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The TIR Convention and transit issues

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.

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The TIR Convention and transit issues

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  1. 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

  2. Customs transit: principles Goods are transported under Customs control from one Customs office to another in the same Customs territory or another Customs territory Without collecting the duties and taxes and without applying economic or commercial prohibitions or restrictions National or international Freedom of transit: Article V GATT

  3. Importance of Customs transit A reliable and affordable Customs transit regime is a sine qua non for the competitiveness of national economy and economic growth. An effective transit system can bring benefits: • Reduced waiting times and queues at borders and lower transport and trade transaction costs • Transparent, predictable and non-discriminatory rules for all transport operators • Increased efficiency of Customs authorities • Better protection of Customs revenues

  4. National transit Incoming, outgoing and through transit National guarantee system National specific transit declaration (or electronic messages) Many examples

  5. Bilateral or regional transit Closed system between two or more countries Sometimes based on Customs union Avoid use of multiple national transit systems Common or mutually recognized guarantee systems Common Customs document (or electronic messages) Examples: Community and Common transit, NAFTA, Arab manifest, …

  6. International or global transit Open to all interested countries Close collaboration between neighboring countries not required Internationally recognized guarantees Standards documents (or electronic messages) Examples: ATA and TIR

  7. TIR Convention History: • First Convention 1959, revision 1975 • From 6 countries to 68 countries (operational: 57) Characteristics: • Only operational global Customs transit procedure • Also applicable in bilateral transit traffic • Intermodal (trucks and containers) • Based on public-private partnership (PPP)

  8. Advantages Customs Authorities • No physical inspection of goods in transit • No national guarantee system • No national Customs document Transport/Trade Industry • Minimum of procedures at borders • Reduced delays at borders • No restriction in the modes of transport • Lower transport and import/export costs

  9. YEAR TIR CARNETS ISSUED 1959 67,000 1969 790,035 1980 718,612 1990 748,600 2000 2,782,600 2008 3,253,800 Number of TIR Carnets

  10. Contracting Party where Convention is applied Contracting Party where Convention is not applied Potential Contracting Party Geographical scope

  11. The TIR Customs transit procedure TIR Convention, 1975 5 pillars of the TIR system

  12. TIRExB (UNECE) eTIR: Current environment Transport sector Other Customs administrations Guaranteechain National DeclarationMechanism (Single Windows) SafeTIR TIR-EPD ITDBonline Register of stamps and seals National TIR Operation

  13. Fully computerized eTIR system Transport sector Other Customs administrations Guaranteechain National DeclarationMechanism (Single Windows) SafeTIR TIR-EPD National TIR Operation ? e

  14. Summary • International intermodal Customs transit system (bilateral, inter-regional, intercontinental) • Provides cost efficient Customs transit procedure and facilitation • Ensures revenue protection through guarantee • Boosts competitiveness & global integration • Builds on Public/Private partnership model • Enhances transit and supply chain security

  15. Recommendations • Accede to the TIR Convention and start its practical application, if not done yet • Ensure its proper implementation • Support and contribute to the computerization of the TIR procedure (eTIR project)

  16. http://tir.unece.org

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