Securing & facilitating North American trade with ONE global system Grapevine, Texas, 16 October 2011

Agenda 1.IRU: 60 years of experience in facilitating and securing international trade and cross border trucking 2.Facilitating and securing international trade and cross border trucking through global multilateral mechanisms 3.Facilitating and securing international trade and cross border trucking through dedicated IRU IT applications 4.How can IRU contribute to further securing and facilitating American trade and cross border trucking? 5.Next steps Page 2 (c) International Road Transport Union (IRU) 2011

IRU: 60 years of experience in facilitating and securing international trade and cross border trucking Page 3 (c) International Road Transport Union (IRU) 2011 Part 1

This is the IRU Page 4 (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

9/11 Worldwide Security Requirements changed forever Page 6 (c) International Road Transport Union (IRU) 2011

IRU: Facilitating and securing international trade through global multilateral mechanisms Page 7 (c) International Road Transport Union (IRU) 2011 Part 2

The TIR System  The tried and tested multilateral facilitation and security instrument for international transport and trade.  Based on TIR Convention of  Provides world-wide coverage. Page 8 (c) International Road Transport Union (IRU) 2011

TIR Geographical Scope In Negotiation Process Contracting Parties Page 9 (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 10 (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 11 (c) International Road Transport Union (IRU) 2011

TIR meets WCO SAFE requirements for Advance Cargo Information   Page 12 (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 13 (c) International Road Transport Union (IRU) 2011 WCO SAFE and AEO requirements can be fully satisfied by TIR

USCOC study confirms TIR as best instrument to implement WCO Safe Framework Page 14 (c) International Road Transport Union (IRU) 2011

IRU: Facilitating and securing international trade and cross border trucking through dedicated IRU IT Applications Page 15 (c) International Road Transport Union (IRU) 2011 Part 3

Challenges & Opportunities  Computerization is on Paper documents are gradually being replaced by electronic onesPaper documents are gradually being replaced by electronic ones  9/11 changed security requirements forever Security programs are being implemented (C-TPAT, PIP, AEO,...)Security programs are being implemented (C-TPAT, PIP, AEO,...) Electronic submission of advance cargo information are becoming a must (WCO SAFE)Electronic submission of advance cargo information are becoming a must (WCO SAFE) Each country is sovereign in implementing processes and rules. Efforts towards mutual recognition and harmonization are progressing but slowlyEach country is sovereign in implementing processes and rules. Efforts towards mutual recognition and harmonization are progressing but slowly  How to comply with strengthened rules and processes while further facilitating and securing trade ? TIR along with proven IT tools provides a valuable answerTIR along with proven IT tools provides a valuable answer Page 16 (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 17 (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 18 (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 19 (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 20 (c) International Road Transport Union (IRU) 2011

IRU: How can IRU/TIR contribute to further securing and facilitating North American trade and cross border trucking? Page 21 (c) International Road Transport Union (IRU) 2011 Part 4

USA Electronic Pre-Declaration Requirements ACE, the Automated Commercial Environment, is the commercial trade processing system being developed by U.S. Customs and Border Protection (CBP) to facilitate legitimate trade and strengthen border security Page 22 (c) International Road Transport Union (IRU) 2011

Canadian Electronic Pre-Declaration Requirements The eManifest initiative is the third phase of the Advance Commercial Information (ACI) program. When fully implemented, eManifest will require trade partners in all modes of transport (air, marine, road and rail) to submit cargo, crew/passenger, conveyance, secondary and importer data to the Canada Border Services Agency (CBSA) prior to arrival at the border. Cargo Data Conveyance data Cargo Acknowledgment Conveyance Acknowledgment Page 23 (c) International Road Transport Union (IRU) 2011

North American AEO Programs Requirements  Various programs co-exist in North America, implying going through several certification steps Page 24 (c) International Road Transport Union (IRU) 2011

Financial Guarantee Requirements  Cross border operations require financial securities to be provided depending on the amount of duty and taxes payable on the goods being transported Page 25 (c) International Road Transport Union (IRU) 2011

IRU Contribution to securing North American Trade eManifest Cargo Data Conveyance data Cargo Acknowledgment Conveyance Acknowledgment TIR-EPD Real-Time SafeTIR Data/Acknow. Connecting Business and Customs through an internationally tried and tested system Page 26 (c) International Road Transport Union (IRU) 2011 TIR AEO TIR Guarantee Data/Acknow.

IRU Contribution to securing North American Trade eManifest Cargo Data Conveyance data Cargo Acknowledgment Conveyance Acknowledgment TIR-EPD Real-Time SafeTIR Data/Acknow. Connecting Business and Customs through an internationally tried and tested system Page 27 (c) International Road Transport Union (IRU) 2011 TIR AEO TIR Guarantee Data/Acknow. IRU/TIR meet: - C-TPAT/PIP/AEO requirements - ACE and eManifest electronic requirements - All financial guarantee requirements - Customs clearance requirements at destination

Benefits of IRU TIR for US trade  Tried and tested single window for trade facilitation and security allowing secure door to door seamless transport with green light border crossing process through interface with Customs/security systems, freeing Customs time for effective targeted anti-terrorist inspections.  Effective anti-terrorist and anti-corruption measures preventing need to negotiate several hundred bilateral agreements on security.  IRU TIR can include US C-TPAT, Canadian PIP, and Mexican Empresa Certificada requirements.  Multilateral mutually-recognized legal framework and guarantee system already in place (TIR Convention and WCO SAFE).  Solid, cost effective financial guarantee system (10 ¢ for $100 bank guarantee) which would be of greatest benefit to US exporters.  No IT development cost for Customs and National Associations  Short implementation time after agreement signature (1-6 months overall).  US can shape the TIR system to meet its requirements before others impose theirs. Page 28 (c) International Road Transport Union (IRU) 2011

 Tried and tested single window for trade facilitation and security allowing secure door to door seamless transport with green light border crossing process through interface with Customs/security systems, freeing Customs time for effective targeted anti-terrorist inspections.  Effective anti-terrorist and anti-corruption measures preventing need to negotiate several hundred bilateral agreements on security.  IRU TIR can include US C-TPAT, Canadian PIP, and Mexican Empresa Certificada requirements.  Multilateral mutually-recognized legal framework and guarantee system already in place (TIR Convention and WCO SAFE).  Solid, cost effective financial guarantee system (10 ¢ for $100 bank guarantee) which would be of greatest benefit to US exporters.  No IT development cost for Customs and National Associations  Short implementation time after agreement signature (1-6 months overall).  US can shape the TIR system to meet its requirements before others impose theirs. Benefits of IRU TIR for US trade Page 29 (c) International Road Transport Union (IRU) 2011 Strategic step to facilitating and securing trade between North America, the Western Hemisphere, and the rest of the world.

Next steps Page 30 (c) International Road Transport Union (IRU) 2011 Part 5 Next steps

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