APEC SCCP ATA Regional Advisory Mission by OK8PcmV

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									                      Summary Report of APEC SCCP
                      ATA Regional Advisory Mission
                                March 16-19, 1999
                                 Chinese Taipei

MARCH 16, 1999
OPENING REMARKS

By Mr. Ching-Chang Yen, Deputy Minister, Ministry of Finance
Mr. Yen welcomed all participants on behalf of the Chinese Taipei Ministry of
Finance and Department of Customs and summarized the goals of the APEC SCCP
ATA Regional Advisory Mission. He mentioned that the APEC SCCP agreed in
1995 to a nine-point Collective Action Plan (CAP) to simplify and harmonize
customs procedures in accordance with APEC goals of trade facilitation and
liberalization. Included is provision for temporary duty-free importation of goods as
set out in the ATA Convention and the Istanbul Convention. To attain the CAP,
Chinese Taipei and the U.S. Customs Administrations originally scheduled a Seminar
for September 1998, but ultimately agreed to convert it to two Regional Advisory
Missions. The first is here in Chinese Taipei, the second is in Beijing, PRC, next
week. A third mission is tentatively scheduled later in 1999 for APEC economies in
Latin America. Individuals, enterprises and trade organizations as well as customs
administrations already benefit from the ATA Carnet System in over fifty economies
worldwide.

By Mr. Ruey-long Chen, Director General, BOFT, MOEA
Mr. Chen welcomed participants to the APEC ATA Regional Advisory Mission and
pointed out that implementing the ATA Carnet is important to the aims of APEC
because it will promote the facilitation of trade. To date there are already 10 APEC
countries and territories that have adopted the ATA system. Although Chinese
Taipei is not yet a formal participant in the ATA convention, it has established
bilateral agreements with 5 APEC economies (Singapore, Korea, New Zealand,
Australia, and Canada) regarding ATA and has agreements pending with several
other countries. This is the first meeting by APEC to discuss ATA issues. Mr.
Chen wished all success to the meeting to move forward projects in trade facilitation
and thanked all the participants.

By Mrs. Ju Song Lee, Carnet Consultant of the ICC/IBCC
Mrs. Ju Song Lee, Carnet Consultant of the International Bureau of Chambers of
Commerce (IBCC) of the International Chamber of Commerce (ICC) congratulated
the Chinese Taipei and US Customs for successfully putting together a program for
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the meeting and thanked her Chinese Taipei colleagues and Customs officials for
their warm hospitality as well as her Australian, Canadian and U.S. colleagues for
their assistance in organizing these meetings. Mrs. Lee also expressed confidence
that IBCC can contribute to the implementation of the ATA Carnet system
throughout the entire APEC region by the year 2000. As the System is vital to the
creation of a conducive business environment and in helping the expanding business
community in APEC to globalize effectively, Mrs. Lee hopes that APEC will be the
next grouping besides the EU in having not just the ATA Carnet system in place
throughout APEC, but also an EU equivalent of an APEC Carnet system throughout
all customs administrations by the next millenium. In closing her remarks, Mrs. Lee
looks forward to a closer working rapport between IBCC and APEC.
Mr. Bruce Wilson, Executive Director, Carnet and Customs Operations, United
States Council for International Business announced that an ATA Carnet agreement
has already been signed between Chinese Taipei and the United States with a target
date of June 1, 1999 for implementation.

BRIEFING ON CHINESE TAIPEI CUSTOMS REFORM
Speaker: Mr. Richard Liu, Director General, Department of Customs Administration,
Ministry of Finance.
Mr. Liu described the Moving Force Behind Customs Reform, the APEC/SCCP
Collective Action Plan, and Current Achievements in the areas of expediting Air and
Sea Cargo Clearance and Tariff reforms.
(See Attachment for Details)




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OVERVIEW:
Each of the speakers made some opening remarks to the assembly.
Mr. Robert A. Mueller
Program Analyst, Office of International Affairs, United States Customs Service
Mr. Mueller introduced the 14 training modules to be discussed during the session
and encouraged a free and in depth dialogue on all aspects regarding the ATA Carnet
System. He also requested that each participant fill out the questionnaire to assess
the results of the Mission training program to facilitate future developments of the
Mission and invited all participants to bring up any issues they would like to see
handled by the Mission.
Mr. Bruce A. Wilson, Executive Director, Carnet and Customs Operations, United
States Council for International Business mentioned that an important goal of the
Mission is to bring the private sector into the customs procedure. Customs has
traditionally been dedicated to compliance and control. Now it is shifting also to
include facilitating the achievement of business objectives.
Mr. David Hotchkiss, Manager, Trade Incentive and Refund Programs, Revenue
Canada, encouraged participants to not only absorb and discuss the material, but also
to share the viewpoints of their respective economies.
Ms. Cynthia Duncan, Director of Marketing and Administration, Carnet Operations,
United States Council for International Business, mentioned the value of noting the
variation among systems in different countries, specifically referring to the examples
of Singapore and Australia.
Mr. Mark Jarratt, Assistant Director (Temporary Imports), Import/Export
Management Branch, Australian Customs Service, suggested that we all learn from
each other and observe experiences of various countries to adopt world best practice
within APEC economies.
Ms. Anna Zhang, Director, Claims Administration, Carnet Operations, United States
Council for International Business mentioned that she has practical experience in the
Carnet operations in the U.S. over the past 12 years and looks forward to sharing her
experience with the participants.
Mrs. Ju Song Lee, ICC/IBCC Carnet Consultant, International Chamber of
Commerce, said that she is here to exchange views and mentioned that Malaysia and
Chinese Taipei are working toward reaching a bilateral agreement, hopefully by
middle of the year.

Module 1: Customs Modernization
            Working with Business for a Faster, Better Border.
Speaker: Mr. David Hotchkiss, Manager, Trade Incentive and Refund Programs,
Revenue Canada.

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Business is competitive in the global market and is transformed by technical
revolutions. The call is for faster, better service for legal business activities.
Mr. Hotchkiss stated the objective of the APEC Sub-Committee on Customs
Procedures -- commitment to providing the business community with a high degree
of certainty in achieving a seamless cross border flow of goods on a temporary basis
with standard procedures. The Mission is to assist and enable APEC member
economies to participate in the ATA Carnet System. International Business needs to
operate cost effectively and efficiently, display products, broaden their outlets, and
increase their share of foreign markets. Additionally, professionals working and
travelling internationally need to move their equipment quickly and easily across
frontiers. Many customs systems and methods have become obsolete, requiring
adaptation. Fax, computers, and e-mail all are tools that facilitate expediting
customs procedures.
Mr. Trevanion: The Carnet is a tool for expediting equipment and paraphernalia for
athletes.
Mr. Hotchkiss: The professional athlete’s equipment is very personal to them, so the
use of the Carnet is a very useful tool for the sports community.
Mr. Wilson: When the 2000 Olympics comes up we will issue 400-500 Carnets not
just for the athletes, but for the television networks to move their goods and
equipment. For the Barcelona Olympics the networks would move their equipment
to England and then marry it to their British equipment and then move it down to
Barcelona. All of it traveled under ATA Carnet with almost no incidents. In the
Winter Olympics in Canada, there were more complications but they still moved a
great deal of material. We are already getting advance requests for Sydney. It
takes about a year in advance to prepare the equipment. For the Winter Olympics in
Japan they built a model village a year and a half before the games. That shows
how important it is to facilitate these movements. We are planning to move
equipment to Cuba, which is new because there is a US embargo with Cuba. We
are trying to get State Department permission for this. Performances, circuses, and
other touring professional entertainers are exports and earn a great deal of foreign
currency. When Michael Jackson goes abroad he generates about 100 million
dollars, and maybe a quarter of that comes back to the US. When customs
facilitates these, they become “Heroes” for the exporters.

