Legal Arrangements for the Smooth Movement of Goods Internationally 4th Expert Group Meeting on Developing Euro-Asian Transport Linkages 21-24 November 2006, Thessaloniki, Greece Legal Arrangements for the Smooth Movement of Goods Internationally Geetha Karandawala Chief, Transport Facilitation Section Transport and Tourism Division UNESCAP Secretariat

Smooth Movement of Goods & People International transport Ensure free movement of goods & people Accessible & open environment Exists only within the limits that each country is prepared to accept Norms, standards, rules, independent to each other As trade & transport developed – so did the rules Transport is one of the most regulated sectors National rules, bilateral treaty, multilateral treaty

To ensure right of transit In the early 1950’s the UN took the lead to help Governments create an enabling environment Large number of legal instruments elaborated Transit rights Statute of freedom of transit, Barcelona (1921) Convention on Transit & Trade of landlocked states (1965) Convention on Law of the Sea (1982) The two major components of the IIITS are the infrastructure and the operational issues with its two sub-components: facilitation and logistics services. AH, TAR-defined. Transport facilitation-Resolution 48/11, methodology, mechanisms etc. Logistics-endorsed as a priority by Busan Conf of MT. Another priority:road safety…

To regulate & harmonize standards & processes Regulations are vital to safety, security & environmental protection UN Agencies & international organization: ECE, IMO, ICAO, WCO ECE initiated over 50 international conventions & agreements 1992 ESCAP & ECE helped countries in Asia & the Pacific to select 7 of the most important ECE Conventions A set of convenctions that provide a basic level of harmonization to facilitate trade Envisaged as an initial step to be further developed Objective -> International Integrated Intermodal Transport System The two major components of the IIITS are the infrastructure and the operational issues with its two sub-components: facilitation and logistics services. AH, TAR-defined. Transport facilitation-Resolution 48/11, methodology, mechanisms etc. Logistics-endorsed as a priority by Busan Conf of MT. Another priority:road safety…

RESOLUTION 48/11: THE CONVENTIONS Convention on Road Traffic, 1968 Convention on Road Signs and Signals, 1968 Customs Convention on the International Transport of Goods under Cover of TIR Carnets (TIR Convention), 1975 Convention on Temporary Importation of Commercial Road Vehicles, 1956 Customs Convention on Containers, 1972 International Convention on the Harmonization of Frontier Control of Goods, 1982 CMR Convention 1956 Just a brief reminder of the UN legal instruments contained in Resolution 48/11 and which continue to be important for transport facilitation:…..

Promoting the conventions 1998: Launching of UN special programme for Economics of Central Asia (SPECA) 1999 SPECA countries proposed expansion of resolution 48/11 to include other conventions European Agreement supplementing the convention on road traffic (1971) European Agreement supplementing the convention on road signs & signals (1971) Customs convention on the temporary importation of private road vehicles (1954) Agreement on the international carriage of perishable food stuffs & on the special equipment to the used for such carriage (ATP) 1970 The two major components of the IIITS are the infrastructure and the operational issues with its two sub-components: facilitation and logistics services. AH, TAR-defined. Transport facilitation-Resolution 48/11, methodology, mechanisms etc. Logistics-endorsed as a priority by Busan Conf of MT. Another priority:road safety…

Resolution 48/11 Intervening years Profound influence on globalization Major structural changes in some countries Centrally planned to market oriented economies Policies & tools developed by other international organizations Regional integration & physical inter-connectivity Resolution 48/11 is an important tool and valid Progress seen & more effort & some adjustment needed

Future Direction-Ministerial Conference on Transport 2006 Harmonization through accession & implementation of international legal instruments Towards a refined & expanded resolution 48/11 Include the most relevant instruments from UNECE/WCO/IMO Convention on Temporary Admission (Istanbul Convention) 1996 Convention on the simplification & harmonization of customs procedures, as amended (Revised Kyoto Convention) 1999 Convention on facilitation of International Maritime Traffic (FAL Convention) 1965 as amended Protocol to the convention on the Contract for International Carriage of Goods (CMR) 1978

THE CONVENTION ON TEMPORARY ADMISSION (ISTANBUL CONVENTION), 1990 Benefits: High degree of simplification and harmonization of Customs procedures Facilitation of temporary admission in pursuit of economic, humanitarian, cultural, social or touring objectives Standardized model temporary admission papers. Uniform provisions in respect of temporary admission, resulting in a high degree of simplification and harmonization of Customs procedures. Facilitation of temporary admission in pursuit of economic, humanitarian, cultural, social or touring objectives. Standardized model temporary admission papers as international Customs documents with international guarantee, facilitating the temporary admission procedure where a Customs document and a guarantee are required.

