The TIR Convention and the concept of its application in East and North-East Asia

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1 Seminar on the Development of a Comprehensive Transport and Logistics Network in North-East Asia Subregion Seoul, 21 March 2013 The TIR Convention and the concept of its application in East and North-East Asia Mr. Fedor Kormilitsyn Economic Affairs Officer Transport Facilitation and Logistics Section Transport Division

2 Outline The TIR Convention and TIR system: overall description and background Introduction to electronic TIR (etir) project Current status and application in ESCAP region TIR system and intermodal transport UNESCAP concept for application of TIR System for international intermodal transport in East and North-East Asia

3 The TIR Convention, 1975 The Customs Convention on the International Transport of Goods under Cover of TIR Carnets (TIR Convention, 1975) was elaborated under the aegis of the United Nations Economic Commission for Europe (UNECE) After the entry into force the TIR Convention, 1975 replaced the old 1959 Convention 68 Contracting Parties worldwide One of the most successful international transport conventions with wide practical application

4 Geographical scope of the TIR Convention = Contracting Party where Convention is applied (2011) = Contracting Party where Convention is not applied (2011) = Potential Contracting Party

5 The TIR system The only universal Customs transit system existing at present Operational in 57 countries worldwide Allows to carry out goods transport operations in road transport vehicles or in containers from the customs of origin to the customs of destination without customs inspections at the borders without the need to deposit financial customs guarantees at each of the borders

6 The TIR System actors The UN TIR bodies The International Organization assigned to manage the system The governments of the Contracting Parties (mostly Customs authorities) The national issuing and guaranteeing associations The TIR Carnet holders (transport operators)

7 Key principles of the TIR System Secure vehicles or containers International guarantee chain TIR Carnet Mutual recognition of Customs control Controlled access to the TIR System

8 Secure vehicles or containers Goods are to be carried in sealed vehicles or containers which are approved for use by Customs and reapproved every two years No goods can be removed without leaving obvious traces or breaking the Customs seal Customs seals can be simply and effectively affixed to them

9 Approval of road vehicles and containers Secure loading units and sealing Annexes to Convention on technical construction of loading units Annex 2 on Vehicles Annex 7 on Containers (intermodal) Sealing requirement

10 International guarantee chain National guaranteeing association guarantees duties and taxes; Covers all TIR operations in a country, both by national or foreign transport operators; Associations linked through international chain administered by International Road Transport Union (IRU) Limit equal to US $ per TIR Carnet (unless otherwise agreed with the Customs authorities of a particular country)

11 The TIR Carnet Customs document replaces any other national Customs transit documents Guarantee document which itself proves the existence and validity of the guarantee Annex 1: Model

12 Mutual recognition of Customs controls Principle: Customs control measures taken in the country of departure should be accepted by the countries of transit and destination No examination of sealed load compartments, except in special cases Customs inspection at the office of departure crucial Normally only documentary control en route

13 Controlled access By Administrative Committee of International organization By national Customs authority of national Associations issuing and guaranteeing TIR Carnets By national Customs authority of Transport Operators

14 Main advantages [1] For Customs Authorities No physical inspection of goods in transit (in principle) No national guarantee system No national Customs documentation and control system Efficient control procedures for goods in transit

15 Main advantages [2] Transport/Trade Industry Minimum of procedures at borders Reduced delays at borders No restriction in the modes of transport Lower transport costs (reduced export and import costs)

16 The etir project: towards the full computerization of the TIR system Data exchange platform for all actors involved in the TIR system Secure exchange of data between national Customs systems related to the international transit of goods under TIR Convention Aims to allow Customs to manage the data on guarantees, issued by guarantee chains to holders