Module 2: Benefits of the ATA Carnet System
Speaker: Robert Mueller, Program Analyst, Office of International Affairs, United
Customs Service
Carnets have come a long way, even in the past 11 years of my customs experience.
Eleven years ago, when I started my customs career, many people were not familiar
with the time and cost savings from using the Carnet system. Many customs
services are making efforts to modernize. It is a partnership between the private and
public sector to cooperate in the processing of goods expeditiously.
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Why sign the ATA and/or the Istanbul Conventions? For a real-life example, film
crews often come down from Canada and use the Carnet extensively. Sometimes
they continue on down into Mexico, using the U.S. as a transit point. The Carnet
facilitates transiting on many occasions.
Why is it better? There is only one document for multiple goods and multiple
destinations. This greatly reduces paperwork. The Customs Administration likes
the simplicity of the documentation. If the equipment is in separate batches, there is
usually much extra work, including providing surety. The Carnet handles it all at
once. A corporate surety system ensures protection of revenues. Sureties are
posted in advance, so that duties and taxes are guaranteed.
A Carnet does not preclude further customs inspection and application of national
customs laws and procedures.
For example, with vehicles, the emission control standards may be different.
Customs reserves the right to require additional documentation in cases like this.
Mr. Wilson’s comment: The U.S. imported a satellite from Canada, put it on a rocket
and launched it into space. It took two years to convince customs that it was
re-exported because every few hours it passed over U.S. territory. Destruction of
goods under customs supervision must also be done properly.
Mr. Mueller continues: The trading community appreciates the reduced paperwork of
a single composite document. The Europeans really appreciate this feature. As
long as it is within the valid time limit, it can be reused.
The Carnet can serve as a registration document for goods that are exported out of a
country. The document is also helpful where multiple languages are involved. All
instructions are on the Carnet document and everyone recognizes it.
Mr. Jarratt commented: The format of the Carnet document is standard and easily
recognizable by customs officials in various countries.
Mr. Mueller continues: All the clearance information is included on the Carnet. The
document is good for up to one year. Vouchers and counterfoils are provided, or the
exporter can request further vouchers and counterfoils so he can continue his trip.
The surety is pre-posted so that if the goods are not re-exported, the duties may be
assessed. Brokers are eliminated and the exporter is not required to carry large sums
of currency.
Ms. Duncan comments: Many customs officials will not accept large charges on a
credit card. Carrying large amounts of cash is awkward for travelling people. In
many cases the VAT is a minimum of 15%, and sometimes 20-25% without the duty,
and cumulatively it amounts to a lot of money. This is a lot of cash to have to lay
out.
Mr. Jarratt: The system in Australia is in flux as introduction of a GST is planned.
There are three rates of sales tax. On luxury goods you can easily get to 50%. It is
all changing at the moment and we are not sure what effect GST will have on the
Carnet regime. But all the variety of duties are contemplated in the Convention.
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Mr. Wilson: The government can charge additional duties against the Carnet holder,
but can not charge directly against the guaranteeing association.
Ms. Griffiths: People using the Carnet are accountable for what they take out and
bring back. It is easy to control.
Mrs. Lee: On the question of claims, it is important to note that national customs
authorities reserve the right to include in their conditions of appointment, the
appointed chambers’ obligation to collect on their behalf both import duties as well as
export cess.
Mr. Trevanion: When people are preparing for a trip, they take their time. When
they are on the road, they are in a hurry. I have heard the Carnet referred to as the
international passport for goods. The Carnet allows my goods to keep up with me
as I move.
Mr. Mueller continues: Both sectors benefit with the monetary issues. The
applications of the Carnet are very broad, especially for professional people in
entertainment and technical fields.
Mrs. Lee summarizes: Why should we support the system and quickly implement it?
There are two ways of moving goods: National Customs System or the Carnet
systems which can be the ATA Carnet system or bilateral Carnet arrangements. The
national system deals with individual traders and businesses. Under the Carnet
system there is one appointed agency (NIGA) and you are assured full payment of
duties if the holder is unable to provide evidence of total re-exportation. The Carnet
refers to a set of color-coded international customs documents which allow the free
flow of goods under an international security chain of chambers of commerce
(appointed by the customs authorities) that guarantees full payment of import duties
and taxes should the goods fail to be totally exported. This security chain is
effectively administered by the IBCC.
Without a Carnet a trader may need an invoice, a certificate of origin, a permit, and a
cash deposit, plus the need to complete national customs documents which may be in
a foreign language.
The benefits to the NGA’s: They will be able to better serve their members, help
increase members' international competitiveness, facilitate greater trade, and generate
additional sources of revenue. The Carnet is also the key to strategic networking
with chambers of commerce and customs organizations worldwide.

Module 3: History/Background
Speaker: Mr. Mark Jarratt, Assistant Director, Import/Export Management.
Goods often move between countries without transfer of ownership. Often
multinational companies have offices in many countries and want to test equipment,
such as vehicles, in various climatic conditions. Various countries have different
requirements. Often there are multiple requirements and security deposits. The
Carnet describes the goods, lists details required by customs services and represents
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the security deposit. The Carnet is usually valid for one year, but the customs
service may limit the period according to the situation. A Carnet document must be
in English or French and another language. The ATA Carnet System is the most
successful, and perhaps the only successful international collaboration between
governments and the private sector.
A Carnet is a passport for goods.
The League of Nations in 1923 first convened customs experts to simplify customs
formalities. The Austro-Swiss initiated the first successful experiment with the
triptyque system valid for a single export.
Since world war II there has been a dramatic expansion of international trade and the
flow of goods.
WTO and GATT represent about 80% of the exports and value of exports. Produce
or other perishables are not covered by Carnets.
In 1958 the IBCC asked the CCC to consider expanding the ECS Carnet to include
professional equipment and goods intended for display or use at meetings and fairs.
In 1961 the Customs Convention on the ATA Carnet for the temporary admission of
goods was adopted. This entered into force on 30 July, 1963.
In 1987 the ATA Carnet was amended to modernize the format and enhance overall
efficiency, including computer printed forms and efficient inventory procedures. It
went into force on November 4, 1989.
In June 26, 1990, the CCC/WCO adopted the Istanbul Convention, which
consolidates the various Carnets into one temporary admission framework. Each
member nation can sign the convention and only ratify the Anexes they are willing to
adopt. This will replace the present ATA Convention in the future, although both
can operate simultaneously.
The Permanent Technical Committee (PTC) of the WCO exists to express opinions
and comment on problems that arise from implementation of the ATA Carnet System.
Opinions are useful as guides, but are not binding on Customs administrations of
member nations.
The IBCC promotes economic development and international trade. Its members
are the guaranteeing chain that operates the ATA Carnet System. They take
sufficient bank deposit to cover any possible duties. If goods are not re-exported,
the local country will make a claim on the local guaranteeing organization. They
would make a claim on the organization in the country of origin.
UNESCO is affiliated with the UN and was founded in 1946 to promote peace and
security in the world through collaboration among nations in education, science,
culture and communication. For example, there is no import duty on books and
pedagogical materials used in promoting free exchange of knowledge through
education.

