|
Q.
What
options do I have if I am taking goods out of the country
and planning to return them?
A.
All countries have procedures allowing for the temporary
importation of goods for across their borders. Such
importations are generally valid for less than 12 months.
Importers may choose from three options when considering
a temporary importation:
- Duty refund,
temporary importation under bond (TIB), and Carnet.
- Duty refund
is the process by which an importer registers the
goods at the time of entry, and deposits the applicable
duties and taxes. In Europe, duty and taxes range
from 20-30%, Australia 50%, China 40%, of the value
of the goods. At the time of departure, the exporter
presents the goods and appropriate paperwork to a
customs inspector. Exporters can expect to receive
a full refund of the duties and taxes posted at some
future point. (Refunds are generally made 2-6 months
after departure. Payments are made in local currency.)
- To use
a TIB, importers are required to secure the TIB from
a customhouse broker at the time of entry into the
foreign country. The purchase of a TIB is required
for each country visited on every trip. Fees for TIBs
vary widely.
- Carnets:
May be used for unlimited exits from and entries
into the India and foreign countries; are accepted
in over 67 Countries worldwide; eliminate value-added
taxes (VAT), duties, and the posting of security normally
required at the time of importation; and simplify
customs procedures. Carnets allow temporary exporters
to use a single document for all customs transactions,
make arrangements in advance, and at a predetermined
cost. Carnets facilitate reentry into the India by
eliminating the need to register goods with Indian
Customs at the time of departure.
Q.
What is the origin of the ATA Carnet System?
A.
To encourage world trade by reducing the obstacles caused
by varying national customs regulations, the Customs
Co-operation Council, now the World Customs Organization,
adopted in December, 1961, the "Customs Convention
on the ATA Carnet for the Temporary Admission of Goods."
Carnets are issued and guaranteed by national groups,
which administer the ATA Carnet System under a set of
conditions established by the International Bureau of
Chambers of Commerce (IBCC), now called World Chambers
Federation (WCF). The WCF is sponsored by the International
Chamber of Commerce (ICC) in Paris. Customs authorities
in over 67 Countries accept the Carnet as a guarantee
that all duties and taxes will be paid if the Carnet
is misused.
Q. What
goods can be covered by a carnet ?
A.
Just about any temporary import that comes
under three broad categories:
-
commercial
samples used for demonstration or as sales tools;
-
professional
equipment, which may be anything from scientific
apparatus to theatrical costumes, surgical instruments
to musical instruments, TV cameras to live horses;
-
fairs
and exhibitions.
The main requirement is that what goes in must come
out - the goods must not be sold, given away or
otherwise disposed of while in the foreign country.
For this reason, you cannot include consumable items
that will be used or handed out while in the foreign
country - such as brochures, cleaning materials
or feed for horses.
Q.
What does the carnet consist
of?
A.
The carnet customs document can consist of
just a few or several pages, depending on the number
of items you are transporting and countries you're going
to do business in or pass through. For example, a symphony
orchestra on tour may have pages of items listed and
a collection of "vouchers", but an executive
off to a conference may have only 3 or 4 items and one
set of vouchers.
There are
two vouchers for each country on the itinerary, one
to give to the customs officer when entering, and one
for leaving the country (whether from the same location
or another exit point). There are also two vouchers
to present to customs when leaving and returning to
India.
Q.
How does the carnet system
work?
A.
Carnets are issued and managed by chambers
of commerce throughout the world. The terms and conditions
of this arrangement are enforced through written agreements
between members and the World Chambers Federation -
WCF (Until 2001, the International Bureau of Chambers
of Commerce - IBCC) in Paris. India has been a member
of the carnet system since 1989.
Q.
What countries accept carnets
now?
A.
The majority of countries India does business
with are members of the carnet system now, and more
countries are joining every year. View
a detailed country listing.
Q.
Do I have to be a Member
of FICCI to have a Carnet?
A.
No. But there will be a discount of Rs. 2,500/-
on processing fee.
Contact our Membership
Team to enquire about the benefits of being a member
of FICCI.
Q.
Can I Put Consumable Goods On
a Carnet?
A.
No. Everything on a Carnet must be returned
back to India.
Q.
What Information Do You Require?
A.
Apart from your company details the most important part
of a Carnet is the List of Goods, which should be comprehensive
and contain as much information for Customs that will
enable them to readily identify the items. Marks and
numbers, where they exist, are mandatory.
Q.
Can I Get 'Extra Vouchers'?
Yes. Additional
vouchers can be obtained from the issuing office with
a repeat fee payable.
Q.
Can I Add Extra Items To The Carnet List?
No. Once
a Carnet has been issued no extra item can be added
to the list of goods.
Q.
How specific do the descriptions on the general
list need to be?
Customs authorities
have the right to stop goods from entering its borders
(seizure of goods, etc. ) if the description is not
adequate enough. Items on the general list should be
as descriptive as possible; to avoid any delays, include
serial numbers or model numbers whenever possible.
Q.
How long is a carnet valid?
