President Rodrigo Duterte signed on June 23, 2020 the Instrument of Accession to the Customs Convention on ATA Carnet for the Temporary Admission of Goods, also known as the ATA Convention or Istanbul Convention.

Following the presidential signing, concurrence by at least two-thirds of Senate members is required. The Convention shall enter into force three months after the Philippines deposits the Instrument of Accession.

This brings the country closer to becoming part of the ATA Carnet community which has some 80 contracting parties to the Convention that provides international guarantee to the Carnet system.

Philippine accession to the Convention has long been advocated by the Export Development Council (EDC) and business organizations such as the Philippine Chamber of Commerce and Industry and the Philippine Exporters Confederation, Inc. (PHILEXPORT).

They said it will help facilitate foreign market access for exporters, particularly micro, small and medium enterprises (MSMEs), by enabling local products to move freely across borders and be temporarily admitted to customs territories with relief from duties and taxes, especially for the purpose of trade show participation.

“We are thankful that finally, the Instrument of Accession has been signed, giving another positive signal to the world that we are serious in expanding our trade, particularly exports,” said Sergio R. Ortiz-Luis Jr., EDC vice chairman and PHILEXPORT president.

“With the ATA Carnet, there will be savings in time and money in the temporary movement of goods consistent with our thrust to ease doing business in the country,” Ortiz-Luis added.

The ATA Carnet is particularly beneficial for MSMEs interested to export and join overseas trade shows and exhibitions but baulk at the high cost of import duties and taxes.

The PCCI meanwhile said the carnet system is beneficial to businessmen and investors.

PH signing of ATA Convention seen to enhance market entry of exporters