Carnets are the speediest way to get goods through foreign Customs
Companies looking to ship goods overseas for trade shows, exhibitions or performances should consider using a carnet to speed their goods through Customs overseas and when they return. Carnets streamline the process of entry, but have limitations in their use and coverage. Here are four things to know about carnets and how to use them.
1. What is a carnet?
A carnet is an international instrument that allows non-consumable goods to be moved between countries without the payment of duties or taxes. Think of it like a temporary import bond for other countries. A carnet is issued by a partner of the U.S. Council for International Business. Goods can remain on a carnet for up to a year and are good to be moved between multiple countries during the same journey.
2. What kind of goods can go on a carnet?
With few restrictions, anything that will not be consumed during the trip can be listed on the carnet. Theatre companies move sets and costumes. Works of art for exhibition are eligible. Companies going to a trade show with products for sale or their booth equipment can put those goods on a carnet as well. Things that are to be consumed (for instance, the giveaways at a trade show booth) as well as agricultural items are examples of things that are ineligible to be listed on a carnet.
3. Are carnets accepted everywhere?
Carnet usage is limited to member countries who have signed onto the agreement, but the list of eligible countries stands at eighty and continues to grow.
4. How much do carnets cost?
The cost of a carnet is calculated based on the number of “foils” (or planned import and export trips) that are requested, as well as for a guarantee bond for the goods that is in place should the merchandise not be returned. There are financial penalties for selling goods on a carnet or not returning them to the origin country and the bond is in place should the carnet holder default on their obligation.
B.I.G. Logistics can obtain carnets for your eligible shipments.
Because carnets involve expertise on the export and import sides of the transaction, B.I.G. Logistics team members across several departments work together to prepare your carnet application, obtain the bond, provide insurance and notify our agent partners overseas of their obligation to execute the carnet on the way into their country and on the way out. The carnet IS an original document that must be maintained and tracked through its journey and any unused foils and the carnet form itself is returned to the USCIB upon completion of the shipment’s lifecycle.
For more information about how your company can use carnets to ensure speedy entry and exit of your goods overseas to meet show or other obligations, contact us for more information today.