TheThe TIR Convention and the concept of TIR Convention and the concept of its application in East and its application in East and

NorthNorth--East Asia East Asia

Seminar on the Development of a Seminar on the Development of a Comprehensive Transport and Logistics Comprehensive Transport and Logistics Network in NorthNetwork in North--East Asia East Asia SubregionSubregion

Seoul, 21 March 2013Seoul, 21 March 2013

Mr. Fedor Kormilitsyn

Economic Affairs OfficerTransport Facilitation and Logistics SectionTransport Division

OutlineOutline

The TIR Convention and TIR system: overall description and backgroundIntroduction to electronic TIR (eTIR) projectCurrent status and application in ESCAP region TIR system and intermodal transportUNESCAP concept for application of TIR System for international intermodal transport in East and North-East Asia

The TIR Convention, 1975The 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 Convention68 Contracting Parties worldwideOne of the most successful international transport conventions with wide practical application

Geographical scope of the TIR Convention

= Contracting Party where Convention is applied (2011)

= Contracting Party where Convention is not applied (2011)

= Potential Contracting Party

The TIR system

The only universal Customs transit system existing at presentOperational in 57 countries worldwideAllows 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

The TIR System actors

The UN TIR bodiesThe International Organization assigned to manage the system The governments of the Contracting Parties (mostly Customs authorities)The national issuing and guaranteeing associationsThe TIR Carnet holders (transport operators)

Key principles of the TIR System

Secure vehicles or containersInternational guarantee chainTIR CarnetMutual recognition of Customs control Controlled access to the TIR System

Secure vehicles or containers

Goods are to be carried in sealed vehicles or containers which are approved for use by Customs and re-approved every two yearsNo goods can be removed without leaving obvious traces or breaking the Customs sealCustoms seals can be simply and effectively affixed to them

Approval of road vehicles and containers

Secure loading units and sealingAnnexes to Convention on technical construction of loading unitsAnnex 2 on VehiclesAnnex 7 on Containers (intermodal)Sealing requirement

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 $ 50.000 per TIR Carnet (unless otherwise agreed with the Customs authorities of a particular country)

The TIR CarnetCustoms document replaces any other national Customs transit documentsGuarantee document which itself proves the existence and validity of the guaranteeAnnex 1: Model

Mutual recognition of Customs controls

Principle: Customs control measures taken in the country of departure should be accepted by the countries of transit and destinationNo examination of sealed load compartments, except in special casesCustoms inspection at the office of departure crucialNormally only documentary control en route

Controlled accessBy Administrative Committee of International organizationBy national Customs authority of national Associations issuing and guaranteeing TIR CarnetsBy national Customs authority of Transport Operators

Main advantages [1]

For Customs AuthoritiesNo physical inspection of goods in transit (in principle)No national guarantee systemNo national Customs documentation and control systemEfficient control procedures for goods in transit

Main advantages [2]

Transport/Trade IndustryMinimum of procedures at bordersReduced delays at bordersNo restriction in the modes of transportLower transport costs (reduced export and import costs)

The eTIR project: towards the full computerization of the TIR system

Data exchange platform for all actors involved in the TIR systemSecure exchange of data between national Customs systems related to the international transit of goods under TIR ConventionAims to allow Customs to manage the data on guarantees, issued by guarantee chains to holders

The eTIR project

The UNESCAP Resolution 48/11 on The UNESCAP Resolution 48/11 on ““Road and rail Road and rail transport modes in relation to facilitation measurestransport modes in relation to facilitation measures””, , 19921992

Recommendation to consider accession to the Recommendation to consider accession to the following international conventions facilitating road following international conventions facilitating road transport:transport:

