News & Publications

Carnets: A passport for your merchandise

Carnets allow for the temporary export of goods into a foreign Customs territory for more than 80 countries globally. In addition to allowing goods to be temporarily imported into foreign countries, the carnet holder can transport goods duty and tax free inside a carnet inclusive territory for up to a year.  A valuable cost savings mechanism for businesses that operate on a global scale, carnets can be administratively burdensome without proper preparation.

Carnet Basics

Per Customs regulations, carnets are used on shipments of goods that will not be consumed or changed abroad, and are only passing through countries that recognize carnets.  Acceptable reasons for using carnets include tools for work, equipment for demo, goods for a show (i.e. Fairs and exhibitions).

In the United States there are currently two types of carnets utilized for eligible goods: ATA and TECRO/AIT. TECRO/AIT carnets are intended for exports to Taiwan whereas ATA carnets are used for the remaining participant countries.

Carnets are valid for up to 1 year from the date of issue. This validation period excludes Exhibitions and Fairs, in which a carnet is only valid for 6 months from date of issue as well as shortened validation periods imposed by some participant countries including China, Korea, Malaysia, Mexico and Singapore. It is important to note that upon inspection, A U.S. or foreign Customs official always has the right to limit the validity period on a carnet, although to do so is highly unusual.

Carnet Complexities

Carnets may be used multiple times, and in multiple countries during the validation period. However, carnet goods cannot be imported or exported without the original carnet.  The carnet is constructed of different pages that serve particular tracking functions to show where the goods are going and where they have been.

The carnet is divided into several different color sheets Green, Yellow, White, and Blue. The Green Sheet is the core document the others are built around and includes all of the identifying information about the shipment.  It is important that Green Sheets be filled out as completely and descriptively as possible. Yellow, White, and Blue sheets are provided in sets with 2 documents a piece: vouchers and counterfoils. Both vouchers and counterfoils need to be presented to custom agents.

While carnets can be replaced, it is expensive and timely to do so. As an entire packet must be with the cargo at every interaction with customs, it is important for businesses to appropriately educate each individual involved in a carnet shipment in the required chain of custody.

The Allyn Difference

At Allyn our highly trained Logistics and Trade Compliance professionals have the expertise to manage carnet shipments from beginning to end. For more information on how Allyn can assist your business with your next carnet shipment contact sales@allynintl.com

Allyn Contributor: George Ghawi

 

This website uses a variety of cookies, which you consent to if you continue to use this site. You can read our Privacy Policy for details about how these cookies are used. Manage Cookies