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Carnet Terms and Conditions

Your Approval is Required Prior to Issuing the Carnet

  1. General Terms. In connection with the use of the Carnet, the undersigned (including without limitation as the Holder and/or User) of the Carnet and on behalf of designated and/or authorized Carnet representatives), agree (at a minimum) as follows:

    1. To timely repatriate under the Carnet all of the goods taken abroad;
    2. To produce satisfactory and timely evidence to cancel or mitigate any claim issued against my Carnet by a foreign customs agency and/or guaranteeing association;
    3. To comply with all Customs and other laws, rules, regulations, instructions and requirements both in the United States and abroad relative to use of my Carnet;
    4. To accept full responsibility for the results of negotiations or proceedings with any Customs Authority conducted by the USCIB and/or CIB on my behalf;
    5. To declare that all my statements in connection with this application, and the descriptions of items on the General List, are complete, true, accurate and correct;
    6. To acknowledge my (our) acceptance of the above and any payment of processing fees, cash deposits, and/or bond premium (as applicable) associated with the processing and issuance of any Carnet (which payments shall be further evidence of the acceptance of my or our obligations under the Carnet);
    7. If I am a freight forwarder, Customs broker, or other third party submitting this application on behalf of the Carnet Holder, I acknowledge that I am fully authorized to bind the above obligations on behalf of the Holder and/or User of such Carnet (including without limitation their designated and/or authorized representatives).

     

  2. Power of Attorney. I hereby grant CIB a power of attorney, which shall be irrevocable and coupled with an interest, and appoint it as my attorney in fact to conduct negotiations and proceedings on my behalf with any Customs Authority and/or foreign guaranteeing association to settle and resolve any claim against my Carnet, the goods and/or any collateral securing the Carnet (such as but without limitation a Carnet Bond), hereby authorizing and/or ratifying all that CIB may do as said attorney in fact.

  3. Carnet Documentation Handling. Based on my application, CIB will process a General List and certificate/counterfoil/voucher sets to my specifications. I hereby confirm that I will review my delivered documentation for accuracy upon arrival and will notify CIB of any missing or incomplete documents for corrective action PRIOR to any Carnet travel, including instances in which I may require additional certificate/counterfoil/voucher sets beyond those originally issued. I acknowledge that it is not permissible to alter or add to the original documentation that is provided (green cover, General List, certificates, counterfoils and/or vouchers) and that it is PROHIBITED to present U.S. Customs and Border Protection or any foreign customs authority with a photocopy or otherwise reproduced facsimile of any Carnet documentation provided to me by CIB (or the USCIB). I acknowledge that only official customs agents may and must validate original Carnet paperwork ONLY and that any reproduction of the Carnet in whole or part will be used exclusively for the purposes of my own recordkeeping.

  4. Additional Rules for Using the Carnet. Carnet Holders are required to follow the rules on the inside folder of the Carnet once received, the green covers, advisories, warnings, and general instructions describing the proper use of a Carnet. I acknowledge that the rules for using the ATA/TECRO Carnet appear on the inside of the jacket that contains the ATA/TECRO Carnet, and that I have read and will follow them carefully. The rules may also be found at http://www.merchandisepassport.org. Finally, I accept full responsibility for the use of my Carnet, as more fully detailed in paragraph 11 below (Your Responsibility), consistent with (but not limited to) the Carnet Convention’s mandate (set forth on the cover page of your Carnet) that: “The Holder of this Carnet and his representative will be held responsible for compliance with the laws and regulations of the country/customs territory of departure and the countries/customs territories of importation.”.

  5. Return of Carnet. I further agree to return my Carnet(s) after final use to the United States Council for International Business and/or CIB with all used and unused certificates, vouchers and/or counterfoils within fifteen (15) days after my final trip by receipted mail and to retain a copy of any Carnet(s) for my records.

