TIR System in the ECO Tehran, 13 – 15 December 2008 Jean Acri Head - TIR System © International Road Transport Union (IRU) 2008

What is the IRU? Evolution of IRU Membership 2008 180 Members 73 Countries Created 1948 8 Founder States: Belgium Denmark France Netherlands Norway Sweden UK Switzerland © International Road Transport Union (IRU) 2008

The combined efforts of 29 companies in 18 countries What is globalisation? What does it take to have a cup of coffee in a café? The combined efforts of 29 companies in 18 countries If to have one cup of coffee at an affordable price, it takes 29 companies in 18 countries, you imagine how much more it would cost if all items came from the country where the end product is consumed? If we know that it takes 10’000 suppliers, which in turn have their own suppliers, to create an affordable motor car, you can imagine the vital role of road transport in a liberalised economy. Therefore, to stay in business, we need to see globalisation as an opportunity and not as a threat. To do so, we need, amongst others, to develop facilitation. What is facilitation created by? Harmonised legislation, harmonised institutions and effective enforcement would be the fundamental pre-conditions…To put them in place, the only possibility is a multilateral, global approach. Source: IRU © International Road Transport Union (IRU) 2008

49 Conventions to facilitate road transport © International Road Transport Union (IRU) 2008

Conventions to facilitate road transport UNESCAP Resolution 48/11, 1992 Convention on the Contract for the International Carriage of Goods by Road (CMR), of 1956 Convention on Road Traffic, 1968 TIR Convention, of 1975 Convention on Road Signs and Signals, of 1968 Customs Convention on Temporary Import of Commercial Road Vehicles, 1956 (AFG - Contracting Party) Customs Convention on Containers, of 1972 Road Traffic Convention, 1949 Convention on the Harmonization of Frontier Controls of Goods, 1982 Out of 7 Conventions, we will stress the 3 highlighted ones. © International Road Transport Union (IRU) 2008

ECO member states participation in UN Conventions on road transport © International Road Transport Union (IRU) 2008

* 46 Contracting Parties; a UNECE Convention *Harmonization of Frontier Controls of Goods, 1982 Annex 8 – 20 May 2008 I hope you do not mind the detour on the macro-economic consequences of border waiting times. In this context it becomes clear how important it is to accede to and implement the Harmonisation Convention of 1982, its Annex 8 in particular. The transport industry’s first concern is the relatively low level of accession to this legal instrument: 25 CPs. Let us review Annex 8 article by article. * 46 Contracting Parties; a UNECE Convention © International Road Transport Union (IRU) 2008

Harmonization of Frontier Controls of Goods, 1982 Annex 8 Focuses mainly on: Driver Procedure Vehicle Infrastructure The contents of Annex 8 concern all aspects of border crossing improvements: Visa – Art. 2 Streamlining procedures (urgent consignments) – Art.3 Vehicle technical inspection – Art. 4 Standardised weighing operations – Art. 5 Minimum infrastructure requirements – Art. 6 Monitoring – Art. 7 Government action and PPP needed – nat-bilat-multi UNECE Secretariat Monitoring needed – international Most of these provisions disposes about improvements in national procedural rules, while the most complex issue also covers the introduction of a full network of certified weigh bridges equipped with appropriate technical facilities and staffed by well-trained personnel. The implementation of this provision and that of Article 6 on minimum infrastructure requirements for border crossings would indeed necessitate special and well thought-over preparations by Governments. It is an unfortunate source of risk that most of the Annex’s provisions are vaguely drafted and contain more of a “wish list” than anything else. Therefore, if Associations are not attentive and persuasive enough, Governments may escape from the proper implementation of the new Annex. Monitoring © International Road Transport Union (IRU) 2008

Harmonization of Frontier Controls of Goods, 1982 Annex 8 Article 2 - Visa Facilitate procedure Article 2 - Visa The IRU is of course in agreement with the general objective of facilitating the issuance of visa to professional drivers. But we should admit that this article is extremely vague. Knowing the circumstances of the difficult birth given to this Annex, in particular to this Article, it is a miracle that it is part of the Annex at all. But we need more: + International drivers = special category + Special visa treatment required: Long-term Multi-entry + Reduce formalities: Reduce documentary requirements Reduce time needed for visa issuance + Acknowledge intermediary role of associations + Reasonable fees + Consider Driver ID schemes – like ILO Convention 185 © International Road Transport Union (IRU) 2008

