Supply Chain News / Risk & Compliance / Economic Development

Rules are Changing for CARNETS; Public Comment Needed

ATA Carnets serve as passports for freight that enters and then quickly leaves a country. The Carnet document, established by the World Customs Organization, serves as a "passport for freight" that is not applicable to traded or exported goods but rather is used to facilitate temporary shipments that are intended to be removed from the country they have recently entered --- typical examples of this are trade show goods, conference supplies, museum displays and equipment for film, TV, sports and musical tours.

A recent change to the U.S. Census Bureau's Foreign Trade Regulations revokes an exemption for ATA Carnets from having an Electronic Export Information (EEI) filing when leaving the United States. This means that shipments traveling under ATA Carnets will now require a "line-by-line" classification filing for each and every good being shipped. This requirement will could cause a significant burden to shippers and forwarders who will incur substantial labor costs and liability to meet the requirement. In fact, one AfA forwarder member estimates that his company will require 7-8 additional staffers at an annual cost of $455,000 once the change's 180 day informed compliance period ends and the mandate begins on Oct. 2, 2014.

The Airforwarders Association accepts that EEI classification filing information makes sense for exported products, as the exporting country wants accurate trade statistics and the importing requires an accurate description of imports for revenue and security purposes. But unlike goods being exported, freight under a Carnet either returns to the United States or proceeds to another Carnet-signatory country for another temporary stay before eventually returning to the United States. There is no need for export data collection and the importing country does not need to worry about the security risk since CBP looks at each individual Carnet before the cargo departs the United States, all of the cargo is physically screened as per TSA regulations before loading onto the aircraft and the principal on the Carnet is a legitimate entity that has a bond guaranteeing the Carnet in advance of its issuance.

The Carnet changes were included with others made with regard to the filing of export documentation under the Automated Export System, all of which will be subject to vigorous enforcement by U.S. Customs and Border Protection. Prior exemptions will no longer be recognized.

This was an oversight and have requested that Census and CBP reinstate the Carnet exemption. In addition, we have made inquiries to relevant committees both in the House and Senate on Capitol Hill.

If you feel that the movement of trade show goods, conference supplies, museum displays and equipment for film, TV, sports and musical tours will be severely disrupted by this regulatory change, we need to hear from you by Friday July 18th. Importantly, we are pulling together evidence of the impact this will have on forwarders and the customers they serve, so we would greatly appreciate your estimate of the cost and labor impact on your organization. This information will help us demonstrate the need to reinstate the exemption.

You must login or register in order to post a comment.



Image Galleries

Five Wearable Manufacturing Technologies of the Future

Video applications, Employee Monitoring, Field service, Plant monitoring, Improving employee safety.

For more manufacturing insights, visit



Assurance of Supply: A Top Concern for Manufacturers

Every manufacturer has an assurance of supply problem to some extent due to the complexity of global sourcing. For years, manufacturers were blessed with high margins but margins have grown paper thin. You can’t fill up your distribution centers with excess inventory – not only is there a cost factor but the pace of business and consumer buying trends causes goods to quickly turn obsolete. Assurance of supply provides the speed and agility that is essential to being able to compete in today’s market.


Speaker info: Diane Palmquist, VP Manufacturing Industry Solutions


More Podcasts

World Trade 100 Magazine

wt100 cover december 2014

2014 December

Check out the December 2014 edition of World Trade WT100, featuring our cover story on Air Cargo, The Alliance Awards, plus much more!

Table Of Contents Subscribe

Transportation Capacity

As peak season has gotten underway, what is your experience with transportation capacity?
View Results Poll Archive


World-Class Warehousing and Material Handling, 1st Edition

Filled with proven operational solutions, it will guide managers as they develop a warehouse master plan, one designed to minimize the effects of supply chain inefficiencies as it improves logistics accuracy and inventory management - and reduces overall warehousing expense.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.


Use our interactive maps to locate service providers across North America.Interactive Map

Logistics Development Partners 

IWLA Members