NATIONAL WORKSHOP ON THE BENEFITS OF THE TIR CONVENTION TO FACILITATE GROWTH AND PROSPERITY IN THE ARAB WORLD WITHIN THE FRAMEWORK OF THE IDB-AULT-IRU JOINT PROJECT Riyadh, Kingdom of Saudi Arabia, 12 November 2013

SESSION I – BORDER CROSSING FACILITATION AND TIR PRINCIPLES: 3. TIR basic principles, and multimodal applicability Riyadh, Kingdom of Saudi Arabia, 12 November 2013 Jean Acri Special TIRAdvisor Patrick Philipp Head IRU Training

Transports Internationaux Routiers Managed by the IRU since 1949 Securing and facilitating trade and international road transport Page 3 © International Road Transport Union (IRU) 2013

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 4 © International Road Transport Union (IRU) 2013

Goods not allowed under TIR Currently NO Alcohol (HS , 2208xx) or tobacco (HS , , ) (Except for beer & wine or raw tobacco) Page 5 © International Road Transport Union (IRU) 2013

The six core elements of the TIR System: Facilitation and security Page 6 © International Road Transport Union (IRU) 2013

Secure vehicles and containers Vehicles with secure load compartments need to meet strict technical standards – Annex 2, Annex 7 X  Page 7 © International Road Transport Union (IRU) 2013

Secure vehicles and containers Each vehicle needs to have a valid certificate of approval delivered by national competent authorities (Annex 3) Approval Certificate – Basic Principles (Annex 3) Standard format – Annex 4Standard format – Annex 4 Page 8 © International Road Transport Union (IRU) 2013

International Chain of Guarantee Customs duties and taxes at risk are covered through the “Deed of Guarantee” with a national TIR Guaranteeing Association The Guaranteeing Association is the national partner to the Customs authorities for resolving an irregularity caused by any TIR Holder Goods transported under the TIR procedure are not subjected to the payment or deposit of import or export duties and taxes at Customs offices en route (Article 4) Page 9 © International Road Transport Union (IRU) 2013

National Financial Institution International Chain of Guarantee - Coverage ASSOCIATION Holder International Financial Institution GLOBAL CONTRACT International Financial Institution GLOBAL CONTRACT IRU Holder Page 10 © International Road Transport Union (IRU) 2013

TIR Carnet - Benefits Proof of: GuaranteeGuarantee Controlled AccessControlled Access Mutual Recognition of Customs ControlsMutual Recognition of Customs Controls TIR = Secure Trade Facilitation Page 11 © International Road Transport Union (IRU) 2013

TIR Carnet – Security elements  TIR CARNET Visual security elements Technical security elements Page 12 © International Road Transport Union (IRU) 2013

Security Elements Page 13 © International Road Transport Union (IRU) 2013

Mutual Recognition of Controls A key element of the TIR Convention is the Mutual Recognition of all Customs Controls Customs carefully control the vehicle, goods, and TIR Carnet at the Customs office of departure Page 14 © International Road Transport Union (IRU) 2013

Controlled Access National TIR Associations – to issue and guarantee TIR CarnetsNational TIR Associations – to issue and guarantee TIR Carnets Transport operators (Natural and legal persons) – to use TIR CarnetsTransport operators (Natural and legal persons) – to use TIR Carnets Customs authorise access to the TIR procedure for: Annex 9 Part I and II Information on all transport operators authorised as TIR Holders are stored by the UNECE in the International TIR Data Bank (ITDB) Page 15 © International Road Transport Union (IRU) 2013

SafeTIR – Annex 10 Direct data transmission by Customs on each termination of a TIR operation if goods are unloaded or pass to a different Customs regime Database, computer network Dedicated software to permit on-line control of the status of each TIR Carnet SafeTIR is a Risk Management System for TIR Carnets composed of: Page 16 © International Road Transport Union (IRU) 2013

TIR-EPD Portal for TIR Carnet holders TIR Electronic Pre- Declaration Connecting Business and Customs for facilitating and securing international trade Page 17 © International Road Transport Union (IRU) 2013

  Article 2 : “This Convention shall apply to the transport of goods … across one or more frontiers... provided that some portion of the journey between the beginning and the end of the TIR transport is made by road …“   Explanatory Note to Article 2 “…this Article allow goods to be carried under cover of a TIR Carnet when only one part of the journey is made by road … at some point between the beginning and the end of the TIR transport…” TIR and Multimodality Page 18 © International Road Transport Union (IRU) 2013

TIR and Multimodality   Other modes of transport for non-road leg   Multimodal TIR transports today RO/RO transports (ferry services): Black Sea, Mediterranean Sea, Caspian Sea, Baltic States, Persian Gulf Block trains: ECO region Page 19 © International Road Transport Union (IRU) 2013

Example: Turkey - France by Ferry Capacity: 220 trucks Loading/unloading time: 10 to 12 hours TIR Carnets with driver by plane and processed 1 day before ferry arrival Page 20 © International Road Transport Union (IRU) 2013

Example: Tanger Med 1 hour to go through Port with TIR Carnet ! Page 21 © International Road Transport Union (IRU) 2013

Opportunities  More goods transport with various modes of transport  Road transport always at beginning, end or in between  TIR = driving seat for multimodal development ROAD SEA / RAIL / AIR ROAD Page 22 © International Road Transport Union (IRU) 2013

Multimodality: Challenges  TIR Carnet hand over to successive carriers  Subcontracting scheme as per IRU rules  Security and Safety of the TIR System  Traceability of each TIR Carnet transmission Page 23 © International Road Transport Union (IRU) 2013

TIR and Block Trains Volet/Voucher 1 Page 1 Volet/Voucher 1 Page 3 Volet/Voucher 2 Page 2 Volet/Voucher 2 Page 4 Volet/Voucher 1 Page 5 Volet/Voucher 2 Page 6 Volet/Voucher 1 Page 7 Volet/Voucher 2 Page 8 SafeTIR confirmation sent Volet/Voucher 1 Page 9 Volet/Voucher 2 Page 10 IRIR TMTM UZUZ KZKZ TRTR Page 24 © International Road Transport Union (IRU) 2013

Multimodal Opportunities Page 25 © International Road Transport Union (IRU) 2013

Benefits of the TIR System Ensure the secure and sustainable development of international trade and road transport (controlled access, traceability) Gives access to 58 TIR operational countries Through mutual recognition of Customs Controls and the guarantee, transport costs, formalities and delays are reduced Secures and facilitates trade through the implementation of harmonised controls & documents Page 26 © International Road Transport Union (IRU) 2013

Page 27 © International Road Transport Union (IRU) 2013