Export Montana

Temporary Entrance: Tools of the Trade

Goods used as "Tools of the Trade" that are carried or shipped into other countries may be granted exemption from payment of import duties and/or taxes. This is a general outline explaining some similarities among the different countries for temporary entrance of "tools of the trade."

  1. Tools imported to repair or modify equipment are examples of "tools of the trade."
  2. If "tools" can not enter free of duty, then the exporting company may be required to make a contract with Customs so the articles are re-exported within a fixed period of time. This contract is in the form of a deposit or bond for the amount of the duty/tax or a percentage of it.
  3. A temporary import bond (TIB) is equivalent to a percentage of the ascertained taxes and duties
  4. An ATA Carnet ("merchandise passport") is an international customs document that facilitates temporary imports into foreign countries. A listing of the merchandise and countries covered by the ATA Carnet are available at www.uscib.org
  5. The deposit of the duty payment or temporary import bond will be returned after the products have left the country and customs documents have been filed
  6. Any person who does not re-export the temporarily admitted tools within a specified period shall be subject to pay import duties and taxes
  7. The re-exported tools must be identical with those imported

North American Free Trade Agreement (NAFTA)

The NAFTA requires Canada, Mexico, and the United States to grant duty-free temporary admission to certain classes of tools imported from another NAFTA country. Duty-free entry can not be conditioned on whether directly competitive or substitutable tools are available in the importing country. The tools do not have to originate in a NAFTA country.

Professional Equipment and Trade Show Displays

A person can temporarily import the following "tools of the trade" duty-free: professional equipment, equipment for the press or for sound or television broadcasting, goods for sports activities, and goods for display or demonstration.

These goods must:

  • Not be sold or leased while in Canada/Mexico.
  • Be accompanied by a bond if they are not originating goods (chapter 4 or the NAFTA).
  • Only remain in Canada/Mexico until the departure of the person, or within a reasonable time.
  • Be capable of identification when exported.
  • Be imported in no greater quantity than is reasonable for the intended use.
  • Be imported by a national or resident of the United States, Canada or Mexico that is seeking temporary entry.
  • Be used solely by or under the personal supervision of the person importing the good in the business activity.
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