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What is Carnet?

A carnet is a legal authorization customs document for the international temporary export and import of goods. It avoids paying import taxes and fees on commodities that will be exported again within a year in 87 countries and territories. Carnets are sometimes known as commodities passports or merchandise passports.

Significance of Carnet in E-commerce Logistics

E-commerce logistics need to be careful about applying for each country’s shipping because the carnet is acceptable in all listed countries and valid for a year after application. This document simplifies the shipping procedures. The following are additional advantages of a carnet:

  • Less export cost: As the carnet provides a duty-free export facility, it eliminates the burden of paying taxes to the exporter.
  • Wide range of products: Products like computer equipment, sports equipment, medical instruments, furniture, etc., can be transported.
  • Demo presentations: Carnet helps participate in international exhibitions, expos, and demo presentations across the countries. 
  • Reduced risk: Using a carnet document reduces the likelihood of being stopped at borders or customs for having incorrect documents.

Pre-requisites of Carnet and How It Works

Any form of transportation, including trains, planes, trucks, and ships, is permitted between countries with the carnet document. It is subject to the condition that it be re-imported into the nation during the validity period of the carnet to avoid paying import taxes. The following are the prerequisites of carnet:

  • Countries that accept carnet: Carnet is accepted in only 87 countries and territories across the world
  • Origin and destination country details: It is necessary to enter the names of the countries in the carnet document. 

Use Case With Carnet

Let’s understand carnet with a use case. Think about a company that developed a new machine for use in the steel sector. They intend to exhibit it at global steel machinery expos in several nations. Instead of creating documentation specifically for each nation, they applied for carnet and exported the equipment to several countries out of 87 within one year of validity.

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