PH Senate adopts resolution to join ATA Carnet

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Image by Alexandre Gonçalves da Rocha from Pixabay
  • The Philippine Senate adopted on November 8 Resolution No. 832 concurring to accession to the Convention on Temporary Admission (ATA Carnet)
  • 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
  • With the ATA Carnet system, BOC will no longer need to process temporary admission of scientific, professional and other goods and equipment
  • Filipino entrepreneurs and companies will find it easier and cheaper to join trade shows and exhibits to showcase their products

The Philippine Senate adopted on November 8 a resolution concurring in the accession to the Convention on Temporary Admission or the ATA Carnet, an international customs document that permits duty-free and tax-free temporary import of goods for up to one year.

The Convention enters into force three months after the instrument of accession has been deposited.

Senate Committee on Foreign Affairs chairman and Senator Aquilino Pimentel III said the Upper House through Senate Resolution No. 832 concurs in the accession to the Convention and its various Annexes, which constitute the international codification of the ATA Carnet system. The resolution was adopted after President Rodrigo Duterte on April 28, 2021 signed the Convention.

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

According to the International Chamber of Commerce, ATA Carnet contains pre-prepared unified customs declaration forms to be used at each customs border offices and serves as a guarantee to customs duties and taxes.

Pimentel said the treaty is advantageous to the Philippines because it will increase efficiency and productivity of the Bureau of Customs (BOC).

With the codified ATA Carnet system, Pimentel said BOC would no longer need to use valuable time and resources processing temporary admission of scientific, professional and other goods and equipment.

He said BOC would only need to rely on and monitor the ATA Carnets, which would also guarantee the full payment of applicable duties and taxes should the temporarily admitted goods fail to be totally re-exported.

Moreover, Pimentel said the treaty would also have both direct and indirect benefits to the economy.

As a direct economic benefit, he said Filipino entrepreneurs and companies would find it easier and cheaper to join trade shows and exhibits to showcase their products in the territories of other contracting states. Companies and organizations of other contracting states would also be encouraged to hold their exhibits and conventions in the Philippines, thereby boosting other industries in the country such as hotels, airlines, service sectors, and micro, small, and medium enterprises.

Further, Pimentel said the Philippines, as a party to the treaty, would be joining its fellow Association of Southeast Asian Nations (ASEAN) that are already participants in the ATA Carnet system.

“This would further facilitate the realization of regional integration and economic cooperation, consistent with the ASEAN Community Vision 2025, in which the Heads of State envision,” Pimentel added.

The Department of Trade and Industry earlier pointed out that the provisions of the ATA Carnet conform to provisions of the World Trade Organization’s Trade Facilitation Agreement, and that its principles are already provided under Republic Act No. 10863 or the Customs Modernization and Tariff Act.