A carnet is a customs document that helps to simplify the sometimes-daunting task of clearing customs when bringing goods into a foreign country for a temporary period of time. The carnet, sometimes referred to as a merchandise passport, allows you, as a representative of a company, to avoid paying duties and taxes (including value-added taxes) to foreign customs for your goods, since the goods are not being brought into the country with the intent of their staying there for more than a year.
You can actually purchase carnets online, and ATA carnet cargo insurance is vital coverage for physical loss or damage to any approved goods being shipped on the ATA carnet. Manufacturers of a variety of goods and products, including clothing companies, jewelers, and even individuals carrying professional equipment, often use carnets.
High profile industries find carnets to be a convenience
Many high profile companies find the use of carnets to be extremely beneficial due in large part because they tend to have goods that travel to many different countries for extended periods of time. For example, traveling orchestras and musicians that tour frequently and have expensive equipment depend on the use of carnets to reduce shipping costs.
Television networks and film crews that go on location to exotic countries also enjoy the benefits of acquiring carnets. Art galleries, tradeshow exhibitors and even universities and hospitals see the purchase of a carnet as something that makes sending goods overseas a much easier and desirable process.
For one thing, by purchasing carnets online you are able to eliminate the payment of duties and value-added taxes, thereby freeing up your cash flow, plus you can use the carnet multiple times in a one-year period.
It helps to work with a US company familiar with the carnet exposures and fees. Your premiums are billed in US currency at a predetermined cost, so you know exactly what the cost will be in advance and therefore you’ll eliminate the need for obtaining a temporary import bond (TIB) in foreign countries. Finally, you’ll ease the customs process when re-entering the US as your carnet serves as your certificate of registration.