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Nature, Structure and Functioning of theTIR Guarantee System & Risk Management Virginia Tanase Head – TIR Policy, Tr

Nature, Structure and Functioning of theTIR Guarantee System & Risk Management Virginia Tanase Head – TIR Policy, Training & Information Moscow, October 2003. NATURE. TIR =TRADE FACILITATION. Harmonisation TIR Convention Simplification TIR Carnet = Customs Declaration & surety

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Nature, Structure and Functioning of theTIR Guarantee System & Risk Management Virginia Tanase Head – TIR Policy, Tr

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  1. Nature, Structure and Functioning of theTIR Guarantee System& Risk Management Virginia TanaseHead – TIR Policy, Training & Information Moscow, October 2003

  2. NATURE TIR =TRADE FACILITATION • Harmonisation TIR Convention • Simplification TIR Carnet = Customs Declaration & surety • Costs reduction 5 cents for100 USD of guarantee

  3. NATURE • TIR is a privilege not a right • Guaranteeing Association acts as surety for persons using theTIR procedure(Art. 1(q) - TIR Convention)

  4. SURETY AGREEMENT STRUCTURE ASSOCIATION CUSTOMS • Subject to national legislation • Main conditions for surety • Maximum amount of surety • SafeTIR agreement (annex)

  5. DEED OF ENGAGEMENT STRUCTURE ASSOCIATION IRU • Rules & responsibilities for administration of TIR system • Engagement from the IRU to guarantee the surety provided by the association to Customs

  6. STRUCTURE ASSOCIATION IRU

  7. GLOBAL GUARANTEE CONTRACT STRUCTURE ZH IRU • 3 Mil TIR Carnets issued per year • 500 Mil USD of guarantees per day • Guarantee Chain is backed by a financial institution (ZH) • ZH guarantees the surety provided by the Guarantee Chain to Customs

  8. STRUCTURE ASSOCIATION IRU ZH

  9. FUNCTIONING • TIR is a financial security for Customs • Persons directly liable=> Financially liable to Customs without limits

  10. FUNCTIONING Holder of TIR Carnet = Declarant of transit operation => responsible for the presentation of: (Art. 1(o) – TIR Convention) • goods • vehicle • TIR Carnet at the Customs office of destination => Legitimate contact person for Customs

  11. FUNCTIONING Holder of TIR Carnet must assist the Customs to solve any problem related to a TIR operation. He must: • Provide relevant documents • Cooperate for the proper identification of the persons directly liable OR • Pay the Customs debt when at fault(Art. 8.7 – TIR Convention)

  12. FUNCTIONING « ...the competent Authorities shall so far as possible require payment from the person or persons directly liable before making a claim against the Guaranteeing Association… » BASIC PRINCIPLE: Article 8.7 – TIR Convention

  13. FUNCTIONING Liability Chain: • Importer • Company responsible for transport and Customs clearance (forwarding agent) • Company owning or disposing of the goods • Holder of TIR Carnet • Guaranteeing Association acting as surety

  14. FUNCTIONING • The Chain of Guarantee can only function efficiently when the TIR Convention is properly implemented: • Persons directly liable quickly identified • Proper procedure engaged to obtain payment from them • Sanctions are applied in due course against non-compliant operators

  15. FUNCTIONING Role of the IRU: • Make sure that all irregularities and claims are handled according to the same principles (TIR Convention) throughout all the Contracting Parties. Role of the Association: • Implement the decisions of the Chain of Guarantee and follow the procedures to handle claims.

  16. FUNCTIONING For the correct functioning of the TIR System and the Guarantee Chain it is essential to have a systematic application of: • Appropriate (strict) Management rules • Preventive measures by all actors (IRU, Associations, Holders of TIR Carnets, Customs) • Risk Management: SafeTIR

  17. RISK MANAGEMENT:SafeTIR Why SafeTIR? • To confirm at any time and in real - time the validity of the Customs stamp on the TIR counterfoil (souche) ?

  18. RISK MANAGEMENT:SafeTIR If OK issue new carnet If not OK, request proofs + reconciliation If still not OK, suspend issuance TIR Carnet Physical check with Electronic SafeTIR cross-check Holder returns TIR carnet to Association SafeTIR = Risk Management

  19. RISK MANAGEMENT:SafeTIR IRU Database Real Time Capture & Transmissionof SafeTIR data

  20. RISK MANAGEMENT: SafeTIR Real time capture and transmission of SafeTIR data is needed for effective Risk Management

  21. RISK MANAGEMENT: SafeTIR Efficiency of SafeTIR also depends on the reconciliation procedure: BUT 50 % of the reconciliation requests takeup to 50 days for response

  22. RISK MANAGEMENT: SafeTIR Tool Accessibility: CUTE-Wise • Secure Customs data • Internet based • Low cost • Download possibilities

  23. RISK MANAGEMENT: SafeTIR Efficient if Customs: • Capture and transmit ALL SafeTIR data • In Real Time • For each Termination of TIR Operation at each Customs office of destination • Implement efficient Reconciliation procedure

  24. CONCLUSION TIR Guarantee System is based on: • Proper implementation of TIR Convention • Early detection of potential irregularities through Risk Management • Collection of duties and taxes from real debtors • Sanctions of Fraudsters

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