Issuing and guaranteeing roles of the Associations Karachi, 18 August 2014 Tatiana Rey-Bellet, TIR-EPD Project Manager Nazife Bulut, TIR Insurance and Legal Affairs

2 Admission of TIR Holders

3 Admission of TIR Holders (Association’s TIR Manual: Section 1; TIR Convention) Two stage process: 1) Application to Association - Annex 9 (part II) of TIR Convention sets out minimum criteria for authorisation to use TIR Carnets - Association will check that minimum criteria are … and continue to be … met. 2) Approval by Customs Authorities

4 Admission of TIR Holders Minimum Criteria Proven experience in international transport Sound financial standing Proven knowledge in application of the TIR Convention Absence of serious or repeated offences against Customs or tax legislation Signed Declaration of Engagement

5 Admission of TIR Holders Keep the proofs of your research in the Holder’s file Association will Issue an application form to obtain basic information from the applicant Provide full details of the rules & obligations that must be observed Verify ALL the details given on the application form

6 Admission of TIR Holders If the application is approved by Customs And by the Association The Association will: send Declaration of Engagement to Holder for signature send TIR Carnet Holder’s Manual to Holder allocate unique TIR Carnet Holder’s ID number.

7  Admission Guarantee  Other guarantees Guarantees

8 Admission of TIR Holders Before issuing TIR Carnets to a new Holder, the Association must: verify that Customs authorisation has been granted have received the Declaration of Engagement duly signed have received a receipt for the TIR Carnet Holder’s Manual ensure that the appropriate guarantees have been lodged. Keep all basic information in the Holder’s file

9 TIR Carnet Issuance

10 Quotas The quota must never be exceed Multiple of vehicles authorised for TIR Transport The Association can later reduce or increase the quota without agreement from the Holder Maximum number of TIR Carnets that can be in Holder’s possession at any one time

11 Issue of TIR Carnets (Association’s TIR Manual: Section 7)  The Association must keep detailed records: of each company admitted to the TIR System of issued TIR Carnets  Secure procedures must be in place TIR Carnets must be given only to authorised persons

12 Issue of TIR Carnets (Association’s TIR Manual: Section 7)  Validity : 60 days as from the day after its issuance  The Association must register electronically the details on issued TIR Carnets  Daily electronic transmission to the IRU of details on issued (and returned) TIR Carnets. Harmonised Software is deployed by IRU for this purpose (AskTIRWeb / ATIRS98)

13 Controls on Used TIR Carnets

14 Physical Checks on Returned TIR Carnets (Association’s TIR Manual: Section 14) Date of Customs acceptance should be within the validity date Validity: Unused vouchers (check for name of the TIR Holder) Remove additional vouchers Vouchers: Is an approved subcontractor used ? Subcontractor: “Procès verbal” filled in? Customs stamp on last green counterfoil ? SafeTIR termination data available? Pre-notification received? Checking for proper discharge no conditions ok with reservation Initiate inquiries not terminated Initiate inquiries Terminated with …

15 Return of TIR Carnets to the Association

16 Total 120 Days for return by holder TIR Holder has 120 days to return the TIR Carnet to the Association Data Transmission Return data must be transmitted to IRU without delay (file.rif) Return of TIR Carnets to Association (Association’s TIR Manual: Section 13)

17 Return of TIR Carnets to the IRU

18 Return of TIR Carnets to IRU (Association’s TIR Manual, Sections 16 & 17) TIR Carnet returned by the Holder to the Association must be returned to IRU within 4 months Return to Association Batch TIR Carnets for monthly return to IRU Batch Separate issued/used from issued/unused TIR Carnets Separate Remove all unused vouchers from “used” TIR Carnets Remove All TIR Carnets are archived for 30 months at IRU. Archive All TIR Carnets should be returned to IRU by 25 months after their invoice date. Return to IRU

