THE TIR CONVENTION THE ONLY GLOBAL CUSTOMS TRANSIT SYSTEM

1. THE TIR CONVENTION THE ONLY GLOBAL CUSTOMS TRANSIT SYSTEM United Nations Economic Commission for Europe (UNECE) Transport Division Border Crossing Facilitation Section Regional TIR seminar

2. General principles of transit • Movement of goods under Customs control • Without payment of duties and taxes in exchange for the deposit of a guarantee • Additional requirements such as use of Customs seals, time limits and security measures, based on risk assessment Regional TIR seminar

3. National transit • Bilateral or multilateral transit • Closed system between two or more countries • Usually based on Customs union • Recognition of freedom of transit, Article V GATT • Global transit Regional TIR seminar

4. TIR Convention Background & characteristics • History: • First Convention 1959, revision 1975 • From 6 countries to 68 countries (Operational: 56) • During the last 15 years: 24 new Contracting Parties • Objective: • Facilitation • revenue protection + Customs checks • Only global transit procedure • Intermodal (trucks and containers) • Public/Private Partnership Regional TIR seminar

5. Contracting Party where Convention is applied (2008) Contracting Party where Convention is not applied (2008) Potential Contracting Party Geographical scope Regional TIR seminar 5

6. THE TIR CUSTOMS TRANSIT PROCEDURE Number of TIR Carnets issued Regional TIR seminar

7. ADVANTAGES Customs Authorities • No physical inspection of goods in transit (in principle) • No national guarantee system • No national Customs documentation and control system Regional TIR seminar 7

8. ADVANTAGES Transport/Trade Industry • Minimum of procedures at border crossings • No restriction in the modes of transport used • Significant reduction of transport costs (reduced export and import costs) Regional TIR seminar 8

9. THE TIR CUSTOMS TRANSIT PROCEDURE The five pillars of the TIR System TIR Convention, 1975 5 pillars of the TIR system Secure vehicles or containers International guarantee Mutual recognition of Customs control Controlled access Document (TIR Carnet) Regional TIR seminar

10. TIR Convention ADMINISTRATIVE STRUCTURE TIR Administrative Committee UNECE Working Party WP.30 International organization IRU TIR Executive Board TIR Secretary TIR secretariat Country A Country B Country C National association National association National association Government Government Government United Nations Private Sector Regional TIR seminar

11. TIR Administrative Committee Mandate • Highest organ of the TIR Convention • All Contracting States are represented and have one vote each • Only Contracting States are allowed to decide and vote • Meets (at present) twice a year in Geneva (Switzerland) • English, French and Russian are working languages (at present) • Composition, functions and rules of Administrative Committee are provided in Annex 8 of TIR Convention Regional TIR seminar

12. TIR Administrative Committee • Considers and adopts amendments to the Convention (legal provisions and Explanatory Notes thereto) • Decides on comments (interpretation) of the Convention • Monitors the application of the Convention in Contracting States Regional TIR seminar

13. TIR Administrative Committee (cont’d) • Supervises the activities of the TIR Executive Board (TIRExB) • Elects members of the TIRExB and decides on its annual budget • Authorizes an international organization to take on the responsibility for the organization and functioning of an international guarantee system and to print and distribute TIR Carnets (Article 6.2bis) Regional TIR seminar

14. TIR Executive Board Mandate • Subsidiary body of TIR Administrative Committee • Fulfils the tasks entrusted to it by the Convention (Annex 8) and by the Administrative Committee based on its Terms of Reference • Composed of 9 members (experts) elected by Administrative Committee • Members have 2 years terms of office • Meets as often as required (also by correspondence) • Decides on and regularly reviews its priorities of work Regional TIR seminar

15. TIR Executive Board (TIRExB) • Supervises the application of the Convention world-wide • Supervises the operation of the international TIR guarantee system • Supervises the printing and distribution of TIR Carnets • Coordinates exchange of intelligence among Contracting States Regional TIR seminar

16. TIR Executive Board (TIRExB) (cont’d) • Fosters exchange of information between Governments and IRU • Facilitates settlement of disputes • Supports training of Customs personnel • Maintains central information/data records (on guarantee and national contracts, authorized operators, etc.) • Monitors the price of TIR Carnets Regional TIR seminar

17. TIR Executive Board (TIRExB) Secretariat • TIR Secretary (executes decisions of TIRExB) • Assisted by a TIR secretariat Financing • Work of TIRExB members is financed by their respective governments • Most operational costs are financed by an amount per TIR Carnet (2009: US$ 0,50 per TIR Carnet) • Other costs are financed by UN Regular Budget Regional TIR seminar

18. UNECE WP. 30 (Working Party on Customs Questions affecting Transport) Mandate • Governmental organ of UNECE and other interested United Nations Member States and interested international organizations • Consultative body for large number of multilateral treaties of the United Nations • Decisions are usually taken by consensus • Meets usually three times a year in Geneva Regional TIR seminar

19. UNECE Working Party (WP.30) (Working Party on Customs Questions affecting Transport) Activities • Prepares amendments, interpretations, best practices for UN treaties relating to border crossing facilitation, particularly Customs issues • Prepares the decisions of the TIR Administrative Committee Regional TIR seminar

20. UNECE TIR SECRETARIAT Transport Division 8-14, Avenue de PaixCH-1211 Geneva 10Switzerland Phone: +41 22 917 15 31 Fax: +41 22 917 06 14 Email address: tirexb@unece.org http://tir.unece.org Regional TIR seminar