General Overview of the TIR System Karachi, 18 August 2014 Tatiana Rey-Bellet, TIR-EPD Project Manager

2 The best multilateral facilitation instrument for international transport and trade Based on TIR Convention of 1975 Currently signed by 68 Contracting Parties, with the possibility to be implemented globally and multi-modally (road-rail, road-maritime, road-air) What is the TIR System?

3 Securing and facilitating trade and international road transport Transports Internationaux Routiers Managed by the IRU since 1949

4 Geographical scope of the TIR Convention Interested Parties 25 Contracting Parties 68 Contracting Parties in admission process Contracting Parties in admission process TIR Operational Countries TIR Operational Countries

5 The six pillars of the TIR System

6 Benefits of the TIR System Ensures the secure and sustainable development of international trade and road transport (controlled access, traceability) Gives access to 58 TIR operational countries Through mutual recognition of Customs Controls and the guarantee, transport costs, formalities and delays are reduced Secures and facilitates trade through the implementation of harmonised controls and documents

7 Trade without a Transit System CURRENCY EXCHANGE NATIONAL GUARANTEE SECURITY CHECKS CUSTOMS DECLARATION Etc. INSPECTION OF GOODS AND VEHICLES

8 Trade without a Transit System Border crossing Country ACountry CCountry B Temporary import Export Temporary import Export National guarantee Export

9 Trade with the TIR System CURRENCY EXCHANGE NATIONAL GUARANTEE SECURITY CHECKS CUSTOMS DECLARATION Etc. INSPECTION OF GOODS AND VEHICLES

10 Trade with the TIR System Border crossing Country ACountry C Country B Temporary import Export Temporary import Export National guarantee Export TIR

11 To facilitate trade through… Simplified & harmonised Customs guarantee and procedures Border crossing facilitation for customs officers and trade operators Improved cost effectiveness Time saving Secure door to door transport of goods under Customs control Objectives of International Transit Systems = 4

12 Evolution of TIR usage YEARQUANTITY Total

13 USD 150’000’000’000

14 Secure vehicles and containers X  Vehicles with secure load compartments need to meet strict technical standards – Annex 2, Annex 7

15 Secure vehicles and containers Each vehicle needs to have a valid certificate of approval delivered by national competent authorities (Annex 3) Approval Certificate – Basic Principles (Annex 3) Individual or by vehicle / container design type Standard format – Annex 4 Renewable every two years To be kept with vehicle Indicated in TIR Carnet To be verified by Customs during TIR operations.

16 International Chain of Guarantee Goods transported under the TIR procedure are not subjected to the payment or deposit of import or export duties and taxes at Customs offices en route (Article 4) Goods transported under the TIR procedure are not subjected to the payment or deposit of import or export duties and taxes at Customs offices en route (Article 4) Customs duties and taxes at risk are covered through the “Deed of Guarantee” with a national TIR Guaranteeing Association IRU is mandated to take on the responsibility for the effective organisation and functioning of an international guarantee system (Article 6.2bis) The Guaranteeing Association is the national partner to the Customs Authorities for resolving an irregularity caused by any TIR Holder: both national or foreign transport operators

17 International Chain of Guarantee – Coverage National Financial Institution ASSOCIATION Holder International Financial Institution GLOBAL CONTRACT International Financial Institution GLOBAL CONTRACT IRU Holder

18 TIR Carnet TIR = Secure Trade facilitation TIR Carnet = Proof of: Guarantee Controlled access Mutual Recognition of Customs Controls

19 Security elements Technical security elements Visual security elements TIR Carnet Since 1949 … the ratio of false TIR Carnets compared to issued TIR Carnets is under %

20 The Pages of a TIR Carnet Pairs of vouchers white (voucher 1) green (voucher 2) one pair of vouchers is needed for each country of: departure transit destination A TIR Carnet has 4,6,14 or 20 vouchers used for each TIR operation

21  Verify for correct completion of TIR Carnet  Verify that the TIR Carnet is valid: -that the expiry date on the TIR Carnet is not in the past -Check TIR Carnet validity in IRU database (CUTE-Wise, Customs Portal, Real-Time SafeTIR)  Verify that goods match description on TIR Carnet & attached documents (CMR, invoice, etc.)  Examine vehicle & check certificate of approval (if for sealed goods) - should be valid until the end of the TIR Transport Customs TIR Procedures Customs Office of Departure Customs must refuse an invalid TIR Carnet Customs refuse TIR Carnets for “sealed” vehicles without a valid certificate of approval