17 The etir project

18 The UNESCAP Resolution 48/11 on Road and rail transport modes in relation to facilitation measures, 1992 Recommendation to consider accession to the following international conventions facilitating road transport: The Convention on Road Traffic, 1968 The Convention on Road Signs and Signals, 1968 The Customs Convention on the International Transport of Goods under Cover of TIR Carnets (TIR Convention), 1975 The Customs Convention on the Temporary Importation of Commercial Road Vehicles, 1956 The Customs Convention on Containers, 1972 The International Convention on the Harmonization of Frontier Controls of Goods, 1982 The Convention on the Contract for the International Carriage of Goods by Road (CMR), 1956

19 Status of 1975 TIR Convention in UNESCAP region Afghanistan Armenia Azerbaijan Georgia Indonesia Islamic Republic of Iran Kazakhstan Kyrgyzstan Mongolia Republic of Korea Russian Federation Tajikistan Turkey Turkmenistan Uzbekistan Total: 15 contracting parties to the TIR Convention Japan is a contracting party to 1959 TIR Convention

20 Application of TIR Convention in UNESCAP region [1] Country TIR carnets issued in 2011 Armenia Azerbaijan Georgia Iran (Islamic Republic of) Kazakhstan Kyrgyzstan TIR carnets issued in 2012

21 Application of TIR Convention in UNESCAP region [2] Country TIR Carnets issued in 2011 Mongolia Russian Federation Tajikistan Turkey Turkmenistan Uzbekistan TIR Carnets issued in 2012

22 Possibility of TIR Intermodal application Article 2 of the TIR Convention, 1975 stipulates: This Convention shall apply to the transport of goods without intermediate reloading, in road vehicles, combinations of vehicles or in containers, across one or more frontiers between a Customs office of departure of one Contracting Party and a Customs office of destination of another or of the same Contracting Party, provided that some portion of the journey between the beginning and the end of the TIR transport is made by road

23 Examples of possible TIR Intermodal application TIR transport with short-sea sea shipping or ro/ro leg (e.g. trailer from the UK to continental Europe) TIR transport using with sea leg from Turkey to Italy and further to Europe (see the example of the filled-in in carnet) TIR transport with inland water transport leg (e.g. trailer/container on Danube barge from Romania to Austria) TIR transport with deep sea container leg (e.g. container from France to Morocco via Mediterranean Sea) TIR transport with railway leg (e.g. container per rail from Kazakhstan to Italy via Germany) 23

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25 ESCAP Concept of TIR application in East and North-East Asia Goods in a container can be carried from a dry port in a country to a dry port in another country through seaports and border crossings without routine physical inspections of goods TIR application can simplify procedures and formalities for import/export and transit, which will enhance operational connectivity of the countries and reduce transport costs and time among the countries The Republic of Korea can start operating the TIR system, Japan can switch from old version of the TIR Convention the new version, China can be encouraged to accede the Convention, number of TIR operations can increase in Mongolia and the Russian Federation

26 Possible TIR intermodal operations Republic of Korea (road from origin to port)- (sea leg) Russian Federation (road or rail to destination) Republic of Korea (road from origin to port)- (sea leg) Iran (road to destination) Republic of Korea (road from origin to port)- (sea leg) Japan (road to destination) Republic of Korea (road from origin to port)- (sea leg) China (road or rail to destination) Mongolia (road or rail to destination) once China joins the TIR Convention Republic of Korea (road from origin to port)- (sea leg) Indonesia (road to destination)

27 Belogorsk Ulaanbaatar Khabarovsk MONGOLIA Zamin Uud Eranhot Ussuriysk Vladivostok CHINA Tanggu Incheon Uiwang Youngnam Pusan Kyoto Osaka Possible TIR Operation once the Republic of Korea is active TIR may be suspended on this route / Potential TIR Operation after China s accession Suspension of TIR Operation over water routes Potential TIR route after Japan s s accession

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30 Initial operating requirements? Customs authorities of the countries concerned accept such operations National guaranteeing associations in all TIR Countries established and recognized by the Customs

31 Recent developments in Intermodal TIR Survey undertaken by UNECE: More detailed study for potential interest required for North-East Asia

32 Thank you!