Page 144 - DMGT546_INTERNATIONAL_TRADE_PROCEDURE_AND_DOCUMENTATION

Unit 6: Custom Clearance of Import and Export Cargo

intended for sale or sale on approval cannot be entered on a carnet – it must be entered as a Notes
regular customs entry.

What Happens if the Goods are not Exported?

If the holder of an ATA carnet sells, donates or otherwise disposes of any of the goods listed on
the carnet, the issuing organization will be required to pay liquidated damages equal to 100
percent of the import duties and taxes. That organization in turn will attempt to collect these
moneys from the holder of the carnet who violated the terms. In some cases, the country where
the violation occurred will hold both the organization that issued the carnet and the importer
equally responsible. The importer is liable to his/her issuing association (and, in some cases, to
the Customs authorities of the country where this transpired) for all duties and/or taxes and
other sums which would normally be charged on the importation of such goods, as well as the
amount charged as liquidated damages. If the U.S. Customs Service finds that there was fraud
involved in the importation, additional penalties may be assessed.

What happens when goods covered by a U.S. issued ATA carnet are reimported into
the U.S.?

If goods covered by a U.S. issued carnet are brought back into the United States within the
validity period of the carnet, the carnet serves as the Customs control registration document and
must be presented on re-importation. Whether the re-imported goods are subject to duty depends
on exemption in the Harmonized Tariff Schedule http://www.usitc.gov/taffairs.htm and not
on their status as carnet goods. See 19 CFR 141.4 for goods that are exempted from entry
documentation requirements and 19 CFR 141.2 for goods exempted from duty on re-importation.

What if the ATA carnet has expired?

If the expiring ATA carnet is a U.S. issued carnet there will be no penalties or duties assessed by
the United States, however, there may be penalties assessed by a foreign government if the
carnet expired before the U.S. merchandise was exported from that country.
If the carnet is foreign-issued then liquidated damages will be assessed by the U.S. Customs Service
due to the carnet expiring before the merchandise could be exported out of the United States.

What is contained in an ATA carnet document?

The carnet document has a green cover page which provides the names of the carnet holder and
issuing association, the carnet issue date, the carnet number, the countries in which the carnet
may be used and a complete description of the goods covered. Two yellow sheets in the package
are to be used upon exportation from and reimportation back into the issuing country. White
sheets are used for the temporary importation into and reexportation from the second or additional
countries. Blue sheets are used when transiting though countries.
Each sheet contains two parts – a counterfoil, which remains in the carnet and describes the
actions taken by Customs officers each time goods enter or leave a country, and a detachable
voucher, which contains a list of the goods covered by the carnet and serves as the required
Customs document.

How is a U.S. issued ATA carnet processed by Customs?

When leaving the United States, the holder of a U.S. issued ATA carnet presents the carnet and
the covered goods to a Customs officer. The carnet is reviewed for completeness and accuracy

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