The current tariff environment has impacted business owners, where many question whether there are strategies to legally avoid their effects. One opportunity that may fit a set of specific facts and circumstances utilizes something called an ATA Carnet.
The ATA Carnet is an internationally recognized customs document that allows a sole trader or a business to temporarily export goods out of a country and import those goods into a participating Carnet country, without having to pay the import duty and tax. Not only can a Carnet work in one country, but it can also be used to import into multiple countries.
Goods imported into the more than 90 participating Carnet countries and territories can remain for up to 12 months from the date of issue of the Carnet. Those goods will fall into one of three categories,1 also known as Intended Use, relating to:
- Commercial samples
- Professional equipment
- Exhibitions and fairs
Consumable or disposable goods in nature cannot be imported under an ATA Carnet.
In addition to the benefit of not paying duties, the ATA Carnet provides a streamlined avenue to temporarily import goods without being subject to normal customs procedures and documentary requirements. A single carnet may be used to import goods through an unlimited number of participating countries within a 12-month time frame.
If the goods are not re-exported, then the import duties and taxes are due and must be paid. The United States Council for International Business (USCIB) is the U.S.’s guaranteeing association.
We invite you to visit our webpage dedicated to helping you navigate tariffs, understand the services we provide related to tariff mitigation, and share ways to contact our trusted professionals.
- 1Verify with the country specific rules to determine which goods qualify.