Harmonization of Frontier Controls of Goods, 1982 Annex 8 Article 3 – Transport Operation Move away controls from borders Special transport > special treatment: speed lane, advance notification Perishable cargo, live animals Article 3 – Transport Operation The industry can only be in agreement with Move away controls from borders Special transport >> special treatment: speed, lane, advance notification Perishable cargo, live animals = special treatment But we need more: + special treatment also for Transit under TIR + the application of Single Window, risk management, modern control equipment, + the application of pre-notification, linking up customs transit systems © International Road Transport Union (IRU) 2008

Harmonization of Frontier Controls of Goods, 1982 Annex 8 Articles 4 and 5 – Vehicle Use International Technical Inspection Certificate Use International Vehicle Weight Certificate Articles 4 and 5 – Vehicle We agree with the Use International Technical Inspection Certificate but we need also + replace all other vehicle certificates Use International Vehicle Weight Certificate but we need also + implement in practice! + complex institutional and physical infrastructure needed … and we need more: + harmonise HGV traffic restrictions + fair HGV road user charge systems © International Road Transport Union (IRU) 2008

Harmonization of Frontier Controls of Goods, 1982 Annex 8 Articles 6 and 7 – Border Crossing Joint controls, one-stop, 24/24 Traffic separation; off-lane control Driver facilities Competitive forwarding agents Reporting mechanism Article 6 and 7 - Border Crossing Yes to Joint controls, one-stop, 24/24, but we need also + Single Window + modern control equipment and trained & honest staff + information access + full coordination of control services + security Traffic separation; off-lane control Driver facilities Competitive forwarding agents but we need also + other commercial services Reporting mechanism but we need also + real monitoring function + PPP These are all elements to reduce the disastrous loss caused to the economy by idling at borders. © International Road Transport Union (IRU) 2008

Harmonization of Frontier Controls of Goods, 1982 Annex 8 Entry into Force 20 May 2008 Governments to implement without delay! © International Road Transport Union (IRU) 2008

TIR System an overview © International Road Transport Union (IRU) 2008

TIR Convention TIR System SafeTIR Controlled Access Secure vehicles and containers International Chain of Guarantee TIR Carnet Mutual Recognition of Customs Controls Controlled Access SafeTIR The SIX pillars of the TIR system are the following: Secure vehicles and containers: Only approved load compartments that matches certain standards can be used for TIR transports After being checked by customs – the load compartment will be sealed. This seal should only be broken by the custom office of destination. International Chain of Guarantee: Governments have a guarantee that in case of non payment of duties and taxes, they can claim payment to the chain of guarantee. The chain of guarantee is composed of both national and international guarantors. TIR Carnet The TIR carnet has a dual role: It acts as a custom declaration – it is one harmonised document available with a different number of volets according to the length (# of TIR countries crossed) of the transport It is the guarantee for payment of taxes and duties for a particular transport Mutual recognition Key to the functioning of the TIR system the mutual recognition of the customs authorities is essential to the system. The role played by the custom of origin is key; it is up to the this custom to check the goods along with the declaration in the TIR carnet and to seal the truck’s load compartment. The customs of transit will trust the work performed by the country of origin and unless their is a suspicion of fraud (in which case they may break the seal and perform a detailed check of the load vs. the declaration – TIR Carnet), they will check that the seal is intact and check + fill their relevant part of the TIR carnet. Controlled Access Transporting goods under the TIR system is not a right but a privilege. In order to be able to access the system, transport operators will have to comply with some criteria which are listed in the Annex 9 of the convention – for instance they will have to have a solid financial situation, knowledge of international transport, etc. Safe TIR (Annex 10) In order to monitor traceability of TIR Carnets, Safe TIR has been added to the convention as Annex 10 in Aug. 2006. The monitoring of TIR Transport Termination helps the actors involved in the system to have access to information -> risk management aspect. TIR Convention SafeTIR - traceability and Risk Management – Annex 10 Controlled access - only bona-fide associations and transporters allowed to access TIR system Mutual recognition of Customs controls - reduced need for physical examination of goods in transit International Chain of Guarantee - no deposit of Customs guarantees at borders, no need for calculation of duties & taxes in transit TIR Carnet - single, standard internationally accepted Customs declaration document Protection of Customs revenue - Customs duties & taxes are guaranteed (if transit operation is not terminated properly) IRU Direct Involvement Security - secure vehicles and containers © International Road Transport Union (IRU) 2008

What is the TIR System? 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) © International Road Transport Union (IRU) 2008

Geographical scope of the TIR Convention Contracting Parties 68 TIR Operational Countries 56 Contracting Parties in admission process 2 In negotiation process 3 Interested 6 regular growth © International Road Transport Union (IRU) 2008