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Discussion
Mr. Wilson: The most obvious changes of the Istanbul Convention is that you can
have a replacement Carnet and renew for another year. We love those customs
systems that accept renewals because this matches the spirit of the Convention.
Another change is that you can transfer the holder from one person to another or to a
corporation.
One reason I am reluctant to accept a partnership between customs and the private
sector. Sovereign nations that enter agreements and then don’t follow the
suggestions of the WCO. The WCO is made up of trained experts. For the
Committee to issue an opinion and for the contracting party to not accept it seems to
be acting in bad faith. So I don’t think we should treat the opinions of the PTC as
not to be accepted.
Mr. Jarratt: The PTC opinions are often quite generally worded but provide
guidelines which should be considered.
Mr. Jen Wu of Taipei Customs: What is ECS?
Mr. Jarratt: I think it was used for European commercial samples, but is not really
used any more.
Mr. Wilson: It was for truckers and was very important in Europe. The TIR Carnets
are still used extensively, although Europe is now moving into the Euro common
market where they are not needed. The TIR was not guaranteed. There was much
corruption, especially in Europe regarding these. So European customs put much
effort into canceling liabilities and fraud with TIR Carnet is often found. For
example, goods from the U.S. into Finland and then sent by truck into Russia.
Mrs. Lee: What does it mean to be a contracting party to the Convention? It means
you are obliged to accept as many goods as possible either under your national law,
or under the relevant international conventions governing their operation. And the
acceptance of these goods should be as free as possible from restrictions/prohibitions
under their national laws. But contracting parties reserve the right to apply national
regulations. Also there is no fee to pay either before or after signing the Convention
to WCO.




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MARCH 17, 1999
Review of Modules 1-3
Mr. Mark Jarratt briefly reviewed Module 3 and speculated that in the future there
may be electronic Carnet documents, as Customs services are increasingly adopting
electronic data interchange (EDI) systems.
Mr. Robert Mueller reviewed Module 2. The Carnet provides one comprehensive
document, but does not preclude Customs from further inspections and duties. The
Carnet assures that any duties will be paid. The trader is not required to carry cash.
All is handled by a surety system. The Carnet requires much less paperwork. The
Carnet is good for one year and unlimited entries contains vouchers. The level of
risk is reduced with the Carnet.
Mr. Vilassis of Cebu Chamber of Commerce and Industry, Philippines: Was there any
instance of disadvantage with the Carnet?
Mr. Mueller: There may be things which are prohibited. For example wildlife
specimens. Although the wildlife article is listed on the Carnet, its entry would be
prohibited by the national customs laws.
Mr. Hotchkiss: In Canada we allow goods in for 18 months initially although the
Carnet is only good for one year. It is now possible to replace the Carnet or extend
it. We put it on our domestic extended temporary importation documents.
Mr. Jarratt: One disadvantage in Australia can be finding an officer who is familiar
with the procedure, especially after hours. Usually export is much simpler than
import. A major issue is familiarizing the customs officials with the procedures for
completing the Carnet, which is one aim of this Advisory mission.
Mr. Mueller: More and more inspectors and customs administrators are now aware of
the carnet as an effective tool in helping to facilitate trade.
Mr. Hotchkiss: The notebook distributed at this Mission can be used as a training
package in your home country. I have also brought six pages of material with all the
procedures from a customs inspector's point of view.
Ms. Griffiths: Sometimes a trader travels to a country that does not use the Carnet and
it becomes very frustrating.
Mr. Hotchkiss: That is why we want to bring everyone on board.
Mrs. Lee: The Carnet is the key to help businesses to internationalize. The great
challenge is to promote awareness of the advantages of the System.
Mr. Wilson: If you don’t use a Carnet, you also have the temporary importation
problem of locating a customs official to process it. It is a fact of life. One issue is
the size and shape. The Carnet document is an unusual size. It is awkward, but we
have no control over it. It is in the Convention. We would like to change it, and
we would like to develop an electronic Carnet.
We have difficulty getting holders to read the instructions. Sometimes they don’t
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have time to get the documentation done. This is not the fault of the system. It is
due to the holder not knowing the regulations. The responsibility is the holder’s to
know the regulations of the countries involved. We provide the telephone numbers
and they can call and get the information. It is good to allow small exporters and
small companies to compete with large operations. A sample is better than a
thousand words.
Mr. Mueller: The Carnet cuts out waiting in long lines and dealing with customs
brokers. The Carnet is presented to the officer, and the broker is not required.
Mr. Wilson: All temporary exportation requires finding a Customs inspector. In the
document the voucher is given to the Customs inspector and the counterfoil stays in
the document.
Mr. Hotchkiss completes his recap: Technology is progressing rapidly, with just in
time inventories. With the Carnet we can move things quickly with low risk.

Module 4: Roles of the World Customs Organization (WCO) & the
         International Bureau of Chambers of Commerce (IBCC)
Speaker: Mr. Bruce Wilson
The WCO is the only world organization that represents the interests of customs
administrations. It is based in Brussels and is chaired by Mr. Michel Danet. Right
now they are engaged in the revision of the Kyoto Convention which intends to
encourage the world’s customs administrations to observe a standard set of
procedures. It is still a weak Convention. There are still many options to
non-conform.
The WCO does not need to attend meetings of the IBCC. There is no standing
committee of the WCO that oversees the ATA Carnet System. Sometimes we
submit issues to the PTC, but that has only happened about 30 times in the history of
the system.
The WCO and IBCC work together very smoothly. They constantly have budgetary
problems, so they only have one or two seminars per year. The expansion of the
system is primarily through the IBCC.
The ICC is an organization of companies. In the U.S. the membership is very large
multinational companies. The IBCC is an organization of chambers of commerce
worldwide. The small and medium sized companies need chambers of commerce.
Most of the guaranteeing associations are IBCC members. The ATA Carnet system
handbook is produced by the WCO.
Ms. Griffiths: Can an ICC member be a member of IBCC?
Mr. Wilson: Yes.
Mrs. Lee: I would like to briefly introduce the roles of ICC and IBCC.
The ICC was set up in 1919 with members from 140 countries and promotes trade
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and investment, international business networking, and business infrastructure via its
activities and services as well as those of its members. It also has consultative
relations with the UN and a close working rapport with the WTO (the former General
Agreement on Tariffs and Trade – GATT), OECD, EU, G7 etc. ICC regional and
international forums in member countries convene for business leaders and
governments to discuss economic, trade, and business issues.
The IBCC was created in 1950 to work with members on trade facilitation matters in
close collaboration with WCO and WTO; further enhance International Business
networking and to expand technical help and training programs for chambers and the
business community in close cooperation with the ITC, UNDP, EC, UNCTAD; and
administers the ATA Carnet/Bilateral Carnet Systems.
It is the IBCC which effectively administers the international security chain of
NIGAs. This chain guarantees full payment of customs duties and taxes should the
goods fail to be re-exported. It ensures that all NIGAs have the administrative,
financial capability, integrity, and credibility to fulfill the functions/responsibilities.
It has contractual rules to govern and administer the issuing, management and
administration of the system.

