General Overview of the TIR SystemKarachi, 18 August 2014

Tatiana Rey-Bellet, TIR-EPD Project Manager

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• The best multilateral facilitation instrument for international transport and trade

• Based on TIR Convention of 1975

• Currently signed by 68 Contracting Parties, with the possibility to be implemented globally and multi-modally (road-rail, road-maritime, road-air)

What is the TIR System?

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Securing and facilitating trade and international road transport

Transports Internationaux Routiers

Managed by the IRU since 1949

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Geographical scope of the TIR Convention

Interested Parties25

Contracting Parties68

Contracting Parties in admission process

TIR OperationalCountries

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The six pillars of the TIR System

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Benefits of the TIR System

Ensures 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 and documents

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Trade without a Transit System

CURRENCY EXCHANGE

NATIONAL GUARANTEE

SECURITY CHECKS

CUSTOMS DECLARATION

Etc.

INSPECTION OF GOODS AND VEHICLES

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Trade without a Transit System

Bordercrossing

Bordercrossing

Bordercrossing

Country A Country CCountry B

Temporary import

Export

Temporary import

Export

National guarantee National guarantee

Export

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Trade with the TIR System

CURRENCY EXCHANGE

NATIONAL GUARANTEE

SECURITY CHECKS

CUSTOMS DECLARATION

Etc.

INSPECTION OF GOODS AND VEHICLES

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Trade with the TIR System

Bordercrossing

Bordercrossing

Bordercrossing

Country A Country CCountry B

Temporary import

Export

Temporary import

Export

National guarantee National guarantee

Export

TIR

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To facilitate trade through… • Simplified & harmonised Customs

guarantee and procedures

• Border crossing facilitation for customs officers and trade operators

• Improved cost effectiveness

• Time saving

• Secure door to door transport of goods under Customs control

Objectives of International Transit Systems

2 + 2 = 4

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Evolution of TIR usage

0

500'000

1'000'000

1'500'000

2'000'000

2'500'000

3'000'000

3'500'000

4'000'000

Qu

anti

ty

Year

TIR Carnets Issued/Year

YEAR QUANTITY

1949 38

1952 3243

1955 14110

1960 80250

1965 303850

1970 710630

1975 533060

1980 718612

1985 859100

1990 748600

1992 1277400

1994 2102080

1996 2422250

1998 2732900

2000 2782600

2002 3095200

2004 3211050

2006 3599850

2007 3076250

2008 3253800

2009 2260400

2010 2822200

2011 3074500

2012 3158300

2013 2920150

Total 75024321

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•USD 150’000’000’000

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Secure vehicles and containers

X

Vehicles with secure load compartments need to meet strict technical standards – Annex 2, Annex 7

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Secure vehicles and containers

Each vehicle needs to have a valid certificate of approval delivered by national competent authorities (Annex 3)

• Approval Certificate – Basic Principles (Annex 3)• Individual or by vehicle / container design type• Standard format – Annex 4• Renewable every two years• To be kept with vehicle• Indicated in TIR Carnet• To be verified by Customs during TIR operations.

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International Chain of Guarantee

Goods transported under the TIR procedure are not subjected to the payment or deposit of import or export duties and taxes at Customs

offices en route

(Article 4)

Customs duties and taxes at risk

are covered through the “Deed of Guarantee” with

a national TIR Guaranteeing Association

IRU is mandated to take on the

responsibility for the effective organisation and functioning of an

international guarantee system

(Article 6.2bis)

The Guaranteeing Association is the national

partner to the Customs Authorities for resolving an irregularity caused by any TIR Holder: both national

or foreign transport operators

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International Chain of Guarantee – Coverage

National Financial Institution

National Financial Institution

National Financial Institution

ASSOCIATION ASSOCIATIONASSOCIATION

Holder Holder Holder

International Financial Institution

GLOBAL CONTRACT

IRU

HolderHolder HolderHolder HolderHolder

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TIR Carnet

• TIR = Secure Trade facilitation

• TIR Carnet = Proof of:

Guarantee

Controlled access

Mutual Recognition of Customs Controls

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• Security elements

• Technical security elements

• Visual security elements

TIR Carnet

Since 1949 …the ratio of false TIR Carnets compared to issued TIR Carnets is under

0.00002 %

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The Pages of a TIR Carnet

• Pairs of vouchers

• white (voucher 1)

• green (voucher 2)

• one pair of vouchers is needed for each country of:

• departure

• transit

• destinationA TIR Carnet has 4,6,14

or 20 vouchers

used for each TIR operation

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Verify for correct completion of TIR Carnet

Verify that the TIR Carnet is valid:

- that the expiry date on the TIR Carnet is not in the past

- Check TIR Carnet validity in IRU database (CUTE-Wise, Customs Portal, Real-Time SafeTIR)

Verify that goods match description on TIR Carnet & attached documents (CMR, invoice, etc.)

