Gulf News - Thursday, 29 July 2010  -  17 Shaban 1431 H

Dubai: The UAE is poised to become the first Gulf nation to join a growing list of members of the ATA Carnet system which allows goods to be imported temporarily without payment of customs duties or taxes.

Businesses in the UAE will be able to import their goods from more than 60 countries for up to a year once they acquire what's known as a ‘merchandise passport' or ATA Carnet (Admission Temporaire/Temporary Admission).

The Dubai Chamber of Commerce and Industry has been appointed by the Federal Customs Authority and the Federation of UAE Chambers of Commerce and Industry as the national ‘guaranteeing and issuing agency' of the ATA Carnet system in the UAE.

The Carnet operates under international customs conventions, administered by the World Customs Organisation. It's especially useful for traders who want to display their goods at exhibitions and trade shows abroad as long as the goods return to the country of origin within a year.

"With the approval of UAE Federal Customs, by the end of this year the Dubai Chamber will issue Carnets for traders, exhibitors and business travellers who would like to visit several countries with their goods without paying value-added tax and customs duties," Lee Ju-song, Asia Director of the International Chambers of Commerce (ICC), told Gulf News.

No delay

Carnet-holders can also return to their countries with the same goods without any problems or delays, she said.

"The Dubai Chamber is one of the ICC's most active members and has the expertise and the financial capability to discharge itself as the granter of ATA Carnets. It has the administrative ability and professionalism as well as access to the business community," Lee said.

Introduced in 1963, the ATA Carnet, or merchandise passport, covers computers, repair tools, photographic and film equipment, musical instruments, industrial machinery, vehicles, jewellery, clothing, medical appliances, aircraft, race horses, art work, prehistoric relics, ballet costumes and rock group sound systems, among other items for sale.

It does not cover perishable or consumable items or goods for processing or repair, but "Customs has the flexibility to accept the goods or not", Lee said.

The cost of the Carnet varies according to country and is determined by the value of the goods and number of countries to be visited. "Since the UAE is a business hub mainly for re-export, traders will take full advantage of the Carnet system as a means of bolstering the region as a destination for business, sport and culture. It will help facilitate the staging of art events, trade fairs and exhibitions."

Dubai The ATA Carnet system is a perfect illustration of how close cooperation between business and customs can facilitate international trade.

Each country in the ATA chain has a single guaranteeing organisation (such as the Dubai Chamber in the UAE), approved by its national customs authority and the World Customs Organisation. The guaranteeing body is entitled to issue Carnets and to authorise local entities to issue them on its behalf.

The ATA international chain provides reciprocal guarantees to customs administrations that duties and taxes incurred in cases of misuse will be paid.

Over the past 45 years, the Carnet system has spread from a few Western European countries to more than 60 nations. In 2007, approximately 160,000 Carnets were issued worldwide, covering goods valued at almost $17 billion (Dh62.44 billion).

• Trade shows and fairs which are likely to attract foreign exhibitors

• Tourism and transport industries

• The entertainment industry and concert promoters

• Sports events like the Olympic Games

• Countries wishing to take full advantage of the global economy