The Carnet, pronounced car-nay is like a merchant passport for your goods that are traveling through different international countries. If you make a shipment of items to Taiwan for manufacturing, you would normally go through customs and pay a duty. However, if the goods are not staying in Taiwan for more than a year, you can get a “pass” to avoid these fees. The ATA Carnet is good in 85 countries around the world.
Using an ATA Carnet saves you money and time during shipment and processing, but you may not realize how valuable insurance is on your cargo, even with the ATA Carnet. According to the Handbook, (Part Four, Annex B, Article 7), if your shipment gets lost or stolen, and you cannot prove that it was exported, you are still are still responsible for the payment of duties and taxes at customs. While there are a number of complexities in this law, it is highly recommended that your business have ATA Carnet insurance to protect you against the risks that your cargo faces.
Shipping internationally has become big business, and it’s easy for paperwork or cargo to get mislabeled, misidentified, or misplaced. Your shipment could be damaged or lost in a shipyard or on land. Protect yourself with ATA Carnet insurance to lower your risk against losing money. The Carnet facilitates the import and export business but it isn’t failsafe.