Temporary Importation

Temporary Importation – Simple Explanation and Examples

Definition

Temporary Importation refers to a customs procedure that allows goods to be brought into a country for a limited time without the payment of import duties or taxes, provided that the goods will be re-exported within a specified period. This process is typically used for items that are not intended for sale within the importing country, such as goods for trade shows, exhibition items, professional equipment, or machinery for a specific project.

Key Concepts and Terms

Temporary Importation Benefits

  • No import duties or taxes: As long as the goods are re-exported within the specified period, there are no customs duties applied.
  • Simplified customs procedures: Reduced documentation and streamlined processes make it easier to bring temporary goods into the country.
  • Cost savings: Significant financial savings can be achieved by avoiding the costs of importing and later re-exporting goods.

Common Examples of Temporary Importation

  • Trade Shows and Exhibitions: Companies may bring in display items, promotional materials, or commercial samples to a trade show, with the intent to take them back once the event concludes.
  • Professional Equipment: Professionals, such as photographers or medical staff, may bring their specialized equipment for a specific assignment in a country.
  • Construction Machinery: Equipment brought into a country for specific projects such as construction work, oil and gas exploration, scientific research, etc.

Process of Temporary Importation

Steps Involved

  1. Application Submission: The importer must submit an application to the customs authorities, detailing the nature and purpose of the goods.
  2. Providing Security: Often, a security deposit or guarantee equal to the duties and taxes is required, which will be refunded upon re-export.
  3. Approval and Entry: Once the application is approved, the goods can enter the country under the temporary importation regime.
  4. Tracking and Compliance: The importer needs to keep track of the goods and comply with any specific regulations, ensuring they are not sold or improperly used.
  5. Re-Exportation: Before the period specified by customs authorities expires, the goods must be re-exported.

Documentation Requirements

  • Temporary Importation Bond (TIB): A surety bond is required to ensure compliance and guarantee the payment of duties and taxes if the goods are not re-exported.
  • Temporary Import License: Depending on the country and type of goods, a temporary import license might be needed.
  • Commercial Invoice: A document detailing the value, quantity, and description of the goods.
  • ATA Carnet: An international customs document that allows for the temporary importation of goods without paying duties or taxes. Commonly used for trade shows and exhibitions.

Important Considerations

Time Limits

The allowable period for temporary importation varies by country and can be anywhere from a few months to a couple of years. Extensions may be possible but usually require additional approval and paperwork.

Condition of Goods

Goods imported temporarily should not undergo any changes, except for necessary maintenance to preserve their original condition. Minor repairs are typically allowed, but alterations or manufacturing processes are not permitted.

Re-Exportation Compliance

It is crucial to adhere to the re-exportation deadline. Failure to re-export the goods within the stipulated timeframe could result in penalties, fines, and the payment of import duties and taxes.

Goods Not Eligible for Temporary Importation

Items intended for sale, consumables, goods with high-risk of being altered or consumed, and products under specific restrictions (like prohibited items) are generally not allowed under this procedure.

Advantages and Limitations

Advantages

  • Cost Efficiency: Businesses save on import duties and taxes, improving cost-effectiveness.
  • Flexibility: Allows participation in international events or project work without permanent import procedures.
  • Economic Activity: Fosters global trade, project collaboration, and participation in international exhibitions and fairs.

Limitations

  • Strict Compliance Requirements: Importers must keep detailed records and adhere to re-exportation timelines.
  • Potential Costs: Application processes, security deposits, and documentation may carry costs.
  • Limited Time Frame: The temporary nature means there is a deadline for the goods to leave the country, which can be a limiting factor for long-term projects.

Conclusion

Temporary importation provides a crucial benefit for businesses, enabling them to bring goods into a country temporarily without the financial burden of duties and taxes. From trade shows to project-based equipment, understanding this process can help businesses operate internationally more efficiently and cost-effectively. Proper documentation and adherence to customs regulations are key to leveraging this advantageous customs procedure.

For further assistance with your customs-related needs, feel free to contact eezyimport. Our expertise can help streamline your temporary importation process and ensure compliance with all necessary regulations.

Temporary Importation – FAQ

 

What is temporary importation?

Temporary importation is a customs procedure that allows goods to be brought into a country for a specific, limited time without the payment of import duties or taxes, provided that the goods will be re-exported within a specified period. This is often used for items such as trade show materials, professional equipment, and machinery for specific projects.

What types of goods are eligible for temporary importation?

Common examples of goods eligible for temporary importation include:
Trade Show and Exhibition Materials: Display items, promotional materials, commercial samples
Professional Equipment: Specialized tools used by photographers, medical professionals, construction workers, etc.
Project-Based Machinery: Equipment for construction, scientific research, or other projects.

Goods intended for sale, consumables, and items under specific restrictions are generally not eligible for temporary importation.

What are the key steps involved in the temporary importation process?

The process typically involves several key steps:

  1. Application Submission: Submit an application to customs authorities detailing the nature and purpose of the goods.
  2. Providing Security: Often, a security deposit or guarantee equal to the duties and taxes is required, refundable upon re-export.
  3. Approval and Entry: Once approved, goods can enter the country under the temporary importation regime.
  4. Tracking and Compliance: Keep track of the goods and comply with regulations, ensuring they are not sold or improperly used.
  5. Re-Exportation: Re-export the goods before the specified period expires.

 

Proper documentation, such as a Temporary Importation Bond (TIB) or an ATA Carnet, is often required.

eezyimport is an online platform and is not a licensed customs broker. However, we work closely with a third-party licensed customs broker who can assist with any entry-related issues.

eezyimport is an online platform and is not a licensed customs broker. However, we work closely with a third-party licensed customs broker who can assist with any entry-related issues.

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