  6. Payment of Application Fee and Other Charges. I hereby agree to pay all processing fees, cash deposits and/or bond premium (as applicable) associated with the processing and issuance of this Carnet; such payments shall be further evidence of my acceptance of my obligations under any Carnet and these Terms and Conditions. Details of these charges can be provided by a Carnet consultant by calling 1-800-ATA-2900 (1-800-282-2900). Note that if paying for your application by credit card, the charge will appear as: Corporation for International Business. For on-account customers, a late fee may be added to past due balances at 1.5% per month. Please note: for government agencies, a $250.00 refundable claim deposit will apply, and the application will not be processed without a valid PO number

  7. Bond Requirement. Unless you are exempt or make a cash deposit to secure your Carnet, CIB will obtain and issue a bond in electronic or paper form – collectively “Carnet Bond” – to secure all obligations in connection with your Carnet. By submitting your application and accepting a Carnet secured by a Carnet Bond, you also agree to be bound by the following Carnet Bond Terms and Conditions. Please note that bond premium charges are additional and separate from your Carnet application fee. A Carnet representative can discuss this with you in more detail. You agree to accept delivery of the Carnet e-Bond in electronic form or in paper form, as CIB may determine appropriate or convenient. By submitting this Carnet application, you agree and acknowledge that you have had the opportunity to review the form of the Carnet Bond, and accept and agree to all of its terms; you shall have all of the rights and obligations of the “Principal” (as specified in the Carnet Bond, which is incorporated herein by reference).

  8. Carnet Bond Terms and Conditions. As noted (and where applicable), CIB will obtain a Carnet Bond for your benefit. The Carnet Bond is the financial guarantee under an issued Carnet, which will be underwritten by a private surety company. The Carnet Bond will secure any default by you, including in the event of your refusal to pay any of the financial obligations under your Carnet. However, the Carnet Bond is only one of the ways in which you agree to pay for all obligations and Costs arising out of your use or misuse of a Carnet. In addition to Carnet Bond, and the Carnet Bond Terms and Conditions, you agree as follows:

    1. This Carnet application also acts as your electronic application for the Carnet Bond, which is deemed to be applied for and executed electronically by you and any applicable surety company at the time you submit this Carnet application, using your electronic signature on this application. You are the “Principal” referred to in the Carnet Bond, the named surety is the “Surety”, and the United States Council for International Business (through CIB as its authorized service provider) is the “Obligee,” as those terms are further defined in the Carnet Bond.
    2. CIB is a licensed insurance broker and attorney-in-fact for various sureties. You acknowledge that in such capacity, CIB acts on behalf of the surety and shall be entitled to enforce all rights the surety may have against you directly and/or through subrogation. You agree to pay, upon demand, all amounts and Costs paid by CIB and/or the surety in settlement, negotiation or enforcement of rights (including through litigation) of claims against and Costs arising out of your use or misuse of a Carnet Bond, whether or not a claim is made against the Carnet Bond (including any Costs incurred in collecting or attempting to collect any amounts you owe to the USCIB and/or CIB). If you fail to pay such costs on demand, CIB may advance such costs on your behalf and such costs shall bear interest at the rate set forth in the Illinois Interest Act from the date of disbursement until payment by you. You authorize a direct action against you (including as Holder and User of all Carnet(s) issued to you) and/or your designated and/or authorized Carnet representatives by CIB to recover any amounts paid to the USCIB, on behalf of any surety or otherwise, including to recover all Costs.

     

  9. Security Deposit. In connection with any security I have posted to secure my Carnet Bond, I, as the Holder and User of any Carnet, and my designated and authorized Carnet representatives, agree that the security I have posted as guarantee may be drawn upon to reimburse the USCIB and/or CIB for such duties, taxes, charges and all Costs incurred by the USCIB and/or CIB as a result of my failure to comply with (a) any and all United States and/or foreign customs laws, rules and/or regulations, (b) any and all conditions and requirements applicable to you as to the use or misuse of my Carnet and/or (c) any breach of the Carnet system including all Carnet Conventions, regulations and all applicable instructions and requirements, whether as a Holder and/or User and/or designated and/or authorized representative of any Carnet. I acknowledge that these obligations exist for a period of 30 months after expiration of my Carnet (or expiration of the claims period applicable to any such Carnet). I further agree to make payment to the USCIB and/or CIB on all valid customs claims that may exceed my security amount. I also understand that if the Carnet is surrendered to the USCIB or CIB (as its service provider) with all used and unused certificates, vouchers and/or counterfoils and the USCIB has determined that it has been correctly utilized, the USCIB may release me from any guarantee I have furnished prior to the 30 month period (or expiration of the claims period as to any such Carnet).