Module 5: The ATA Carnet System and Customs Administration
Speaker: Mr. Hotchkiss
Preliminary Discussion:
Mr. Hotchkiss: If goods come in, the first question is whether it is prohibited, or
otherwise regulated. However, this is no different than goods without a Carnet.
The Istanbul Convention pulls together all aspects of the ATA Carnet system and
treats them as annexes. When signing onto an ATA Carnet system you select
Exhibitions and Fairs, Commercial Samples, or Professional Equipment.
Notice of accession is submitted to the WCO. The same is done for Annexes to the
Istanbul Convention, which can be done individually.
A national guaranteeing association must be approved by the customs administration.
Mr. Wilson: The Convention provides for Direct Proof or Indirect Proof. In Direct
Proof the holder gets direct approval from the inspector. The re-exportation
sometimes involves proof documents travelling from one port to another if another
port is used for re-exportation. Alternatively we can use Indirect Proof, which
usually has a fee, by using an importation document to another country to prove that
the goods were exported.
Mr. Hotchkiss: We use a lot of different document options for proof of export because
people forget documents and so forth in the rush of travel.
Mr. Wilson: Settlement of a Carnet should be as liberal as possible under
international laws. The Convention is written that way. Even the U.S. is slow to
respond on this. National law should not be more difficult than the ATA Carnet.
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Mr. Trevanion: What time period is there for agreement for payment by the
guarantor?
Mr. Hotchkiss: When we set up the agreement with the chamber of commerce it is a
continuous liability until they might seek a release.
Mr. Trevanion: The guaranteeing organizations are very substantial.
Ms. Duncan: They also oversee the credibility and integrity of participating members.
Mr. Wilson: One reason for the success is that the wording is very general. It has to
deal with 50 different legal traditions. We have never been asked to come and
explain the regulations. For example, UK customs monitors the Carnets on a yearly
basis. It depends on how the chambers are constituted also. There are no rules in
the US for setting up a chamber. Anybody can set up one. In other countries it
may be different. The US is very trusting. We pay customs $500,000 per year.
This is substantial. Mrs. Lee has a very close working relationship with customs in
Singapore. You can let the guarantor act independently or exercise oversight.
Mrs. Lee: The appointed NIGA is usually a Chamber of Commerce which must be a
member of the ICC/IBCC. The NIGA appointed is also usually a Chamber or an
organization like the USCIB which has the integrity, credibility and financial
capability to fulfill its responsibilities as an NIGA.
According to the ATA Convention, there is a distinction between “Issuing” (approved
by Customs to issue Carnets) and “Guaranteeing” association (approved by Customs
to guarantee payment of customs duties/taxes etc.).
In practice to ensure better control, the Customs usually appoints only one and the
same association as the NIGA. But with the approval of the national customs, the
appointed NIGA may authorize other organizations to issue Carnets under its
guarantee. Membership of IBCC security chain shall be as long as the NIGA does
not fail to discharge its responsibilities.
In term of conditions of appointment, Customs may require the NIGA to furnish an
additional security.

Module 6: Countries where the ATA Carnet is Accepted
Speaker: Bruce Wilson
We hope that this is a dynamic list that keeps expanding. We want to include
Vietnam and Indonesia by the end of 1999. The concentration of contracting parties
is in Europe. Many former communist countries of eastern Europe participate.
Macedon is a new one, as well as Slovenia and Slovakia. The Czech Republic is
also fairly new. We have Yugoslavia, but they can not approve Carnets. When
they broke up there were several hundred Carnets outside. Because of the embargo
they could not pay. There was concern because the guaranteeing associations had to
pay. As a result we have been putting together an insurance program. The total
exposure was only about $400,000 over a dozen associations. But we are putting
together a package to cover this type of situation.
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Mr. Trevanion: What about the former Soviet Union?
Mr. Wilson: The Russian Republic is scheduled for April 1, but we will see. Others
such as Ukraine have applied but are not in.
Ms. Duncan: There is a training Mission going on in Moscow preparing their customs
officials and future guaranteeing associations.
Mr. Wilson: We are concerned about Russia, because of the high levels of corruption
there. We don’t want to compromise the integrity of the system.
The highest volume of ATA Carnets was 1990. After then the European Union was
formed and that reduced the number. Now we have APEC and Eastern Europe
coming in.
Ms. Duncan: In the European Union, you move about in the various countries and
only have one entry and exit for the whole Union.
Mr. Wilson: They have one EU, but many customs administrations. There is a lot of
resentment, reduction and redeployment of staff due to the reduction of borders.
Germany is the largest user, and used to have many more Carnets, mostly in Europe.
Now with the EU its volume is much less. The same is true for Switzerland and
France. The use of Carnets in the US is increasing. The Czech Republic has many
because they are not part of the EU. There is no Asian country on the high use list
except for Japan.
Ms. Duncan: There are also none from Central and South America. Negotiations are
in progress.
Mr. Mueller: There is a third Mission being scheduled, probably in Mexico, as Mr.
Yen mentioned in his opening remarks.
Mr. Simon Ho, Dept. of Customs Administration: How about NAFTA?
Mr. Wilson: In NAFTA no customs sovereignty has been given up, unlike the EU.
There is a conflict because Canada and US are much more developed than Mexico.
You can’t use a Carnet to Mexico. Although there is no duty to Canada, there are
service taxes.
Module 7: Main Categories of Goods
Speaker: Mr. Mark Jarratt.
There are primarily three categories of goods covered by three Conventions: EF,
exhibitions and fairs; CS, commercial samples; PE, professional equipment.
Goods can be accepted under other Conventions with or without a Carnet.
There is also a Packings Convention for packing materials.
The Seafarer’s Convention includes items that may be used to entertain sailors.
The Scientific Equipment Convention includes astronomic and other scientific
equipment.

