1. TIR: Facilitation and Security for a Globalised Economy
IRU – TIR System
TIR: Facilitation and Security
for a Globalised Economy
Umberto de Pretto
Deputy Secretary General
© International Road Transport Union (IRU) 2007

2. The combined efforts of 29 companies in 18 countries
What is Globalisation?
What does it take to have a cup of coffee in a café?
The combined efforts of
29 companies in 18 countries
Road transport has become
a vital production tool!
Let me explain with the simple example of a cup of coffee what globalisation is.
In Europe, to have a cup of coffee at a café at the current market price requires the collaborative efforts of 29 companies from 18 countries.
If 29 companies are required to produce a cup of coffee, can you imagine how much more it would cost to create an affordable motor car, a computer or a DVD machine. I am using this example to explain what globalisation is.
For example, to make a car, it requires 10,000 suppliers, each of which have suppliers. Road transport interconnects all these businesses. It has therefore become a vital production tool.
Source: IRU
© International Road Transport Union (IRU) 2007

3. Global Approach
The basis of the global approach is represented by rules, to be observed by all involved. As many as 56 multilateral legal instruments (agreements, conventions) and a number of Recommendations and Resolutions are governing transport. Of the 56, 42 regulate road transport related issues.
© International Road Transport Union (IRU) 2007

4. Main Trade & Transport Facilitation Legal Instruments of the UN (1)
Convention on Road Signs and Signals of 1968
Convention on Road Traffic of 1968
Global Vehicles Regulations, 1998
AETR Agreement, 1970
CMR Convention 1956, and its Protocol of 1978
The UN legal instruments which are important for the road transport industry and should thus be dealt with on a priority basis, as Turkey is not yet a Contracting Party to all of them, are the following:
© International Road Transport Union (IRU) 2007

5. Main Trade & Transport Facilitation Legal Instruments of the UN (2)
International Convention on the Harmonisation of Frontier Control of Goods of 1982
Conventions on Temporary Importation of Road vehicles (1954-Private, Commercial)
ATP Agreement of 1970
ADR Agreement 1957 and its Protocol of 1993
TIR Convention, 1975
Customs Container Convention, 1972
While concluded under auspices of the Economic Commission for Europe, most of these Legal Instruments are open to all Member States of the United Nations. As a matter of fact, a large number of UN Member States that are not members of the Economic Commission for Europe have already become Contracting Parties to these Legal Instruments.
To become Contracting Party to any of these Conventions or Agreements, a Member State must deposit with the Secretary-General an instrument of accession, acceptance or approval, indicating its intention to implement the provisions of the Convention or Agreement. Becoming a Contracting Party does not involve any financial obligation or fee.
This presentation contains a summary description of the Objectives, Key Provisions and Benefits of each of the selected legal instruments. For the sake of efficiency I will only deal in-depth with those to which Turkey is not a Contracting Party.
© International Road Transport Union (IRU) 2007

6. UNESCAP Resolution 48/11, 1992
UNESCAP promoted through this resolution the aim of reaching a minimum level of facilitation among its member countries, therefore it selected 7 legal instruments judged as being of vital importance for facilitating international transport while providing for a high level of safety, security and environmental protection in transport.  
By facilitating international transport, they provide the basic conditions for the development of international trade, exports and imports, which are a key factor, and an increasingly important one, for the economic and social development of countries, particularly of landlocked developing countries. At the same time they are a means to avoid isolationism…
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7. Regional/Global Organisations
Belarus
People’s
Republic
of China
Russian
Federation
Kazakhstan
Kyrgyz Republic
Turkey
Tajikistan
Turkmenistan
Azerbaijan
Uzbekistan
Iran
UN ESCAP
Afghanistan
Pakistan
India
UN ECE
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8. TIR System an overview Facilitation
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9. The TIR System Worldwide
Future Contracting
Parties:
PAK, PRC, SAU,
THA, UAE, YEM…
AND INDIA? ?
1949
6 Pioneer States : BEL, DEU, FRA, ITA, LUX, NLD,
Now:
67 Contracting Parties
Now
55 Operational Countries
© International Road Transport Union (IRU) 2007

10. Applicability of TIR Convention
Road
Rail
Sea
... using road for at least one leg of the journey
INTERMODALITY
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11. TIR and Multilateral Approach
TIR is the materialisation of the multilateral approach:
Access to 55 TIR operational countries
Cost efficiency of the guarantee and of management
Intermodality
Security in the supply chain
© International Road Transport Union (IRU) 2007

