Temporary import of artworks

A Seoul museum lends a ceramic to a Paris gallery for a six-day fair. The work crosses the border under temporary admission: no duty or VAT on entry. In return the importer undertakes to re-export it within a period, typically twenty-four months at most, under an ATA (Admission Temporaire/Temporary Admission) carnet or a customs declaration. If the work does not leave, or the file is badly discharged, customs claims duty and VAT retroactively. For insurance the regime raises two questions. Does the nail-to-nail policy cover the work while under customs control, including bonded storage? And does a total loss during temporary admission trigger the tax, since the work can no longer be re-exported? Careful wordings either name VAT and duty within the indemnity or exclude them expressly. The freeport does the reverse: it suspends duty for as long as the work stays, with no exit deadline.