In the fast-paced world of international trade, managing cash flow effectively is crucial for businesses of all sizes. One powerful tool that can significantly enhance cash flow management for businesses with travelling tradesmen, test sites, staging, non-perishable sample goods, or temporary builds is the ATA Carnet.
Often referred to as a "Merchandise Passport," an ATA Carnet allows for the temporary importation of goods without the need to pay duties and taxes upfront. This often-overlooked option for tradespeople, exhibition builders, engineers, scientists, and entertainers can lead to substantial savings and improved financial flexibility.
Understanding the Cash Flow Benefits of an ATA Carnet
Talking about the advantages of an ATA Carnet, Andrew commented, “The primary advantage of using an ATA Carnet is the ability to avoid hefty import duties and taxes that would otherwise be required when goods enter a foreign country. For instance, consider a company transporting high-value equipment worth £750,000. Without an ATA Carnet, they would need to pay significant taxes upon entry into the destination country, tying up potentially tens of thousands in taxes and VAT.”
Further detailing why this can affect businesses financially Andrew says, “If your goods are being temporarily exported without pre-authorization, the standard limit is typically six months – keeping your cash flow tied up during this time. However, you can apply for an extension of up to two years, but this must be done specifically. Keep in mind that the normal timeline is only six months.”
“An ATA Carnet avoids this financial burden, ensuring your funds remain accessible. Not using an ATA Carnet where it is applicable can severely impact a company's liquidity, limiting their ability to invest in other areas of their business.”
By using an ATA Carnet, businesses can bypass these upfront costs. The carnet allows goods to be temporarily imported and re-exported without the need to pay duties and taxes, provided the goods are returned to the country of dispatch within the carnet's validity period, typically one year. This not only saves money but also frees up cash that can be used for other critical business operations.
Expert Support on ATA Carnets
Navigating the complexities of ATA Carnets can be challenging, but with the right support, businesses can maximize their savings and streamline their operations. Customs Support Group (CSG), a trusted provider in the field, offers comprehensive assistance to ensure that businesses can fully leverage the benefits of ATA Carnets.
“At Customs Support Group, we provide expert guidance on the application process, helping businesses understand the specific requirements and ensuring that all necessary documentation is correctly completed,” Andrew explains. “We offer flexible, reactive, and tailored solutions to meet your specific needs, including advice on the appropriate validity period (2 months, 6 months, or 12 months) to keep costs to a minimum. We can also help you submit a carnet that covers multiple trips or events within its validity period, reducing the cost per trip. Our team of specialists can also offer advice on the best practices for using ATA Carnets, helping businesses avoid common pitfalls and ensuring smooth customs clearance.”
CSG offers three levels of support:
- Option A: Review / Audit Existing Carnet: We review and audit your existing carnet to ensure it meets all requirements and is correctly completed.
- Option B: We Do It for You: We handle the entire process for you, from application to completion, ensuring accuracy and compliance.
- Option C: We Are on Hand All the Way: We provide ongoing support throughout your carnet journey, acting as a single point of contact and assisting with any issues that arise.
With CSG's comprehensive support, businesses can navigate the complexities of ATA Carnets with ease, ensuring maximum savings and financial flexibility.
ATA Carnet Client Case Study
Supporting Andrews statements, one of his clients - a commercial business focused on designing and manufacturing sustainable, flexible interior solutions shared their experience with CSG’s ATA Carnet service:
"I believe many businesses trading with the European market found importing and exporting goods generally post-Brexit an unwanted challenge, resulting in added admin and increased costs.”
“For movement of goods where ATA Carnets are required, there's a need for guidance, as many businesses aren't even aware what a Carnet is and when it should and can be used. We use Carnets when exhibiting our goods at furniture fairs in countries where we’re not VAT registered.”
“Guidance from a custom agent is needed if you’re new to raising Carnets. I wasn’t aware for example that once the goods and the original Carnet document are returned to the UK, the Carnet must be delivered to the relevant Chamber for 'closing,' ideally via special delivery to ensure it’s tracked. I'm still unsure what the consequences might have been if not returned to chambers.”
“Support from people like Andrew at Customs Support has been valuable, he responded to our needs, reduces the risk of error and helped us feel more confident in our actions each step of the way."
ATA Carnet Summary
Andrew summarises with, “ATA Carnets offer a practical and cost-effective solution for businesses of all sizes engaged in international trade. With the expert support of Customs Support Group (CSG), businesses can navigate the complexities of ATA Carnets with ease, ensuring maximum savings and financial flexibility.” So, whether you're transporting your work or showcasing your goods globally, don't let cash flow issues hold you back—use an ATA Carnet.
For more information on how you can save with ATA Carnets or to find out if an ATA Carnet is suitable for your business, contact Customs Support Group today. Our resident specialist, Andrew Read, will be in touch to assist you.