TIR Convention, 1975 Benefits: Access to 56 operational countries No inspection of goods at intermediate borders No payment of taxes and duties en route Reduced border delays, transport costs and import/export costs Increased competitiveness and growth Inter-modality Security Managed through efficient Public-Private Partnership © International Road Transport Union (IRU) 2008

Recent IT Developments in TIR TIR and Use of New Technology Recent IT Developments in TIR © International Road Transport Union (IRU) 2008

TIR Risk Management & Traceability IRU Archive Storage Issuing Association IRU Control TIR Carnet Life Cycle Electronic TIR data IRU dBase Issuing Association Holder CUTE-Wise SafeTIR Holder Driver Driver Customs © International Road Transport Union (IRU) 2008

TIR Electronic Pre-Declaration (NCTS/TIR) Pre-declaration 2 Pre-Declaration 1 Fulfils two requirements: Electronic pre-declaration Computerised exchange of information TIR 2 1 TIR Transport TIR - One guarantee - One regime - Independence Madrid © International Road Transport Union (IRU) 2008

IRU - FCS Real-Time SafeTIR Project The status of the TIR Carnet: Valid (with the following details: Holder ID, validity date, Issuing Association name) Invalid Not issued/False/other situations GNIVTs Moscow SafeTIR data IRU Geneva What is the status of the TIR Carnet? Real-Time SafeTIR project: The association can issue in security The Customs can accept the TIR Carnet in security knowing that the association has issued it in security © International Road Transport Union (IRU) 2008

TIR CARNETS USED BY ECO TRANSPORT OPERATORS IN 2007 © International Road Transport Union (IRU) 2008

Number of TIR carnets issued to Association from 2003 to 2008 (October) Country Association 2003 2004 2005 2006 2007 2008 (up to end oct.) Total issued to AFGHANISTAN   AZERBAIDJAN ABADA 1900 3950 5000 5500 9000 9500 34850 IRAN ICCIM 33000 48000 52000 247000 KAZAKHSTAN KAZATO 17400 17000 19600 32650 39050 29150 154850 KYRGYZSTAN KYRGYZ AIA 2700 4900 6250 11450 18100 17020 60420 PAKISTAN TADJIKISTAN ABBAT 50 300 500 400 1250 TURKEY TOBB 419000 544000 589000 689000 788500 765000 3794500 TURKMENISTAN THADA 150 200 1000 600 3350 UZBEKISTAN AIRCUZ 900 2400 1800 4500 7000 21600 Total issued to group during the year 475050 605450 655100 792400 915150 874670 915 000 TIR Carnets have been issued by the IRU to the Associations of the Eco countries in 2007. 825 000 out of 915 000 have actually been used by ECO countries transport operators in 2007. © International Road Transport Union (IRU) 2008

TIR CARNETS USED BY ECO TRANSPORT OPERATORS IN 2007 825 000 TIR CARNETS HAVE BEEN USED BY ECO TRANSPORT OPERATORS IN 2007 WHICH REPRESENTS 26% OF ALL TIR CARNETS USED IN THE WORLD © International Road Transport Union (IRU) 2008

TIR CARNETS USED BY ECO TRANSPORT OPERATORS IN 2007 50% (406 000) WERE USED FOR TRANSPORT BETWEEN ECO COUNTRIES © International Road Transport Union (IRU) 2008

TIR CARNETS USED BY ECO TRANSPORT OPERATORS IN 2007 38% (320 000) WERE USED FOR TRANSPORT TO EUROPE AND EFTA COUNTRIES © International Road Transport Union (IRU) 2008

TIR CARNETS USED BY ECO TRANSPORT OPERATORS IN 2007 9% (70 000) WERE USED FOR TRANSPORT TO RUSSIA, BELARUS AND UKRAINE © International Road Transport Union (IRU) 2008

TIR CARNETS USED BY ECO TRANSPORT OPERATORS IN 2007 3% (30 000) WERE USED FOR TRANSPORT TO THE MIDDLE EAST AND CAUCASIAN REGIONS © International Road Transport Union (IRU) 2008

TIR CARNETS USED FOR TRANSPORT TO ECO COUNTRIES IN 2007 © International Road Transport Union (IRU) 2008

TIR CARNETS USED FOR TRANSPORT TO ECO COUNTRIES IN 2007 506’000 TIR CARNETS HAVE BEEN USED FOR TRANSPORT TO ECO COUNTRIES, INCLUDING THOSE USED BY ECO TRANSPORT OPERATORS. WHICH REPRESENTS 16 % OF ALL CARNETS ISSUED IN 2007 © International Road Transport Union (IRU) 2008

