of two and are color-coded.
Yellow counterfoils are used for exiting from and returning to Malaysia.
White counterfoils and vouchers are used for entry into and departure from foreign countries; and Blue counterfoils and vouchers are used for transits. Transits are most often used when merchandise is conveyed by land and must pass through or stop in a country that lies between the country of departure and the next country of entry (e.g., leaving Austria to go to Italy, but passing through or stopping in Sweden)
SECURITY DEPOSIT
This security is for an amount equal to 50% of the value of the goods covered by the Carnet or equal to the highest rate of duty and taxes applicable to the goods in any country of destination and transit if applicable, an additional of 10% whichever is higher. The security must be in the form of:
- cash
- banker’s draft
- bank guarantee (if the amount is in excess of RM20,000 and is required to be valid for a minimum of 31 months from the date of issue)
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*proof of membership is required
RESERVATION OF CHAMBER’S RIGHTS
Malaysian International Chamber of Commerce And Industry reserves the right to sight goods covered by an application for an ATA Carnet and to ask for any relevant documents to verify the declaration made.
The issue of an ATA Carnet is at the absolute discretion of the Malaysian International Trade And Industry which reserves the right to refuse to issue an ATA Carnet without assigning any reason for the exercise of the Chamber’s discretion.
