1. Implementation of the WCO SAFE Framework through the TIR Convention
Moscow, 23 October 2008
Jean Acri
Head – TIR System
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2. Implementation of the WCO SAFE Framework & AEO Requirements
How will this be implemented?
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3. Historical development of the new security requirements
9/11: SECURITY becomes TOP priority
G7 mandated WCO to develop an appropriate package of measures to protect global trade and secure global supply chain
June 2005: WCO SAFE Framework of standards to secure and facilitate global trade – including the requirements to obtain the AEO status
October 2007: WCO SAFE Framework re-published to include technical guidance for AEO programmes
TIR appears to be the best global multilateral legal instrument to ensure the implementation of the WCO Framework requirements
BUT
Due to the absence of mutual recognition, the implementation of the SAFE Framework, including AEO status, requires bilateral agreements between 119 trade partners!
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4. TIR can be used to implement the WCO SAFE including AEO status
TIR can fully satisfy the WCO SAFE and AEO requirements
TIR provides security and facilitation of international trade (controlled access, traceability)
TIR Provides for mutual recognition of all Customs controls, and should be used for the effective implementation of the requirements of the WCO SAFE and AEO status
Requirement
fulfilled by 
UAE, Jordan Tunisia Bahrain
Saudi Arabia
Lebanon
Kuwait
Egypt
Yemen
All will implement SAFE
So far Syria Palestine Iraq and Libya are not.
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5. Options for Implementing the WCO SAFE Framework
Unilateral – can be implemented quickly, but no mutual recognition of Customs Controls or AEO programmes thus no security of the supply chain.
Bilateral - can be achieved if the political will exists, but 119 agreements would need to be put in place in order to achieve mutual recognition of Customs controls and AEO programmes.
Multilateral - International Conventions like TIR are legally binding in nature, ensure uniform application, maximise mutual recognition of Customs controls and AEO programmes and new amendments can be put in place quickly.
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6. TIR Best Multilateral Agreement
The TIR Convention, due to the fact that it is the only Convention providing mutual recognition of all Customs controls between all its 56 TIR operational countries, is the best multilateral legal instrument to implement all the security requirements of the WCO SAFE Framework, including those concerning AEO status.
According to a study commissioned by the US Chamber of Commerce that compared various international conventions – such as the SOLAS Convention, the revised Kyoto Convention and the TIR Convention – with the objective of facilitating the implementation of the new WCO security requirements through a multilateral legal instrument. This study also came to the clear conclusion that
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7. US Chamber of Commerce Findings
Result of a study commissioned by the US Chamber of Commerce that compared various International Conventions such as SOLAS and Revised Kyoto.
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8. TIR - Benefits The only transit system with a world-wide coverage.
TIR is an international transit system for goods.
It can be applied for multimodal transports whenever one leg is carried out by road.
TIR carnets can be used for intermodal transports – One leg of the journey has to take place by road in order to be able to use a TIR carnet.
{However in current practice, the TIR guarantee is lifted when the load is moved to another transport mode (train, boat) - this is due to the fact that at current stage, their are no infrastructure that are put in place in order to manage TIR carnet on ships/trains}
The TIR system is also the broadest in scope – we will come back to this aspect later on in the presentation.