TIR CARNETS USED FOR TRANSPORT TO ECO COUNTRIES IN 2007 16% (506 000) OF TIR CARNETS USED IN 2007 INCLUDING THOSE USED BY ECO TRANSPORT OPERATORS, WERE USED FOR TRANSPORT TO ECO COUNTRIES © International Road Transport Union (IRU) 2008

TIR CARNETS USED FOR TRANSPORT TO ECO COUNTRIES IN 2007 100 000 TIR CARNETS WERE USED FOR TRANSPORT TO ECO COUNTRIES BY FOREIGN TRANSPORT OPERATORS WHICH REPRESENTS 3% OF THE TOTAL NUMBER OF TIR CARNETS USED IN 2007 © International Road Transport Union (IRU) 2008

TIR CARNETS USED FOR TRANSPORT TO ECO COUNTRIES IN 2007 75 % (75 000) WERE USED BY TRANSPORT OPERATORS FROM EU AND EFTA COUNTRIES IN 2007 © International Road Transport Union (IRU) 2008

TIR CARNETS USED FOR TRANSPORT TO ECO COUNTRIES IN 2007 4% (4 000) WERE USED BY TRANSPORT OPERATORS FROM THE MIDDLE EAST AND CAUCASIAN REGIONS IN 2007. © International Road Transport Union (IRU) 2008

CARNETS TERMINATED IN ECO COUNTRIES 21% (21 000) WERE USED BY TRANSPORT OPERATORS FROM RUSSIA, BELARUS AND UKRAINE IN 2007. © International Road Transport Union (IRU) 2008

CARNETS TERMINATED IN ECO FIGURES TERMINATED IN ECO COUNTRIES EUROPE MIDDLE EAST CAUCASUS RUSSIA-BEL-UKR CARNETS ISSUED BY ECO 406 000 320 000 30 000 70 000 50% 38% 3% 9% CARNETS ISSUED BY WORLD EXCEPT ECO COUNTRIES MIDDLE EAST CAUCASUS CARNETS TERMINATED IN ECO 100 000 75 000 4 000 21 000 % 75% 4% 21% © International Road Transport Union (IRU) 2008

TIR in ECO countries Main obstacle to the TIR System in ECO countries: Bilateral transport based on CMR and national guarantees Solution to facilitate bilateral transport in ECO region: Use of 4 volet Carnets No formalities at border No guarantee to deposit for each movement Benefit from internationally recognized guarantee © International Road Transport Union (IRU) 2008

New trends and challenges in the TIR System © International Road Transport Union (IRU) 2008

IRU NELTI Project… changing mindsets! © International Road Transport Union (IRU) 2008

NELTI routes © International Road Transport Union (IRU) 2008

Multilateral agreements WCO SAFE Framework Requirement fulfilled by  Slide 10 Now into the heart of the matter: security challenges. SAFE: adopted by WCO in 2005; commitment by ca. 150 countries. TIR satisfies WCO requirements, and helps to implement the Framework. TIR share the same objectives, as it encourages the secure and sustainable development of international trade (controlled access, traceability) TIR provides for mutual recognition, which is essential for an effective implementation of the SAFE. © International Road Transport Union (IRU) 2008

US Chamber of Commerce Findings Result of a study commissioned by the US Chamber of Commerce that compared various International Conventions such as SOLAS and Revised Kyoto Convention. Page 43 © International Road Transport Union (IRU) 2008 © International Road Transport Union (IRU) 2008

Possible contribution by ECO countries ECO and member states contribution to the development and sustainability of the TIR System: Re-activate accession to the TIR and other Conventions by Pakistan Contribution to the UNECE TIR Convention and bodies: WP30 AC2 TIRExB ECO secretariat should receive a clear mandate from its member states to represent them in the UNECE and Convention bodies © International Road Transport Union (IRU) 2008

Possible contribution by ECO countries Positions to be defended by ECO in UNECE/TIR Convention bodies: For TIR: Urge for strict implementation of risk management measures: Real-Time SafeTIR and EPD Reject amendments that would weaken the TIR Convention Urge contracting parties to give a mandate to the UNECE secretariat to draft the necessary amendments to ensure that the TIR Convention fully implements the WCO SAFE framework Promote and contribute to dedicated trainings aimed at harmonising the implementation of the TIR Convention For Harmonization Convention: ECO countries and national associations should fully implement Annex 8 of the Harmonization Convention Push for national action plans (national border crossing monitoring activities and joint border crossing controls) Provide necessary data to the IRU Border Waiting Times Observatory to monitor the implementation of Annex 8 © International Road Transport Union (IRU) 2008

TIR System is a facilitation tool answering the needs of both Public and Private sectors © International Road Transport Union (IRU) 2008

www.iru.org © International Road Transport Union (IRU) 2008