Benefits: Facilitation of international trade and transport THE INTERNATIONAL CONVENTION ON THE SIMPLIFICATION AND HARMONIZATION OF CUSTOMS PROCEDURES, AS AMENDED (REVISED KYOTO CONVENTION), 1973 Benefits: Facilitation of international trade and transport Goods move faster across national borders reducing the need to maintain security or buffer stocks Reduced work load of Customs officials Beneficial consultative relations with the business community, in particular for traders and transport operators. The benefits of the implementation of this convention are almost “touchable”: Facilitation of international trade and transport, The maximum use of information technology and standardized and simplified procedures enable goods to move faster across national borders reducing the need to maintain security or buffer stocks; The application of risk management techniques reduces the work load of Customs officials; The use of electronic fund transfers and the establishment of formal consultative relations with the business community will be of significant benefit to the business community and in particular to traders and transport operators.

THE CONVENTION ON FACILITATION OF INTERNATIONAL MARITIME TRAFFIC (FAL CONVENTION), 1965 Benefits: Harmonized standards and practices Reduced bureaucracy and increased automatic data processing techniques used in shipping documentation Streamlined procedures of clearance of cargo and persons Increased safety and security for vessel, cargo, crew and passengers Proven to be one of the most efficient instruments for facilitation of international maritime traffic.

Status of UNESCAP member states’ accession to international conventions listed in Commission Resolution 48/11, as of November 2006 Country or area Convention on Road Traffic[1] (1968) Convention on Road Signs and Signals Customs Convention on the International Transport of Goods under Cover of TIR Carnets (1975) Customs Convention on the Temporary Importation of Commercial Road Vehicles (1956) Customs Convention on Containers (1972) International Convention on the Harmonization of Frontier Controls of Goods (1982) Convention on the Contract for the International Carriage of Goods by Road (CMR) Afghanistan x Armenia Azerbaijan China Georgia Iran (Islamic Republic of ) Kazakhstan Kyrgyzstan Pakistan Russian Federation Tajikistan Turkey x (1949) Turkmenistan Uzbekistan Source: official UNECE publications. Legend: x – Contracting Party; S- signature; (..)- data are not applicable. 1 A very interesting situation can be noticed in the case of the 1949 Convention that preceded the Convention on Road Traffic, 1968 and the Convention on Road Signs and Signals, 1968: 15 ESCAP member countries are Contracting Parties to the 1949 Convention, but did not ratify the 1968 Conventions. The 1949 Convention is still valid in relations between the Contracting Parties to it.

International Agreements and Conventions Accession status to international agreements and conventions, indicated in the Protocol of the second session of the PWG-Transport and Border Crossing No International Agreements and Conventions Afghanistan Azerbaijan Kazakhstan Kyrgyzstan Tajikistan Turkmenistan Uzbekistan 1 Convention on Road Traffic (08/11/1968)* x 2 Convention on Road Signs and Signals (08/11/1968)* 3 Convention on the Contract for the International Carriage of Goods by Road (CMR) (19/05/1956)* 4 Customs Convention on the Temporary Importation of Commercial Road Vehicles 18/05/1956)* 5 Customs Convention on the International Transport of Goods Under Cover of TIR Carnets (14/11/1975)* 6 International Convention on the Harmonization of Frontier Controls of Goods (21/10/1982)* 7 Customs Convention on Containers (02/12/1972)* 8 European Agreement supplementing the Convention on Road Traffic (01 /05/ 1971) 9 European Agreement supplementing the Convention on Road Signs and Signals (01/05/1971) 10 European Agreement concerning the Work of Crews of Vehicles engaged in International Road Traffic (AETR) (01 /07/ 1970) 11 Customs Convention on the Temporary Importation of Private Road Vehicles (04/06/1954) 12 European Agreement concerning the International Carriage of Dangerous Goods by Road ADR 30/09/1957) 13 Agreement on the International Carriage of Perishable Foodstuffs and on the Special Equipment to be Used for such Carriage (ATP) (01/09/1970) 14 European Agreement on Main International Traffic Arteries (AGR) (15/11/1975) 15 European Agreement on Main International Railway Lines (AGC) (31/05/1985) C 16 European Agreement on Important International Combined Transport Lines and Related Installations (AGTC) (01/02/ 1991) Legend: * ‑ Conventions recommended by UNESCAP Resolution 48/11; x– Contracting Party; C- accession procedures ongoing.

