What Indonesian businesses should know about ATA Carnet

July 29, 2024 5 Mins Read

If your business in Indonesia is engaged in international trade, you may often encounter challenges associated with temporary import and export scenarios. For exhibitions, repairs, or processing, navigating through the complexities of customs regulations and import or export duties can be daunting. However, this is where ATA Carnets can simplify the process and improve efficiency, streamlining the temporary movements of goods across borders.

What are ATA Carnets?

The ATA Carnet is an international customs document that oversees the temporary import and export of items without raising customs bonds, payment of duty and fulfilment of other customs formalities in member countries. Moreover, duty-free shipping under this permit is valid in over 80 countries which are parties to the Customs Convention on ATA Carnet.

Benefits of ATA Carnets

The ATA Carnet system offers numerous advantages for your business regarding international trade. Here are some of them:

Saves time, effort, and money: The streamlined process reduces the need for multiple customs declarations and documents, saving businesses considerable time and administrative costs.
Only one document and application: An ATA Carnet consolidates all necessary customs clearance documentation into one application, making the process straightforward and efficient.
Valid for one year: With a validity of up to one year, an ATA Carnet allows for multiple entries and exits in participating countries, facilitating ongoing international projects and tours.
Accepted in over 80 countries and territories: The wide acceptance of ATA Carnets means businesses can operate in major markets worldwide without the hassle of dealing with varied customs regulations.
Covers a wide range of goods: ATA Carnets encompass a broad spectrum of items, like professional equipment or goods for exhibitions and fairs, making them versatile for different business needs.
No need for duties, taxes, and temporary importation bonds: ATA Carnets provide significant cost savings by removing the need to pay import duties and taxes. This also negates the Temporary Importation Under Bond (TIB) requirement, further simplifying the customs process.
Seamless exit and re-entry: Using an ATA Carnet ensures the customs clearance procedure goes smoothly for goods leaving and re-entering the country, reducing potential delays and complications at the border.

Important consideration

While ATA Carnets offer numerous benefits, it does not exempt you from obtaining any necessary licenses or permits for the goods being transported. This means your business must still comply with the specific requirements and regulations of the destination country.

Moreover, goods transported under an ATA Carnet cannot be sold or transferred while abroad until the Carnet has been officially closed upon the goods' return to their origin. This ensures the temporary nature of the goods' movement and complies with the Carnet’s conditions.

When or why do you need an ATA Carnet?

ATA Carnets are indispensable in scenarios involving the temporary movement of goods for reasons such as repair, processing, exhibitions, or professional use. They prevent the complications and extra costs typically associated with temporary imports or exports, ensuring businesses can operate smoothly and efficiently on an international scale.

Who are ATA Carnets suitable for?

ATA Carnets can be beneficial for the following industries and professions:

Exhibition organisers
Film production
Architects
Engineers
Artists
Technical staff
Surgeons
Researchers

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How to apply for an ATA Carnet

Here is how you can obtain your ATA Carnet for temporary importing and exporting:

1. Determine eligibility

Verify that your goods and their intended use are eligible under the ATA Carnet system. This documentation is specifically designed for goods that will be temporarily exported and then returned to Indonesia and those that are temporarily imported and exported out of Indonesia, such as commercial samples, professional equipment, or items for exhibitions and fairs. Goods intended for sale or permanent export do not qualify.

2. Gather required documents

Prepare a comprehensive list of the goods you plan to temporarily export, including a detailed description of each item, its value, and the countries you intend to visit. You should ensure that all crucial documents are in place to avoid issues at customs. Additionally, gather any other documentation that may be required, such as proof of your business's legal status and the purpose of your temporary export.

3. Application submission

Submit your application for an ATA Carnet to the Indonesian Chamber of Commerce and Industry (KADIN), the authorised issuing body in Indonesia. The application process may involve filling out specific forms and providing the list of goods and other documentation you've prepared. Be aware that there may be fees associated with the application and issuance of an ATA Carnet.

4. Prepare for inspection

In some instances, your goods may be inspected by customs or the issuing body before the ATA Carnet is granted. As such, ensure that your goods are properly packed and labelled, making them easily accessible for inspection. Preparation for this procedure can help prevent delays in the issuance of your ATA Carnet.

Tips for a successful application

When applying for an ATA Carnet, attention to detail and foresight can significantly influence the success of your application. Here are tips to ensure your application proceeds smoothly:

1. Consult with experts

Don't hesitate to seek advice from those who are experienced with the ATA Carnet system, whether it's through the Chamber of Commerce (KADIN) or experienced international shipping services like DHL Express. Their insights can help you avoid common pitfalls and streamline your application.

2. Double-check country-specific requirements

Since ATA Carnet acceptance and specific requirements can vary from country to country, verify the regulations of your destination countries. Some might have restrictions on certain goods or additional documentation requirements. For example, in Hong Kong, importers are still required to present licences or quota visas from relevant authorities prior to importation, according to the HKSAR Customs and Excise Department.

3. Use clear and precise language

When describing your goods, use clear, precise, and professional language. Avoid technical jargon that might not be easily understood by customs officials who may not have specific expertise in your industry.

4. Prepare for the return process

Plan for the re-exportation or return of your goods well in advance. Make sure you understand the process for proving that goods have left the destination country and have been re-imported to Indonesia. This might include keeping records of your items’ movements and ensuring that you adhere to all re-exportation deadlines to avoid penalties.

Why choose DHL Express for your ATA Carnet?

Choosing DHL Express for your ATA Carnet needs in Indonesia means partnering with a leader in global logistics renowned for its comprehensive support and expertise in temporary import or export processes. Our extensive knowledge of ATA Carnet requirements and international customs law, combined with our unparalleled network, ensures that your goods move smoothly and efficiently across borders.

With DHL Express, you gain access to services that help simplify the complexities of international trade, from streamlined customs clearance to the assurance of compliance with all relevant regulations. Our team works to guide and support your business throughout the process, ensuring your operations proceed without a hitch. Open a business account with us today to get started.

For export tips, check out our comprehensive guide to shipping surcharges in Indonesia.