What is a Carnet?
A Carnet de Passage can be thought of as a passport for your car which enables you to enter and leave certain countries without the need for temporary import papers or providing a cash guarantee on the border. It offers a guarantee to a foreign government that the vehicle identified in the Carnet, if granted temporary importation status, will be removed from the country within the time limit imposed by the respective jurisdiction.
In the event that the vehicle is not removed from the country prior to the expiry of the Carnet or import duties have not been fully paid, then the country may claim from the Carnet issuer all duties and taxes that would be required to permanently import the vehicle to that country.
Although a Carnet is not always required to enter a country, sometimes it may be preferable to use in order to simplify the temporary import process.
Where is a Carnet Required?
Below is a map of countries that require a carnet.
*Note you may be able to enter Egypt & Kenya, and the South African customs Union (if shipping in) with a cash deposit / Bond. For Malaysia a carnet is only required if shipping in to the country, not if you are entering Overland.
Often is it cheaper to import a vehicle into Australia than to pay for a Carnet via an insurance indemnity (provided you intend to live there)
Map provided by: The Overlanding Association
What is the cost of a Carnet?
The cost of the carnet is dependent on the following:
· The issuer - each has their own rules and costs
· The type of security (Bank Guarantee, Cash Deposit or Indemnity Insurance)
· The regions / countries being travelled to, each has varying risk and differing duties.
Typically it is cheaper to provide security via a bank guarantee or cash than via the insurance indemnity. However, in order to take up the former options you must actually have assets that cover the carnets value, which can be significant.
Normally the amount of security required is the same for all options, and is based on the maximum potential liability of the regions travelled to.
Comparison of different options that were offered by the RAC (Now not issuing carnets use the ADAC, tcs.ch or Cars Europe)
*Just as an example to understand the costs of different options
*The above example is the cost that would apply to a carnet issued from the RAC UK pre 2013. The RAC UK no longer issues Carnets based on Bank Guarantees or cash deposits, only the indemnity insurance option is possible.
Below is an example calculation of obtaining a carnet from Boomerang Carnets in the USA & Canada
Vehicle Value: $10,000 Travelling to Egypt (800%) the most expensive county
Insurance cost is 10% i.e for a $10,000 Vehicle going to Egypt - Total Security Required $80,000
Insurance at 10%= $8000
Application fee %775
Total to pay $8775 (inc app fee) -
80% returned - Final cost $1600 + application fee of $775
Bank Guarantee / Cash Deposit
A bank guarantee is a guarantee from the issuing bank in the event that the vehicle is not exported from the country or the Carnet terms are not adhered to, that the bank will provide the said security to the Carnet issuer.
Most banks will require you to have assets deposited with the issuer that are the same value or greater than the proposed guarantee.
The benefit of a bank guarantee over a cash deposit is that you will be able to earn interest or invest your funds with the issuing bank. Cash deposits are placed in non-interest bearing accounts.
The cost of issuing a bank guarantee should be in the region of $75 - $200 depending on the issuing bank.
On return of the Carnet the Deposit will be fully refunded or the bank guarantee will be cancelled.
Indemnity Insurance
The insurance indemnity provides cover for the issuing motor organisation. It only covers the taxes and duties that the carnet issuer would have to pay if the carnet holder breaches the terms for any reason.
The cost of the insurance is usually based on a percentage of the maximum potential liability for the region travelled to.
The Carnet holder is still ultimately liable for any duties, taxes and costs incurred by either the insurance provider or the issuing motor organisation.
Normally a proportion of the Insurance is refundable on retuning the Carnet. The RAC used to return 50% and Boomerang Carnets (USA & Canda) refund 80%
How is the insurance/guarantee/deposit value calculated
The amount of insurance/cash deposit / bank guarantee is dependent on the countries visited and the relevant tax and duties of those countries. However, the calculation used by the individual institutions varies from issuer to issuer.