12. TIR Convention TIR System SafeTIR Controlled Access
Secure vehicles and containers
International Chain of Guarantee
TIR Carnet
Mutual Recognition of Customs Controls
Controlled Access
SafeTIR
TIR Convention
TIR System is a facilitation and security tool answering the needs of both Public and Private sectors: Customs, trade, transport.
© International Road Transport Union (IRU) 2007

13. Role of the IRU in the Management of the TIR System
Four out of the six pillars
Centrally print and distribute TIR Carnets
Organise the functioning of the international chain of guarantee (global contract)
Controlled access (rules, manuals, preventive measures)
SafeTIR (Cute-Wise)
© International Road Transport Union (IRU) 2007

14. Current TIR Geography
This is what the TIR transit System can do already today, to facilitate trade and transport
Bandar Abbas
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15. TIR Geographical Expansion
And this is what the TIR could do tomorrow, when countries in Asia and the Pacific will accede to the TIR Convention and will use the TIR System.
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16. TIR Geographical Expansion
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17. TIR Geographical Expansion
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18. At the Port of Entry in the EU
Advantages for container arriving under TIR by sea from Asia
No third party involved = reduced cost/delay!
Customs formalities = same day
Cost = only that of the TIR Carnet
Customs clearance = at final destination
© International Road Transport Union (IRU) 2007

19. TIR and Economic Development
YEAR
QUANTITY
1952
3243
1955
14110
1960
80250
1965
303850
1970
710630
1975
533060
1980
718612
1985
859100
1990
748600
1992
1994
1996
1998
2000
2002
2004
2006
Total
1952-
57’408’833
Petrol Crisis
Russian Financial Crisis
© International Road Transport Union (IRU) 2007

20. Recent IT Developments in TIR
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21. Risk Management Tool SafeTIR IRU dBase Ensuring Traceability CUTE-Wise
Storage
IRU Archive
IRU Control
Issuing Association
TIR Carnet Life Cycle
Electronic TIR data
IRU dBase
Issuing Association
Holder
CUTE-Wise
SafeTIR
Holder
Responsibility of the IRU is to manage an electronic control system for TIR Carnets:
- Inform the Contracting Parties etc, of problems encountered in the TIR system;
- Provide statistics and data on performances of Contracting Parties with regard to the electronic control system;
- Continually seek to improve its efficiency as a risk management and anti-fraud tool;
Driver
Driver
Ensuring Traceability
Customs
© International Road Transport Union (IRU) 2007

22. Electronic TIR Pre-Declaration
- One guarantee
- One regime
- Independence 2 1
(NCTS/TIR) Pre-declaration
TIR 2 1
Fulfills two requirements:
Electronic pre-declaration
Computerized exchange of information
Madrid
© International Road Transport Union (IRU) 2007

23. Recent IT Developments in TIR
Customs receive all the data contained in the TIR Carnet
Final objective
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24. IRU - FCS SafeTIR Real Time Project
The status of the TIR Carnet is :
Valid (with the following details: Holder ID, validity date, Issuing Association name)
Invalid
Not issued/False/other situations
GNIVTs Moscow
SafeTIR data
IRU Geneva
What is the status of the TIR Carnet ?
SafeTIR Real Time project:
The association can issue in security
The Customs can take into charge the TIR Carnet in security knowing that the association has issued it in security
© International Road Transport Union (IRU) 2007

25. Main Export Partners of India
UK: 4.5%
China: 5.5%
USA:17%
Hong Kong: 4.7%
UAE: 8.8%
Total Exports: $76,230,000,000 f.o.b.
Singapore: 4.5%
© International Road Transport Union (IRU) 2007

26. Main Import Partners of India
Belgium: 4.4%
Switzerland: 5.2%
China: 6.1%
USA: 6%
Total Imports: $113,100,000,000 f.o.b.
© International Road Transport Union (IRU) 2007

27. Conclusion (1) Essential for facilitation:
strong political will, committment and consistency at national level to reach the goal
Public-Private Partnership
If not, facilitation is denatured, resulting in endangering the development of trade/transport and of the economy as a whole
© International Road Transport Union (IRU) 2007

28. Conclusion (2)
Multilateral legal instruments can yield substantial benefits to public and private sectors
For this to happen, they must be fully and effectively implemented
© International Road Transport Union (IRU) 2007

29. Conclusion (3) IRU remains committed to assist India in this process
In order to take full advantage of its strategic location, India should accede to the facilitation legal instruments and effectively implement them, according to international standards and existing best practices
IRU remains committed to assist India in this process
© International Road Transport Union (IRU) 2007

30.
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