ATA Carnet Saves Indian Engineering Manufacturer INR 18 Lakh in Duties for Hannover Messe

Curated by Vinod Kumar Jain & Amit Jain · All Frontier Global · free, no login

India-Germany

Challenge

A Kolhapur-based engineering machinery manufacturer planned to display 4 machine tools (total value INR 2.4 crore) at Hannover Messe. Without ATA Carnet, temporary import into Germany would require: temporary import bond, customs entry at Frankfurt, customs examination, potential duty payment of approximately 7.5% (EUR 225,000 equivalent) plus VAT 19%, pending refund on re-export. The process would take 3-5 working days — impossible given Hannover Messe setup schedule.

Solution

AJG facilitated ATA Carnet application through FICCI India (an ATA Carnet issuing body). Carnet covered 4 machines, 12 demonstration components, and 200 technical brochures. Carnet validity: 12 months. German Customs at Frankfurt Airport accepted the ATA Carnet and allowed all 4 machines to enter Germany within 2 hours — no duty payment, no bond, no customs examination. After Messe, goods returned to India with ATA Carnet re-export endorsement.

Outcome

Total customs formality time at Frankfurt: 2 hours. Duties avoided: approximately EUR 225,000 (7.5% duty on EUR 3M CIF value). VAT avoided: EUR 570,000 (19% VAT on EUR 3M). ATA Carnet cost: INR 18,000 (FICCI fee) + INR 12,500 (guarantee bond premium) = INR 30,500 total. Return to India: ATA Carnet accepted by Indian customs with no issues.

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