Brazil Preparing to Issue and Accept Carnets

Brazil is one of three countries* next in line to join the ATA Carnet system in the near future.** The U.S. Trade Representative's 2010 report on international trade with Brazil reported that the U.S. was engaging with Brazil to encourage the use of carnets. It also reported that legislation was underway in Brazil's Congress to advance the initiative.

Brazil has already ratified the International Convention for the temporary admission of goods a.ka. the Istanbul Convention. The next step toward finalizing Brazil's acceptance in the carnet chain is fulfillment of the formalities by the newly-appointed Brazilian national guaranteeing association. The World Chambers Federation reports that those formalities are currently in process. Brazil would be the 72nd country to join the ATA Carnet system and only the 3rd Latin American country in the system. Mexico joined in May of 2011 and was the 71st country. Chile became a member in 2008.

Admission of Brazil to the carnet system would ease costly trade barriers between the U.S. and Brazil. For example, the U.S. automotive industry would avoid the high costs and inconvenience currently associated with temporary imports-exports between our countries. Brazil has relatively high import duties and taxes for automobiles.

*Trinidad and Tobago and Saudi Arabia are also pending.

**This was posted in 2011 and since then Albania and Madagascar have become the 72nd and 73rd carnet countries. Brazil is expected to come on board prior to the World Cup Soccer and Olympics competitions in 2014.