22 If checks are OK, then  Fix seals to the vehicle  Fill in the TIR Carnet  Enter details in Customs Register Customs TIR Procedures Customs Office of Departure

23 Goods are transported to the Customs Office of Exit TIR Carnet is presented to Customs Check Customs seals Examine vehicle Check last counterfoil (page 1, white) Customs office of Exit TIR

24 Counterfoil N°2 on voucher 2 p. 2 (green) must be filled in 1.Arrival certified by the Customs office (Enter name of office en route/destination) 2.  Seals or identification marks found to be intact (N/A at departure) 3.Number of packages discharged 4.New seals apposed 5.Reservations 6.Customs signature & date stamp of the Customs office Customs Office of Exit

25 Stamped counterfoil 2 confirms the termination of the first TIR operation All counterfoils remain in the TIR Carnet End of 1st TIR operation

26 Detach the upper part of the voucher from the lower part “Certificate of termination” Voucher 2 page 2 (green) Upper part of voucher 2 (green) remains at the Customs office of exit The “Certificate of termination” is sent back to the Customs office of departure

27 At the Customs office of Departure, the “Certificate of termination” is compared to Voucher 1, p. 1 (white) 1st TIR operation is discharged Discharge

28 Customs of departure must ensure that the controls are performed correctly: -Access to TIR System -Goods, vehicles and documentation -Customs seals Their controls are accepted by ALL other Customs offices during the TIR transport - Generally no examination of goods en route - Spot checks only in case of suspicion Mutual Recognition of Customs Controls

29 Annex 9, Parts I & II Customs authorise access to the TIR procedure for: National TIR Associations – to issue and guarantee TIR Carnets Transport operators (Natural and legal persons) – to use TIR Carnets Controlled access Information on all transport operators authorised as TIR Holders are stored by the UNECE in the International TIR Data Bank (ITDB)

30 TIR IN OPERATION

31 TIR procedure in the country of departure Customs office of departure OUTWARD TRANSIT Customs office of exit TIR

32 TIR procedure in the country of transit Customs office of entry THROUGH TRANSIT Customs office of exit TIR

33 TIR procedure in the country of destination INWARD TRANSIT Customs office of destination Customs office of entry TIR

34 NO Alcohol (HS , 2208xx) or tobacco (HS , , ) (Except for beer & wine or raw tobacco) Goods not allowed under TIR

35 Directions of TIR System further development NEW USE Multimodal use Internal transport GEOGRAPHIC EXPANSION China Pakistan Arab Peninsula Latin America NEW TIR PRODUCTS Various guarantee levels (TIR+) Guarantees for special products Further development Full computerisation of TIR System will facilitate the introduction of new TIR products

36 A fully-computerised solution providing a higher-level guarantee for the TIR Carnet: Print voucher with all TIR security features Guarantee limit increased to USD 150,000 or EUR 160,000 per TIR Carnet (depending on the initial guarantee limit set for the TIR Carnet in each country) Available only through IRU member TIR Associations Exclusively for authorised TIR Carnet Holders Activated only with a valid TIR Carnet Global TIR insurers guarantee, for increased financial security What is “TIR+”? ALREADY FULLY OPERATIONAL IN KAZAKHSTAN!

37 CUTE-Wise validity check made quick and easy Web application easily activate the guarantee anytime, anywhere no infrastructure or maintenance required TIR+ apps

38 What is an “iCarnet” ? Uses well-known TIR procedures Fast implementation upon Customs’ approval (required legal framework already available) Competitive business opportunities for TIR Carnet Holders operating at national level only Full support of international insurers A new competitive Carnet allowing the secure transport of goods between two Customs offices in the same country:

39 Why use an iCarnet? Need to transport goods from ports to final destination in the same TIR country Volume of goods being imported from emerging markets, especially Asia, is soaring

40 Simplicity: process similar to the regular TIR procedure - no new investment required Security: transport under Customs seals in TIR authorised vehicles Financial guarantee: duties and taxes secured by an international guarantee chain, backed by major international and national insurers Controlled access: used only by authorised TIR users Advanced risk assessment and traceability through IRU IT applications: TIR-EPD & Real-Time SafeTIR General benefits of new products 

41 TIR video Watch the TIR Movie