Examine vehicle & check certificate of approval (if for sealed goods)

- should be valid until the end of the TIR Transport

Customs TIR Procedures Customs Office of Departure

Customs must refuse an invalid TIR Carnet

Customs refuse TIR Carnets for “sealed” vehicles without a valid certificate of approval

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• If checks are OK, then

Fix seals to the vehicle

Fill in the TIR Carnet

Enter details in Customs Register

Customs TIR Procedures Customs Office of Departure

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• Goods are transported to the Customs Office of Exit

• TIR Carnet is presented to Customs

• Check Customs seals

• Examine vehicle

• Check last counterfoil

• (page 1, white)

Customs office of Exit

TIR

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• Counterfoil N°2 on voucher 2 p. 2 (green) must be filled in

1. Arrival certified by the Customs office (Enter name of office en route/destination)

2. Seals or identification marks found to be intact (N/A at departure)

3. Number of packages discharged

4. New seals apposed

5. Reservations

6. Customs signature & date stamp of the Customs office

Customs Office of Exit

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• Stamped counterfoil 2 confirms the termination of the first TIR operation

• All counterfoils remain in the TIR Carnet

End of 1st TIR operation

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• Detach the upper part of the voucher from the lower part “Certificate of termination”

Voucher 2 page 2 (green)

Upper part of voucher 2 (green) remains at the Customs office of exit

The “Certificate of termination” is sent back to the Customs office of departure

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• At the Customs office of Departure, the “Certificate of termination” is compared to Voucher 1, p. 1 (white)

• 1st TIR operation is discharged

Discharge

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• Customs of departure must ensure that the controls are performed correctly:

- Access to TIR System

- Goods, vehicles and documentation

- Customs seals

• Their controls are accepted by ALL other Customs offices during the TIR transport

- Generally no examination of goods en route

- Spot checks only in case of suspicion

Mutual Recognition of Customs Controls

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• Annex 9, Parts I & II

• Customs authorise access to the TIR procedure for:

• National TIR Associations – to issue and guarantee TIR Carnets

• Transport operators (Natural and legal persons) – to use TIR Carnets

Controlled access

No

Yes

Information on all transport operators authorised as TIR Holders are stored by the UNECE in the International TIR Data Bank (ITDB)

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TIR IN OPERATION

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TIR procedure in the country of departure

Customs office of departure

OUTWARD TRANSIT

Customs office of exitTIR

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TIR procedure in the country of transit

Customs office of entry

THROUGH TRANSIT

Customs office of exit

TIR

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TIR procedure in the country of destination

INWARD TRANSIT Customs

office of destination

Customs office of

entryTIR

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NO Alcohol (HS 220710, 2208xx) or tobacco (HS 240210, 240220, 240310)

(Except for beer & wine or raw tobacco)

Goods not allowed under TIR

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Directions of TIR System further development

NEW USE

• Multimodal use• Internal

transport

GEOGRAPHIC EXPANSION

• China• Pakistan• Arab Peninsula• Latin America

NEW TIR PRODUCTS

• Various guarantee levels (TIR+)

• Guarantees for special products

Further development

Full computerisation of TIR System will facilitate the introduction of new TIR products

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A fully-computerised solution providing a higher-level guarantee for the TIR Carnet:

• Print voucher with all TIR security features

• Guarantee limit increased to USD 150,000 or EUR 160,000 per TIR Carnet (depending on the initial guarantee limit set for the TIR Carnet in each country)

• Available only through IRU member TIR Associations

• Exclusively for authorised TIR Carnet Holders

• Activated only with a valid TIR Carnet

• Global TIR insurers guarantee, for increased financial security

What is “TIR+”?

ALREADY FULLY OPERATIONAL IN KAZAKHSTAN!

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CUTE-Wise• validity check made quick and easy

Web application

• easily activate the guarantee anytime, anywhere• no infrastructure or maintenance required

TIR+ apps

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What is an “iCarnet” ?

• Uses well-known TIR procedures

• Fast implementation upon Customs’approval (required legal framework already available)

• Competitive business opportunities for TIR Carnet Holders operating at national level only

• Full support of international insurers

A new competitive Carnet allowing the secure transport of goods between two Customs offices in the same country:

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Why use an iCarnet?

Need to transport goods from ports to final destination in the same TIR country

Volume of goods being imported from emerging markets, especially Asia, is soaring

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Simplicity: process similar to the regular TIR procedure - no new investment required

Security: transport under Customs seals in TIR authorised vehicles

Financial guarantee: duties and taxes secured by an international guarantee chain, backed by major international and national insurers

Controlled access: used only by authorised TIR users

Advanced risk assessment and traceability through IRU IT applications: TIR-EPD & Real-Time SafeTIR

General benefits of new products

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TIR video

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