Making FTZ,

Bonded

Warehouses, and

ATA Carnets Work

For You

ATA Carnet

Your Cargo’s

Passport

What do these have in Common?

Your Cargo’s Passport

International development tool

International customs document

Allows temporary entry of items, duty-free and

tax-free, whether shipped or hand-carried

Established by the World Customs

Organization’s international convention

ATA Carnet:

Temporary Importation The process whereby goods will remain in the importing country for a limited period of time without paying full duties and taxes.

Duty & Tax Deposit

Temporary Import under Bond (TIB)

ATA Carnet

Smuggling

Why is ATA Carnet Good for Your

Business?

1. Eliminates posting of a financial guarantee Deposit of duties and taxes e.g., yen, euro, sterling.

EU, minimum 20% of value

China, minimum 17% of value

Mexico, minimum 16% of value

Temporary importation under bond (TIB)

Transit in Bond

ATA Carnet Benefits continued…

2. One document for all customs transactions (Exception: export/import licenses)

3. Unlimited entries/departures for up to one year

4. Minimizes language problems

5. Arrangements made in advance and in U.S.

dollars

How can ATA Carnets be used?

Temporary Exports and Imports

Transit Movements

Split and Partial Shipments

US Export Registration (CBP Form 4455)

What Type of Goods Qualify for

ATA Carnet?

3 Primary Categories:

1. CS--Commercial Samples

2. PE--Professional Equipment (tools

of the trade)

3. EF—Goods for Exhibitions and Fairs

Not Trade Show items only!

NOT covered: giveaways, food items, plants, consumables, disposable items, postal traffic and personal autos for touring

No “substantial transformation” in product or value

No repairs nor replacements

What goods are NOT covered?

Where can ATA Carnets be used?

76 member countries and the customs territories they administer:

France Monaco

Spain Canary Islands

South Africa Namibia, Lesotho, Botswana, Swaziland

ATA Carnet Countries

VOID VOID

1

1

2

2

How Does an ATA Carnet Work?

ATA Carnet Best Practices

Box H on the Green Cover must be validated

General List must be clearly described. Include any and all unique identifying characteristics

Foreign Customs has the right to restrict entry

Always note the ATA Carnet number on all supporting documentation

Always notate the Airway Bill or Bill of Lading or Flight number on the counterfoils

ATA Carnet Best Practices Split and Partial shipments are possible, but

require a lot of attention

Expired US ATA Carnets must be accepted by CBP for re-importation

Request a Duplicate ATA Carnet as soon as the Original is deemed missing/lost

Photograph or photocopy the ATA Carnet after each time it is presented to Customs

In Conclusion the ATA Carnet is a simple to use, cost saving tool for your international business

expansion.

Amanda Barlow

Roanoke Insurance Group Inc.

Email: Amanda.Barlow@RoanokeGroup.com

Ph: (212) 412.9229

Website: www.RoanokeTrade.com/ATA-Carnet

Thank you!

Foreign-Trade Zones &

Bonded Facilities

How can you and your clients get

the most out of a Foreign-Trade

Zone or other Bonded Facility?

Identify Your Scope

• Temporary Importation?

• Storage prior to Entering U.S. Commerce?

• Manipulation of merchandise or packaging?

• Manufacturing?

• Ultimate Exportation?

• Breaking bulk and redelivery of cargo?

Know Your Options

• Foreign-Trade Zone

• Bonded Warehouse

• Temporary Import Bond

• Container Freight Station

Foreign-Trade Zone

• A secure area usually located in or near a Customs Port

of Entry

• Area considered legally outside of the Customs territory

of the U.S. for tax & tariff purposes

• In a zone, merchandise may be:

Assembled

Exhibited

Cleaned

Manipulated

Manufactured

Sampled

Mixed

Processed

Relabeled

Repacked

Repaired

Destroyed

Bonded Warehouse

• A building or other secured area in which imported

dutiable merchandise may be stored, manipulated, or

undergo manufacturing operations without payment of

duty for up to 5 years from the date of importation.

