TIR: Facilitation and Security for a Globalised Economy IRU – TIR System TIR: Facilitation and Security for a Globalised Economy Umberto de Pretto Deputy Secretary General © International Road Transport Union (IRU) 2007

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 Road transport has become a vital production tool! Let me explain with the simple example of a cup of coffee what globalisation is. In Europe, to have a cup of coffee at a café at the current market price requires the collaborative efforts of 29 companies from 18 countries. If 29 companies are required to produce a cup of coffee, can you imagine how much more it would cost to create an affordable motor car, a computer or a DVD machine. I am using this example to explain what globalisation is. For example, to make a car, it requires 10,000 suppliers, each of which have suppliers. Road transport interconnects all these businesses. It has therefore become a vital production tool. Source: IRU © International Road Transport Union (IRU) 2007

Global Approach The basis of the global approach is represented by rules, to be observed by all involved. As many as 56 multilateral legal instruments (agreements, conventions) and a number of Recommendations and Resolutions are governing transport. Of the 56, 42 regulate road transport related issues. © International Road Transport Union (IRU) 2007

Main Trade & Transport Facilitation Legal Instruments of the UN (1) Convention on Road Signs and Signals of 1968 Convention on Road Traffic of 1968 Global Vehicles Regulations, 1998 AETR Agreement, 1970 CMR Convention 1956, and its Protocol of 1978 The UN legal instruments which are important for the road transport industry and should thus be dealt with on a priority basis, as Turkey is not yet a Contracting Party to all of them, are the following: © International Road Transport Union (IRU) 2007

Main Trade & Transport Facilitation Legal Instruments of the UN (2) International Convention on the Harmonisation of Frontier Control of Goods of 1982 Conventions on Temporary Importation of Road vehicles (1954-Private, 1956- Commercial) ATP Agreement of 1970 ADR Agreement 1957 and its Protocol of 1993 TIR Convention, 1975 Customs Container Convention, 1972 While concluded under auspices of the Economic Commission for Europe, most of these Legal Instruments are open to all Member States of the United Nations. As a matter of fact, a large number of UN Member States that are not members of the Economic Commission for Europe have already become Contracting Parties to these Legal Instruments.   To become Contracting Party to any of these Conventions or Agreements, a Member State must deposit with the Secretary-General an instrument of accession, acceptance or approval, indicating its intention to implement the provisions of the Convention or Agreement. Becoming a Contracting Party does not involve any financial obligation or fee. This presentation contains a summary description of the Objectives, Key Provisions and Benefits of each of the selected legal instruments. For the sake of efficiency I will only deal in-depth with those to which Turkey is not a Contracting Party. © International Road Transport Union (IRU) 2007

UNESCAP Resolution 48/11, 1992 UNESCAP promoted through this resolution the aim of reaching a minimum level of facilitation among its member countries, therefore it selected 7 legal instruments judged as being of vital importance for facilitating international transport while providing for a high level of safety, security and environmental protection in transport.   By facilitating international transport, they provide the basic conditions for the development of international trade, exports and imports, which are a key factor, and an increasingly important one, for the economic and social development of countries, particularly of landlocked developing countries. At the same time they are a means to avoid isolationism… © International Road Transport Union (IRU) 2007

Regional/Global Organisations Belarus People’s Republic of China Russian Federation Kazakhstan Kyrgyz Republic Turkey Tajikistan Turkmenistan Azerbaijan Uzbekistan Iran UN ESCAP Afghanistan Pakistan India UN ECE © International Road Transport Union (IRU) 2007

TIR System an overview Facilitation © International Road Transport Union (IRU) 2007

The TIR System Worldwide Future Contracting Parties: PAK, PRC, SAU, THA, UAE, YEM… AND INDIA? ? 1949 6 Pioneer States : BEL, DEU, FRA, ITA, LUX, NLD, Now: 67 Contracting Parties Now 55 Operational Countries © International Road Transport Union (IRU) 2007

Applicability of TIR Convention Road Rail Sea ... using road for at least one leg of the journey INTERMODALITY © International Road Transport Union (IRU) 2007

TIR and Multilateral Approach TIR is the materialisation of the multilateral approach: Access to 55 TIR operational countries Cost efficiency of the guarantee and of management Intermodality Security in the supply chain © International Road Transport Union (IRU) 2007