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The Pedagogic Material Convention includes computers, overheads, textbooks and so
forth.
The Private Road Vehicles Convention is part of the UN provisions, but will be
included in the Istanbul Conventions and its provisions.
The Commercial Road Vehicle was preceded by the TIR Convention and covers semi
trailers and trucks and other such vehicles.
The Aircraft and Pleasure Boats Convention may or may not require a Carnet.
Some countries have other procedures for sailing and flying in national territory.
The Customs Convention for Facilities for Touring includes items used by tourists.
The Containers Convention is similar to the Packings Convention and allows goods
to enter without duty on the packing material. In Australia we abolished the duties
on containers because it was too complex to keep track of millions of containers. So
Carnets are not needed for these there.
The use of the goods is specified on the front page of the Carnet as “Intended Use.”
If there are multiple uses restricted differently in different countries, the several uses
can be listed on the Carnet.
The country must have signed the relevant Convention. The Carnet cover lists the
countries that will accept Carnets.
Goods may be subject to quarantine or other restrictions or exclusions.
Particularly excluded are goods intended to be sold. At the time of importing the
intention is not to sell. Perishable and consumable items are usually not included.
The goods at the time of export must be identifiable as the same items imported.
For example, the serial number can be used for verification.
Processing or repair is not allowed because the goods must be exported in the same
condition as when they were imported.
Mr. Wilson: You can order the Handbook from the WCO. Order now. Repair and
processing changes the nature of the goods so there is a different tariff, value, and
possibly origin. There are special cases, such as art or rare violins, that can only be
repaired in a special location, and customs sometimes will allow a Carnet for such.
Mr. Jarratt: For example, Australia has a tariff concession. If an instrument has been
imported and duties paid, it can be sent for repair and brought back with no additional
duties (returned goods of Australian origin).
The ultimate thing is that there is no change in the goods and quarantine and other
restrictions have been met. The Carnet actually helps customs to maintain order at
the border because all goods under the Carnet are required to be 100% inspection.
Module 8: The Objective of the ATA Carnet System
Speakers: Mr. David Hotchkiss and Mrs. Ju Song Lee
Mr. Hotchkiss: Our objective is to facilitate temporary duty-free admission of goods
                                            14
by eliminating completion of national customs documents at importation, providing
security for collection of duties and taxes due if the goods are not re-exported.
The WCO introduced the ATA Carnet document and established an internationally
recognized customs security chain composed of National Guaranteeing Associations.
The Carnet is used for three categories of goods. The goods must be acceptable
under the GATT Agreement of 1952 or the Customs Convention of the CCC,
Brussels, 1961.
Mrs. Lee: Why is the security chain needed?
To ensure full compliance with the conditions of proper use of the ATA System and to
secure full payment of customs duties and taxes should the goods fail to be
re-exported.
There is a 3-tier security scheme: IBCC, NIGA, and the Holder.
How should it be given? Security must be safe, valid and adequate; easily
convertible into local or foreign currencies and valid for the period during which the
NIGA/holders are liable.
Security to be furnished to the IBCC: via a Banker's or Insurance Guarantee
NIGA to National customs: Optional, if required: via a banker's guarantee or
insurance guarantee, or letter of undertaking
At the chamber’s level: an insurance to cover against risks involved in the issuance of
Carnets via professional liability insurance coverage,
Holder: via a safe security
How should it be given? From the holder to NIGA it may be cash or LC, or bankers
or insurance guarantee or a combination of these.
The validity period of security is 33 months. This includes the carnet's validity
period of 12 months, plus 12 months during which claims, if any, must be made by
the customs, and 6 months for NIGA to furnish proof of re-exportation, and another 3
months for NIGA to finalize the claim.
The amount of security to be obtained from the holder is usually the highest current
rate of duties/taxes applicable plus 10% plus other taxes applicable (sales taxes GST,
VAT, etc.) plus regularization fees, if applicable, plus other charges, (bank charges,
etc.) plus export cess if applicable, etc., based on the commercial value of the goods.
There is no limit with reference to liability of holders.
GA liability is limited to a sum not exceeding the amount of total import taxes/duties
payable by more than 10%.
Mr. Wilson: This is fairly typical of most GA’s. We only charge a 40% security
deposit. We don’t accept LC’s and banks have different regulations and we don’t
think our staff is knowledgeable enough in that area. So 95% is covered by
insurance or surety bond and 5% by cash. If we take 40% and a claim comes in at
                                            15
55% and the holder is no longer in existence, our insurance pays the 15% balance.
The easier it is to get, the more they’ll use it. The benefit for the holder is in taking
the bond and paying the premium and that's all he pays for 33 months. If you
require cash plus an LC, that is difficult for small organizations to tie up for two or
almost three years. In other countries surety bonds are not well known. Of the
worldwide surety bonding 90-95% is done in North America. It takes knowledge of
how to underwrite applicants to write such bonds. But it works very well, causing
much less overhead. An LC may run out, or need renewal, and takes more labor to
monitor.
Mrs. Lee: Bruce’s experience is very good. In Asia our Japanese colleagues use
insurance security, while others use a combination of security instruments.
Mr. Wilson: When the claim comes, they do not ask for money. They want proof of
re-exportation. There is no claim yet. We don't think of it as a claim until the 6
month period elapses. If there is no evidence, then a claim emerges. If he says
"we sold it," then there is a claim. If the holder can't produce proof of exportation,
then it's a claim.
Questions:
Mr. Trevanion: Give us a general feel how many Carnets would come to a point
where your staff has to put in time on a claim.
Mr. Wilson: Out of 13,000 Carnets we get maybe 2-3000 claims, and maybe we pay
on 400. It is not overwhelming. Very few result in paying.
Mr. Trevanion: We're trying to get a feel for how many claims there would be.
Mr. Mueller: I can say that to my knowledge we do not have a large incidence of
claims. One reason is the double check on the export and the import. So the
percentage is pretty low on noncompliance.
Mrs. Lee: The system improves efficiency and transparency as the Customs no longer
need to deal with individual traders and are assured of payments of duties/taxes
should they fail to re-export. So, there will be no loss of revenue.
Ms. Huang, Auditor, Keelung Customs Bureau: You need permission from the local
government for exhibitions. Would the Carnet holder not have to apply for local
permission?
Mr. Wilson: If the importing country under the TECRO-AIT has signed the
agreement, there should be no further need to apply for permission.
Mr. Hotchkiss: You are saying the government would have to issue a permit to
display goods.
Ms. Huang: According to our local law, the importer has to get permission to conduct
the fair.
Mr. Wilson: That is a separate transaction. For instance, India limits the number of
fairs. But that is different from the Carnet.

                                           16
Mr. Hotchkiss: We spoke earlier about legislation. If your laws say you have to get
permission for exhibitions, that is a separate matter. In Canada we put in place
legislation to permit trade shows. There is much benefit to the economy to have
shows come into your country. The restriction of them would seem to go against the
spirit of the Convention and the duet benefit to your economy.
Mrs. Lee: For the operation of the system to be beneficial, the acceptance of Carnets
should be as free as possible from restrictions. If contracting parties have
restrictions, they should notify the NIGA.
Mr. Wilson: Generally customs administrations reflect the attitude of their staff from
the top down. In Article 17 customs administrations are encouraged to provide
“greater” facilities. If it is clear that a holder can’t then you can’t. But if a
Customs Administration provide more, then it can do so. The objective is to expand
the scope of the temporary importation.

Module 9: National Guaranteeing Association Responsibilities
Speaker: Mr. Wilson
Once your country is a contracting party it must select a NGA. There must be a
written “Undertaking” between the contracting party and a national chamber of
commerce that agrees to be a NGA. (See the sample letter of Undertaking in
appendix G.)
The US government does not require the NGA to deposit security. The NGA must
require security from the applicant: surety bond, LC, cash or a combination. We
don’t use LC’s much. We don’t require bonds from large corporations such as GE
that has 200 billion in market capitalization.
The government of contracting party must agree not to restrict payment to another
NGA due to currency controls.
There can only be one NGA in each contracting country. The prospective NGA
submits a letter of undertaking to its appropriate government agency.
A prospective NGA often does not know how to proceed. They will not have had
that experience. We have drafted a sample letter of approval to facilitate that
situation. That is in Appendix H of your binder. The applicant submits a copy of
the executed letter of undertaking and the letter of approval from its Customs to the
IBCC with a letter requesting that the organization be accepted by the IBCC as a duly
approved NGA of its country.
The NGA must also submit a guarantee from a acceptable bank or insurance company
in the minimum amount of $100,000 to the IBCC.
We have an insurance policy that covers the USCIB’s passive risk. If a holder can’t
pay because it is bankrupt, we pay it.
The USCIB has only had ten issuing offices. In France they have 40-50 offices.
Once the USCIB has automated the system it is quite simple. You can use DHL or
                                          17
UPS. You can set them up electronically using Internet, and so on.
The NGA sets the selling price of an ATA Carnet. The fee must not exceed the cost
to deliver the service. It depends on how the operation is structured. An NGA
must remit the total amount of that portion of the fee for a 12 month period due to the
IBCC by the 15th of February of the following year.
Mr. Villasis: How do you determine the value or the goods on a general list?
Mr. Wilson: This is not a problem when the goods are for re-export.
Mr. Mueller: It works the same as other assessments. If it was underdeclared, they
would be assessed if delinquent based on the appraised value of the goods.
Mr. Wilson: We tell holders to value the goods on the general list at what they are
worth if sold. Applicants are tempted to undervalue to lower the cost of the surety
bond or other security. The PTC decided there is no way to make it simple to
declare value. So they ask for the commercial value. We say commercial value,
what are you going to insure it for? When value is established use the insured value.
Holders don’t usually insure for more or less than the true value of the goods. So
it’s a very good guideline. They won't insure for more than the value of the goods.
So it’s a good guideline.
Mrs. Lee: It may be difficult to know if the declared value is the true commercial
value. If the holder wants to pay a lower surety bond, he may underdeclare. But
NIGA usually ask for invoices etc. to verify the value of the goods. If in doubts,
they do inspect the goods and ask experts to assess the values.
Mr. Wilson: Valuing jewelry can be difficult.         We tell jewelers that if they
underdeclare, customs might seize their goods.
Mrs. Lee: Holders are also warned that they could also be prosecuted by the local
government for making a false declaration etc.
Mr. Wilson: We impress on them the possibility of prosecution by the government.




