UNITED NATIONS International Road Transport Union Economic Commission for Europe Facilitating Transport in a Secure Environment Security elements of the TIR procedure

UNECE UNECE-WCO - Facilitating Trade in a Secure Environment November 2003 UNECE & IRU - Security elements of the TIR procedure 2 UNECE INVOLVEMENT IN TRANSPORT FACILITATION UNECE Pan-European/global focal organization for intergovernmental regulatory development Knowledge, experience, implementation, follow-up Facilitating transport facilitates trade Need for close cooperation Open process

UNECE UNECE-WCO - Facilitating Trade in a Secure Environment November 2003 UNECE & IRU - Security elements of the TIR procedure 3 BACKGROUND TIR International Goods Transit procedure History: – Rebuild Europe – From 6 countries to 55 countries – During the last 10 years: 26 new Contracting Parties Objective: – Facilitation – revenue protection + Customs checks Focus: Fraud prevention & combating organized crime

UNECE UNECE-WCO - Facilitating Trade in a Secure Environment November 2003 UNECE & IRU - Security elements of the TIR procedure 4 TIR CHARACTERISTICS Customs-to-Customs information exchange system with trader input Only global transit procedure Multimodal Advantages: – Customs: Guarantee, efficiency gains – Industry: Simplification, time + cost reduction 3,000,000 transports per year Public/Private Partnership – Public authorities/industry

UNECE UNECE-WCO - Facilitating Trade in a Secure Environment November 2003 UNECE & IRU - Security elements of the TIR procedure 5 Public Private Partnership (PPP) – Integrated Process Public sector : – UNECE (Convention Bodies, Contracting Parties) Guardian of the Convention Supervizing admissions Focus on support / training / capacity building Private sector: – IRU (National Associations, Holders) Extensive & harmonized admission procedures Training Risk management: SafeTIR

UNECE UNECE-WCO - Facilitating Trade in a Secure Environment November 2003 UNECE & IRU - Security elements of the TIR procedure 6 How does TIR respond to global facilitation and supply chain security Present security elements – Authorized access (operator/association) Tool for facilitation of secure supply chain UNECE’s role –Deposit for authorization (associations/operators) –Administers the International TIR Databank (ITDB) IRU’s roles and responsibilities since 50 years: –Centralized printing & distribution of TIR Carnets –Organise & ensure effective functioning of the TIR International Chain of Guarantee (Art. 6.2bis) –TIR Management based on Contractual relations

UNECE UNECE-WCO - Facilitating Trade in a Secure Environment November 2003 UNECE & IRU - Security elements of the TIR procedure 7 How does TIR respond to global facilitation and supply chain security Present security elements – Secure loading units and sealing Annexes to Convention on technical construction of loading units –Annex 2 on Vehicles –Annex 7 on Containers (intermodal) Sealing requirement Tool for facilitation of secure supply chain

UNECE UNECE-WCO - Facilitating Trade in a Secure Environment November 2003 UNECE & IRU - Security elements of the TIR procedure 8 How does TIR respond to global facilitation and supply chain security Present security elements – Mutual recognition – reduced procedures en route Central role for Customs office of departure Only documentary controls en route Exceptions Tool for facilitation of secure supply chain

UNECE UNECE-WCO - Facilitating Trade in a Secure Environment November 2003 UNECE & IRU - Security elements of the TIR procedure 9 How does TIR respond to global facilitation and supply chain security Present security elements – Unique and secure document linked to guarantee (TIR Carnet) Tool for facilitation of secure supply chain UNECE role –Guardian of TIR Carnet model –Annex 1 of TIR Convention IRU TIR Carnet Risk Management: Traceability –Visual security elements (Emblem, ink, watermark) –Technical security elements (Alphanumeric unique number, barcode with security elements)

UNECE UNECE-WCO - Facilitating Trade in a Secure Environment November 2003 UNECE & IRU - Security elements of the TIR procedure 10 Alphanumeric number with corresponding barcode Truck emblem TIR Carnet Security elements Watermark on every page (IRU) Red ink Black ink

UNECE UNECE-WCO - Facilitating Trade in a Secure Environment November 2003 UNECE & IRU - Security elements of the TIR procedure 11 How does TIR respond to global facilitation and supply chain security Present security elements – Additional, non-obligatory security elements Convention allowing for additional security features –Time-limits –Fixed itineraries –Escorts Tool for facilitation of secure supply chain

