legal framework for transit transport cooperation at global level tir convention, 1975 and...

Legal framework for transit transport cooperation at global levelTIR Convention, 1975 and Harmonization Convention, 1982Artur BoutenUNECE TIR secretariat

On some major routes:

57 % of transport time is lost at border crossings

38 % of transport costs are due to unofficial levies •Long waiting times at borders result in major human suffering for drivers blocked in queues for hours/days

•harmful impact on the environment

•Border waiting times also cost billions annually => increasing the cost of goods for the end consumer, not to mention lost business opportunities.

Border crossing facilitation is:•Key to international trade, exports and imports

•Essential for growth and competiveness

•A driver of regional integration

Border crossing facilitation :

UNECE’s 3600 approach to Border crossing facilitation (2)

Crossing borders requires:

•Appropriate and resilient infrastructure•Reliable and harmonized international legal framework•Harmonized or at least aligned procedures (e.g. customs)•International cooperation and exchange of best practices

The TIR Convention, 1975

TIR Convention, 1975• Establishes and regulates the only existing and

operational global customs transit system

• Administered under UNECE auspices

• 69 Contracting Parties from 4 continents, among which Afghanistan, Armenia, Azerbaijan, Kazakhstan, Kyrgyzstan, Mongolia, Republic of Moldova,Tajikistan, The Former Yugoslav Republic of Macedonia, Uzbekistan

• Pakistan recently acceded

• China expressed interest to join• Border crossing facilitation through an internationally

recognized and harmonized procedure with a single internationally valid customs document and guarantee

• Effective revenue protection and security without excessive administrative burden for customs and time/cost losses for operators

Geographical scope

Contracting parties to the TIR Convention

TIR operational countries

Countries about to implement the TIR System

Countries in admission

Interested Parties

The 5 pillars of the TIR system

Secure vehicles or containers

International guarantee

TIR Carnet

Mutual recognition of

customs controlsControlled

access

TIR computerization status

e

Computerization process (eTIR) is underway

eTIR Reference Model (conceptual) Adaptation of the legal framework (legal) Development of the required systems (technical) Corridor based step-by-step implementation, through,

e.g. eTIR pilot projects:Between Iran (Islamic Republic of) and Turkey in the

UNECE-IRU eTIR Pilot ProjectUNDA project to strengthen the capacities of

developing countries and countries with economies in transition to facilitate legitimate border crossing, by means of increased secure electronic exchange of information between customs administrations (Georgia and Turkey).

TIR Carnets issued in LLDCLLDC 2000 2004 2012 2013 2014 ITDB

Afghanistan

- - - 50 0 1

Armenia - 200 3,800 2,200 0 59

Azerbaijan 4,000 3,950 11,400 10,300 4,800 48

Georgia 1,000 1,050 8,200 10,500 7,500 461

Kazakhstan

10,400

17,000 19,000 25,000 24,200 338

Kyrgyzstan

100 4,900 17,100 22,200 20,900 121

Moldova 18,000

46,900 81,000 77,450 65,200 734

Mongolia - 150 100 100 50 0

Tajikistan - - 2,950 3,500 4,000 0

Uzbekistan

2,400 - 14,100 17,500 9,000 204

FYROM 17,050

27,400 25,400 29,300 34,000 1,968

2015 Prices14 Volet in USD

Preliminary analysisRegression line vs plotted data

The Harmonization Convention, 1982

- International Convention on the Harmonization of Frontier Controls of Goods

- 56 Contracting Parties-Latest accessions: Iran, Tajikistan -Other LLDC: Armenia, Azerbaijan, Kazakhstan, Kyrgyzstan, Mongolia, Republic of Moldova, FYROM, Uzbekistan

- Expressed interest to join: China

Objective and Scope

To facilitate cross border transport of goods through nationally coordinated, internationally harmonized, shorter, reduced formalities and controls of goods at borders

It covers:

• All goods moved across borders (exported, imported or in transit)

• All control services

• All modes of transport

• Specific provisions for certain transport modes and goods

• Also addresses certain issues with regard to vehicles and drivers

•Framework providing for a high degree of flexibility in organizing national and international cooperation

•No universal ‘one size fits all’ solution

•Examples of best practice are essential

•Integrated operational annexes are included, such as Annex 8 for road, Annex 9 for rail and (draft) Annex 10 for seaports

General principles vs. detailed provisions

TIR Green lanesRepublic of Moldova

Handbook of Best Practices at Border Crossings

•Reference material and more than 120 best practice

examples at border crossings.

•It covers available legal instruments, inter-agency and

international co-operation, balancing security and facilitation

measures, processing of freight, risk management, design

of border crossing points, use of ICT technologies, human

resource management and benchmarking.

•Available

at:http://www.unece.org/fileadmin/DAM/trans/bcf/publication

s/OSCE-UNECE_Handbook.pdf

Inland clearance in AfghanistanThe debate about BCP or inland clearance also applies inAfghanistan. Traditionally, all goods entering Afghanistanwere cleared at the first point of entry (border), butduties collected at the border were often diverted bythe provincial authorities, to the detriment of the Statebudget. The system was characterized by revenue losses,inadequate control, and a high level of corruption.

An inland clearance scheme was introduced, with dutiesbeing collected in major cities where accounts were easierto control. State Customs revenue increased significantly.The scheme was supported by a World Bank Emergency

Thank you

Artur BoutenUNECE TIR SECRETARIAT

Sustainable Transport Division

8-14, Avenue de la PaixCH-1211 Geneva 10

SwitzerlandPhone: +41 22 917 2433

Fax: +41 22 917 0614Email: artur.bouten@unece.org