                                          18
March 18, 1999
Questions:
Ms. Debbie Tai, Dept. of Customs Administration: Chinese Taipei is not a member of
the ATA Carnet Convention. How can we cooperate and not have to sign bilateral
agreements with other countries?
Mrs. Lee: Under the Istanbul and the ATA Conventions a contracting party must be
UN or WCO members. I have suggested that it also include WTO members.
Meanwhile, we encourage members to help speed up trade facilitation and we also
extend help to members who would like to set up Bilateral Carnet Arrangements with
Chinese Taipei. Bruce has mentioned that by June 1 1999, the TECRO-AIT Carnet
will be implemented.
Ms. Tai: I noticed in the hand out the criteria for ATA Carnets. I do not know if
there are customs administrations qualifying to be a contracting party without being
members.
Mrs. Lee: Perhaps we should be looking at an APEC Carnet system implemented
throughout all Customs Administrations by year 2,000 or an APEC Bi-lateral Carnet
Arrangement with Chinese Taipei by the next millenium.
Mr. Michael Lu, Taichung Customs Bureau: We are not a member of the UN or WTO,
under this circumstance, could we sign the ATA Carnet?
Mrs. Lee: The membership criteria are set by the conventions and this forum is not to
address this issue. Our mission here is to discuss how to implement the Carnet
system through out APEC by 2,000.
Mr. Lu: It is a bit political, but if we do not meet the criteria we will never join.
Mr. Wilson: We have a saying: “Never say never.” The Convention allows special
provisions. For example, the PRC has two memberships, China and Hong Kong.
In Eastern Europe they did not have free market economies, and we had to change the
rules a little bit to fit that situation. The IBCC has no power over the Chinese
political situation. China is very large. It may not be fair, but at some point we
have to accept political reality. So we have worked hard to facilitate bilateral
agreements so that Taiwan is not excluded, even though that is a bit awkward.
Technically we don’t have an agreement between the US and Taiwan. It is between
TECRO and the American Institute in Taiwan (AIT). There are not many direct
agreements. They have to use this device. It is unfortunate, but people wiser than
I have worked on it for 30 years and have not been able to resolve it.
Mr. Jerry Chang, Kao-hsiung Customs Bureau: In Appendix C, Page 11, article 19 of
the Convention on Temporary Admissions, I wonder if it is reasonable to give priority
to our customs laws on time limits. We require an un-extendable time limit for
re-exportation. Our laws require a fixed period of 6 months from the time of
importation. If there is a conflict in the expiration dates, should I put aside the
Carnet. Please comment.
                                             19
Mrs. Lee: Thank you for bringing up this practical issue. A distinction must be
drawn between the validity period of a Carnet, which is fixed by the NIGA and the
time allowed for re-exportation/re-importation, which is to be determined by the
Customs. The validity period of a Carnet is usually 6 months for exhibits and
professional equipment, and 12 months for commercial samples. But the customs
are free to determine the period allowed for temporary importation/exportation/transit
in accordance to their national laws. Some countries allow a 3-month temporary
importation. Some may only allow 1 or 2 days for transit operations or the period of
the exhibition. Once you sign the Convention you appoint an NIGA and then
inform WCO of the time limit for temporary importation and what procedures you
have for extensions in your notification on the scope of application.
Mr. Hotchkiss: If I understand your question correctly, you’re asking that your
domestic law you have requirements but your law doesn’t match the Carnet
Convention concerning time limits. Which takes precedence? Earlier I spoke of
our laws in Canada. Once we signed the convention we put in legislation to allow
commercial samples to come in, and we allow academic regalia such as graduation
caps and gowns, but only for 30 days, not one year. So we have time limits which
differ from the validation time limit of the Carnet. We also talked of plants and
animals that have special domestic restrictions. Just because someone shows up
with a Carnet does not mean they can stay for 12 months or even get their goods in.
There is a place for customs to put the date for final exportation on the Carnet to limit
the time the goods remain in their country.
Ms. Chang: On the form there is a place for the customs officer to indicate the date
for final exportation. For example, Korea has some rules for only 6 months, and
Canada has some 30 day limits, and others have 3 month limits. This is decided by
customs.
Mr. Hotchkiss: The Carnet is issued for 12 months, but it may arrive with only 3
months left. Customs may limit the importation to only 3 months.
Mr. Wilson: This is not unique to Taiwan. Every customs administration has to
harmonize the Convention with the domestic law. The domestic law always takes
precedence. The purpose of the system is to encourage transfer of goods and
promote trade. If it is not prohibited, then do it, allow the goods. Customs have a
guarantee for payment of taxes. If it is restricted, then it is obvious. Every time
customs facilitates trade, it helps the economy. I know there is concern about
smuggling, but that is a clear violation of domestic laws. In England they
sometimes accept Carnets even without the general list in order to facilitate trade. I
don't know how you make a claim in that situation. Usually the holder is in a hurry
or concerned with his professional affairs. We encourage facilitation of commercial
trade provided it does not compromise domestic laws.
Mr. David Chang, Taipei Customs Bureau: We have a problem to put the Carnet form
into the binder because of the awkward size.
Mr. Hotchkiss: Every economy has the same problem with the size of the ATA Carnet.
                                           20
The size of the document is specified in the Convention.
Ms. Griffiths: We have a version that is a standard size.
Mr. Chang: That helps.
Mr. Mueller: Also it is required that one of the two languages be either English or
French. You would probably want Chinese as the second language. Usually the
second language is the domestic language. You can have up to 3 languages.