Status of accession of ESCAP member states to the most relevant UN/IMO facilitation conventions Country Convention and Statute on Freedom of Transit, Barcelona, 1921 Convention on Transit Trade of Landlocked States, New York, 1965 Convention on Facilitation of International Maritime Traffic (FAL Convention), 1965 Convention on the Law of the Sea, Montego Bay, 1982 Afghanistan S Armenia x Azerbaijan China, P.R. of Georgia Iran (Islamic Republic of) Kazakhstan Kyrgyzstan Pakistan Palau Russian Federation Tajikistan Turkey Turkmenistan Uzbekistan Legend: x- Contracting Party: S- signature

Convention on temporary admission (Istanbul Convention) Status of accessions to the most relevant WCO conventions2 and membership of the WTO Country or area Membership of the WTO Convention on temporary admission (Istanbul Convention) International Convention on the simplification and harmonization of Customs procedures, as amended (Revised Kyoto Convention) Afghanistan observer Armenia 05.02.2003 Azerbaijan x China 11.12.2001 Georgia 14.06.2000 Iran (Islamic Republic of) Kazakhstan Kyrgyzstan 20.12.1998 Pakistan 01.01.1995 Russian Federation Tajikistan Turkey 26.03.1995 Turkmenistan - Uzbekistan Legend: x- Contracting Party 2 The WCO conventions include a number of Annexes which are not all ratified by the Contracting Parties to the convention itself. The list of the Annexes to each convention and the status of their ratification are subject of the ongoing study performed by the ESCAP secretariat.

Subregional Agreements Overview (1) ECO Transit Transport Framework Agreement, 1998 Coverage: Afghanistan, Azerbaijan, Iran, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkey, Turkmenistan, Uzbekistan Scope: transit transport by road, rail, inland waterway, multimodal & in access port

Subregional Agreements Overview (1) Continued: ECO Agreement Objectives: Facilitate movement of goods, luggage & passengers Ensure safety of goods, luggage & passengers Avoid incidence of customs fraud & tax evasion Facilities for transit: Designation of transport routes Multimodal transport Expedite clearance of traffic Safety – offices – visa Maritime ports & facilities

Subregional Agreements Overview (1) Continued: ECO Agreement General conditions for road transport Traffic rights (transport services) Means of transport registered in one country can provide transit services in territory of another No internal transport in another country General conditions for rail transport Transit services General conditions for inland transport Rules of carriage by road transport Transit transport coordination council (TTCC)

Subregional Agreements Overview (2): TRACECA Agreement, 1998 Coverage: Armenia, Azerbaijan, Bulgaria, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Romania, Tajikistan, Turkey, Ukraine, Uzbekistan Scope: bilateral & transit transport by road, rail, maritime, air, multimodal & pipelines

Subregional Agreements Overview (2) Continued: TRACECA Agreement Objectives: Develop economic relations & trade Access in international markets Facilitate international transport of goods, passengers, hydrocarbons Ensure traffic safety etc. Harmonize transport policy/legal framework Create equal conditions of competition between different types of transport

Subregional Agreements Overview (2) Continued: TRACECA Agreement Traffic rights (facilitation of international transport) Parties grant each other the right of transit of international means of transport, goods & passengers Inter-governmental commission to regulate issues regarding implementation Wide power Establish secretariat Technical annexes (road, rail, maritime navigation, customs & documentation) Road annex: access to market through special permits

Further progress Bilateral Subregional Agreements and international conventions all have role to play: strong political will, committment and consistency at national, sub-regional and regional levels to reach the goal Public-Private Partnership Multilateral legal instruments can yield substantial benefits to public and private sectors For this to happen, they must be fully and effectively implemented: implementation is a national competency Need for countries to be able to assess implecations of accession Need to understand how to implement

Implementation of legal instruments National level National trade & transport facilitation bodies Subregional level Clear agenda including periodical analysis of developments in subregion, region & international level NTTF bodies along transport corridors Regional level Countries to deliberate & define policy & strategies Secretariats to assist

Thank you for your attention