FNCCI to introduce ATA Carnet system

KATHMANDU, JUNE 11: 

Federation of Nepalese Chambers of Commerce and Industry (FNCCI) is preparing to introduce the ATA Carnet system in the country. 

“We are in the initial stages of our preparation. Currently, we are going through the necessary research and planning of the system in the country,” said director of umbrella organisation of domestic private sector Jeevan Devi Kansakar.

The ATA Carnet is an international customs document that allows the holder to temporarily import goods without the payment of normally applicable duties and taxes, including value added taxes. It eliminates the need to purchase temporary import bonds. 

As long as the goods are re-exported within the allotted time frame, no duty or tax is needed to be paid. However, the failure to re-export all goods listed on the Carnet results in the need to pay the applicable duties. Failure to remit those duties results in a claim from the foreign customs service to the importer’s home country.

Nepal till date has not registered itself at the ATA Carnet system of the European Union. The lack of the ATA Carnet system in the country has repeatedly forced international participants to bear impractical customs duty while participating in trade fairs and exhibitions in Nepal.

The ATA Carnet system offers advantages to all concerned –– customs authorities and the trading community. Individuals, enterprises and trade organisations who need temporary duty free import facilities for their products to prospective outlets in foreign markets benefit from the system. 

By replacing the national customs declaration normally required for the temporary duty-free admission of goods in any given country, the ATA Carnet does away with the need for a customs document at each border point. This means there is less paperwork for customs officials and Carnet holders.

Since all goods accompanied by an ATA Carnet are covered by an international surety furnished by the guaranteeing/issuing chambers, no further action regarding the guarantee needs to be taken, either by the customs or by the importer at the time of temporary admission.

Source: THT