• There are 11 classes of Bonded Warehouses:

Government Whse

Private Warehouse

Public Bonded Whse

Bonded Yards/Sheds

Bonded bins for grain

Manufacture for export

Smelting & Refining

Change of Condition

Duty-free Stores

Intl Travel Merchandise

General Order

Temporary Import Bond

• Allows articles (not expected to be sold or consumed) to

be entered into the United States on a temporary basis.

Container Freight Station

• Designated facilities for the loading, consolidating, or

devanning of containerized cargo.

Understand the Differences • Time Limits

• Entry Filing & Duty Payment

• Permissible Merchandise

• Activities Allowed

• State & Local Inventory Tax

...And these are only a few of them!

Foreign-Trade Zones

Unlimited

Entry & Duty payment are only filed on cargo entering the

commerce of the United States upon exiting the zone. Entry & Duty

Activities

Time Limits

Merchandise Foreign & Domestic Merchandise

Inventory Tax

Assembly, Testing, Sampling, Re-Labeling, Re-packaging,

Mixing, Destruction, Manipulation, Cleaning, Storing,

Exhibition, & Manufacturing*.

Foreign merchandise as well as Domestic merchandise for

export is not usually subject to State or Local tax.

Bonded Warehouses

Storage may not exceed 5 years

Entry must be filed to place goods into the warehouse;

however Duty and MPF are not paid until the warehouse

withdrawal.

Entry & Duty

Activities

Time Limits

Merchandise Only foreign merchandise may be placed in bonded

warehouse

Inventory Tax

Assembly, Sampling, Re-labeling, Re-marking, Manipulation, &

Storing. Also Sorting, Cleaning & Repacking may be permitted

under approval. Manufacturing is prohibited except for export.

State & Local inventory tax is applicable.

FTZ & Bonded Warehouse

General Information

• Local CBP Field Office is responsible for

regulatory oversight and compliance

• Entries can now be filed remotely

• IR tax deferral is “one and done” regardless of

FTZ or Bonded Warehouse

• Resources – FTZ Manual and Bonded

Warehouse Manual on CBP website

Temporary Import Bonds Must be exported within 1 year from date of importation, with

up to 2 additional 1-year extensions.

Entry is filed at time of importation of merchandise, and cargo

enters the U.S. free of duty on a temporary basis. Entry & Duty

Activities

Time Limits

Merchandise Foreign Merchandise may be imported under a TIB.

Inventory Tax

Repair, Alteration, and Processing. Merchandise under a TIB

may not be sold in the U.S.

State & Local inventory tax is applicable.

Container Freight Stations Entry must be made within the regulatory time frame or cargo

will be placed in General Order.

Entry must be filed to remove merchandise from the CFS in

order to enter the commerce of the U.S.. All duty and

applicable fees are paid at time of entry.

Entry & Duty

Activities

Time Limits

Merchandise Foreign and Domestic Merchandise may be in a CFS for

loading and/or unloading.

Inventory Tax

Receiving, loading, and/or devanning of containers. CBP will

also allow merchandise to be marked in the CFS.

State & Local inventory tax is applicable.

How do I

choose?

Comparison Summary DESCRIPTIO

N

FTZ BONDED

WHSE

TIB CFS

Time Limits Unlimited 5 Years 1 Year (+2) General Order

Entry & Duty Exiting FTZ* Placement &

Withdrawal Importation Importation

Merchandise Foreign &

Domestic Foreign Foreign

Foreign &

Domestic

Activities Manufacturing

Manufacturing

Cannot be

sold in the

U.S.

Consolidation

& Devanning

Inventory Tax No (Well… with exception)

Yes Yes Yes

* Only on product entering the Commerce of U.S.

Target the Best Option

• Situation

• Strategic Goals

• Location, Location,

Location

• Timing to get

everything in place

Save the

Day…

Again

Jill James

Chief Operating Officer

John S. James Co.

QUESTIONS

? Robert Stein

Vice President

Mohawk Global Trade Advisors