Module 12: What does an ATA Carnet Look Like?
Speaker: Robert Mueller
The Carnet has a green cover.
Ms. Duncan: This sample is an American Carnet form. We put the blue cover on for
identification purposes and to give it some bulk so it won’t fall apart if the General
List is long and many countries will be visited. Also we put instructions on the
inside of the cover to help the holder. Other countries may not have this outer cover
on it.
Mr. Mueller: The holder must know how many countries he will visit so the number
of vouchers can be determined. The certificates are in sets of two, the counterfoil
and the voucher. The counterfoil is never removed from the Carnet. This shows
the customs administration a record of the movement of the goods. The bottom part
is separated and retained by customs.
The meat of the Carnet starts with the green cover which has the number on the top
right, the validity and expiration date. The validation date for the one year period is
stamped and signed at the lower left hand portion by the customs administration.
That starts the clock.
Ms. Duncan: There is a stamp and a signature.
Mr. Mueller: The GA stamps and signs the document.
Mr. Wilson: Some countries have not only an NGA but a representative association
that signs.
Mr. Mueller: The holder also signs the green cover portion. Next there is a general
list of the merchandise, number of items, description of goods, number of pieces,
weight, value, country of origin. This must be provided and must be correct.
Customs officials reserve the right to inspect the shipment. Correct documentation
reduces the chances of delays at customs. Many companies have hundreds or
thousands of pieces of equipment. You may have a general list and attach
photocopies of the list. But the information should be complete.
Mr. Wilson: We don't print the list on the back of the cover page. It is a separate
page. Originally the forms were not filled in by computer, and they were typed.
Now with duplex printers you can do both sides at once. We exclusively have a
separate page for the first page of the general list.
                                           21
Mr. Mueller: Paperwork is a characteristic of both public and private sector. The
next page, the yellow, is the first exportation which is processed at the departure point
by customs. At the top of this form you list the number of articles you are carrying
with you. You specify which ones you have. Sometimes a holder has 15 pieces,
but may only have 5 for that particular country. So you have to specify that you
only have the items you carry.
Ms. Duncan: This is for the convenience of the holder. Perhaps you have several
exhibitions with various combinations of equipment. You can thus move goods
around but use only one Carnet. The customs officer and the holder must pay
attention to both parties putting just the right numbers of articles so the holder is not
held responsible for duties on items he did not bring in.
Mr. Mueller: Getting back to the counterfoil portion, the customs administration fills
and stamps the voucher and counterfoil customs use sections. The holder completes
his part, including the temporary exportation declaration. Above the customs use
box is a section for the issuing association. It should be filled out in advance.
Once completed, the voucher is detached and the holder keeps the counterfoil and
goes on his way. It may seem complicated, but it becomes simpler at each step.
When the goods are imported through the next administration, the customs officials
can check to verify that the goods are the same.
Mr. Wilson: In the US and generally around the world there is more emphasis put on
imports, and consequently the import voucher, than exports.
Mr. Mueller: Often the re-importation voucher of one country serves as a reference
document for confirming the information on the exportation voucher of the previous
country. Next is the white sheet in two parts for the importation, a voucher and a
counterfoil. The customs official will look at number one to see that the goods
match up the correct items. The official may check the conveyance to ensure that
the ones brought are the ones on the list. There is much more concern about
importation than exportation. They will hold onto the voucher once it is completed,
and file it. Then on re-exportation to the next destination there will be two copies
for the port of re-exportation. One port will send the vouchers to the other to match
up that the goods are the proper ones. However, if many countries are visited there
will be that many vouchers and that process will be repeated.
Mr. Mueller: Then there is the in-transit part that is the blue form. The blue portion
is the in-transit portion and is not used as much. It is used when a holder does not
enter the goods into the economy, but is only transiting to another country. The
same rules apply as for the import/export portion. There are two two-part sections
to the blue form.
Next comes the re-importation form, which is yellow. It is used when the holder
returns to his point of origin. If there are goods that are different, that is where the
surety issues come up and duties may be assessed.
Mr. Wilson: For your and our exporters it is extremely important that if the
re-exportation certificate is not validated properly, then the re-importation serves as
                                           22
secondary validation of re-exportation. This allows us to quickly cancel the claim that
comes from another country. As the system progresses there is more and more trust
between the customs officials of various countries. Our officials accept these
validations as true documents almost never with refusal. We find the officials are
operating with integrity now.
Mr. Mueller: The last section is the green back cover with various notices regarding
the use of the Carnet.
Ms. Chang again recapped the description of the yellow re-importation form and its
function in Chinese. Then she explained the additional handout describing the
period prescribed for re-exportation, pointing out that each country can indicate the
time limit for goods to reside in the country.
Mr. Wilson: To my knowledge US customs seldom restricts goods for less than the
expiration date of the Carnet.
Mr. Mueller: I would reiterate what has been stated earlier that customs
administrations policies regarding time frames for temporary importation supersede
the time parameters stated in the Carnet.
Mr. Hotchkiss: In Canada we go with the time limit in our domestic legislative
process.
Mr. Jarratt: In Australia the officer has the discretion to vary the date, but in practice
seldom does. If there is a clear intention to export we will allow some extra time for
packing and re-export.

Module 10: ATA Carnet Holder Responsibilities
Speaker: Ms. Cindy Duncan
The holder is an entity with a beneficial interest in the goods. Brokers may not be
the holder because they would not experience any loss should the goods be destroyed
or confiscated. The holder must be identified on the forms each time the Carnet is
used. The holder must know the Carnet rules. The holder must be aware of local laws
and restrictions. They need to sign the document and be aware of proper
documentation procedures. Failure to follow the procedures for entry and exit may
result not only in duties, but also penalties up to 10% of the value of the goods.
Goods under Carnet may not be sold without approval of the importing customs
administration.
Mr. Wilson: Unconditional discharge is involved here. It is to the benefit of the
holder often to sell goods if possible. But to avoid claims and perhaps penalties it is
better to go to customs and pay the duties and get a customs receipt. If you don't
you are guaranteed to get a claim, with costs and penalties.
Ms. Griffiths: We discourage selling without permission.
Mr. Mueller: From US customs perspective, advance permission must be received
before sale. They must pay duties and have a receipt in hand when they leave the
                                            23
country.
Ms. Duncan: We covered the re-exportation issues. The period may be less than the
validity period. Singapore regularly restricts Carnets to 3 months, and Korea as well.
They readily extend it if the holder requests this from Customs.
Ms. Duncan: The holder is responsible to the NGA for costs the association may
incur in meeting its obligations as guarantor. There is a sliding scale in the US
regarding time-consuming claims that involves claim fees.
Ms. Chang: It is based on the amount of the bill. The bill is sent from the handling
country and we base the fee on the bill. If the bill is large we charge a 2% surcharge
on the bill.
Ms. Duncan: If the goods were lost and there is a police report, customs still usually
wants their duties and taxes. It the document is lost, destroyed or stolen the holder
notifies the issuing association to obtain a replacement and has the replacement
document validated by the importing customs administration at the time of
re-exportation.
Ms. Griffiths: In Australia we need some proof of loss of documents.
Mr. Jarratt: if the document is lost or stolen, and the holder can produce the goods
and they are the same ones that were imported, then it is usually allowable. This
would be verified by physical inspection.
Ms. Duncan: In any case, always find the customs official and have the document
validated properly. When the Carnet is no longer required or expired it must be
returned to the issuing association for discharge or retention in the event of a claim.
Should the holder fail to observe the Carnet conditions, it will be necessary for
customs and the NGA to properly account for importation and exportation. Where
the NGA is required to pay customs duties and taxes on behalf of the holder, the
holder must reimburse the NGA.
Mr. Trevanion: Where do we go when we get to customs? Do they have a Carnet
hat?
Mr. Mueller: In the US there is no definite Carnet officer. Normally a holder goes to
the customs office and inquires and someone on staff should be qualified to handle it.
Mr. Jarratt: In the Handbook there is an indication of hours of business and many
locations. Bonded warehouses often have officers, as well as postal operations.
Often you can get officers after hours, provided you pay a service fee.
Mr. Wilson: It varies tremendously where the official is. In Japan it is clear where
the Carnet officer is. In the US it is not so clear. It is easier in Asia to identify
officials than in a Western country.
Mr. Jarratt: When there is a green and a red, always go to the red sign for declaring
goods. This will permit the officers to validate the Carnet.
Mr. Mueller: There is also a website to consult.

                                          24
Ms. Duncan: In the New York airports, and at JFK there are several terminals. So
we prepared information on New York which is a starting point.
Mr. Trevanion: Maybe give the holder a better to reach the customs officer.
Mr. Mueller: This is not a negative aspect of the Carnet. It is part of the customs
system in general and affects all entries.
Ms. Duncan: We have a checklist for the holder so they know what to plan for, such
as arriving at the airport several hours ahead to allow time for processing.
Mr. Wilson: When I came out from Chicago, we laid over at midnight in Denver.
Fortunately I and my material validated in Chicago and saved running around in the
middle of the night.
Mr. Jarratt: It would help to have the locations and hours updated. This could be
pursued through the WCO website and update of ATA Handbook.