ADAC Germany - Carnet info on Website
Boomerang Carnets - (USA & Canada) - Carnet info on Website
Boomerang carnets recently took over from the CAA to issue carnets in both the USA and Canada,
AAA – Australia - Carnet info on Website
http://www.aaa.asn.au/touring/overseas.htm
France Automobile Club - Carnet info on Website
South African Automobile Association - See Website for complete prices
Who can issue a Carnet?
Depending on the country which you and your vehicle reside, you would normally obtain a carnet from your local motoring organisation.
If your home county does not have an issuer the following rules apply:
If your home country does not have a Carnet issuer, you may apply to any other Carnet issuer worldwide.
However, every Carnet issuer has the right to assess your application on its own merits and to decide whether or not to issue a Carnet. You may find in some instances that due to legal reasons like “insurance” they may not be able to issue you with a Carnet.
Travellers in Europe may choose to either have the carnet issued by any motoring organisation in Europe, these were the rights we won with the our petition
What does this mean for UK Carnets?
Currently any UK individual or business may apply to any other Carnet issuer in Europe and worldwide, until such time a new Carnet issuer has been appointed in the UK.
Following the appointment of a new Carnet issuer in the UK, you may apply through them or other Carnet issuers in Europe, these were the rights we won with the petition (you can find a list of Carnet issuers below)
At the moment we do not know who or when the new Carnet issuer will be appointed in the UK, nor do we know what the costs, security rates or options will be. But we would hope that they would be similar to those currently being offered by issuers in Europe.
Renewing / Extending a Carnet
A carnet is renewed annually on expiry and is normally organised through the issuing motoring organisation.
In some circumstances, it is possible to extend the Carnet validity with the permission of the issuing motor organisation. You may also require permission from the local motor organisation and customs.
It is quite normal to extended a carnet in Australia for a year (that under the RAC), however you need permission from both the AAA in Australia and your carnet issuer.
This is the T&C's on the ADAC application regarding Carnets, For extensions longer than 3 months you would have to contact them to find out whether they would be willing to extend.
A Carnet de Passage can be thought of as a passport for your car which enables you to enter and leave certain countries without the need for temporary import papers or providing a cash guarantee on the border. It offers a guarantee to a foreign government that the vehicle identified in the Carnet, if granted temporary importation status, will be removed from the country within the time limit imposed by the respective jurisdiction.
In the event that the vehicle is not removed from the country prior to the expiry of the Carnet or import duties have not been fully paid, then the country may claim from the Carnet issuer all duties and taxes that would be required to permanently import the vehicle to that country.
Although a Carnet is not always required to enter a country, sometimes it may be preferable to use in order to simplify the temporary import process.
Where is a Carnet Required?
Below is a map of countries that require a carnet.
*Note you may be able to enter Egypt & Kenya, and the South African customs Union (if shipping in) with a cash deposit / Bond. For Malaysia a carnet is only required if shipping in to the country, not if you are entering Overland.
Often is it cheaper to import a vehicle into Australia than to pay for a Carnet via an insurance indemnity (provided you intend to live there)
Map provided by: The Overlanding Association
What is the cost of a Carnet?
The cost of the carnet is dependent on the following:
· The issuer - each has their own rules and costs
· The type of security (Bank Guarantee, Cash Deposit or Indemnity Insurance)
· The regions / countries being travelled to, each has varying risk and differing duties.
Typically it is cheaper to provide security via a bank guarantee or cash than via the insurance indemnity. However, in order to take up the former options you must actually have assets that cover the carnets value, which can be significant.
Normally the amount of security required is the same for all options, and is based on the maximum potential liability of the regions travelled to.
Comparison of different options that were offered by the RAC (Now not issuing carnets use the ADAC, tcs.ch or Cars Europe)
*Just as an example to understand the costs of different options
*The above example is the cost that would apply to a carnet issued from the RAC UK pre 2013. The RAC UK no longer issues Carnets based on Bank Guarantees or cash deposits, only the indemnity insurance option is possible.