19 Holder Management

20 Suspension and Exclusion from the TIR System TIR Convention Art. 6.4 TIR Convention Art. 6.4 The TIR Holder loses his rights to access the TIR System National Customs Authorities National Customs Authorities Revocation Repeated or severe irregularity Declaration of Engagement The TIR Holder loses his rights to access the TIR System National TIR Association Permanent Suspension Repeated or severe irregularity Declaration of Engagement The TIR Holder is suspended from using TIR Carnets until the situation is resolved National TIR Association Temporary Suspension TIR irregularity Legal basisImpact Applying Authority Administrative measure Case TIR Convention Art. 38 The TIR Holder is permanently excluded from entering the Contracting Party where the exclusion has taken place Customs Authorities Permanent Exclusion Repeated or severe irregularity TIR Convention Art. 38 The TIR Holder is temporarily excluded from entering the Contracting Party where the exclusion has taken place Customs Authorities Temporary Exclusion TIR irregularity

21 Exclusion / Suspension / Revocation Association must: automatically block the issue of TIR Carnets at all offices of the Association require from the excluded Holder the return of all (used and unused) TIR Carnets notify IRU of the numbers of all TIR Carnets issued to the TIR Holder that are still in circulation (issued but not yet returned) so that they can be declared invalid by IRU. I N V A L I D

22 The use of TIR Carnets is a privilege not a right

23 TIR Claims

24 Common and primary objectives All parties involved in the TIR System aim at: Ensure the correct termination of a TIR operation Ensure the correct termination of a TIR operation Establish, as fast as possible, if termination did NOT occur & react to eliminate further risk Establish, as fast as possible, if termination did NOT occur & react to eliminate further risk 1 2

25 Importance of information exchange Key element for efficient and successful management of TIR claims: Exchange of information between the different parties involved in TIR claims must be fast and accurate © International Road Transport Union (IRU) 2013

26 It is important to keep in mind that: Each party involved in claims procedures acts within a specific legal framework & must fulfil its legal obligations Legal framework

27 Legal layers 1. International Level TIR Convention 2. National Level National laws and regulations 3. Contractual relationships Documents signed between the actors involved in the TIR System

28 Customs Claims 3 Payment Request to Holder and Association 2 Notification of non- discharge to Holder and Association 1 Carry out an inquiry – including notification and request for payment of Customs debt from debtor(s) Article 11 If a TIR Operation is not discharged, Customs shall

29 Time Limits Article Article 11 2 years max. 2 years Acceptance of TIR Carnet 1 year Notification of non-discharge 3 months min. Payment request (PR) 3 months from « PR » for the Association to pay / oppose If certificate of termination falsified or obtained in an improper or fraudulent manner 3 months

30 Legitimacy of a claim - Summary Conditions for a claim to be legitimate: An irregularity has occurred under the TIR procedure An irregularity has occurred in the claiming country The irregularity gave rise to a Customs debt Chronological procedures and deadlines of Article 11 of the TIR Convention fully respected

31 CASE HANDLING PROCESS CASE HANDLING PROCESS NO REPLY PAYMENT CONTESTATION Person Directly Liable CUSTOMS NO CASE Summary

32 ADMIN. CLOSURE OBJECTION CONFIRMS PAYMENT REQUEST CUSTOMS CLAIM CANCELLED NATIONAL COURT HOLDER International Financial Institution International Financial Institution ISSUING ASSOCIATION ISSUING ASSOCIATION National Financial Institution National Financial Institution IRU Case Handling Process NATIONAL COURT NATIONAL GUARANTEEING ASSOCIATION NATIONAL GUARANTEEING ASSOCIATION CUSTOMS

33 Payment CUSTOMS NATIONAL GUARANTEEING ASSOCIATION IRU International Financial Institution National Financial Institution HOLDER

34 58 User Countries 10,000 Carnets per day in transit operation 500,000,000 USD Guarantee coverage per day TIR claims under control: 0.007% vs. TIR Carnets issued TIR Coverage