A.
One year from the date of issue. Within this year, a
carnet holder can visit as many countries in the system
as he/she wishes, and enter and leave India as often
as he/she wishes. All goods listed on the carnet must
be returned to India by the expiry date, or prior to
any assigned date(s) upon importation into a foreign
country.
Q.
Who in my company should sign section "F. Obligation"
on the application and the General List?
A.
Someone who possesses the authority to obligate the
company to payment of duties and taxes should they come
due.
Q.
Our carnet was lost or misplaced. What can we do
?
A.
You can obtain a duplicate Carnet which will have the
same details as the original, once again a repeat fee
and security will apply. Alternatively, the goods covered
by the lost or stolen Carnet may be entered to temporary
importation. Call Office of Issue
Q.
How quickly will the security deposit be returned
or cancelled?
A.
The security is returned or cancelled when the carnet
documents have been returned to the Federation of Indian
Chambers of Commerce and Industry (FICCI) and there
is acceptable proof that the goods have been returned
to India. FICCI may hold the security until all claims
(if any) are settled, or until the claim period is over
if a carnet is deemed problematic
Q.
Why must a security deposit be provided?
A.
This is a requirement of the ATA Carnet Convention.
The Federation of Indian Chambers of Commerce and Industry
(FICCI), as the national guaranteeing association in
India, guarantees the payment of duties and taxes to
customs (both domestic and foreign) authorities that
present valid claims. Security deposits provide the
ATA system with financial viability.
Q.
How long does it take to get a carnet?
A.
You should allow at least one working day, from the
time your application reaches FICCI. Rush processing
(less than 72 hours), is also available for a surcharge
(View processing
fee schedule).
Q.
Can I sell goods off a carnet?
A.
Carnets should be used for goods NOT intended for sale.
However, it is possible to sell goods off a Carnet.
In addition to the payment of duties and taxes, goods
sold off a Carnet are subject to a penalty equal to
10% of the amount of the duties and taxes. A FICCI 'handling
fee' may also apply. It is recommended that you contact
a local Chamber office to determine the procedure best
suited to your circumstances. Some countries, e.g. UK,
tightly control the sale of goods off Carnet. Generally,
local customs will request that the goods and Carnet
be brought to the customs office prior to Carnet expiration
so that the Carnet may be properly discharged, and duties,
taxes and penalties paid.
Be sure to
obtain an itemized customs receipt noting the items
sold, amount paid, and Carnet number. Send the original
Carnet and a copy of the customs receipt to FICCI. Be
sure to retain a clear copy of the Carnet for your records.
Q.
What Happens If My Goods Are Lost Or Stolen?
A.
If goods covered by a Carnet are lost or stolen, the
matter should be immediately reported to the customs
authorities in that country where it occurred, together
with a police report for insurance purposes. Such Goods
will become liable to customs duties and/or taxes.
Q.
Can My Goods Be Destroyed Under Customs Control?
A.
Some countries that are party to the ATA Convention
may allow goods to be destroyed under Customs control.
This means that goods not returning to India can still
result in a regularized Carnet.
Q.
Are there any customs prohibitions and restrictions?
A.
The use of an ATA Carnet replace only normal customs
documentation and security in the country into which
goods are imported. ATA Carnet does not absolve the
holder from observing the Customs regulations of the
countries operating the scheme, e.g. import and export
prohibitions or restrictions, Licensing, Foreign Exchange
Control etc.
Q.
What Value Do I Quote?
A.
The Carnet is a commercial document and as such values
shown must reflect the current retail value in India
Q.
Can it be used by anybody other than the Carnet
Holder?
A.
It may be used by anybody provided the user has a letter
from the named holder authorizing such use. The holder
may also allow an agent to handle the carnet through
customs on his behalf provided the Agent holds a Letter
of Authority. In either eventuality, it is important
that Box B on the Green Front Cover and vouchers contains
the words, "Any authorised representative".
Q.
Some items on my Carnet will travel to country A
and others to country B a week later. Do I need multiple
Carnets?
A.
Not necessarily, split shipments are possible. Depending
on the time lapse between the two shipments a second
Carnet may be advisable. Call
FICCI for details.
Q.
When do I return the Carnet?
A.
The Carnet should be returned to FICCI after its final
use or immediately after its expiration whichever comes
first.
Q.
To where do I return the Carnet?
A.
The Carnet holder should make and keep a clear copy
of the whole Carnet booklet (all used and even un-used
sheets), and return the original to FICCI.
Q.
My Carnet was never used. Do I still have to return
it?
A.
Yes, all Carnets must be returned even if they were
never used. Carnets that are returned to FICCI will
be considered 'open' and thus, the associated security
deposit will remain in effect until the time during
which a customs claim may be submitted to FICCI has
ended.
Q.
My Carnet was never used.
Do I get refund of Processing Fee?
A.
If Carnet is returned unused
within a week from the date of issue, Rs. 10,000/- will
be deducted from the processing fee to defray our secretarial
expenses.
|
