BOC sets rules to implement ATA Carnet

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ATA Carnet trade fairs
The ATA Carnet system is an international scheme that allows the temporary admission and tax-free and duty-free importation of commercial samples, professional equipment, and articles for presentation or use in trade fairs, shows, and exhibitions. Photo from the Center for International Trade Expositions and Missions website.
  • Customs Administrative Order No. 02-2022 covers importation/exportation of conditionally duty- and tax-free goods under the World Customs Organization Convention on Temporary Admission (Istanbul Convention)
  • Philippine businesses attending trade fairs and exhibitions are expected to benefit from the adoption of the rules
  • Implementation date is subject to compliance by the National Issuing and Guaranteeing Association under the Istanbul Convention

The Bureau of Customs (BOC) has issued implementing guidelines for the ATA Carnet System in the Philippines, which allows importation/exportation of conditionally duty- and tax-free goods for up to one year.

Customs Administrative Order No. 02-2022 implements the ATA Carnet System in accordance with the 1990 World Customs Organization Convention on Temporary Admission (Istanbul Convention). The order was signed by Customs commissioner Rey Leonardo Guerrero and approved by Finance Secretary Carlos Dominguez III on March 18. It takes effect after publication in the Official Gazette or a newspaper of general circulation.

The ATA Carnet system is an international scheme that allows the temporary admission and tax-free and duty-free importation of commercial samples, professional equipment, and articles for presentation or use in trade fairs, shows, and exhibitions.

Sometimes referred to as the “passport for goods,” the ATA Carnet is a single document that will pass through several customs territories and will be valid for up to one year. ATA is an acronym of the French and English words “admission temporaire/temporary admission,” while carnets are referred to as “passports for goods” or “merchandise passports”.

Philippine businesses attending trade fairs and exhibitions in territories that are parties to the system are expected to benefit from the adoption of the rules.

According to ATACarnet.com, the ATA Carnet merchandise passport will reduce the cost of exporting goods since it eliminates value-added taxes, duties, and the posting of security normally required at the time of importation in the country destination. It also simplifies customs procedures since it allows a temporary exporter to use a single document for all customs transactions, make arrangements for entry to many countries in advance, and do so at a predetermined cost.

Under CAO 02-2022, the date of implementation of the system is subject to compliance by the National Issuing and Guaranteeing Association (NIGA) under the Istanbul Convention.

NIGA is the only association that will be accredited by BOC to issue temporary admission papers (TAP) and to guarantee the amount of security and other charges to be imposed.

TAPs are international customs documents accepted as a customs declaration, making it possible to identify goods and which incorporates an internationally valid guarantee to cover import duties and taxes.

The ATA Carnets will be applied as follows:

  • The territorial application of the ATA Carnets will be the territory of the Philippines.
  • ATA Carnets are not accepted for postal traffic or for Customs transit.
  • They are accepted for hand-carried goods and unaccompanied goods.
  • Replacement Carnets will be accepted in accordance with Article 14 in Annex A of the Istanbul Convention.
  • ATA Carnets issued by contracting parties to either the ATA or Istanbul Convention, or to both conventions, will be accepted.
  • ATA Carnets are to be completed in English. Customs will require a translation in English when the ATA Carnets are completed in any other language.
  • All Customs offices are authorized to handle ATA Carnets during operating hours.

Importation of goods eligible for temporary admission will be granted admission subject to the following conditions:

  • The goods, including the means of transport, must be imported for a specific purpose;
  • The goods must be intended for re-exportation within the minimum period specified under the Istanbul Convention;
  • The goods should not undergo any change except normal depreciation due to their use.

The following goods that are otherwise covered by the Istanbul Convention are not accepted by the Philippines:

  • ATA Carnet for postal traffic
  • Packing and articles (including vehicles) which, by their nature, are unsuitable for any purpose other than advertising of specific articles or publicity for a specific purpose
  • While scientific and pedagogic materials are accepted, submission of customs document will be required
  • Tourist publicity materials
  • Goods imported as frontier traffic
  • Means of transport
  • Animals for transhumance or grazing or for performance of work or transport

Evidence of re-exportation of goods imported using ATA Carnet should be provided by the re-exportation counterfoil completed and stamped by an authorized customs officer.

If the re-exportation has not been certified, BOC may, even if the validity period of the papers has already expired, accept certain particulars or documents as evidence of re-exportation, provided that a regularization fee will be collected.

BOC, in coordination with the NIGA, should establish an interoperable information and communications technology-enabled Carnet system to facilitate the verification, monitoring, and status reporting of goods temporarily admitted pursuant to CAO 02-2022.

The issuance of CAO 02-2022 follows the deposit of the Instrument of Accession on January 17, 2022 by Philippine Ambassador to Belgium, Luxembourg, and the European Union Eduardo José A. de Vega and accepted by World Customs Organization Secretary General Kunio Mikuriya at the WCO headquarters in Brussels, Belgium.

READ: PH Senate adopts resolution to join ATA Carnet

The Philippines will be the 73rd contracting party to the Convention when it takes effect for the Philippines on April 17. – Roumina Pablo