The Benefits of an ATA Carnet versus a Temporary Import Bond (TIB)

By: Kelli Milianti, ATA Carnet Manager, Roanoke Insurance Group Inc.

When shipping goods for temporary importation and re-exportation, businesses must select a form of security to meet customs requirements. Most often the cargo owner faces the choice between using an ATA Carnet with a carnet bond or a Temporary Import Bond (TIB). Each option has its advantages, but the ATA Carnet generally offers more streamlined benefits for international trade.

Benefits of an ATA Carnet

1. Cost Savings: ATA Carnets eliminate duties and value-added taxes (VAT) when goods are re-exported within the validity period, reducing financial burdens[1][2][3].

2. Simplified Customs Procedures: They use a single document for all customs transactions, facilitating easier clearance in over 100 countries[1][4][3].

3. Flexibility and Convenience: Valid for up to one year, allowing unlimited entries and exits, which is particularly beneficial for frequent international trade activities[1][4][3].

4. No Need for Additional Guarantees: ATA Carnets can be secured with either a surety bond (carnet bond) or certified check in an amount equal to 40% of the value of the General List.

5. Predictability: Costs are known in advance, eliminating unexpected expenses during travel[3].

6. International Recognition: The ATA Carnet is recognized internationally as the standard document for temporary exports, providing peace of mind and reducing the risk of complications at borders. TIBs do not offer the same level of universal acceptance and may require additional guarantees or deposits in foreign currency.

Benefits of a Temporary Import Bond (TIB)
1. Applicability: TIBs can be used for goods that are not covered by an ATA Carnet or in countries where ATA Carnets are not accepted.

2. Specific Use Cases: Suitable for goods that will be altered or repaired in the destination country, as ATA Carnets generally require goods to be returned in the same condition[1].

Comparison Summary:

Feature	ATA Carnet	Temporary Import Bond (TIB)
Costs and Taxes	Exempts duties and VAT when re-exported	Requires payment of duties and taxes, refundable upon export
Customs Procedures	Simplified with a single document	More complex, requiring additional paperwork and guarantees
Flexibility	Valid for one year with unlimited entries/exits	Typically requires a new bond for each import
Guarantees	No additional guarantees needed	Required a cash deposit or bond
Applicability	Accepted in over 100 countries	Can be used in countries where ATA Carnets are not accepted

Conclusion:

Thanks to its cost savings, efficiency in customs handling, and broad acceptance across numerous countries, the ATA Carnet is often the preferred choice for businesses engaged in temporary import/export in international trade. In contrast, while a Temporary Import Bond offers some flexibility regarding modifications and potential duty refunds, it tends to involve more complex procedures and upfront costs.

Each shipper’s situation is unique, and businesses should assess their specific needs and circumstances when deciding between these two options. Our experts are here to guide you to the best choice for your business needs. Contact us at 800-ROANOKE or carnets@roanokegroup.com.

 

Sources
1. https://tecex.com/what-is-an-ata-carnet/
2. https://www.trade.gov/ata-carnet
3. https://www.roanokegroup.com/solutions/ata-carnets/
4. https://www.roanokegroup.com/faqs/why-would-one-choose-to-use-an-ata-carnet-over-the-other-options/

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