IRU Contribution to further secure and facilitate trade in the Silk Road region through TIR Batumi, Georgia, 27 October 2011

The IRU and our actions in the Silk Road region Page 2 (c) International Road Transport Union (IRU) 2011

This is the IRU Page 3 (c) International Road Transport Union (IRU) 2011

UKUKSwitzerlandSwitzerland Evolution of IRU Membership Created 1948 National Associations from 8 founding countries BelgiumBelgiumDenmarkDenmarkFranceFranceNetherlandsNetherlands NorwayNorwaySwedenSweden Members 74 Countries

IRU Priority Issues Page 5 (c) International Road Transport Union (IRU) 2011  Sustainable Development InnovationInnovation IncentivesIncentives InfrastructureInfrastructure  Facilitation TradeTrade TourismTourism Road TransportRoad Transport Facilitate border crossing through efficient customs transit systems & modern control toolsFacilitate border crossing through efficient customs transit systems & modern control tools

What is Globalisation? Source: IRU Road Transport has become a vital production tool! What does it take to have a cup of coffee in a café? The combined efforts of 29 companies in 18 countries Page 6 (c) International Road Transport Union (IRU) 2011

Globalisation and its Impact: Ports are saturated Sea transport Land transport Key: to US West Coast Saturated Page 7 (c) International Road Transport Union (IRU) 2011

Evolution of sea containers in ports in 1971 Global Container Volumes 1971 Page 8 (c) International Road Transport Union (IRU) 2011

Evolution of sea containers in ports in 1980 Global Container Volumes 1980 Page 9 (c) International Road Transport Union (IRU) 2011

Evolution of sea containers in ports in 1990 Global Container Volumes 1990 Page 10 (c) International Road Transport Union (IRU) 2011

Evolution of sea containers in ports in 2000 Global Container Volumes 2000 Page 11 (c) International Road Transport Union (IRU) 2011

Evolution of sea containers in ports in 2010 Global Container Volumes 2010 Page 12 (c) International Road Transport Union (IRU) 2011

If the Silk Road worked for Marco Polo then, why shouldn’t it work for trade and transport today? Silk Road revitalisation Page 13 (c) International Road Transport Union (IRU) 2011

Interconnecting all the businesses along the reopened Silk Road Sea transport Land transport Key: to US West Coast To East Coast Saturated SaturatedSaturated To Black Sea Diesel fuel = 30 cents/litre Labour costs = $200/month To US East Coast Page 14 (c) International Road Transport Union (IRU) 2011

Interconnecting all the businesses along the reopened Silk Road Sea transport Land transport Key: to US West Coast To East Coast Saturated To US East Coast To Black Sea To Mid East To EU To CIS Page 15 (c) International Road Transport Union (IRU) 2011

Beijing-Brussels Caravan 2004 Beijing Brussels Page 16 (c) International Road Transport Union (IRU) 2011

Black Sea Ring Highway Truck Caravan 2007 The Caravan was initiated with the aim of promoting the future BSEC Ring Highway and identifying the physical road conditions and the non-physical barriers to road transport. Page 17 (c) International Road Transport Union (IRU) 2011

IRU-ECO Silk Road Truck Caravan 2010 Driving Progress from Islamabad to Istanbul Supported by 7 ECO member countries Monitoring the ECO Transit Transport Framework Agreement ECO Secretary General, Mohammad Yahya P. Maroofi Page 18 (c) International Road Transport Union (IRU) 2011

Road Freight Transport: Interconnecting every business and every transport mode between Europe and Asia – Focus on the Caucasus Page 19 (c) International Road Transport Union (IRU) 2011

The TIR System Page 20 (c) International Road Transport Union (IRU) 2011

The TIR System  The best multilateral facilitation and security instrument for international transport and trade.  Based on TIR Convention of  Provides world-wide coverage. Page 21 (c) International Road Transport Union (IRU) 2011

TIR Geographical Scope In Negotiation Process Contracting Parties Page 22 (c) International Road Transport Union (IRU) 2011

TIR is multi-modal TIR is multi-modal - road, rail, maritime, waterways and air transport – so long as one part of the journey is by road. Page 23 (c) International Road Transport Union (IRU) 2011

TIR Convention SafeTIR & IRU TIR-EPD Mutual Recognition of Customs Controls Controlled Access International Chain of Guarantee Secure vehicles and containers TIR Carnet Pillars of the TIR System Page 24 (c) International Road Transport Union (IRU) 2011

TIR meets WCO SAFE requirements for Advance Cargo Information   Page 25 (c) International Road Transport Union (IRU) 2011

The four core elements of WCO SAFE are: Provision of Advanced Cargo Information Pre- departure examination 1 Mutual recognition & Controlled Access 2 3 Risk Management to security and safety 4 Benefits For Trade Communication Platform between AEO & Authorities Risk Management in TIR Convention (e.g. Annex 10) 3 4 Electronic Pre- declaration 2 1 Page 26 (c) International Road Transport Union (IRU) 2011 WCO SAFE and AEO requirements can be fully satisfied by TIR

