An ATA carnet bond is required of persons and entities that seek to temporarily import motor vehicles or other property with the understanding that the same will be exported. The ATA system was created by the World Customs Organization to facilitate the free movement of commercial samples, professional equipement, vehicles and exhibits for use in trade presentations and fairs. Carnets are issued pursuant to the Customs Convention on the ATA Carnet for the Temporary Admission of Goods. Per the WCO, A carnet simplifies customs formalities, serving as a goods declaration at export, transit and import. No import duties or taxes are collected for the temporary entry of goods covered by the ATA system as valid security has been established by the national associations issuing the ATA carnets.
The carnet bond is a type of financial assurance that guarantees the holder's performance of the obligations under the temporary import agreement. The importer is obligated to re-export said goods in accordance with the terms of the carnet, and reimburse the United States Council for International Business, Inc. (obligee) for any payments of customs duties, excise taxes or charges which may be imposed resulting from importer's failure to so re-export the property entered in to the U.S. Per U.S. Customs, " Failure to prove exportation on a Carnet subjects the importer to liquidated damages equal to 110 percent of the duty and import tax." The carnet holder must export nol later than within one year of issue.
The carnet bond penalty (bond amount) is based on what is included on the declaration, known as the "General List". The surety bond security is based on the value of the imported property, generally equal to no less than forty percent (40%) of the value with the most notable exception being motor vehicles which must be bonded at one and one half times (15%) of the vehicle value. There are also deviations for property originating from specific counties. You may download helpful forms and application here.
Surety One, Inc. is strongly focused on the surety sector. There is no bond for which we do not have an appetite. If it is bondable and we can "get our heads wrapped around" the obligation, we will offer terms. Surety One, Inc.'s philosophy is to NEVER DECLINE A BOND. Our international surety clientele regularly need performance bonds, bonds for judicial matters, EPA surety bonds, customs bonds, license bonds and various miscellaneous surety bonds. Call (800) 373-2804, 1+ (919) 859-5294, email Underwriting@SuretyOne.com or click here for a conversation with an underwriter about your carnet bond need.
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