April 23, 2025 | ATA Carnet

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

Share This:
Featured Image

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/

Disclaimer: All rights reserved. The information contained in this website is provided for informational purposes only and should not be construed as legal advice on any matter. The information provided is not a substitute for advice from a qualified legal professional.

Share This:

Related


New ATA Carnets to Brazil Suspended

  Effective immediately ATA Carnet use for temporary entry into Brazil is suspended! Roanoke has been informed by the US Council for International Business that until further notice we cannot issue ATA Carnets to Brazil. The mandate to act as the ATA Carnet guarantee association (NGA) in Brazil that was given to Confederação Nacional da Indústria/Brazilian National Confederation of Industry (CNI) by the Brazilian Customs and Federal Revenue of Brazil is set to expire June 30, 2021. As of the date of publication there is no plan to renew the mandate nor appoint another entity as the NGA for Brazil. […]

ATA Carnet, Industry Insights

Roanoke Proudly Announces the Issuance of the First e-ATA Carnet in Partnership with Rock-it Global

In an era where digital transformation is not just a buzzword but a necessity, Roanoke, in collaboration with Rock-it Global, has taken a monumental step forward. We are thrilled to announce our participation in the issuance of the first electronic ATA Carnet, also known as the e-ATA Carnet. This groundbreaking achievement, conducted in partnership with the United States Council for International Business (USCIB) and Rock-it Global, marks a significant milestone in the evolution of international trade and logistics. The e-ATA Carnet represents the digital future of international trade facilitation. As a digital alternative to the traditional paper carnet, it simplifies […]

ATA Carnet

Exciting News: Peru Joins the ATA Carnet System!

We’re thrilled to share a significant milestone in the world of international trade and temporary goods movement. Starting April 30, 2024, Peru will officially adopt the ATA Carnet system, becoming the 80th country to facilitate smoother, duty-free exchange of goods for up to one year. This development positions Peru as the third Latin American nation, following Chile and Mexico, to embrace this innovative customs solution. The ATA Carnet, often dubbed the “passport for goods,” is a crucial instrument for businesses engaged in international trade, especially those involved in exhibitions, fairs, and similar events. It allows for the temporary import and […]

ATA Carnet

Roanoke is the leading provider of insurance and surety solutions for transportation and logistics providers. In fact, we are recognized as the most reliable source for U.S. customs bonds.

Contact

If you have any questions or need help, feel free to contact with our team.

800-762-6653

US CORPORATE HEADQUARTERS

1501 E. Woodfield Road

Suite 400W

Schaumburg, IL 60173


CANADA CORPORATE HEADQUARTERS

390 Bay Street

Munich Re Centre, 22nd Floor

Toronto, ON M5H 2Y2

Solutions that Go the Distance.

© 2024 Roanoke Insurance Group Inc.

Better Business Bureau logoCoverholder at Lloyd's logo