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 TIR Convention TIR System is a facilitation and security tool answering the needs of both Public and Private sectors: Customs, trade, transport. © International Road Transport Union (IRU) 2007

Role of the IRU in the Management of the TIR System Four out of the six pillars Centrally print and distribute TIR Carnets Organise the functioning of the international chain of guarantee (global contract) Controlled access (rules, manuals, preventive measures) SafeTIR (Cute-Wise) © International Road Transport Union (IRU) 2007

Current TIR Geography This is what the TIR transit System can do already today, to facilitate trade and transport Bandar Abbas © International Road Transport Union (IRU) 2007

TIR Geographical Expansion And this is what the TIR could do tomorrow, when countries in Asia and the Pacific will accede to the TIR Convention and will use the TIR System. © International Road Transport Union (IRU) 2007

TIR Geographical Expansion © International Road Transport Union (IRU) 2007

TIR Geographical Expansion © International Road Transport Union (IRU) 2007

At the Port of Entry in the EU Advantages for container arriving under TIR by sea from Asia No third party involved = reduced cost/delay! Customs formalities = same day Cost = only that of the TIR Carnet Customs clearance = at final destination © International Road Transport Union (IRU) 2007

TIR and Economic Development YEAR QUANTITY 1952 3243 1955 14110 1960 80250 1965 303850 1970 710630 1975 533060 1980 718612 1985 859100 1990 748600 1992 1277400 1994 2102080 1996 2422250 1998 2732900 2000 2782600 2002 3095200 2004 3211050 2006 3599850 Total 1952- 57’408’833 Petrol Crisis Russian Financial Crisis © International Road Transport Union (IRU) 2007

Recent IT Developments in TIR © International Road Transport Union (IRU) 2007

Risk Management Tool SafeTIR IRU dBase Ensuring Traceability CUTE-Wise Storage IRU Archive IRU Control Issuing Association TIR Carnet Life Cycle Electronic TIR data IRU dBase Issuing Association Holder CUTE-Wise SafeTIR Holder Responsibility of the IRU is to manage an electronic control system for TIR Carnets: - Inform the Contracting Parties etc, of problems encountered in the TIR system; - Provide statistics and data on performances of Contracting Parties with regard to the electronic control system; - Continually seek to improve its efficiency as a risk management and anti-fraud tool; Driver Driver Ensuring Traceability Customs © International Road Transport Union (IRU) 2007

Electronic TIR Pre-Declaration - One guarantee - One regime - Independence 2 1 (NCTS/TIR) Pre-declaration TIR 2 1 Fulfills two requirements: Electronic pre-declaration Computerized exchange of information Madrid © International Road Transport Union (IRU) 2007

Recent IT Developments in TIR www.iru.org/..... Customs receive all the data contained in the TIR Carnet Final objective © International Road Transport Union (IRU) 2007

IRU - FCS SafeTIR Real Time Project The status of the TIR Carnet is : 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 ? SafeTIR Real Time project: The association can issue in security The Customs can take into charge the TIR Carnet in security knowing that the association has issued it in security © International Road Transport Union (IRU) 2007

Main Export Partners of India UK: 4.5% China: 5.5% USA:17% Hong Kong: 4.7% UAE: 8.8% Total Exports: $76,230,000,000 f.o.b. Singapore: 4.5% © International Road Transport Union (IRU) 2007

Main Import Partners of India Belgium: 4.4% Switzerland: 5.2% China: 6.1% USA: 6% Total Imports: $113,100,000,000 f.o.b. © International Road Transport Union (IRU) 2007

Conclusion (1) Essential for facilitation: strong political will, committment and consistency at national level to reach the goal Public-Private Partnership If not, facilitation is denatured, resulting in endangering the development of trade/transport and of the economy as a whole © International Road Transport Union (IRU) 2007

Conclusion (2) Multilateral legal instruments can yield substantial benefits to public and private sectors For this to happen, they must be fully and effectively implemented © International Road Transport Union (IRU) 2007

Conclusion (3) IRU remains committed to assist India in this process In order to take full advantage of its strategic location, India should accede to the facilitation legal instruments and effectively implement them, according to international standards and existing best practices IRU remains committed to assist India in this process © International Road Transport Union (IRU) 2007

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