IRU TIR System TIR Facilitation and Security for

IRU – TIR System TIR: Facilitation and Security for a Globalised Economy Umberto de Pretto Deputy Secretary General © International Road Transport Union (IRU) 2007

What is Globalisation? What does it take to have a cup of coffee in a café? Thetransport combined has efforts of Road become 29 acompanies in 18 countries vital production tool! Source: IRU © International Road Transport Union (IRU) 2007

Global Approach © International Road Transport Union (IRU) 2007

Main Trade & Transport Facilitation Legal Instruments of the UN (1) § Convention on Road Signs and Signals of 1968 § Convention on Road Traffic of 1968 § Global Vehicles Regulations, 1998 § AETR Agreement, 1970 § CMR Convention 1956, and its Protocol of 1978 © International Road Transport Union (IRU) 2007

Main Trade & Transport Facilitation Legal Instruments of the UN (2) § International Convention on the Harmonisation of Frontier Control of Goods of 1982 § Conventions on Temporary Importation of Road vehicles (1954 -Private, 1956 - Commercial) § ATP Agreement of 1970 § ADR Agreement 1957 and its Protocol of 1993 § TIR Convention, 1975 § Customs Container Convention, 1972 © International Road Transport Union (IRU) 2007

UNESCAP Resolution 48/11, 1992 © International Road Transport Union (IRU) 2007

Regional/Global Organisations Belarus Russian Federation People’s Republic of China Kazakhstan Kyrgyz Republic Turkey Tajikistan Turkmenistan Uzbekistan Azerbaijan Iran UN ESCAP Afghanistan Pakistan India UN ECE © International Road Transport Union (IRU) 2007

Facilitation TIR System an overview © International Road Transport Union (IRU) 2007

The TIR System Worldwide Future Contracting Parties: PAK, PRC, SAU, THA, UAE, YEM… AND INDIA? ? 1949 6 Pioneer States : BEL, DEU, FRA, ITA, LUX, NLD, Now: 67 Contracting Parties Now 55 Operational Countries © International Road Transport Union (IRU) 2007

Applicability of TIR Convention Road Rail Sea . . . using road for at least one leg of the journey INTERMODALITY © International Road Transport Union (IRU) 2007

TIR and Multilateral Approach TIR is the materialisation of the multilateral approach: § Access to 55 TIR operational countries § Cost efficiency of the guarantee and of management § Intermodality § Security in the supply chain © International Road Transport Union (IRU) 2007

Safe. TIR Controlled Access Mutual Recognition of Customs Controls TIR Carnet International Chain of Guarantee Secure vehicles and containers TIR Convention TIR System is a facilitation and security tool answering the needs of both Public and Private sectors: Customs, trade, transport. © International Road Transport Union (IRU) 2007

Role of the IRU in the Management of the TIR System § Four out of the six pillars § Centrally print and distribute TIR Carnets § Organise the functioning of the international chain of guarantee (global contract) § Controlled access (rules, manuals, preventive measures) § Safe. TIR (Cute-Wise) © International Road Transport Union (IRU) 2007

Current TIR Geography Bandar Abbas © International Road Transport Union (IRU) 2007

TIR Geographical Expansion © International Road Transport Union (IRU) 2007

TIR Geographical Expansion © International Road Transport Union (IRU) 2007

TIR Geographical Expansion © International Road Transport Union (IRU) 2007

At the Port of Entry in the EU Advantages for container arriving under TIR by sea from Asia § No third party involved = reduced cost/delay! § Customs formalities = same day § Cost = only that of the TIR Carnet § Customs clearance = at final destination © International Road Transport Union (IRU) 2007

TIR and Economic Development YEAR QUANTITY 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 Total 19522006 Petrol Crisis Russian Financial Crisis 57’ 408’ 833 © International Road Transport Union (IRU) 2007

Recent IT Developments in TIR © International Road Transport Union (IRU) 2007

Risk Management Tool Storage IRU Archive Issuing Association IRU Control Issuing Association IRU d. Base Holder Safe. TIR Driver Customs Driver TIR Carnet Life Cycle Electronic TIR data CUTEWise Ensuring Traceability © International Road Transport Union (IRU) 2007

Electronic TIR Pre-Declaration TIR - One guarantee - One regime - Independence 2 1 TIR (NCTS/TIR) Pre-declaration 2 1 Madrid Fulfills two requirements: § Electronic pre-declaration § Computerized exchange of information © International Road Transport Union (IRU) 2007

Recent IT Developments in TIR www. iru. org/. . . Customs receive all the data contained in the TIR Carnet © International Road Transport Union (IRU) 2007

IRU - FCS Safe. TIR Real Time Project The status of the TIR Carnet is : • Valid (with the following details: Holder ID, validity date, Issuing Association name) • Invalid • Not issued/False/other situations GNIVTs Moscow Safe. TIR data IRU Geneva What is the status of the TIR Carnet ? Safe. TIR Real Time project: • The association can issue in security • The Customs can take into charge the TIR Carnet in security knowing that the association has issued it in security © International Road Transport Union (IRU) 2007

Main Export Partners of India UK: 4. 5% China: 5. 5% USA: 1 7% UAE: 8. 8% Total Exports: $76, 230, 000 f. o. b. Hong Kong: 4. 7% Singapore: 4. 5% © International Road Transport Union (IRU) 2007

Main Import Partners of India Belgium: 4. 4% Switzerland: 5. 2% China: 6. 1% USA: 6% Total Imports: $113, 100, 000 f. o. b. © International Road Transport Union (IRU) 2007

Conclusion (1) Essential for facilitation: § strong political will, committment and consistency at national level to reach the goal § Public-Private Partnership If not, facilitation is denatured, resulting in endangering the development of trade/transport and of the economy as a whole © International Road Transport Union (IRU) 2007

Conclusion (2) § Multilateral legal instruments can yield substantial benefits to public and private sectors § For this to happen, they must be fully and effectively implemented © International Road Transport Union (IRU) 2007

Conclusion (3) § In order to take full advantage of its strategic location, India should accede to the facilitation legal instruments and effectively implement them, according to international standards and existing best practices § IRU remains committed to assist India in this process © International Road Transport Union (IRU) 2007

www. iru. org © International Road Transport Union (IRU) 2007