India’s largest non-life insurer company, New India Assurance will be going to issue 500 policies on ATA (Admission Temporaire/Temporary Admission) Carnet to push export-focused start-ups and SMEs in the country.
Indian government, which recently said to have scrapped 1,200 complex laws for ease of doing business for Indian start-ups, now helping SMEs and export-focused start-ups with ATA Carnet certification.
The prime objective of the policy is to facilitate insurance cover for start-ups and SMEs in lieu of cash deposits or bank guarantees against the ATA Carnet certificate. It is a system that offers advantages to all concerned stakeholders: the customs authorities and the trading community, i.e., individuals, enterprises, trade organizations.
“We have plans to issue 500 insurance policies on ATA Carnet to start-ups and SMEs, over the next one year and the same will be available for sale from August 1,” a New India official said to Moneycontrol.
Facilities under ATA Carnet certification:
- One can make advance customs arrangements at a predetermined cost
- Can visit several countries
- Can use ATA Carnet for several trips during its one-year validity
- Return to your home country with your goods without problems or delays
The ATA simplifies the customs procedures and clearances without paying duty or a bank guarantee for temporary import into a member- country and the international guarantee chain provides reciprocal guarantees assuring customs administrations that duties and taxes due in case of misuse will be paid.
In India, Federation of Indian Chambers of Commerce and Industry (FICCI), is appointed as National Guaranteeing & Issuing Association for ATA Carnets.
“The proposed ATA Carnet policies will be reinsurance driven as 94 per cent of risk is covered under it by a reinsurer,” the New India official said, adding “the premium to be charged for such policies is 3.5 per cent of the value of the goods being covered”.