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9. Geographical scope of the TIR Convention
Contracting
Parties 68
TIR Operational
Countries 56
Contracting Parties
in admission process 2
In negotiation
process 3
Interested 6
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10. Provision of Advanced Cargo Information
WCO – SAFE and AEO requirements can be fully satisfied by the TIR Convention
The four core elements of WCO SAFE are:
Pre-departure
examination
Provision of Advanced Cargo Information
Risk
Management
to security and
safety
Benefits
For
Trade 1 2 3 4
Mutual recognition &
Controlled Access
Electronic
Pre-declaration
Risk
Management
In TIR
convention
(e.g. Annex 10)
Communication
Platform
between AEO &
Authorities 1 2 3 4
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11. WCO SAFE: Customs to Customs1
Mechanism already available in the TIR System
WCO SAFE FRAMEWORK STANDARDS
HOW THE TIR CONVENTION ALREADY IMPLEMENTS THE SAFE REQUIREMENTS
1. Mutual recognition of AEOs
Standards 1 and 9
Recognition of Customs controls / Controlled access
2. Advanced Cargo Information
Standards 1, 4, 5, 6, 7 and 9
TIR Carnet (e.g. NCTS/TIR) / Annex 10
3. Effective Communication
Standards 1, 6,7 and 9
4. Risk management tools
Standards 1, 2, 4, 5, 6, 7, 9 and 11
Secure vehicles / TIR Carnet (e.g. NCTS/TIR) / Recognition of Customs controls / Authority to inspect cargo /Controlled access / Annex 10 -
Standards 3, 8 and 10
To be implemented through a new Annex to the TIR Convention
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12. WCO SAFE: Customs to Business2
Mechanisms already available in the TIR System
WCO SAFE FRAMEWORK STANDARDS
HOW THE TIR CONVENTION ALREADY IMPLEMENTS THE SAFE REQUIREMENTS
1. Mutual recognition of AEOs
Standards 1,2, 3, 4, 5 and 6
Recognition of Customs controls / Controlled access / International guarantee
2. Advanced Cargo Information
Standards 4 and 5
TIR Carnet (e.g. NCTS/TIR) / Annex 10
3. Effective Communication
Standards 1, 3 and 5
Recognition of Customs controls / Controlled access
4. Risk Management Tools
Standards 1 and 2
Secure vehicles / TIR Carnet (e.g. NCTS/TIR) / Recognition of Customs controls / Controlled access / Annex 10
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13. WCO SAFE Requirements to obtain the AEO status
WCO SAFE Framework, including the technical guidance for the implementation of AEO programmes.
WCO SAFE Framework requirements – easily implemented through slight amendments to the TIR Convention via new Annex
1. Demonstrated compliance with Customs requirements √
2. Satisfactory system for the management of commercial records
3. Financial viability
4. Consultation, cooperation and awareness
5. Education, training and awareness
6. Information exchange, access and confidentiality
7. Cargo security
8. Conveyance security
9. Premises security
√ Not relevant under the TIR System unless TIR Carnet holders are also acting as importers/exporters and storing Customs-related cargo at their premises
10. Personnel Security
11. Trading partner security
12. Crisis management and incident recovery
13. Measurement analysis and improvement
Note to “9”: Not relevant under the TIR System unless TIR Carnet holders are also acting as importers/exporters and storing Customs-related cargo at their premises
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14. AEO Accreditation & TIR Holder Requirements
TIR Approved Holder Requirements
Proven capability to engage in international transport
Be of sound financial standing
Proven knowledge in the application of the TIR Convention – applied and adhered to in all TIR Transports
Written undertaking to comply with Customs rules, to pay taxes that are due & to assist with enquiries
Absence of serious or repeated offences against Customs or tax legislation
Acceptance by Customs
Keep records of TIR Transports = = = =
WCO SAFE Framework, including the technical guidance for the implementation of AEO programmes.
1. Demonstrated compliance with Customs requirements
2. Satisfactory system for the management of commercial records
3. Financial viability
4. Consultation, cooperation and awareness
5. Education, training and awareness
6. Information exchange, access and confidentiality
7. Cargo security
8. Conveyance security
9. Premises security – not necessary for holders
10. Personnel Security
11. Trading partner security
12. Crisis management and incident recovery
13. Measurement analysis and improvement = = =
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15. Next Steps
Work with strategic partners, such as ESC, to galvanise political support for the principle that the TIR Convention can act as an implementing tool for the WCO SAFE Framework.
Seek agreement from contracting parties to the TIR Convention to make minimal changes to the Convention so that it can act as an implementing tool for the WCO SAFE Framework.
Seek agreement from contracting parties to the TIR Convention that economic operators approved to use the TIR system are mutually recognised under other accreditation programmes (e.g. C-TPAT, EU AEO etc.)
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16. Conclusion
Enter two pie: Current situation and with modification to the TIR Convention – fade in and out
Green and yellow a single collor – change the label in the chart legend
Requirements fully implemented in TIR
Requirements green and yellow are merged according to the simplification of the tables in slide 45, 44 and 24 (single column for all partial and complete changes)
The TIR Convention is the best multilateral legal instrument to implement the WCO SAFE Requirements and the AEO status by providing the mutual recognition of all Customs controls
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