1. Principles for Transit in International Law
Hao Wu
World Customs Organization

2. Connectivity: Core of BRI
Policy
Infrastructure
Trade
Finance
People

3. Transit: Enabler of connectivity in trade
Imports/exports between Europe and China shall be carried by trains, passing through the inlands of a number of intermediate countries (e.g. Russia, Kazakhstan, Poland) alongside the “belt.”

4. Transit: Enabler of connectivity in trade
Imports/exports between Europe, Africa, Middle East and China shall be carried by vessels, passing through territorial waters (e.g. Malacca Strait, Suez Canal) and transshipped at ports (e.g. Singapore, Piraeus) of a number of intermediate countries alongside the “road.”

5. What is transit
Transit (traffic in transit): The passage of goods, people, and means of transport takes place within an intermediate country’s territory but neither begins nor terminates within this country.
Transit country: the involved intermediate country.

6. Significance of transit
A corridor consolidating the connectivity between countries;
“The way to the ocean” for the landlocked developing countries (LLDCs);
A huge impact on international relations: e.g. WTO dispute of Russia—Traffic in Transit, complained by Ukraine.

7. Genesis of international agreements on transit
the Paris Convention between the Holy Roman Empire and France (1804)
the Final Act of the Congress of Vienna (1815)
Focus: transit on navigable waterways on major transnational rivers in Europe (e.g. the Rhine river, the Stecknitz canal).

8. Modern international agreements on transit
Statute on Freedom of Transit
Statute on the Regime of Navigable Waterways of International Concern
International Air Services
Transit Agreement
Convention on International Civil Aviation (also known as “Chicago Convention”)
General Agreement on Tariffs and Trade (GATT)
Convention on Transit Trade of Landlocked States
Convention on Facilitation of International Maritime Traffic (FAL)
International Convention on the Simplification and Harmonization of Customs Procedures (also known as “Revised Kyoto Convention”)
Customs Convention on the International Transport of Goods under Cover of TIR Carnets (also known as “TIR Convention”)
Convention on International Multimodal Transport of Goods
United Nations Convention on the Law of the Sea (UNCLOS)
Universal Postal Convention
Energy Charter Treaty (ECT)
Agreement on Trade Facilitation (TFA)

9. Principles for transit in international law
freedom of transit
most-favored-nation treatment
innocent passage
facilitative transit
duty exemption

10. UN Convention on International Multimodal
Freedom of transit
The transit country shall grant freedom/right of transit through its territory.
UN Convention on International Multimodal
Transport of Goods
Article II:1 of Annex
Subject to the provisions of the law, regulations and international conventions in force in their territories, Contracting States shall grant freedom of transit to goods in international multimodal transport.

11. Most-favored-nation treatment
The transit country shall accord to traffic in transit equally favourable treatment to all other countries.
General Agreement on Tariffs and Trade
Article V:5
With respect to all charges, regulations and formalities in connection with transit, each contracting party shall accord to traffic in transit to or from the territory of any other contracting party treatment no less favourable than the treatment accorded to traffic in transit to or from any third country.

12. UN Convention on the Law of the Sea
Innocent passage
Traffic in transit shall comply with laws and regulations of the transit country and shall not cause any threat, damage or nuisance.
UN Convention on the Law of the Sea
Article 39:1
Ships and aircraft, while exercising the right of transit passage, shall:
(a) proceed without delay through or over the strait;
(b) refrain from any threat or use of force against the sovereignty, territorial integrity or political independence of States bordering the strait, or in any other manner in violation of the principles of international law embodied in the Charter of the United Nations;
(c) refrain from any activities other than those incident to their normal modes of continuous and expeditious transit unless rendered necessary by force majeure or by distress;
(d) comply with other relevant provisions of this Part.

13. WTO Agreement on Trade Facilitation
Facilitative transit
The transit country shall facilitate the traffic in transit in its territory.
WTO Agreement on Trade Facilitation
Article 11:6
Formalities, documentation requirements, and customs controls in connection with traffic in transit shall not be more burdensome than necessary to:
(a) identify the goods; and
(b) ensure fulfilment of transit requirements.

14. Statute on Freedom of Transit
Duty exemption
The transit country shall not impose any duties and taxes on traffic in transit, as it is not import essentially.
Statute on Freedom of Transit
Article 3
Traffic in transit shall not be subject to any special dues in respect of transit (including entry and exit).

15. Transit: a significant issue in designing legal infrastructure for BRI

16. World Customs Organization
Thank You !
Hao Wu
World Customs Organization