Legal framework for transit transport cooperation at global level

1. Legal framework for transit transport cooperation at global level TIR Convention, 1975 and Harmonization Convention, 1982 Artur Bouten UNECE TIR secretariat

2. Border crossing facilitation : On some major routes: 57 % of transport time islost at border crossings 38 % of transport costs are due to unofficiallevies • 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

3. UNECE’s 3600 approach to Border crossing facilitation (2) Crossingbordersrequires: • 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

4. The TIR Convention, 1975 TIR Convention, 1975 • Establishes and regulates the onlyexisting and operational global customs transit system • Administeredunder UNECE auspices • 69 Contracting Parties from 4 continents, amongwhich Afghanistan, Armenia, Azerbaijan, Kazakhstan, Kyrgyzstan, Mongolia, Republic of Moldova,Tajikistan, The Former YugoslavRepublic of Macedonia, Uzbekistan • Pakistan recentlyacceded • China expressedinterest 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

5. Geographical scope Contracting parties to the TIR Convention TIR operational countries Countries about to implement the TIR System Countries in admission Interested Parties

6. The 5 pillars of the TIR system Secure vehicles or containers Mutual recognition of customs controls International guarantee TIR Carnet Controlled access

7. Transport sector Other customs administrations Guaranteechain TIR computerization status National DeclarationMechanism (Single Windows) TIR operations management SafeTIR TIR-EPD ITDBonline+ Register of stamps and seals Customs e

8. Computerization process (eTIR) is underway • eTIRReference 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 Project • UNDA 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).

9. TIR Carnets issued in LLDC

10. 2015 Prices 14 Volet in USD

11. Preliminary analysis Regression line vs plotted data

12. 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

13. 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

14. General principles vs. detailed provisions • 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

15. TIR Green lanesRepublic of Moldova

16. 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/publications/OSCE-UNECE_Handbook.pdf

17. Inland clearance in Afghanistan The debate about BCP or inland clearance also applies in Afghanistan. Traditionally, all goods entering Afghanistan were cleared at the first point of entry (border), but duties collected at the border were often diverted by the provincial authorities, to the detriment of the State budget. The system was characterized by revenue losses, inadequate control, and a high level of corruption. An inland clearance scheme was introduced, with duties being collected in major cities where accounts were easier to control. State Customs revenue increased significantly. The scheme was supported by a World Bank Emergency

18. Thank you Artur Bouten UNECE TIR SECRETARIAT Sustainable Transport Division 8-14, Avenue de la PaixCH-1211 Geneva 10Switzerland Phone: +41 22 917 2433 Fax: +41 22 917 0614Email: artur.bouten@unece.org