Legal Definitions - carnet

A carnet is an international customs document that allows for the temporary import and export of goods without requiring the payment of duties and taxes. It serves as a passport for goods, simplifying customs procedures for items that are not intended for permanent sale or consumption in the destination country. This document ensures that items can cross international borders for specific temporary purposes, such as exhibitions, professional equipment use, or commercial samples, and then be re-exported without incurring import taxes.

Here are some examples to illustrate how a carnet works:

• Film Production Equipment: Imagine a documentary film crew based in the United Kingdom planning to shoot scenes in several European Union countries for a few months. They need to bring their specialized cameras, lighting rigs, sound recording devices, and editing equipment across borders. Instead of paying import duties and taxes in each country and then trying to reclaim them upon re-export, the crew can use a carnet. This document allows their valuable equipment to enter and exit each country temporarily, confirming that the items are not being sold and will return to the UK, thereby avoiding complex customs procedures and financial outlays.
• Art Exhibition: A renowned art gallery in New York City decides to send a collection of valuable paintings and sculptures to a temporary exhibition in Tokyo, Japan. The artworks will be displayed for three months and then returned to the United States. To avoid paying significant import duties and taxes on these high-value items upon their arrival in Japan, and then facing similar complexities upon their return to the US, the gallery obtains a carnet. This document acts as a guarantee to Japanese customs that the art pieces are only entering the country temporarily for exhibition purposes and will be re-exported, streamlining the process and preventing unnecessary costs.
• Trade Show Samples: A German technology company develops innovative prototypes of electronic devices that it wants to showcase at a major international trade show in Las Vegas, USA. These prototypes are not for sale at the show; they are purely for demonstration and marketing purposes. To bring these items into the United States for the duration of the trade show and then take them back to Germany without paying import duties, the company uses a carnet. The carnet confirms to US customs officials that the prototypes are temporary imports and will be re-exported, making the process of crossing the border much smoother and more cost-effective.