UNECE UNECE-WCO - Facilitating Trade in a Secure Environment November 2003 UNECE & IRU - Security elements of the TIR procedure 12 How does TIR respond to global facilitation and supply chain security Present security elements – Computerized reporting on termination of procedure (SAFETIR) Tool for facilitation of secure supply chain UNECE –Reporting requirements for Customs introduced in the Convention –Monitoring implementation IRU management –International IT network (54 countries) –Secured access via Internet – CUTE-Wise

UNECE UNECE-WCO - Facilitating Trade in a Secure Environment November 2003 UNECE & IRU - Security elements of the TIR procedure 13 CUTE-Wise SafeTIR: Risk Management - Traceability Customs Holder IRU dBase IRU Control TIR Carnet Life Cycle Electronic TIR data Issuing Association Holder Driver Issuing Association SafeTIR StorageIRU Archive

UNECE UNECE-WCO - Facilitating Trade in a Secure Environment November 2003 UNECE & IRU - Security elements of the TIR procedure 14 How can TIR further enhance global facilitation and supply chain security Fully computerize TIR based on UNECE modelling Internationally integrated risk management Tool for facilitation of secure supply chain MS NCTS Turkey Bilge R.F. SAFE TIR Other MS Associa tion Holder EU IRU TIR

UNECE UNECE-WCO - Facilitating Trade in a Secure Environment November 2003 UNECE & IRU - Security elements of the TIR procedure 15 TIR computerization process UNECE UMM modelling methology Process E-Business requirements Analysis Workflow Technical design Implementation Present requirements Business modelling WHYWHY WHATWHAT HOWHOW IMPLEMENATION Product BUSINESS SCENARIOS BUSINESS MODEL Future stage Present stage

UNECE UNECE-WCO - Facilitating Trade in a Secure Environment November 2003 UNECE & IRU - Security elements of the TIR procedure 16 How can TIR further enhance global facilitation and supply chain security Enlargement of geographical scope Original countries (1948)Contracting Party where Convention is applied (2003) Contracting Party where Convention is not applied (2003) Contracting Party where Convention is applied (2003) Contracting Party where Convention is not applied (2003) Potential Contracting Party Tool for facilitation of secure supply chain

UNECE UNECE-WCO - Facilitating Trade in a Secure Environment November 2003 UNECE & IRU - Security elements of the TIR procedure 17 How can TIR further enhance global facilitation and supply chain security Wider intermodal application – Provisions exist for container transport – Present intermodal applications Short sea-shipping (Black Sea, Baltic Sea, Mediterranean, river transport Combined rail-road (Romania/Austria) – Intermodal application supports extension of geographical scope – New users in rail transport and maritime transport (regional and intercontinental) Tool for facilitation of secure supply chain

UNECE UNECE-WCO - Facilitating Trade in a Secure Environment November 2003 UNECE & IRU - Security elements of the TIR procedure 18 How can TIR further enhance global facilitation and supply chain security – Focus on securing loading units and goods Adopt new features on loading units (WCO, ISO etc) Adopt new features on sealing (WCO, ISO etc.) Adopt new provisions on authorization (vehicles, drivers, intermediaries, consignor, consignee) Tool for facilitation of secure supply chain

UNECE UNECE-WCO - Facilitating Trade in a Secure Environment November 2003 UNECE & IRU - Security elements of the TIR procedure 19 Further enhancement of supply chain security TIR GLOBAL INTERMODAL TRANSIT SYSTEM – Based on TIR computerization – Efficient tool for trade/transport facilitation for international transit revenue protection/fraud prevention/risk management securing the international supply chain (shift of focus) Global transit system Risk management Facilitation Security TIR = Global intermodal vehicle for secure supply chain facilitation

UNECE UNECE-WCO - Facilitating Trade in a Secure Environment November 2003 UNECE & IRU - Security elements of the TIR procedure 20 What else is done by the UNECE Transport Division on security – Other areas of focus Develop technical provisions of Container Convention in parallel to TIR (UNECE/WCO) Develop guidelines for security controls in Harmonization Convention (UNECE) Develop new guidelines for stuffing of cargo transport units (UNECE/IMO/ILO/WCO) Provisions for dangerous goods (UNECE) Provisions for infrastructure network security (UNECE) Provisions for vehicle construction (UNECE)

UNECE UNECE-WCO - Facilitating Trade in a Secure Environment November 2003 UNECE & IRU - Security elements of the TIR procedure 21 UNECE Transport Division TIR Secretariat 8-14, Avenue de Paix CH-1211 Geneva 10 Switzerland Phone: +41 (0) Fax: +41 (0) TIR Convention International Road Transport Union TIR Department 3 rue de Varembé, CH-1211 Geneva 20, Switzerland Phone: +41 (0) Fax: +41 (0) UNECE