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An unsettled ATA carnet and a faulty import clearance in Germany are among the most expensive border mistakes. You risk forfeiture of the ATA carnet security, extra duty and VAT on goods that were meant to return, and detention of the equipment at the border. Instead of duty-free temporary admission, you end up with a full import and a bill.
The ATA carnet: what it is for and when it fails
An ATA carnet is a document for temporary admission of goods without duty and VAT: equipment for trade fairs, samples, technical gear that is meant to leave the country in the same condition. (source: iccwbo.org) The condition is that the goods actually return on time and every border crossing is correctly stamped on the carnet. The carnet fails when an exit stamp is missing, when the return deadline is exceeded, or when part of the goods stays abroad. Then, formally, an import has occurred, and duty and VAT are due on it.
Forfeited security, duty and double VAT
An ATA carnet has a security attached in case it is not discharged. If the carnet is not properly closed, the issuing chamber can use that security to cover the customs and tax charges of the country where the goods remained, and then pursue them from the company. In a plain import clearance in Germany, VAT is a further trap: paid twice by mistake, once on import and once in the domestic return, or paid where a deferment could have been used. Recovering overpaid tax is a long procedure, and frozen cash is a real cost. Equipment held at the border additionally means downtime and a missed installation or event deadline.
ATA, trade fairs and import clearance: where they meet
An ATA carnet and a classic import clearance are two different paths that are easy to confuse on a single transport to Germany. When equipment travels to a trade fair and returns, the ATA is the right one. When goods stay in Germany for good, a full import clearance with correct duty and VAT settlement is needed, which we cover in our article on German import customs and the ATA carnet. The choice of path at the start decides the cost, which is why we agree it with you, and we lay out the wider topic on our customs clearance page.
How does OTSL close the carnet and watches the VAT?
We fix the clearance path while the route is still being planned, when a change still costs nothing. We select the right mode: temporary admission on an ATA carnet or a full import, and we track every stamp so the carnet returns discharged on time and the security is not forfeited. On import we check the goods classification, the assessment basis and where and when the VAT liability arises, so it is not paid twice. We settle the customs side in-house, through our own customs agency, and for trade-fair equipment we combine it with transport arrangement. If you are moving equipment to a fair or an installation in Germany, contact us before you choose the type of clearance.
Step by step
- Check goods consistency. Ensure that the cargo matches the specification on the ATA carnet list.
- Present the carnet to customs. Declare the ATA carnet at the relevant customs office at every border crossing.
- Verify border stamps. Confirm that the customs officer has placed the correct exit or entry stamp on the voucher.
- Track deadlines. Keep track of the document expiry date and the required re-export timeframe.
- Discharge the carnet. Return the fully stamped document to the issuing chamber of commerce after the transport.
Definitions
- ATA Carnet (Admission Temporaire/Temporary Admission): An international customs document allowing the temporary duty-free and tax-free movement of goods.
- VAT (Value Added Tax): A consumption tax applied to goods during customs import clearance.
- Import clearance: The official customs procedure required to enter goods into a destination country.
- Temporary admission: A customs procedure allowing goods to enter a territory temporarily with full relief from import duties.
When does this rule not apply?
This rule does not apply if the goods are sold, consumed, or damaged while abroad, which necessitates standard permanent import clearance.
The OTSL role
OTSL assists businesses in organising cross-border transport and ensuring customs requirements are followed accurately. We provide international road transport solutions, and you can learn more about managing temporary movements in our article Karnet ATA na targi.
