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Trip Paperwork Covers all documentation, carnets, customs and country requirements, how to deal with insurance etc.
Photo by Daniel Rintz, Himba children, Namibia

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Photo by Daniel Rintz,
Himba children, Namibia



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  #1  
Old 8 Aug 2003
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Carnet and / or Bank Guarantee???

Help me, I'm confused,

I hear much speak of expensive Carnets from the RAC etc, but also speak of 'Bank Guarantees' for figures of around £75. Sounds like a cheap alternative.

Could somebody clarify this for me:

- is the Bank Guarantee an alternative to a Carnet, or is it supplimentary to a Carnet?
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  #2  
Old 11 Aug 2003
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Hello ergdawg!

The bank guarantee is supplementary to the carnet, not instead of it. Carnets are issued by your local auto association (RAC in UK) to guarantee to foreign governments that you will not sell your bike in their country. Many countries require you to have a carnet in order to bring a vehicle into the country. For a detailed explanation, follow this link to the website page on carnets. The auto association can tell you which countries require the carnet, based on your travel plans. In general, North America and Europe do not, South America does not, parts of Africa and Asia do. Even where it is not required, it does smooth the temporary import process (and reduces the number of fees and bribes otherwise needed to bring a vehicle into some countries), so if you are planning an extended trip to a lot of countries throughout the world, it's worth getting it.

In order for the auto association to take the risk of having to pay out on the carnet (e.g. if you sell your bike in Egypt and don't pay the duties and taxes), they require either that you deposit the funds with them, or that you provide them with a bank guarantee (the bank guarantees to the auto association that they will pay them the funds on demand). Some countries have another alternative, which is an insurance policy. You should check with Sue Collins at the RAC - 01454 208000 ext 33837 to find out whether that is an option.

If you have a long term relationship with a UK bank, and presumably a good credit rating and funds on deposit, Natwest at least will give you a bank guarantee for a small fee. See this HUBB post for more details.

Remember that a carnet is not particularly expensive UNLESS you decide not to bring the bike back to your origin country. If you try to sell it along the way without paying all duties and getting all appropriate paperwork, the auto association will come after your bank for the duties, and your bank will undoubtedly come after you to repay the guarantee. That will be VERY expensive, in the worst case scenario several times the value of the bike.

Hope this helps clarify the situation. Good luck with your trip planning.


------------------
Susan Johnson

"It matters not what goal you seek
Its secret here reposes:
You've got to dig from week to week
To get Results or Roses."
Edgar Guest

'One world, two wheels'
www.HorizonsUnlimited.com


[This message has been edited by Susan (edited 11 August 2003).]
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Old 11 Aug 2003
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Thanks, I'm a lot clearer on the role of a Carnet now.

I was, however, unfortunately, intending to make my way to South Sahara and possibly sell my Vehicle to be able to continue my Journey. Simply put: is this possible to do WITHOUT a carnet, using only pass's and temporary import papers obtained at borders.

I am aware that certain Countries do not require a carnet, and that I ought to be able to dispose of my Vehicle within a certain degree of the law; can anybody confirm.
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