Secure Trade Facilitation Facilitation = Page 27 (c) International Road Transport Union (IRU) 2011

Key IRU IT instruments and their benefits to Customs and Trade Page 28 (c) International Road Transport Union (IRU) 2011

TIR IT Risk Management Tools: IRU TIR-EPD TIR Electronic Pre- Declaration Connecting Business and Customs for facilitating and securing international trade Page 29 (c) International Road Transport Union (IRU) 2011

Electronic Advance Cargo Info IRU TIR-EPD Single Window Concept Benefits: this exchange of advance information facilitates pre-arrival risk analysis and makes border crossings simpler, more secure and faster. Page 30 (c) International Road Transport Union (IRU) 2011 Customs authorities confirm reception of the message, validate the guarantee and release the cargo for transit. 2 Traders & Carriers submit free-of-charge electronic pre-declarations to Customs authorities in different countries 1

TIR IT Risk Management Tools: IRU Real Time SafeTIR (RTS) 24/7 TIR Carnet guarantee status and validity check through web portal Automatic TIR Carnet validity check through direct link between Customs and IRU IT systems Automatic transmission of TIR Customs data to the IRU Connecting Business and Customs to facilitate and secure international trade Page 31 (c) International Road Transport Union (IRU) 2011

Customs Moscow IRU Geneva SafeTIR data Real Time SafeTIR: SafeTIR Customs data is sent by Customs in real time as soon as the TIR transport is terminated Information is made available to all relevant actors What is the status of the TIR Carnet ? The status of the TIR Carnet is : Valid (with following details: Holder ID, validity date, Issuing Association name) Invalid Not issued/False/other situations Increased Security thanks to IRU RTS Real Time SafeTIR and TIR-EPD provide security to allow the issuance of $1billion/day in guarantees Page 32 (c) International Road Transport Union (IRU) 2011

Implementation in Georgia In partnership with Georgia Revenue Service and UNCTAD Page 33 (c) International Road Transport Union (IRU) 2011

Project Objectives In 2010, UNCTAD and IRU signed a technical assistance project on the integration of the latest features (Real-Time SafeTIR, TIR-EPD) of the IRU's TIR system into the ASYCUDA system On June 17th 2011, the Georgia Revenue Service, the Georgian International Road Carriers Association (GIRCA) and the IRU signed a MOU to implement Real-Time SafeTIR and TIR-EPD in Georgia through ASYCUDA Page 34 (c) International Road Transport Union (IRU) 2011 ASYCUDA World TIR

Project Partners  Department for International Relations of Georgia  IT Center / Georgia Revenue Service  Georgian International Road Carriers Association (GIRCA)  UNCTAD  IRU Page 35 (c) International Road Transport Union (IRU) 2011

Project Timeline April 2011 July 2011 Alignment on technical requirements August 2011 TestingTesting « Go live » AcceptanceAcceptance Sept Oct / 2012 Agreement on types of electronic messages Promotion of the IRU TIR-EPD application among the Holders Page 36 (c) International Road Transport Union (IRU) 2011 … ImplementationImplementation

Expected Key Benefits for Customs  Submission of pre-arrival information Advance processing by Customs (risk-management)Advance processing by Customs (risk-management) Automatic retrieval of documentsAutomatic retrieval of documents Less waiting time / faster processing at borderLess waiting time / faster processing at border  Automatic cross-check of validity of TIR Carnet Facilitation of legitimate tradeFacilitation of legitimate trade More efficient Customs controls, including transit monitoring/controlMore efficient Customs controls, including transit monitoring/control  Automatic generation/transfer of SafeTIR message Timely transactionsTimely transactions Better control of entire Customs operations cycleBetter control of entire Customs operations cycle  Component of ASYCUDA Single Window environment  Fully NCTS/TIR compatible Page 37 (c) International Road Transport Union (IRU) 2011

Expected Key Benefits for Traders   Free of charge service - no need for broker assistance   Simpler and faster border crossing procedures   Guaranteed confidentiality of commercial data   “Single window” concept - EPD sent simultaneously to all countries   Accessible via the Internet from anywhere in the world   User interface is available in more than 15 languages Page 38 (c) International Road Transport Union (IRU) 2011

Next steps Page 39 (c) International Road Transport Union (IRU) 2011 Conclusions

Conclusion  The IRU is committed to work in partnership with Customs Authorities and National Associations in the Silk Road region in further securing and facilitating trade through the implementation of TIR, the best multilateral, globally available, UN- convention based instrument Page 40 (c) International Road Transport Union (IRU) 2011

Page 41 (c) International Road Transport Union (IRU) 2011