First ECO/IRU, TIR Workshop Kabul, May 2010

TIR principles and benefits © International Road Transport Union (IRU) 2010Page 2 Session II: TIR contribution to ECO trade and transport development Jean Acri Special TIR Advisor

TIR System an overview Facilitation Page 3 © International Road Transport Union (IRU) 2010

Transports Transports Internationaux Routiers Managed by the IRU since 1949 Page 4 © International Road Transport Union (IRU) 2010

Geographical scope of the TIR Convention Contracting Party in Admission Process TIR Operational Countries In Negotiation Process InterestedParties Contracting Parties Parties Page 5 © International Road Transport Union (IRU) 2010

What is the TIR System?  The best multilateral facilitation instrument for international transport and trade  Based on TIR Convention of 1975  Currently signed by 68 contracting parties, with the possibility to be implemented globally and multi- modally (road-rail, road-maritime, road-air) Page 6 © International Road Transport Union (IRU) 2010

Benefits of the TIR System Ensure the secure and sustainable development of international trade (controlled access, traceability) Gives access to 57 TIR operational countries Through mutual recognition of Customs Controls and the guarantee, transport costs, formalities and delays are reduced Facilitates trade through the implementation of harmonised controls & documents & IRU TIR-EPD& IRU TIR-EPD Page 7 © International Road Transport Union (IRU) 2010

TIR Convention SafeTIR Mutual Recognition of Customs Controls Controlled Access International Chain of Guarantee Secure vehicles and containers TIR Carnet Security - secure vehicles and containers International Chain of Guarantee - no deposit of Customs guarantees at borders, no need for calculation of duties & taxes in transit Protection of Customs revenue - Customs duties & taxes are guaranteed (if transit operation is not terminated properly) TIR Carnet - single, standard internationally accepted Customs declaration document Mutual recognition of Customs controls - reduced need for physical examination of goods in transit Controlled access - only bona-fide associations and transporters allowed to access TIR system SafeTIR - traceability and Risk Management – Annex 10 IRU Direct Involvement Page 8

Secure Trade Facilitation Facilitation = Page 9

 Customs procedures: National guarantee Inspection of the goods and the vehicle Security checks etc…….  Customs procedures: National guarantee Inspection of the goods and the vehicle Security checks etc……. Trade Without a Transit System © International Road Transport Union (IRU) 2010 Page 10

Border crossing Country A Country C Country B Temporary import Export Temporary import Export National guarantee Trade without a Transit System Export Page 11

Objectives of International Transit Systems  To facilitate trade through… Simplified & harmonised Customs guarantee and proceduresSimplified & harmonised Customs guarantee and procedures Border crossing facilitation for customs officers and trade operatorsBorder crossing facilitation for customs officers and trade operators Improved cost effectivenessImproved cost effectiveness Secure door to door transport of goods under Customs controlSecure door to door transport of goods under Customs control © International Road Transport Union (IRU) 2010 Page 12

Border crossing Country A Country C Country B Temporary import Export Temporary import Export National guarantee Transport under TIR Export Page 13

TIR Benefits Page 14 Customs transit declaration Proof of the financial guarantee for Customs Authorities © International Road Transport Union (IRU) 2010

OUTWARD TRANSIT THROUGH TRANSIT INWARD TRANSIT Example of a TIR transport © International Road Transport Union (IRU) 2010 Page 15

Customs office of departure OUTWARD TRANSIT Customs office of exit TIR in Operation Country of Departure © International Road Transport Union (IRU) 2010 Page 16

Customs office of entry THROUGH TRANSIT Customs office of exit TIR in Operation Country of Transit © International Road Transport Union (IRU) 2010 Page 17

INWARD TRANSIT Customs office of destination Customs office of entry TIR in Operation Country of Destination SafeTIR Confirmation © International Road Transport Union (IRU) 2010 Page 18

TIR - Benefits Page 19 Simplified & harmonised Customs guarantee and procedures Controls: at departure and destination Border crossing facilitation for customs officers and trade operators © International Road Transport Union (IRU) 2010

TIR - Benefits Page 20© International Road Transport Union (IRU) 2010 Multiple border crossing, Local trade, bilateral transport bilateral transport

TIR - Benefits Page 21 Secure door to door transport of goods under Customs control © International Road Transport Union (IRU) 2010

TIR - Benefits  The only transit system with a world-wide coverage.  TIR is an international transit system for goods.  It can be applied for multimodal transports whenever one leg is carried out by road. © International Road Transport Union (IRU) 2010 Page 22

TIR - Benefits Page 23 Improved cost effectiveness  suppress national guarantees  suppress involvement of third parties  recognise in 57 countries  speed-up border procedures © International Road Transport Union (IRU) 2010

TIR: Access to 57 countries Contracting Party in Admission Process TIR Operational Countries In Negotiation Process InterestedParties Contracting Parties Parties Page 24

TIR = Security  Vehicles/Containers : approved  Controlled access  Holder authorised  TIR Carnet = IT traceability/tracking Page 25 © International Road Transport Union (IRU) 2010

IRU - UNCTAD  IRU and UNCTAD signed a Memorandum of Understanding (27 April 2010) outlining areas of future cooperation between the two partner organisations Page 26 ASYCUDA © International Road Transport Union (IRU) 2010

WCO SAFE and TIR Convention   Page 27 © International Road Transport Union (IRU) 2010

TIR in the region Page 28 Candidate © International Road Transport Union (IRU) 2010

TIR in operation in ECO countries © International Road Transport Union (IRU) 2010 Page 29

