(c) International Road Transport Union (IRU) 2012 ECO meeting on operationalising the TIR Convention in Afghanistan Herat, 24 February 2012

(c) International Road Transport Union (IRU) 2012 TIR General overview Herat, 24 February 2012 Jean Acri Head Customs Affairs / Muratbek Azymbakiev Head TIR Relations Page 2

TIR System an overview Facilitation Page 3 (c) International Road Transport Union (IRU) 2012

Transports Internationaux Routiers Managed by the IRU since 1949 Page 4 (c) International Road Transport Union (IRU) 2012

 Customs procedures: National guaranteeNational guarantee Inspection of the goods and the vehicleInspection of the goods and the vehicle Security checksSecurity checks etc…….etc…….  Customs procedures: National guaranteeNational guarantee Inspection of the goods and the vehicleInspection of the goods and the vehicle Security checksSecurity checks etc…….etc……. Trade Without a Transit System Page 5 (c) International Road Transport Union (IRU) 2012

Border crossing Country A Country C Country B Temporary import Export Export National guarantee Trade without a Transit System Export Page 6 (c) International Road Transport Union (IRU) 2012

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 Page 7 (c) International Road Transport Union (IRU) 2012

Border crossing Border crossingBorder crossing Country A Country C Country BCountry B Temporary importTemporary import ExportExport Temporary import Export National guaranteeNational guarantee National guarantee Transport under TIR Export Page 8 (c) International Road Transport Union (IRU) 2012

Secure Trade Facilitation Facilitation = Page 9

TIR Geographical Scope In Negotiation Process Contracting Parties Page 10 (c) International Road Transport Union (IRU) 2012

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 11 (c) International Road Transport Union (IRU) 2012

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 12 (c) International Road Transport Union (IRU) 2012

© International Road Transport Union (IRU) 2011 TIR Convention SafeTIR & TIR EPD 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 documentTIR Carnet - single, standard internationally accepted Customs declaration document Mutual recognition of Customs controls - reduced need for physical examination of goods in transitMutual 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 10SafeTIR - traceability and Risk Management – Annex 10 IRU Direct Involvement Page 13 (c) International Road Transport Union (IRU) 2012

TIR Secured vehicles and containers Page 14 Controls: at departure and destination Controls: at departure and destination Secure door to door transport of goods under Customs seals Secure door to door transport of goods under Customs seals Vehicles/containers meeting security standards for transport under customs control Vehicles/containers meeting security standards for transport under customs control (c) International Road Transport Union (IRU) 2012

Page 15 TIR International guarantee chain As per Art. 6.2 bis of the TIR Convention, IRU is mandated to organise and ensure the functioning of the International guarantee chain: 1.3 million TIR Carnets per year covered financially in 57 countries 2.each TIR Carnet is a financial guarantee for Customs up to 50’000 USD/60’000 € 3.IRU issue some $1 Billion per day in financial guarantees to allow the TIR System to function (c) International Road Transport Union (IRU) 2012

TIR Benefits Customs transit declaration Proof of the financial guarantee for Customs Authorities Page 16 (c) International Road Transport Union (IRU) 2012

TIR Carnet: Secure Customs document Unique number Special paper and special ink – Hidden security features Online IT traceability of each TIR Carnet Page 17 (c) International Road Transport Union (IRU) 2012

Page 18 Controlled Access to TIR procedure TIR is a privilege, not a right: TIR is a privilege, not a right: Access to TIR is reserved to transport operators meeting strict conditions and criteria set out in the TIR Convention, Annex 9, Part II: Access to TIR is reserved to transport operators meeting strict conditions and criteria set out in the TIR Convention, Annex 9, Part II:  Sound financial standing  Absence of Customs/fiscal offences  Proven knowledge in the application of the TIR Convention  Proven experience and capability to engage in international transport  Written commitment to comply with Customs formalities and pay taxes and duties that would become due Continuous Monitoring of status of Holders of TIR Carnets ! ! (c) International Road Transport Union (IRU) 2012

Page 19 Mutual recognition of Customs controls  TIR Carnet Holders are authorised on the basis of the same criteria and recognised in the 57 Operational Countries  TIR transports are subject to Customs and security controls at departure and are recognised throughout their itinerary  TIR vehicles are customs approved in their country of registration and recognised in all other Contracting Parties (c) International Road Transport Union (IRU) 2012

Public-private electronic data exchange: carnet status check Transport Holder IRU dBase Issuing Association Holder Driver StorageStorage IRU Archive Driver IRU Control TIR-EPD National Customs System SafeTIR Cute-Wise Carnet status Private sector Public sector Page 20 (c) International Road Transport Union (IRU) 2012

OUTWARD TRANSIT THROUGH TRANSIT INWARD TRANSIT Example of a TIR transport Page 21 (c) International Road Transport Union (IRU) 2012

Customs office of departure OUTWARD TRANSIT Customs office of exit TIR in Operation Country of Departure Page 22 (c) International Road Transport Union (IRU) 2012

Customs office of entry THROUGH TRANSIT Customs office of exit TIR in Operation Country of Transit Page 23 (c) International Road Transport Union (IRU) 2012

INWARD TRANSIT Customs office of destination Customs office of entry TIR in Operation Country of Destination SafeTIRConfirmation Page 24 (c) International Road Transport Union (IRU) 2012

TIR - Benefits Simplified & harmonised Customs guarantee and procedures Controls: at departure and destination Border crossing facilitation for customs officers and trade operators Page 25 (c) International Road Transport Union (IRU) 2012

TIR - Benefits Multiple border crossing, Local trade, bilateral transport bilateral transport Page 26 (c) International Road Transport Union (IRU) 2012

