1. TIR Convention and its potential benefits to Viet Nam Hanoi, 22 April 2016 Pengcheng Qu, Senior Advisor, China and South East Asia

2. 2 IRU 1948: 8 Founding Member Countries2016: present in over 100 countries

3. 3 This is the IRU

4. 4 Securing and facilitating trade and international road transport Transports Internationaux Routiers Managed by the IRU since 1949

5. 5 What is the TIR System? A tried and tested, affordable facilitation instrument for international transport and trade Multilateral Multimodal (road-rail, road-maritime, road-air) Global Based on TIR Convention of 1975, signed by 69 contracting parties Gives access to 58 TIR operational countries

6. 6 TIR has existed for over 60 years. For one simple reason.

7. 7 is the best tested time and money-saving tool to facilitate transit and secure trade worldwide

8. 8 Source: Hague Consulting Group * Includes lost opportunities Any penalty on road transport is an even greater penalty on the economy as a whole! 57% - waiting time 38% - unofficial cost

9. 9 Contracting parties to the TIR Convention v Indonesia is a contracting party

10. 10 TIR Expansion September 2013 Afghanistan opens for TIR April 2014 UAE Customs sign guarantee agreement June 2015 Pakistan officially acceded to the TIR Convention

11. 11 TIR Expansion Argentina Kingdom of Saudi Arabia BrazilIraq Kenya and various African countries Have expressed interest in TIR

12. 12 China at final stage of TIR accession Since early 2015, relevant Ministries have approved China’s TIR accession. We are expecting the final approval from China’s State Council.

13. 13 Objectives  Encourages the development of international trade in a secure and controlled environment by easing traditional impediments to the international movement of goods  Enables significant economies to be made in transport costs by reducing delays in transit  Facilitates international trade International Convention on the International Transport of Goods under Cover of TIR Carnets (TIR Convention, 1975)

14. 14 For Customs, the TIR system:  Reduces the normal requirements of national transit procedures (as regards Customs control measures at frontiers)  Avoids the need - expensive in manpower and facilities - for physical inspection in countries of transit, other than checking seals and the external conditions of the load compartment or container and checking the accompanying documents  Protects the duties and taxes at risk which are ‘guaranteed’ – up to USD 50’000 or EUR 60’000 per TIR transport  Reduces the risk of presenting inaccurate information to Customs administrations (the international transit operation is covered by a single and harmonised transit document, the TIR Carnet) International Convention on the International Transport of Goods under Cover of TIR Carnets (TIR Convention, 1975)

15. 15 For the transport operators, the TIR system:  Enables goods to travel across national frontiers with a minimum of interference and delays by Customs administrations  Reduces waiting times at borders  Allows exporters and importers to select more easily the type of transport most suitable for their needs by reducing the impediments to international traffic by road caused by Customs controls  Allows the use of simplified documentation  Gives access to 58 countries  Avoids the need to deposit a guarantee covering the duties and taxes at transit borders  Allows small and medium sized transport operators to competitively access global markets whilst retaining their commercial independence International Convention on the International Transport of Goods under Cover of TIR Carnets (TIR Convention, 1975)

16. 16 The six pillars of the TIR System

17. 17 How TIR solves the obstacles for transit trade

18. 18 Trade without a Transit System CURRENCY EXCHANGE NATIONAL GUARANTEE SECURITY CHECKS CUSTOMS DECLARATION Etc. INSPECTION OF GOODS AND VEHICLES

19. 19 Trade without a Transit System Border crossing Country ACountry CCountry B Temporary import Export Temporary import Export National guarantee Export

20. 20 Trade with the TIR System CURRENCY EXCHANGE NATIONAL GUARANTEE SECURITY CHECKS CUSTOMS DECLARATION Etc. INSPECTION OF GOODS AND VEHICLES IRU TIR IT risk management tools

21. 21 Trade with the TIR System Border crossing Country ACountry C Country B Temporary import Export Temporary import Export National guarantee Export TIR

22. 22 TIR Trucks at Border

23. 23 TIR: global and computerised Customs TIR Associations TIR Holders Realistic step towards fully paperless TIR system developed by the IRU and UNECE

24. 24 Ensure the secure and sustainable development of international (controlled access, traceability) Ensure 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 & documents Benefits for facilitation and security

25. 25 Ready to go live @IRU

26. 26 TIR benefits study with UNESCAP focus Saves $35 billion in transit costs over a 5 year period in selected UNESCAP countries

27. 27 Potential benefits for Viet Nam in General  Reduce time and transport for cross-border transport between PRC and Viet Nam, and for goods transiting through China  Upgrade truck fleets  Provide new transit options for East-West Economic Corridor o GMS CBTA o ASEAN transit system  Collectively benefit from TIR system after countries in the region join the system

28. 28 Estimated savings for Viet Nam if using TIR If TIR system is applied in the region, 5-year saving for Viet Nam can reach up to $2.3 billion, equivalent to1.31% of the country’s annual GDP, 0.85% of its annual export-import and 1.71% of its annual export value.

29. 29 Recommendation Positively consider acceding to the TIR Convention and other UN transport and trade facilitation conventions. -WTO TFA (acceded) -UN Convention on Contracts for the International Sale of Goods (acceded on 29 Dec. 2015)

30. 30 Mr Pengcheng QU Senior Advisor, China and South East Asia Email: pengcheng.qu@iru.orgpengcheng.qu@iru.org Phone: +86-185 1085 2972 Ms Yan ZHOU Public Relations Manager Email: yan.zhou@iru.orgyan.zhou@iru.org Phone: +86-138 1076 5825 Contac Information