ATA Carnets and Temporary Import Strategies for International Trade Shows

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The ATA Carnet will save you time and money when you are taking a trade show booth and/or demo equipment to an international exhibition or trade show.  An ATA Carnet will allow you to clear foreign customs, and return to your country of origin, without paying import duty and import taxes (Value Added Tax-VAT).  If you are attending an international trade show, consider all your options.

At boomerang carnets®, we know there is no one-size-fits-all approach.  Where you’re going, what you’re shipping, and how you’re shipping will be different every time.  Make sure you match the temporary export method to your specific situation.

Bringing goods into another country—even temporarily—often comes with duties and taxes.  You can’t simply show up at the border with your exhibit booth and say to the Customs Inspector, “I’ll be taking this back out in two weeks, I promise.”  They won’t just take your word for it—they want to protect their country’s revenue.  You’ll be assessed duties and taxes unless you find another way to bring it in without paying those charges.
 

When considering your options, think about:

• The number of trips you are taking.
• The countries you are shipping to.
• Which countries you are entering.
• The value of what you are importing.
• The applicable tax and duty rates.
   

Options for Managing Your Temporary Import Strategy

Companies exhibiting in an international trade event can choose a variety of approaches for managing temporary imports.

One option is the “rent booth” strategy.  For your exhibit, you rent everything in the destination country.  Some exhibiting companies may have a distribution center there or other sources for product samples and demonstration equipment.  In this scenario, you might not bring anything in temporarily and avoid duties and taxes entirely.

If you are bringing in swag or giveaways, those almost always require payment of duties and taxes.

Another option is to let your freight organizer decide how it’s done.  They typically have established connections and preferred methods, so you can let them handle everything and simply pay the bill.

You can also take responsibility for the method yourself.  Options include:

• An ATA Carnet
• A TIB (Temporary Importation Bond), specific to each country
• A foreign customs broker’s entry bond
• A waiver negotiated by the event organizer—sometimes a specific trade show will have negotiated terms, so no duties or taxes are due.  It is your responsibility to ask.

You could even use a hybrid approach.  For example, rent the booth locally at the location of the event, but ship a $100,000 piece of equipment for demonstration.  Then decide: do you use an ATA Carnet because you’re bringing it back, or make a permanent entry because you’re not bringing it back, and instead are leaving it at your distribution center?

The right method depends on your circumstances.

It’s up to you.
 

Questions to Ask When Choosing a Temporary Import Method

When evaluating your options, these key questions can help you make the best choice.
Please know that with an ATA Carnet, the answer to all but one is YES.

• Is it easily obtained? Can you secure the document ahead of time, so you’re prepared before traveling overseas?  YES – with an ATA Carnet.
• Does it cover both directions?  Will it allow duty-free entry into the foreign country and smooth re-entry into the country of origin (for boomerang carnets, that’s the U.S. or U.K.)?  YES – with an ATA Carnet.
• Do you receive the entry documents before departure?  YES – with an ATA Carnet.
• Are all fees fixed, known, and paid in advance?  YES – with an ATA Carnet you can avoid unpleasant surprises during or after your event.
• Can you pay by credit card?  YES – with an ATA Carnet.
• Will you get a refund of your tax deposit?  YES – though penalties apply if you fail to export on time.
• Do you have unlimited use of the document?  Not unlimited, but an ATA Carnet can be used multiple times for the same goods for up to one year (six months for exhibitions and fairs, with possible extensions).

Learn more and watch our 13-minute presentation, Import Duty & Taxes for International Trade Shows, on our YouTube channel: ATA Carnet - International Exhibiting Strategy.
 

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