Art moves across the globe, with international art fairs and exhibitions happening every day. Yet, what seems to be a seamless, globalized market operates on a tight regulatory framework in practice. Let’s look at the example of international art shipping from the USA to Europe: transporting an art collection from New York to Art Basel in Switzerland. What happens behind the scenes, and what should shippers know before making the first move?
The Nuances of International Art Shipping from the USA to Europe
Temporary Bonds and ATA Carnets
Every June, art galleries from the entire world flock to Art Basel in Switzerland – the most prestigious and influential event in the global art market. Preparing for the fair is pretty demanding for the American galleries, as they need to ensure a quick, risk-free cross-border shipment without unexpected VAT markups.
The core mechanism Switzerland has developed for these goals is the ATA Carnet, known as the “passport for goods.” This is an international customs document that allows the temporary, duty-free import of commercial goods for participating countries. This way, a gallery shipping, say, 12 art objects to Art Basel needs one Carnet, which replaces individual customs declarations for each art object. The U.S. Council for International Business (USCIB) issues Carnets in the USA.
The Swiss Code for International Art Shipping
Once the art collection enters Switzerland with a Carnet, the 90-day clock starts ticking. If the art object doesn’t leave Switzerland within that period, its importer will be subject to the full Swiss VAT liability at 8.1% of the art object’s cost. Penalties may apply for breaching the Carnet’s 90-day corridor.
Converting Temporary Imports into Permanent Imports
The main complexity with ATA Carnets arises if the artwork is sold during the fair. In this case, the art object’s status must be changed from temporary to permanent import, with the Swiss VAT applying to it from the moment of sale. The process may become lengthy and tedious if importers indicate a conservative value for ATA Carnet documentation, and the sale event triggers a customs revaluation dispute. A pro tip is to get ready for this possibility beforehand. Artworks with a high probability of sale should be listed on the Carnet at their full commercial value, thus preventing customs friction.
As you can see, the Swiss ATA Carnet system is very efficient for art fairs, but preparation is key. Professional tips for art owners include applying early, working with a customs broker experienced in Swiss art logistics laws, and factoring in the possibility of the artwork’s stay in Switzerland at the pre-shipping stage instead of going through the post-sale hassle. With these preparatory steps, international art shipping from the USA to Europe will be swift, smooth, and enjoyable.