The Convention on Road TrafficThe Convention on Road Traffic,, 19681968The Convention on Road Signs and SignalsThe Convention on Road Signs and Signals, , 19681968The Customs Convention on the International Transport of The Customs Convention on the International Transport of Goods under Cover of TIR Carnets (TIR Convention), 1975Goods under Cover of TIR Carnets (TIR Convention), 1975The Customs Convention on the Temporary Importation of The Customs Convention on the Temporary Importation of Commercial Road Vehicles, 1956 Commercial Road Vehicles, 1956 The Customs Convention on Containers, 1972The Customs Convention on Containers, 1972The International Convention on the Harmonization of Frontier The International Convention on the Harmonization of Frontier Controls of Goods, 1982Controls of Goods, 1982The Convention on the Contract for the International Carriage ofThe Convention on the Contract for the International Carriage ofGoods by Road (CMR), 1956 Goods by Road (CMR), 1956

Status of 1975 TIR Convention Status of 1975 TIR Convention in UNESCAP regionin UNESCAP region

AfghanistanArmeniaAzerbaijanGeorgiaIndonesiaIslamic Republic of IranKazakhstanKyrgyzstan

MongoliaRepublic of KoreaRussian FederationTajikistanTurkeyTurkmenistanUzbekistan

Total: 15 contracting parties to the TIR Convention

Japan is a contracting party to 1959 TIR Convention

Application of TIR Convention in UNESCAP region [1]Country TIR carnets issued

in 2011TIR carnets issued in 2012

Armenia 2000 3800

Azerbaijan 9100 11400

Georgia 7000 8200

Iran (Islamic Republic of)

78000 85000

Kazakhstan 24500 19000

Kyrgyzstan 20700 17100

Application of TIR Convention in UNESCAP region [2]Country TIR Carnets issued

in 2011TIR Carnets issued in 2012

Mongolia 50 100

Russian Federation 568200 598000

Tajikistan 1500 2950

Turkey 672000 685000

Turkmenistan 4700 6000

Uzbekistan 1050 700

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

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•• TIR transport with shortTIR transport with short--sea shipping or sea shipping or ro/roro/ro leg (e.g. leg (e.g. trailer from the UK to continental Europe)trailer from the UK to continental Europe)

•• TIR transport using with sea leg from Turkey to Italy and TIR transport using with sea leg from Turkey to Italy and further to Europe (see the example of the filledfurther to Europe (see the example of the filled--in carnet)in carnet)

•• TIR transport with inland water transport leg (e.g. TIR transport with inland water transport leg (e.g. trailer/container on Danube barge from Romania to Austria)trailer/container on Danube barge from Romania to Austria)

•• TIR transport with deep sea container leg (e.g. container TIR transport with deep sea container leg (e.g. container from France to Morocco via Mediterranean Sea)from France to Morocco via Mediterranean Sea)

•• TIR transport with railway leg (e.g. container per rail from TIR transport with railway leg (e.g. container per rail from Kazakhstan to Italy via Germany)Kazakhstan to Italy via Germany)

Examples of possible TIR Intermodal applicationExamples of possible TIR Intermodal application

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 goodsTIR 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 countriesThe 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

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 ConventionRepublic of Korea (road from origin to port)- (sea leg) – Indonesia (road to destination)

TangguTanggu

VladivostokVladivostok

PusanPusan

KhabarovskKhabarovsk

BelogorskBelogorsk

UlaanbaatarUlaanbaatar

UssuriyskUssuriyskMONGOLIAMONGOLIA

CHINACHINA

KyotoKyotoOsakaOsaka

IncheonIncheon

UiwangUiwangYoungnamYoungnam

Zamin UudZamin Uud

Possible TIR Operation once the Republic of Korea is active Possible TIR Operation once the Republic of Korea is active TIR may be suspended on this route / Potential TIR Operation aftTIR may be suspended on this route / Potential TIR Operation after Chinaer China’’s s accessionaccessionSuspension of TIR Operation over water routesSuspension of TIR Operation over water routes

EranhotEranhot

Potential TIR route after JapanPotential TIR route after Japan’’s accessions accession

Initial operating requirements?

Customs authorities of the countries concerned accept such operationsNational guaranteeing associations in all TIR Countries established and recognized by the Customs

Recent developments in Intermodal TIR

Survey undertaken by UNECE:http://www.unece.org/tir/news/270213.html

More detailed study for potential interest required for North-East Asia

Thank you!Thank you!