Imagine your goods traveling across multiple countries with a single "passport," bypassing complex customs procedures and hefty duty deposits. This is the convenience offered by the ATA Carnet system. Now, Armenia has joined this "global customs pass" club.
On July 3, 2018, Kunio Mikuriya, Secretary General of the World Customs Organization (WCO), formally accepted Armenia's instrument of accession to the Convention on Temporary Admission (Istanbul Convention). This makes Armenia the 70th contracting party to the convention, marking a significant upgrade in the country's foreign trade operations and offering businesses more efficient customs services.
The Istanbul Convention: A Game-Changer for Global Trade
The Istanbul Convention serves as a comprehensive framework, consolidating all previous international agreements on temporary admission of goods. Think of it as a "super customs protocol" designed to simplify international trade processes and boost economic development. At its core lies the ATA Carnet system, the most popular feature among businesses.
ATA Carnet: Your Goods' Global Passport
ATA stands for "Admission Temporaire/Temporary Admission." The ATA Carnet functions like a passport for goods, allowing temporary movement across multiple contracting parties without paying duties and import taxes. This proves invaluable for businesses requiring frequent international movement of goods for exhibitions, commercial events, or sports competitions.
Key benefits of the ATA Carnet include:
- Simplified customs procedures: A single ATA Carnet replaces multiple customs documents across different jurisdictions, significantly reducing paperwork and processing time.
- Duty and tax exemption: Goods temporarily imported under the system are exempt from duties and taxes, requiring only a guarantee deposit. This eases financial pressure and improves capital efficiency.
- Global recognition: The system enjoys widespread acceptance across 80+ countries and territories, covering major global markets. Your goods can travel worldwide with this single document.
How the ATA Carnet System Works
The operation mechanism remains straightforward. Businesses apply for an ATA Carnet through their national issuing authority (typically chambers of commerce or trade promotion organizations), submitting details about the goods, intended destinations, and timelines. After approval, the carnet serves as the customs document.
At each border crossing, customs officials record entries and exits on the carnet. An international guarantee system ensures compliance - if goods don't return on schedule, customs authorities may claim duties from the guaranteeing association, which then recovers costs from the carnet holder.
Armenia's Accession: A New Chapter in Trade Facilitation
Armenia's participation brings several advantages:
- Reduced trade costs: Local businesses gain competitive advantages through lower customs expenses.
- Market expansion: Easier participation in international exhibitions and commercial events opens new business opportunities.
- Foreign investment: Streamlined customs processes make the country more attractive to international investors.
- Global standing: Membership enhances Armenia's international trade profile.
Eligible Goods for ATA Carnet
The system covers various temporary imports including:
- Exhibition materials for trade fairs and expos
- Commercial samples for demonstrations
- Professional equipment for installations or repairs
- Sports gear for competitions and training
- Cultural items for performances and exchanges
- Scientific apparatus for research purposes
Note that consumables, processed goods, and production materials are excluded. Specific eligibility may vary slightly between countries.
Looking Ahead: Armenia's Trade Future
With the Istanbul Convention taking effect in Armenia on October 3, 2018, the country enters a new era of foreign trade. This development presents opportunities to strengthen international cooperation and build more open, efficient trade systems - benefiting both Armenia's economy and global trade facilitation efforts.