The Application of the ATA Carnet as a potential tool to promote Caribbean exports to Brazil

Executive Summary

(Full Report available here)

The ATA Carnet is a standardized international customs document that is used to obtain duty-free temporary admission of particular goods into states that are parties to the Customs Convention on the ATA Carnet for the Temporary Admission of Goods (ATA Convention). It can be used as a trade promotional and facilitation tool. Since its creation over 500,000 ATA Carnets have been used for the temporary admission of goods from one territory into another territory. The ATA Carnet is used to promote goods at trade fairs and exhibitions. This allows exporters to gain an understanding of the market. In addition to exposing products to the Brazilian market, the ATA Carnet may also provide opportunities for exporters to find entry points to satisfy demands for goods and services in Brazilian market.

There is a market for Caribbean Community (CARICOM) exports in Brazil. However, CARICOM States have to determine a way to promote their exports in Brazil because of the lack of preferential trading agreements. Thus, the ATA Carnet can be used as a trade facilitation tool.

Brazil is a party to the ATA Convention and used it tremendously during the Rio Olympics. Benefits included the lack of hassle at ports as well as bypassing the otherwise high import duties on items that would be re-exported. Trinidad & Tobago is the only CARICOM State to be a party to the ATA Convention. For there to be reciprocity the other members of CARICOM must become parties to the ATA Convention and ratify the Convention which provides a guide and legal framework as to its operation.

The purpose of this memorandum is to provide a comprehensive analysis of the use of the ATA Carnet as a tool to promote CARICOM Exports to Brazil. This memorandum identifies requirements for implementing the ATA Carnet. These include institutional requirements such as guaranteeing associations and national Chambers of Commerce; and legal requirements such as the national legislation. Attached to the memorandum is a draft bill that was piloted in the Trinidad & Tobago legislature. It can be used a model legalization for other legislatures in the Caribbean seeking to implement the ATA Carnet.

This memorandum has found that the ATA Carnet though limited in scope can be used as a tool to promote CARICOM in Brazil. The ATA Carnet can be used to promote trade in goods, trade in services and to promote investment for CARICOM in Brazil. The ATA Carnet can be useful for pursuing and establishing trading relations with Brazil as an emerging global power. CARICOM States must be willing to engage with Brazil to effectively use the ATA Carnet, establishing complimentary agreements such as bilateral investment treaties, air services agreements and double taxation treaties.

Attached to this memorandum is a How-to Guide which explains the process of acquiring and using the ATA Carnet to a business seeking to use an ATA Carnet. Also attached are the ATA Brussels Convention and the ATA Carnet Instanbul Convention, which are the governing legal documents of the system. A copy of the ATA Carnet Bill of Trinidad and Tobago is available, along with the Brazil-Guyana BIT. Finally, the Revised Treaty of Chaguaramas, the agreement which articulates CARICOM trade policy, is attached to the memorandum.

Read the Full Report here.

#UWI #ExportPromotion