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Understanding ATA Carnets: A Comprehensive Guide

 

 

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The ATA Carnet, often referred to as the "passport for goods," is an international customs document that permits the tax-free and duty-free temporary export and import of goods for up to one year. This system, governed by the World Customs Organization (WCO) and the International Chamber of Commerce (ICC), facilitates international trade and movement of goods for purposes such as exhibitions, professional equipment, and commercial samples.

What is an ATA Carnet?

An ATA Carnet is a globally accepted customs document that simplifies the temporary import and export process by using a single document for multiple countries. The acronym "ATA" stands for "Admission Temporaire/Temporary Admission." This system is recognized in over 80 countries, providing a streamlined process for businesses involved in international trade.


Key Features

1. Multiple Entries and Exits: Allows for multiple trips to different countries within its one-year validity.

2. Cost Efficiency: Eliminates the need to pay customs duties and taxes.

3. Simplified Customs Procedures: Reduces paperwork and expedites customs clearance.

4. Security: Requires a security deposit, typically 30-40% of the goods' value, to ensure compliance with customs regulations.


Uses of ATA Carnets

  • Trade Shows and Exhibitions: Facilitates the temporary importation of exhibition materials and commercial samples.
  • Professional Equipment: Supports the transport of tools and equipment for media, medical, and engineering professionals.
  • Cultural and Sports Events: Enables the movement of art pieces, musical instruments, and sports gear for events.


How the ATA Carnet System Works

The ATA Carnet is obtained from the issuing authority in the country of origin, usually a chamber of commerce. The carnet is then presented to customs officials at each border, ensuring smooth transit and temporary admission of goods.


Steps to Obtain an ATA Carnet

1. Application: Complete the application form from the issuing authority.

2. Security Deposit: Provide a security deposit to cover potential customs duties.

3. Issuance: Receive the carnet for use over its validity period.


ATA Carnets in GCC Countries

United Arab Emirates (UAE)

The UAE was the first GCC country to adopt the ATA Carnet system in 2011. The Dubai Chamber of Commerce and Industry facilitates this system, supporting major events such as the Dubai Airshow. For more details, visit the Dubai Chamber's website.

Bahrain

Bahrain adopted the ATA Carnet system in 2013. The Bahrain Chamber of Commerce and Industry is responsible for issuing and guaranteeing carnets. This system promotes international trade and investment by simplifying customs procedures. More information is available on the Bahrain Chamber's website.

Qatar

Qatar implemented the ATA Carnet system in 2018. The Qatar Chamber of Commerce and Industry oversees its use, which has been crucial for significant events like the 2022 FIFA World Cup. More information can be found on the Qatar Chamber's website.

Saudi Arabia

In April 2024, the Federation of Saudi Chambers of Commerce and Industry announced that Saudi Arabia has joined the international ATA Carnet system. Effective 1 June 2024, the Zakat, Tax and Customs Authority (ZATCA) permits the entry of goods under this system for events such as exhibitions and meetings. This system provides a guarantee mechanism for customs duties and taxes as outlined in Annex B.1. of the Convention on Temporary Admission (Istanbul, 26 June 1990). The Saudi Chambers will issue the ATA Carnet.

Oman and Kuwait

Oman and Kuwait are in the process of adopting the ATA Carnet system, which will further streamline trade and attract foreign business.

The ATA Carnet system is a vital tool for international trade, offering cost savings and simplified customs procedures. As more GCC countries adopt this system, the region will continue to grow as a hub for global business and events. For more detailed information about ATA Carnets, visit the ATA Carnet website.

Related Articles

Saudi Arabia Joins the ATA Carnet System: A New Era for Temporary Imports


DisclaimerContent posted is for informational and knowledge sharing purposes only, and is not intended to be a substitute for professional advice related to tax, finance or accounting. The view/interpretation of the publisher is based on the available Law, guidelines and information. Each reader should take due professional care before you act after reading the contents of that article/post. No warranty whatsoever is made that any of the articles are accurate and is not intended to provide, and should not be relied on for tax or accounting advice. 

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