Module 11: How do you Apply for an ATA Carnet?
Speaker: Ms. Cynthia Duncan
Ms. Cynthia Ducan: This section will demonstrate the latitude given to NGAs to
establish a system that reflect local markets and complies of local laws.
The exporter submits an application to the issuing association and pays the issuing
fee. In the US we charge $120-250. If we have to hurry up, then there is an
expediting fee.
Ms Griffiths: In Australia we charge $180AUD for members and $300AUD for
non-members if application is 3 days before. If it is less than three days, we charge
$330 for members and $500 for nonmembers. There is an administration fee of
$100 for cancellations.
Mrs. Lee: In Singapore we have a flat rate system. Members are charged S$150
plus 3 % GST, nonmembers pay S$250 plus 3% GST for the first country. For
additional countries they pay S$15 and S$30 each respectively.
Ms. Duncan: In Europe many receive substantial subsidies to cover the guaranteeing.
So in France the fee is about $25, and in Germany about $30 and in the UK, it is
similar to the US.
An exporter must provide adequate security. For the US, that amount is generally
40% except when exporting to Israel and Korea, where duties are very high. In such
cases we ask for 100%.
Ms. Griffiths: We have 50% across the board. But if they provide information for
the countries, we charge the highest duties plus 10%.
Mrs. Lee: We try to compute the security required plus 10%.
Ms. Duncan: We accept cash, surety bonds, and insurance.
Mrs. Lee: In Asia, we use a combination. Some NIGAs may ask half in cash and
                                          25
half in an insurance surety or use an insurance guarantee.
Ms. Duncan: The security must be valid for 33 months, 12 months for the life of the
Carnet, 12 for initial claims, 6 for response, 3 for finalization.
The Carnet is not valid without the green front and back. The Issuing Association
reserves the right to examine the goods for which an application is made and ask for
any relevant documents to verify the declaration made. We don't generally do such
examinations from the issuing association in the US. We will remind the holder to
complete the general list correctly.       Moreover, we advise that inadequate
descriptions are grounds for customs to disallow entry. In such cases, the holder
generally amends the General List to meet an acceptable standard. Not unlike a
personal passport which documents the whereabouts of the goods. We call it the
Merchandise Passport.
Mrs. Lee: To verify the commercial value of goods, we ask for invoices or any other
supporting documents which may verify the value. We also ask for certificates of
origin to verify the origin of the products. The NIGA issues a carnet only after it
has discharged its responsibilities in accordance to the terms/conditions as specified
in the conventions, by the customs and IBCC. The issuance procedures and the
security chain provide customs within the chain the highest degree of confidence.

Module 13: How an ATA Carnet works, a Customs Perspective
Mr. Jarratt explained in detail the procedures followed by a customs officer in the
processing of a Carnet presented by a holder. These are covered by the binder notes
for Module 13 and include domestic and foreign Carnets.
Questions:
Mr. Villasis: Have you got problems in determining the nature of goods?
Mr. Jarratt: We had commercial samples sent in by parcel post and it was hard to
identify any changes in the nature of the goods. Jewelry is a problem, because it is
difficult to determine the exact nature and value of such things.
Mr. Hotchkiss: Regarding identification it is hard to admit things that we can not
identify. For jewelry we often use very small seals that permit use of the ring
without damaging the seal. We also set up bonded warehouses and ways to seal
items so that the objects can be used for the intended purpose while preserving the
customs need for identification.
Mr. Jarratt: We use seals on shipping containers. They may be pilfered and lead to a
claim. There must be a way to prevent tampering and a means of identifying.
Mr. Michael Lu: Do you have an officer for Carnet affairs?
Mr. Jarratt: We have Clearing Clerks. They are trained as cargo examining officers,
though they are not particularly specialists in Carnets.
Mr. Villasis: How long did it take in the beginning to train your staff?
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Mr. Jarratt: Our turnover is high. We spent about two days, but that is not sufficient,
but a lot of it is on the job training. We rely on experienced staff to give advice.
After you have done a few you get the procedure.
Mr. Wilson: I don't think it takes more than two days to learn the procedure. It is
very simple. It is just another aspect of a temporary admission. It's an entry and a
release. It is the simplest customs document I know of.
Mr. Jarratt: In addition to the completion of the Carnet form, we also put a lot of
responsibility on our officers as to what they should or should not be accepting
regarding domestic regulations and the Carnet regulations and that takes some
training attention. There have been instances of officers accepting Carnets when the
country has not signed the relevant convention, and in this case no valid security is
represented by the Carnet. The issuing association would therefore not be obliged
to pay any claim.

Module 14: Why Has the ATA Carnet System Been a Success?
Speaker: Mr. David Hotchkiss
Mr. Hotchkiss: The importer has a choice. He may use the ATA Carnet or use the
temporary admission procedure. There is assurance that the goods will be exported
in the same condition as when they entered the country.
The System generates a high degree of trust in the other signatories and extends a
warranty to each of the other members.
It is a great way to work with business for a faster, better border.
Mr. Jarratt: We hope you have found a fair amount of useful information regarding
the ATA Carnet System.
Ms. Duncan: In a world where we are all trying to grow our economies, fast efficient
customs procedures is an excellent means to facilitate this.
Mr. Mueller: We wanted to achieve a good dialogue on the subject and I think we
have succeeded in that.
Mr. Trevanion: We want to achieve implementation of the ATA Carnet System
throughout Asia. We in Australia stand ready to support that activity. If there is
anything we can do to facilitate, we will be glad to bring whatever knowledge and
resources we have to bear on it. It is a win-win situation for all.

CLOSING SESSION
Director General Liu: This 3 day seminar is now coming to a close, and we have the
honor to have a few remarks from Deputy Chairman Wu.
Closing Remarks by Deputy Chairman Wu, CETRA
Mr. Wu: My name is Wu. Our names are all very short. I am the founder of
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CETRA, organized with the chambers of commerce to promote trade and export.
We are an issuing and guaranteeing association. In 1970 when I founded the China
External Trade Development Council, I had great hopes that the results of our efforts
would lead to our directing so much of the development of Taiwan’s economy. In
the time since CETRA has successfully promoted Taiwan’s foreign trade. Taiwan’s
export and import trade has rapidly increased making Taiwan the 14 th largest trading
nation in the world. We are particularly glad that our trade with Southeast Asia has
developed along similar lines.
Tonight, as we close these meetings of the APEC ATA Regional Advisory Mission, I
am pleased to see the great contributions they have made to all the attendees,
particularly those from Vietnam, the Philippines, Indonesia, and Thailand. The
improvements to Carnet handling procedures will greatly help all of our dealings with
them in the future.
I am certain that all of us will greatly benefit from the adoption of the ATA Carnet
System and look forward to seeing the resultant increases in the volume of regional
trade.
Thank you all for coming.

Closing Remarks by Director General Liu
Director General Liu: Deputy Chairman Wu has dedicated almost half a century to
promoting the trade of this country and is the founder of CETRA.
(See Director Liu’s attached closing remarks.)
Mr. Mueller: On behalf of the US customs service and as co-chairman of the APEC
ATA Carnet Advisory Mission I can’t express enough our gratitude for the hospitality
from the Chinese Taipei hosts. There has been a very active participation from all
the APEC guests and the Chinese Taipei customs officials. And special thanks to
Mary Hsu for all her work on all the details and Douglass and Uddaya for
transcribing. I would also like to thank my colleagues Mr. Mark Jarratt, and Mr.
David Hotchkiss, Mrs. Ju-Song Lee, Mr. Bruce Wilson, and Ms. Cynthia Duncan, and
Ms. Anna Zhang for their contributions to the panel modules.
Mr. Jarratt: We have been impressed with the level of participation and have enjoyed
the wonderful hospitality. The participation and cooperation is the basis of the
success of the Carnet System to date.
Mr. Hotchkiss: It has been a great pleasure to be here on behalf of myself and
Canadian Customs and my colleagues.
Mrs. Lee: I am privileged to be here and would like to take this opportunity to thank
you and all those of you who worked so hard behind the scenes. I hope this will not
be the last time that we meet as this first meeting reaffirms our commitment to work
together and facilitate greater trade in the region. Our challenge is to achieve full
ATA Carnet implementation by the year 2000. I also hoped that these meetings will
help chart new directions for greater cooperation between APEC and IBCC in their
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common objective of speeding the process of removing trade barriers and their joint
efforts to create a more dynamic business environment. She thanked her colleagues
for their enormous contributions and active participation.
Mr. Liu: Thank you for your participation and the contributions of our panel.




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