Below is an example calculation of obtaining a carnet from Boomerang Carnets in the USA & Canada
Vehicle Value: $10,000 Travelling to Egypt (800%) the most expensive county
Insurance cost is 10% i.e for a $10,000 Vehicle going to Egypt - Total Security Required $80,000
Insurance at 10%= $8000
Application fee %775
Total to pay $8775 (inc app fee) -
80% returned - Final cost $1600 + application fee of $775
Bank Guarantee / Cash Deposit
A bank guarantee is a guarantee from the issuing bank in the event that the vehicle is not exported from the country or the Carnet terms are not adhered to, that the bank will provide the said security to the Carnet issuer.
Most banks will require you to have assets deposited with the issuer that are the same value or greater than the proposed guarantee.
The benefit of a bank guarantee over a cash deposit is that you will be able to earn interest or invest your funds with the issuing bank. Cash deposits are placed in non-interest bearing accounts.
The cost of issuing a bank guarantee should be in the region of $75 - $200 depending on the issuing bank.
On return of the Carnet the Deposit will be fully refunded or the bank guarantee will be cancelled.
Indemnity Insurance
The insurance indemnity provides cover for the issuing motor organisation. It only covers the taxes and duties that the carnet issuer would have to pay if the carnet holder breaches the terms for any reason.
The cost of the insurance is usually based on a percentage of the maximum potential liability for the region travelled to.
The Carnet holder is still ultimately liable for any duties, taxes and costs incurred by either the insurance provider or the issuing motor organisation.
Normally a proportion of the Insurance is refundable on retuning the Carnet. The RAC used to return 50% and Boomerang Carnets (USA & Canda) refund 80%
How is the insurance/guarantee/deposit value calculated
The amount of insurance/cash deposit / bank guarantee is dependent on the countries visited and the relevant tax and duties of those countries. However, the calculation used by the individual institutions varies from issuer to issuer.
ADAC Germany - Carnet info on Website
Boomerang Carnets - (USA & Canada) - Carnet info on Website
Boomerang carnets recently took over from the CAA to issue carnets in both the USA and Canada,
AAA – Australia - Carnet info on Website
http://www.aaa.asn.au/touring/overseas.htm
France Automobile Club - Carnet info on Website
South African Automobile Association - See Website for complete prices
Who can issue a Carnet?
Depending on the country which you and your vehicle reside, you would normally obtain a carnet from your local motoring organisation.
If your home county does not have an issuer the following rules apply:
If your home country does not have a Carnet issuer, you may apply to any other Carnet issuer worldwide.
However, every Carnet issuer has the right to assess your application on its own merits and to decide whether or not to issue a Carnet. You may find in some instances that due to legal reasons like “insurance” they may not be able to issue you with a Carnet.
Travellers in Europe may choose to either have the carnet issued by any motoring organisation in Europe, these were the rights we won with the our petition
What does this mean for UK Carnets?
Currently any UK individual or business may apply to any other Carnet issuer in Europe and worldwide, until such time a new Carnet issuer has been appointed in the UK.
Following the appointment of a new Carnet issuer in the UK, you may apply through them or other Carnet issuers in Europe, these were the rights we won with the petition (you can find a list of Carnet issuers below)
At the moment we do not know who or when the new Carnet issuer will be appointed in the UK, nor do we know what the costs, security rates or options will be. But we would hope that they would be similar to those currently being offered by issuers in Europe.
Renewing / Extending a Carnet
A carnet is renewed annually on expiry and is normally organised through the issuing motoring organisation.
In some circumstances, it is possible to extend the Carnet validity with the permission of the issuing motor organisation. You may also require permission from the local motor organisation and customs.
It is quite normal to extended a carnet in Australia for a year (that under the RAC), however you need permission from both the AAA in Australia and your carnet issuer.
This is the T&C's on the ADAC application regarding Carnets, For extensions longer than 3 months you would have to contact them to find out whether they would be willing to extend.
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