Question to the HM Treasury:

To ask Her Majesty's Government what projections HMRC has made of the number of ATA Carnet applications it will need to process in (1) 2021/22, and (2) 2022/23.

When moving goods temporarily into or out of the UK, an ATA Carnet provides an option which can help simplify customs formalities by allowing a single document to be used for clearing goods through customs in the countries that are part of ATA Carnet system. The use of a carnet is optional and is a commercial decision depending on an individual or business’s specific circumstances. In the UK, ATA Carnets are administered by the London Chamber of Commerce and Industry (LCCI).

International travel has been severely affected by the COVID-19 pandemic and the number of goods movements using ATA Carnets has dropped. At the moment it is difficult to project numbers with any certainty. Numbers are likely to increase owing to the UK’s withdrawal from the EU and the gradual lifting of travel restrictions throughout the world. HMRC, in conjunction with the LCCI and Border Force, monitor ATA Carnet usage on a regular basis.

An alternative option to an ATA Carnet is the use of the Temporary Admission procedure in conjunction with Returned Goods Relief. Temporary Admission is a customs special procedure that may be used to temporarily import goods into the UK without payment of duties subject to relevant conditions being met.

Businesses and individuals returning goods to the UK, having temporarily imported them to another customs territory, can claim relief from import VAT and any customs duty under Returned Goods Relief providing specific conditions are met. Returned Goods Relief applies to goods exported from the UK and re-imported in an unaltered state.

The EU operates similar procedures therefore, for goods moving temporarily to the EU, the EU’s Temporary Admission procedure may be applicable, and the EU’s Returned Goods Relief may apply where goods are returned to the EU having been temporarily imported into the UK. The management of EU import and export procedures is the responsibility of the customs authorities of the EU Member States.