  10. Enforcement. You hereby submit to the exclusive personal jurisdiction and venue of state and federal courts situated in Cook County, Illinois for any matters arising from or in any way relating to (a) your application for a Carnet and/or Carnet Bond, your Carnet, (b) any security, collateral, guarantee thereof or Carnet Bond issued with respect thereto, (c) any negotiations, proceedings or authorized undertakings on my (your) behalf with any Customs Authority and/or foreign guaranteeing association to settle and resolve any claim against my (your) Carnet, the underlying goods and/or any collateral securing any such Carnet (such as but without limitation a Carnet Bond), and (d) any claim made against me (you) by the USCIB and/or CIB as to any obligation due to any Customs Authority and/or foreign guaranteeing association, hereby waiving any contest of personal jurisdiction, venue, convenience of the venue and/or forum (e.g., forum non- conveniens) and/or choice of law applicable to any dispute (as next detailed).You and the USCIB and/or CIB agree that any such dispute shall be tried by the court sitting without a jury, hereby WAIVING ANY RIGHT TO TRIAL BY JURY IN SUCH MATTERS. You and the USCIB and CIB further agree that the internal laws of the State of Illinois, to the extent applicable, and subject to the supremacy of federal and international laws, rules and regulations pertaining to customs, import and export, shall govern any such disputes.

  11. Your Responsibility. YOU REMAIN RESPONSIBLE FOR COMPLYING WITH THE TERMS OF ANY CARNET, THE CARNET SYSTEM, AND ALL APPLICABLE CUSTOMS LAWS, RULES, REGULATIONS AND CONDITIONS. CIB DOES NOT PROVIDE LEGAL ADVICE AND HAS NO RESPONSIBILITY TO ADVISE YOU OF THE PROVISIONS OF ANY LAW, RULE, REGULATION, CONDITION AND/OR REQUIREMENT FOR USE RELATIVE TO YOUR CARNET, WHICH YOU ACKNOWLEDGE ARE SUBJECT TO CHANGE WITHOUT NOTICE. YOU ARE ADVISED TO CONSULT WITH COMPETENT LEGAL COUNSEL AS TO YOUR USE OF ANY CARNET. IF YOU FAIL TO PROPERLY USE YOUR CARNET (OR VIOLATE THESE TERMS AND CONDITIONS), A CLAIM MAY BE MADE AGAINST YOUR CARNET BOND AND/OR ACTION CAN BE BROUGHT AGAINST YOU AS CARNET HOLDER AND/OR USER AND YOUR DESIGNATED AND/OR AUTHORIZED CARNET REPRESENTATIVES. YOU AUTHORIZE THE USCIB AND/OR CIB TO INVESTIGATE, RESOLVE AND PAY ANY CARNET CLAIMS ON YOUR BEHALF AND TO PURSUE ALL RIGHTS DETAILED IN THESE TERMS AND CONDITIONS.

  12. Waiver; Severability; In the event that any provision of these Terms and Conditions is determined to be unlawful, void or unenforceable, such provision shall nonetheless be enforceable to the fullest extent permitted by applicable law, and the unenforceable portion shall be deemed to be severed from these Terms and Conditions, and such determination shall not affect the validity and enforceability of any other remaining provisions of these Terms and Conditions. The failure of CIB and/or the USCIB to exercise or enforce any right or provision of these Terms and Conditions shall not constitute a waiver of such right or provision.