LOGISTICS 101
Key Facts
- Route: UK to Cyprus
- Origin: Slough, UK
- Destination: Limassol, Cyprus
- Mode: Road freight
- Goods: Professional AV equipment (temporary export)
- Issue: ATA Carnet not arranged before booking
- Resolution: Carnet obtained before collection; shipment cleared without duties
Quick Summary
A UK-based audio-visual company needed to move professional presentation and staging equipment from Slough to Limassol, Cyprus, for a short corporate event. The goods were for temporary use only and scheduled to return to the UK within ten days.
The customer initially booked road freight using a standard Commercial Invoice declaring full retail value. While correct for a permanent export, this would have triggered import VAT and customs duties in Cyprus on goods that were only being exported temporarily.
During our pre-collection checks, Pallet2Ship identified that this was a temporary export and that an ATA Carnet should be used instead. We paused collection, helped the customer obtain the Carnet, and prevented thousands of pounds in unnecessary tax exposure.
What Happened
A UK event production company booked a pallet of professional AV equipment — including display screens, a control unit and cabling — from Slough to Limassol for a two-day corporate conference in Cyprus.
- Declared value: approximately £18,000
- Intended return to the UK: within ten days
The customer selected a road freight service and completed the booking using a standard Commercial Invoice. No ATA Carnet was referenced.
For Cyprus shipments, road freight includes a scheduled ferry leg as part of the normal routing. It is booked and managed as a standard road-freight service.
During documentation review, our team identified:
- The goods were clearly for temporary use
- They were due to return to the UK
- A standard commercial invoice would cause Cypriot customs to treat the shipment as a permanent import
Since 1 January 2021, UK exports into Cyprus are treated as third-country imports under EU customs rules. Without an ATA Carnet, the shipment would have been subject to EU import duties and 19% VAT on the full declared value.
We placed the collection on hold while the correct documentation was arranged.
What the Customer Did Right
Booking & Documentation
- Chose road freight, appropriate for palletised equipment to Cyprus
- Provided accurate descriptions and declared value
- Built sufficient lead time before the event
- Responded immediately when the issue was raised
- Obtained an ATA Carnet from their local Chamber of Commerce within 48 hours
Physical Preparation
- Packed equipment in manufacturer-grade flight cases
- Used foam-lined protective boxes
- Built a stable pallet base for the total weight (approx. 320 kg)
- Applied strapping and shrink wrap from base to top
- Labelled the pallet clearly on three sides and on the top
- Ensured no dangerous or restricted goods were included
For general packing advice, see our Pallet Packing Guide.
What Went Wrong
1. Standard Commercial Invoice Used for a Temporary Export
A commercial invoice is correct for permanent exports. For temporary exports — where goods will return to the UK — an ATA Carnet is normally required.
Using only a commercial invoice would have led Cypriot customs to treat the shipment as a permanent import.
2. ATA Carnet Requirement Not Known
The customer had not previously shipped temporary professional equipment internationally and was unaware that ATA Carnets exist for this purpose.
Adding a note such as “temporary goods” on a commercial invoice is not sufficient. Customs require the correct customs instrument.
3. Collection Had to Be Paused
Because the correct documentation was not in place, collection was delayed by two days while the Carnet was obtained. Fortunately, the customer had built enough time into the schedule to avoid disruption.
How Pallet2Ship Resolved the Issue
Pallet2Ship:
- Identified the temporary export scenario before collection
- Advised that an ATA Carnet was required for UK to Cyprus temporary export and re-import
- Guided the customer on applying through their local UK Chamber of Commerce
- Reviewed the itemised list, values and return date
- Confirmed the Carnet covered both outbound and return movements
Once the ATA Carnet was issued and verified, the shipment was collected and transported to Limassol.
The Carnet was stamped by UK customs on export and by Cypriot customs on entry. After the event, the equipment returned to the UK under the same Carnet, with no duties or VAT charged.
Results
- No import VAT or customs duties applied in Cyprus
- Equipment cleared customs without delay
- Delivery completed in time for the event
- Equipment returned smoothly under the same Carnet
- Customer avoided an estimated £3,000–£4,500 in unnecessary charges
What to Do vs What to Avoid
Do This
- Use an ATA Carnet for temporary export of professional equipment.
- Apply for the Carnet before booking transport.
- List every item accurately with individual values.
- Ensure Carnet validity covers outbound and return journeys.
- Obtain customs stamps at every required stage.
Avoid This
- Do not ship temporary goods on a standard commercial invoice.
- Do not leave Carnet applications until the last minute.
- Do not omit items from the Carnet.
- Do not let a Carnet expire before goods return.
- Do not rely on informal explanations instead of correct documentation.
Why It Matters for UK–Cyprus Shipments
The ATA Carnet system exists specifically to allow businesses to move equipment temporarily without triggering full import duties and VAT.
Without an ATA Carnet, UK exports to Cyprus are treated as permanent imports and are subject to full EU import duties and 19% VAT.
Identifying the issue before collection, switching from a standard Commercial Invoice to an ATA Carnet, and allowing 48 hours for correction prevented a costly mistake.
For UK–Cyprus freight, understanding which customs instrument applies is often the difference between a smooth shipment and a very expensive delay.