Legal framework for transit transport cooperation at global level TIR Convention, 1975 and Harmonization Convention, 1982 Artur Bouten UNECE TIR secretariat

Border crossing facilitation : On some major routes: 57 % of transport time is lost at border crossings 38 % of transport costs are due to unofficial levies Long waiting times at borders result in major human suffering for drivers blocked in queues for hours/days harmful impact on the environment Border waiting times also cost billions annually => increasing the cost of goods for the end consumer, not to mention lost business opportunities. Border crossing facilitation is: Key to international trade, exports and imports Essential for growth and competiveness A driver of regional integration - Road transport can adapt

UNECE’s 3600 approach to Border crossing facilitation (2) Crossing borders requires: Appropriate and resilient infrastructure Reliable and harmonized international legal framework Harmonized or at least aligned procedures (e.g. customs) International cooperation and exchange of best practices

The TIR Convention, 1975 TIR Convention, 1975 Establishes and regulates the only existing and operational global customs transit system Administered under UNECE auspices 69 Contracting Parties from 4 continents, among which Afghanistan, Armenia, Azerbaijan, Kazakhstan, Kyrgyzstan, Mongolia, Republic of Moldova,Tajikistan, The Former Yugoslav Republic of Macedonia, Uzbekistan Pakistan recently acceded China expressed interest to join Border crossing facilitation through an internationally recognized and harmonized procedure with a single internationally valid customs document and guarantee Effective revenue protection and security without excessive administrative burden for customs and time/cost losses for operators

Geographical scope Contracting parties to the TIR Convention TIR operational countries Countries about to implement the TIR System Countries in admission Interested Parties

The 5 pillars of the TIR system Secure vehicles or containers Mutual recognition of customs controls International guarantee TIR Carnet Controlled access

TIR computerization status TIR-EPD Transport sector Other customs administrations Guarantee chain ITDBonline+ SafeTIR Register of stamps and seals Customs e National Declaration Mechanism (Single Windows) TIR operations management

Computerization process (eTIR) is underway eTIR Reference Model (conceptual) Adaptation of the legal framework (legal) Development of the required systems (technical) Corridor based step-by-step implementation, through, e.g. eTIR pilot projects: Between Iran (Islamic Republic of) and Turkey in the UNECE-IRU eTIR Pilot Project UNDA project to strengthen the capacities of developing countries and countries with economies in transition to facilitate legitimate border crossing, by means of increased secure electronic exchange of information between customs administrations (Georgia and Turkey).

TIR Carnets issued in LLDC 2000 2004 2012 2013 2014 ITDB Afghanistan - 50 1 Armenia 200 3,800 2,200 59 Azerbaijan 4,000 3,950 11,400 10,300 4,800 48 Georgia 1,000 1,050 8,200 10,500 7,500 461 Kazakhstan 10,400 17,000 19,000 25,000 24,200 338 Kyrgyzstan 100 4,900 17,100 22,200 20,900 121 Moldova 18,000 46,900 81,000 77,450 65,200 734 Mongolia 150 Tajikistan 2,950 3,500 Uzbekistan 2,400 14,100 17,500 9,000 204 FYROM 17,050 27,400 25,400 29,300 34,000 1,968

2015 Prices 14 Volet in USD

Preliminary analysis Regression line vs plotted data

The Harmonization Convention, 1982 - International Convention on the Harmonization of Frontier Controls of Goods - 56 Contracting Parties Latest accessions: Iran, Tajikistan Other LLDC: Armenia, Azerbaijan, Kazakhstan, Kyrgyzstan, Mongolia, Republic of Moldova, FYROM, Uzbekistan - Expressed interest to join: China

Objective and Scope To facilitate cross border transport of goods through nationally coordinated, internationally harmonized, shorter, reduced formalities and controls of goods at borders It covers: All goods moved across borders (exported, imported or in transit) All control services All modes of transport Specific provisions for certain transport modes and goods Also addresses certain issues with regard to vehicles and drivers

General principles vs. detailed provisions Framework providing for a high degree of flexibility in organizing national and international cooperation No universal ‘one size fits all’ solution Examples of best practice are essential Integrated operational annexes are included, such as Annex 8 for road, Annex 9 for rail and (draft) Annex 10 for seaports

TIR Green lanes Republic of Moldova

Handbook of Best Practices at Border Crossings Reference material and more than 120 best practice examples at border crossings. It covers available legal instruments, inter-agency and international co-operation, balancing security and facilitation measures, processing of freight, risk management, design of border crossing points, use of ICT technologies, human resource management and benchmarking. Available at:http://www.unece.org/fileadmin/DAM/trans/bcf/publications/OSCE-UNECE_Handbook.pdf

Inland clearance in Afghanistan The debate about BCP or inland clearance also applies in Afghanistan. Traditionally, all goods entering Afghanistan were cleared at the first point of entry (border), but duties collected at the border were often diverted by the provincial authorities, to the detriment of the State budget. The system was characterized by revenue losses, inadequate control, and a high level of corruption. An inland clearance scheme was introduced, with duties being collected in major cities where accounts were easier to control. State Customs revenue increased significantly. The scheme was supported by a World Bank Emergency

Thank you Artur Bouten UNECE TIR SECRETARIAT Sustainable Transport Division 8-14, Avenue de la Paix CH-1211 Geneva 10 Switzerland Phone: +41 22 917 2433 Fax: +41 22 917 0614 Email: artur.bouten@unece.org