Written by: Amanda Barlow, Vice President of Risk Management & Business Affairs at Rock-it Cargo
As international trade and global business ventures continue to expand, business travelers frequently find themselves crossing borders with commercial goods and equipment necessary for their professional activities. Typically, these involve time-critical, urgent shipments, or high value items for trade shows, sales demonstrations, business meetings and international projects.
Facilitating business travelers’ ability to hand carry these types of shipments is critical. However, it’s not as easy as grabbing a suitcase full of commercial goods and jumping on a plane. There are customs requirements that need to be taken into consideration beyond the basic travel visas or work permits. Customs formalities also need to be fulfilled, and necessary duties and taxes must be paid at the airport upon arriving in the foreign country, even when traveling with commercial items on a passenger plane.
More importantly, if these items are going to be entered in and used temporarily, which is common for hand carries, then some sort of financial guarantee needs to be made. The reasoning is that for customs to permit temporary entry of commercial items into their country that won’t actually enter commerce, they need to be assured that if the goods do not leave their country’s customs territory, duties and taxes can be recouped.
Common types of financial guarantees are:
- Paying the estimated duties and taxes at time of entry and filing for reimbursement after the goods have been re-exported.
- Arranging for a temporary import under bond (TIB) or alternative security scheme available in the country of import. For example, some countries require letters of credit or bank guarantees where bonding is not available.
- Utilizing ATA Carnets for business travelers hand carrying commercial goods.
Paying the duties and taxes requires a cash transaction at the customs office in the airport. A TIB option would need to be arranged in advance by a customs broker in the foreign country, and not every country has TIB as an option or allows TIBs for hand carry entries. ATA Carnets are by far the best option as it acts as a personal passport for your goods, and all is arranged in advance of travel before leaving the US.
How Does the ATA Carnet Work?
Just like a personal passport but for commercial goods! The ATA Carnet acts as a guarantee to customs that the goods will be re-exported within a specified period (usually up to 12 months). When you arrive at a destination, the ATA Carnet is presented to customs for entry and no duties or taxes, or other customs paperwork is required. Upon departure, the ATA Carnet is once again presented to customs for the re-exportation to be recorded and stamped in the ATA Carnet. It is a simplified process, standardizing and streamlining customs formalities for business travelers hand carrying commercial goods. Without an ATA Carnet, business travelers would need to navigate complicated import/export procedures at each border in each country they plan to visit.
ATA Carnets are accepted in over 100 customs territories in the world. There are 91 signatory countries to the World Customs Organization (WCO) convention and some of those countries administer customs for other territories. For example, the French side of Saint Martin and Monaco customs is administered by France, Aruba falls under the Netherlands’ customs jurisdiction, and South Africa covers Namibia, Botswana and Swaziland to name a few that make up the additional territories.
Goods that qualify for ATA Carnet duty-free treatment are essentially anything that is going into a foreign country on a temporary basis and are intended for business purposes. If items will be left in the foreign country, entered into commerce, or consumed or modified in any way while in the foreign country, then an ATA Carnet is not an option.
Obtaining an ATA Carnet is relatively easy. Each country has a customs appointed National Guarantee Organization (NGO) that sets out the requirements and procedures. In the US the NGO is the US Council for International Business (USCIB). We, at Rock-it Cargo, have a unique appointment by USCIB in partnership with Roanoke that grants us the ability to issue ATA Carnets 24/7. We are fortunate to have a similar set up with the London Chamber of Commerce where we can deliver the equivalent level of service in the UK.
Best ATA Carnet Practices for Hand Carries
ATA Carnets are of tremendous value, and when used correctly, save a lot of time and money. However, it is critical that the business traveler understands the required procedures and steps required to properly execute the ATA Carnet. Failure to do so may result in travel delays and additional costs.
- Make sure to stop at all customs check points, especially leaving the US, as the ATA Carnet must be validated on every export from the US.
- Stop at customs in the arrivals terminal before leaving the secure zone to have the ATA Carnet validated for entry.
- VERY IMPORTANT: Make sure to stop at the export office prior to leaving the foreign country to have the ATA Carnet stamped for re-exportation.
- Always stop at US CBP office in the baggage area of the arrivals terminal to have the ATA Carnet validated back into the US. This re-importation validation is the last line of defense in resolving a claim for non-re-export from a foreign country.
- Snap photos every time the ATA Carnet is stamped along the journey. In the event that the physical document is lost, the photos can help resolve a claim from foreign customs.
- Finally, it is important to have an experienced ATA Carnet partner who can help you navigate, troubleshoot and resolve issues that can arise when using an ATA Carnet for hand carried shipments of commercial goods.
Conclusion
ATA Carnets are an invaluable tool for business travelers who frequently need to transport goods across international borders. They simplify customs procedures, save money on duties and taxes, and make the process of carrying professional equipment, samples, and exhibition goods much easier.
Rock-it Cargo is a worldwide leader in ATA Carnets, and we welcome the opportunity to help you navigate your ATA Carnet journey. Learn about Rock-it Cargo and connect with us at www.rockitcargo.com.
To view the webinar “My Colleague Tried to Bring What Through Customs,” held on April 2, 2025, please visit the AAEI Member Hub, or AAEI Store (for non-members).
