Application of the TIR System in the Arab Countries and its Benefits to the Middle East region Cairo, 25 October 2009 Jean Acri, IRU Head – TIR System © International Road Transport Union (IRU) 2009

© International Road Transport Union (IRU) 2009

IRU Membership 8 Founder States: 2008 180 Members 74 Countries Created 1948 8 Founder States: Belgium Denmark France Netherlands Norway Sweden UK Switzerland © International Road Transport Union (IRU) 2009

IRU Priorities 2009 – Overview As per Art. 2 of the IRU Constitution Sustainable Development Innovation Incentives Infrastructure Facilitation Trade Tourism Road Transport These are also the priorities of the IRU Academy © International Road Transport Union (IRU) 2009

Role in TIR Mandated by the United Nations to centrally print and distribute TIR Carnets and to take on the responsibility for the effective organisation and functioning of an international guarantee system Article 6.2bis, TIR Convention © International Road Transport Union (IRU) 2009

TIR Benefits TIR connects global economies TIR is used for multiple border crossings TIR facilitates bilateral transport and boosts local trade © International Road Transport Union (IRU) 2009

How TIR transport could Facilitate Trade and Transport in Arab Countries Future bilateral opportunities under TIR TUNISIA LEBANON SYRIA TIR bilateral operations today MOROCCO JORDAN KUWAIT DJIBOUTI COMOROS © International Road Transport Union (IRU) 2009

TIR Connects Global Economies To EU To CIS countries To Americas To Caucasus To Asia To Africa © International Road Transport Union (IRU) 2009

Transport without the TIR System Customs procedures: Waiting times Disclosure of commercial data to broker Additional costs Inspection of the goods and the vehicle Security checks Customs procedures: Waiting times Disclosure of commercial data to broker Additional costs Inspection of the goods and the vehicle Security checks NATIONAL TRANSIT PROCEDURE EXPORT/IMPORT AT BORDER OBTAIN A GUARANTEE AT DEPARTURE EXPORT NEW GUARANTEE OR PAYMENT OF IMPORT TAXES AND DUTIES Page 10 © International Road Transport Union (IRU) 2009

Transport without the TIR System Customs procedures at departure, at borders (x2), at destination Border waiting times Disclosure of commercial data Additional costs Lack of security Page 11 © International Road Transport Union (IRU) 2009

Transport with the TIR System TIR simplifies Customs procedures: No third party involved IRU TIR-EPD free of charge No waiting time Harmonised procedures No additional costs No additional guarantees Security TIR simplifies Customs procedures: No third party involved IRU TIR-EPD free of charge No waiting time Harmonised procedures No additional costs No additional guarantees Security At border: Visual checks No Guarantee No third party TIR ends at Customs office of destination But also Transport rights (ex. permits) VISAS Phyto sanitary controls etc. Import procedures by consignee Page 12 © International Road Transport Union (IRU) 2009

Transport with the TIR System Door-to-Door deliveries, no stops Export procedure by shipper before transport starts No waiting times No disclosure of commercial data No Additional costs Security ensured Increased competitiveness and growth Page 13 © International Road Transport Union (IRU) 2009

TIR is multimodal! The only transit system with a world-wide coverage It can be applied for multimodal transports whenever one leg is carried out by road TIR carnets can be used for intermodal transports – One leg of the journey has to take place by road in order to be able to use a TIR carnet. {However in current practice, the TIR guarantee is lifted when the load is moved to another transport mode (train, boat) - this is due to the fact that at current stage, there is no infrastructure that is put in place in order to manage TIR carnet on ships/trains} The TIR system is also the broadest in scope – we will come back to this aspect later on in the presentation. © International Road Transport Union (IRU) 2009

Secure Trade Facilitation = Security © International Road Transport Union (IRU) 2009

Forbidden Goods under TIR Tobacco and Alcohol © International Road Transport Union (IRU) 2009

IRU – FCS SafeTIR Real Time as per Annex 10 of the TIR Convention OBJECTIVES Enhance control of transport operations under the TIR procedure through: The status verification of the TIR Carnet presented to Russian Customs office (computer to computer) The transmission of the SafeTIR data without delay (compliant with Annex 10 of the TIR Convention) Reinforce sustainability of the TIR System Public – Private Partnership Security  JOINT PROJECT SafeTIR has transmitted and permanently exchanged data. From its creation in 1995 to the Annex 10 in the Convention in 2006, Real Time has become mandatory. Joint project implemented since May 2006 FCS: Federal Customs Service In Russian FCS = FTS © International Road Transport Union (IRU) 2009

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) 2009

IRU TIR Electronic Pre-Declarations IRU TIR-EPD - TIR Single Window Concept - Free-of-charge for TIR Holders - Interface in 13 languages 8 Countries: Bulgaria, Czech Republic, Estonia, Finland, Hungary, Poland, Slovakia, Slovenia - Soon available in 11 more countries: Austria, Belarus, France, Greece, Italy, Latvia, Lithuania, Romania, Serbia, Spain, Turkey Enables: - Risk Assessment by Customs authorities - Acceleration of border crossing procedures - Security in international trade Holder E TIR data Customs - Validation OK TIR Customs Declaration Goods Released for Transit Page 19 © International Road Transport Union (IRU) 2009

TIR in Arab countries TUNISIA LEBANON SYRIA MOROCCO JORDAN KUWAIT Arab TIR operational countries TIR non-operational Arab countries TUNISIA LEBANON SYRIA MOROCCO JORDAN KUWAIT DJIBOUTI COMOROS © International Road Transport Union (IRU) 2009

TIR in the region TUNISIA SYRIA LEBANON JORDAN MOROCCO KUWAIT DJIBOUTI In 2008, only 435 TIR transports departed and terminated in Arab countries COMOROS © International Road Transport Union (IRU) 2009

TIR from Arab countries to other regions TUNISIA LEBANON SYRIA JORDAN MOROCCO KUWAIT In 2008, only 2’359 TIR transports departed from Arab countries and terminated elsewhere DJIBOUTI COMOROS © International Road Transport Union (IRU) 2009

TIR from other regions to Arab countries TUNISIA LEBANON SYRIA MOROCCO JORDAN KUWAIT 83% of which departed from ECO countries! DJIBOUTI In 2008, 38’915 TIR transports departed from other regions and terminated in Arab countries COMOROS © International Road Transport Union (IRU) 2009

TIR Carnets usage in Arab states TUNISIA LEBANON SYRIA MOROCCO JORDAN KUWAIT DJIBOUTI In 2008, only 2’794 international transports were facilitated by TIR used by Arab transport operators COMOROS © International Road Transport Union (IRU) 2009

TIR in Arab countries: Summary TERMINATED IN: NON ECO ECO ARAB STATES ISSUED BY ARAB STATES 2008 1’312 1’047 435 ISSUED BY ARAB STATES 09/2009 143 498 95 © International Road Transport Union (IRU) 2009

TIR in Arab countries vs. total ISSUED IN: ECO ARAB STATES REST OF THE WORLD TOTAL 2008 878’100 2’550 2’373’150 3'253'800 % of total 27% 0.1% 72.9% 100% Up to 09/2009 525’950 2’150 1’129’350 1'657'450 31.9% 68% © International Road Transport Union (IRU) 2009

Conclusion The TIR Convention can create substantial benefits to both public and private sectors in the Arab region The IRU remains committed to assist the competent authorities of the Arab states and the national Associations in this process © International Road Transport Union (IRU) 2009

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