TIR - Benefits Secure door to door transport of goods under Customs control Page 27 (c) International Road Transport Union (IRU) 2012

TIR - Benefits Improved cost effectiveness  suppress national guarantees  suppress involvement of third parties  recognise in 57 countries  speed-up border procedures Page 28 (c) International Road Transport Union (IRU) 2012

TIR = Security  Vehicles/Containers : approved  Controlled access  Holder authorised  TIR Carnet = IT traceability/tracking Page 29 (c) International Road Transport Union (IRU) 2012

Implementation of the Annex 10 of the TIR Convention: RTS To enable the traceability of TIR Carnet To confirm at any time and in real-time the validity of the Customs stamp (at destination) on the TIR counterfoil (souche) To enable the traceability of TIR Carnet To confirm at any time and in real-time the validity of the Customs stamp (at destination) on the TIR counterfoil (souche) Real-Time SafeTIR (RTS) Page 30 (c) International Road Transport Union (IRU) 2012

SafeTIR IT Traceability of TIR Carnet IRUDatabase Real Time Capture & Transmission of SafeTIR data Page 31 (c) International Road Transport Union (IRU) 2012

WCO SAFE and TIR Convention   Page 32 (c) International Road Transport Union (IRU) 2012

IRU - UNCTAD  IRU and UNCTAD signed a Memorandum of Understanding (27 April 2010) outlining areas of future cooperation between the two partner organisations ASYCUDA WORLD/TIR Page 33 (c) International Road Transport Union (IRU) 2012

Computerisation of TIR The computerisation covers the whole cycle of the TIR Carnet and meets new requirements such as: Exchange of TIR data between TIR Associations and IRUExchange of TIR data between TIR Associations and IRU ASYCUDA WORLD/TIR: Online exchange of data between IRU and Customs on TIR carnets status and SafeTIR data in Real TimeOnline exchange of data between IRU and Customs on TIR carnets status and SafeTIR data in Real Time Pre-declarations of TIR data for CustomsPre-declarations of TIR data for Customs Page 34 (c) International Road Transport Union (IRU) 2012

IRU TIR Electronic Pre-Declarations CustomsCustoms E TIR data Validation OK TIR Customs Declaration Goods Released for Transit - TIR Single Window Concept - Free-of-charge for TIR Holders - Interface in 15 languages - operational in 11 Countries : Enables: - Risk Assessment by Customs authorities - Acceleration of border crossing procedures - Security in international trade Page 35 (c) International Road Transport Union (IRU) 2012

RTS – How to implement Hardware requirements:  No additional hardware is required Software requirements:  SafeTIR Client (to be developed) Internet access:  Preferably broadband ADSL connection HR requirements:  1 or 2 IT specialists Time required:  1 to 3 months IRU support:  Technical consulting and source code examples Practice in numerous countries has demonstrated that the implementation of the Real Time SafeTIR service is rapid, easy, and economical. Our specialists will be happy to assist you for the implementation of this essential risk management tool. Real Time SafeTIR is a software solution which, when integrated into existing Customs Information Systems, ensures the automatic exchange of TIR information between the IRU and Customs. Page 36 (c) International Road Transport Union (IRU) 2012

Use of TIR in the ECO region Page 37 (c) International Road Transport Union (IRU) 2012

CountryAssociation AZERBAIDJANABADA IRANICCIM KAZAKHSTANKAZATO KYRGYZSTAN KYRGYZ AIA TADJIKISTANABBAT TURKMENISTANTHADA TURKEYTOBB UZBEKISTANAIRCUZ Total issued to group during the year 605’450655’100792’400915’150878’100611’050820’300824’600 Number of TIR carnets issued by the IRU to ECO Associations from 2004 to 2011 (c) International Road Transport Union (IRU) 2012

TIR CARNETS USED BY ECO TRANSPORT OPERATORS IN 2011 (up to end September) TIR CARNETS HAVE BEEN USED BY ECO TRANSPORT OPERATORS UNTIL More than 600’000 TIR CARNETS HAVE BEEN USED BY ECO TRANSPORT OPERATORS UNTIL WHICH REPRESENTS 27% OF ALL TIR CARNETS USED IN THE WORLD 27% Page 39 (c) International Road Transport Union (IRU) 2012

ECO TIR CARNETS DESTINED TO ECO IN % WERE USED FOR TRANSPORTS DESTINED TO ECO COUNTRIES 60% IN TOTAL Mainly Turkey: 42 % and Iran 6% Page 40 (c) International Road Transport Union (IRU) 2012

TIR CARNETS USED BY ECO TRANSPORT OPERATORS IN % WERE USED FOR TRANSPORT TO OUTSIDE ECO REGION 40% in total mainly Germany: 10% Russia 5%, Romania 4% Page 41 (c) International Road Transport Union (IRU) 2012

TIR in the region Candidate Page 42 (c) International Road Transport Union (IRU) 2012

Perspectives  Afghanistan to reactivate TIR,  Pakistan to join the TIR Convention,  ITIC corridor sets an example for developing and maintaining intercontinental road transport corridors in Central Asia,  ECO License comes into presence as a tool to drive the region to a free and integrated road transport market,  Cooperation with China is developed to interlink Asian products with European and even African markets. Page 43 (c) International Road Transport Union (IRU) 2012

Afghanistan  Afghanistan: 1st Contracting Party to the TIR Convention in the region and joined in 1983  Take full advantage of its strategic location, Afghanistan should reactivate TIR by finalising the agreed action plan with the IRU : - TIR Guarantee Agreement recently signed - Implementation of IRU’s IT tools and detailed TIR Action Plan  In a few months, Afghanistan can be a full TIR operational country! Page 44 (c) International Road Transport Union (IRU) 2012

Page 45 (c) International Road Transport Union (IRU) 2012