Number of TIR carnets issued to Associations from 1996 to 2009 Page 30 Country Country code Contracting party since Increase 2005 v AfghanistanAFG AzerbaidjanAZE199605,0007, % Iran, Islamic Republic of IRN198520,00033,00058, % KazakhstanKAZ ,60031, % KyrgyzstanKGZ197706,25015, % PakistanPAKN/A000 TajikistanTJK % TurkmenistanTKM , % TurkeyTUR ,000589,000490,000-17% UzbekistanUZB19962,0001,8006, % Total ECO Countries 285,500655,100611, % Total all countries 2,422,2503,240,6502,230,400-31% Percentage (ECO Countries) 12%20%27% © International Road Transport Union (IRU) 2010

TIR Carnet issued to ECO countries: Page 31 © International Road Transport Union (IRU) 2010

TIR Carnets issued to ECO countries: Total # of TIR Carnets issued Year All countries ECO Percentage ( ECO countries/Global) 19%20%22%30%27%27% Page 32 © International Road Transport Union (IRU) 2010

TIR Carnets issued by ECO countries: Page 33 © International Road Transport Union (IRU) 2010

TIR CARNETS USED TO ECO TRANSPORT OPERATORS IN ’050 TIR CARNETS HAVE BEEN USED BY ECO TRANSPORT OPERATORS IN 2009 WHICH REPRESENTS 27% OF ALL TIR CARNETS USED IN THE WORLD © International Road Transport Union (IRU) 2010 Page 34

TIR CARNETS USED BY ECO TRANSPORT OPERATORS IN % ( ) WERE USED FOR TRANSPORT FOR TRANSPORT BETWEEN ECO COUNTRIES © International Road Transport Union (IRU) 2010 Page 35

TIR CARNETS USED BY ECO TRANSPORT OPERATORS IN % ( ) WERE USED FOR TRANSPORT TO EUROPE AND EFTA COUNTRIES © International Road Transport Union (IRU) 2010 Page 36

TIR CARNETS USED BY ECO TRANSPORT OPERATORS IN 2009 % (42 773) WERE USED FOR TRANSPORT TO RUSSIA, BELARUS AND UKRAINE 7% (42 773) WERE USED FOR TRANSPORT TO RUSSIA, BELARUS AND UKRAINE © International Road Transport Union (IRU) 2010 Page 37

TIR CARNETS USED BY ECO TRANSPORT OPERATORS IN 2009 % (18 331) WERE USED FOR TRANSPORT TO OTHER COUNTRIES 3% (18 331) WERE USED FOR TRANSPORT TO OTHER COUNTRIES © International Road Transport Union (IRU) 2010 Page 38

TIR CARNETS USED FOR TRANSPORT TO ECO COUNTRIES IN ’000 TIR CARNETS HAVE BEEN USED FOR TRANSPORT TO ECO COUNTRIES, INCLUDING THOSE USED BY ECO TRANSPORT OPERATORS. 22 % of all TIR Carnets issued in 2009 delivered goods in/within ECO region © International Road Transport Union (IRU) 2010 Page 39

TIR CARNETS USED BY ECO TRANSPORT OPERATORS IN % (377’519) WERE USED FOR TRANSPORT BETWEEN ECO COUNTRIES © International Road Transport Union (IRU) 2010 Page 40

TIR CARNETS USED FOR TRANSPORT TO ECO COUNTRIES IN % (77 000) WERE USED BY TRANSPORT OPERATORS FROM EU AND EFTA COUNTRIES IN 2009 © International Road Transport Union (IRU) 2010 Page 41

TIR CARNETS USED FOR TRANSPORT TO ECO COUNTRIES IN % (8 300) WERE USED BY TRANSPORT OPERATORS FROM OTHER COUNTRIES IN % (8 300) WERE USED BY TRANSPORT OPERATORS FROM OTHER COUNTRIES IN © International Road Transport Union (IRU) 2010 Page 42

CARNETS TERMINATED IN ECO COUNTRIES 6% (30 600) WERE USED BY TRANSPORT OPERATORS FROM RUSSIA, BELARUS AND UKRAINE IN Page 43 © International Road Transport Union (IRU) 2010

FIGURES-SUMMARY TERMINATED IN ECO COUNTRIESEUROPE RUSSIA - BEL- UKR OTHERS CARNETS ISSUED BY ECO ’ %16%6%2% Page 44 © International Road Transport Union (IRU) 2010

Obstacles and difficulties to the development of International Road Transport  Of general nature: Unbalanced trade flowsUnbalanced trade flows Visa formalitiesVisa formalities Transport checks and safetyTransport checks and safety Border crossing infrastructureBorder crossing infrastructure Illegal actions by officialsIllegal actions by officials Lack of bilateral or multilateral transport permitsLack of bilateral or multilateral transport permits © International Road Transport Union (IRU) 2010 Page 45

Obstacles and difficulties to the development of International Road Transport  Specific : Lack of harmonisation of Customs and border crossing regulationsLack of harmonisation of Customs and border crossing regulations Compulsory trans-shipment of goods at some bordersCompulsory trans-shipment of goods at some borders Bilateral trade and transport subject to Customs procedures at bordersBilateral trade and transport subject to Customs procedures at borders Lack of knowledge of the possibilities offered by the TIR SystemLack of knowledge of the possibilities offered by the TIR System Multimodal applicability: unknownMultimodal applicability: unknown Page 46 © International Road Transport Union (IRU) 2010

Conclusion TIR can help to overcome these obstacles : Development of secure Trade and International Road Transport Page 47 © International Road Transport Union (IRU) 2010

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