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UNITED UNITED NATIONS NATIONS Konstantin Glukhenkiy TIR Secretary United Nations Economic Commission for Europe The TIR Convention and transit issues The TIR Convention and transit issues 2nd OPERATIONAL MEETING OF THE PAM PANEL ON 2nd OPERATIONAL MEETING OF THE PAM PANEL ON EXTERNAL TRADE AND INVESTMENTS IN THE EXTERNAL TRADE AND INVESTMENTS IN THE MEDITERRANEAN MEDITERRANEAN Geneva, 4 and 5 May 2011 Geneva, 4 and 5 May 2011

The TIR Convention and transit issues

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2nd OPERATIONAL MEETING OF THE PAM PANEL ON EXTERNAL TRADE AND INVESTMENTS IN THE MEDITERRANEAN Geneva, 4 and 5 May 2011. The TIR Convention and transit issues. Customs transit: principles. - PowerPoint PPT Presentation

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UNITEDUNITEDNATIONSNATIONS

Konstantin Glukhenkiy

TIR Secretary

United Nations

Economic Commission for Europe

The TIR Convention and transit issuesThe TIR Convention and transit issues

2nd OPERATIONAL MEETING OF THE PAM PANEL ON 2nd OPERATIONAL MEETING OF THE PAM PANEL ON EXTERNAL TRADE AND INVESTMENTS IN THE EXTERNAL TRADE AND INVESTMENTS IN THE

MEDITERRANEANMEDITERRANEAN

Geneva, 4 and 5 May 2011Geneva, 4 and 5 May 2011

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• Goods are transported under Customs control Goods are transported under Customs control from one Customs office to another in the same from one Customs office to another in the same Customs territory or another Customs territoryCustoms territory or another Customs territory

• Without collecting the duties and taxes and Without collecting the duties and taxes and without applying economic or commercial without applying economic or commercial prohibitions or restrictionsprohibitions or restrictions

• National or internationalNational or international• Freedom of transit: Article V GATTFreedom of transit: Article V GATT

Customs transit: principlesCustoms transit: principles

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• A reliable and affordable Customs transit regime is A reliable and affordable Customs transit regime is a sine qua non for the competitiveness of national a sine qua non for the competitiveness of national economy and economic growth. economy and economic growth.

• An effective transit system can bring benefits:An effective transit system can bring benefits:– Reduced waiting times and queues at borders and lower Reduced waiting times and queues at borders and lower

transport and trade transaction coststransport and trade transaction costs– Transparent, predictable and non-discriminatory rules for Transparent, predictable and non-discriminatory rules for

all transport operatorsall transport operators– Increased efficiency of Customs authorities Increased efficiency of Customs authorities – Better protection of Customs revenuesBetter protection of Customs revenues

Importance of Customs transitImportance of Customs transit

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• Incoming, outgoing and through transitIncoming, outgoing and through transit• National guarantee systemNational guarantee system• National specific transit declaration (or National specific transit declaration (or

electronic messages)electronic messages)• Many examplesMany examples

National transitNational transit

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• Closed system between two or more countriesClosed system between two or more countries• Sometimes based on Customs unionSometimes based on Customs union• Avoid use of multiple national transit systemsAvoid use of multiple national transit systems• Common or mutually recognized guarantee Common or mutually recognized guarantee

systemssystems• Common Customs document (or electronic Common Customs document (or electronic

messages)messages)• Examples: Community and Common transit, Examples: Community and Common transit,

NAFTA, Arab manifest, …NAFTA, Arab manifest, …

Bilateral or regional transitBilateral or regional transit

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• Open to all interested countriesOpen to all interested countries• Close collaboration between neighboring Close collaboration between neighboring

countries not requiredcountries not required• Internationally recognized guaranteesInternationally recognized guarantees• Standards documents (or electronic messages)Standards documents (or electronic messages)• Examples: ATA and TIRExamples: ATA and TIR

International or global transitInternational or global transit

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TIR ConventionTIR Convention HistoryHistory: : • First Convention 1959, revision 1975First Convention 1959, revision 1975• From 6 countries to 68 countries From 6 countries to 68 countries

(operational: 57)(operational: 57)

CharacteristicsCharacteristics::

• Only operational global Customs transit Only operational global Customs transit procedureprocedure

• Also applicable in bilateral transit trafficAlso applicable in bilateral transit traffic

• Intermodal (trucks and containers)Intermodal (trucks and containers)

• Based on public-private partnership (PPP)Based on public-private partnership (PPP)

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AdvantagesAdvantagesCustoms AuthoritiesCustoms Authorities• No physical inspection of goods in transitNo physical inspection of goods in transit• No national guarantee systemNo national guarantee system• No national Customs documentNo national Customs document

Transport/Trade IndustryTransport/Trade Industry

• Minimum of procedures at bordersMinimum of procedures at borders

• Reduced delays at bordersReduced delays at borders

• No restriction in the modes of transportNo restriction in the modes of transport

• Lower transport and import/export costsLower transport and import/export costs

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Number of TIR CarnetsNumber of TIR Carnets

3,253,8002008

2,782,6002000

748,6001990

718,6121980

790,0351969

67,0001959

TIR CARNETS ISSUEDYEAR

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Geographical scopeGeographical scope

Contracting Party where Convention is appliedContracting Party where Convention is not appliedPotential Contracting Party

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The TIR Customs transit procedureThe TIR Customs transit procedure

TIR Convention, 1975TIR Convention, 1975

5 pillars of the TIR system5 pillars of the TIR system

Secure vehiclesor containers

Internationalguarantee

Document(TIR Carnet)

Mutual recognitionof Customs

control

Controlledaccess

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eTIR: Current environmenteTIR: Current environment

National National TIR TIR

OperationOperation

Transport Transport sectorsector

Other Customs Other Customs administrationsadministrations

Guarantee Guarantee chainchain

TIRExBTIRExB(UNECE)(UNECE)

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Fully computerized eTIR systemFully computerized eTIR system

National National TIR TIR

OperationOperation

Transport Transport sectorsector

Other Customs Other Customs administrationsadministrations

Guarantee Guarantee chainchain

e?

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SummarySummary

• International intermodal Customs transit system International intermodal Customs transit system (bilateral, inter-regional, intercontinental) (bilateral, inter-regional, intercontinental)

• Provides cost efficient Customs transit Provides cost efficient Customs transit procedure and facilitationprocedure and facilitation

• Ensures revenue protection through guaranteeEnsures revenue protection through guarantee• Boosts competitiveness & global integrationBoosts competitiveness & global integration• Builds on Public/Private partnership modelBuilds on Public/Private partnership model• Enhances transit and supply chain security Enhances transit and supply chain security

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RecommendationsRecommendations

• Accede to the TIR Convention and start its Accede to the TIR Convention and start its practical application, if not done yetpractical application, if not done yet

• Ensure its proper implementationEnsure its proper implementation

• Support and contribute to the computerization of Support and contribute to the computerization of the TIR procedure (eTIR project) the TIR procedure (eTIR project)

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http://tir.unece.orghttp://tir.unece.org