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Legal Arrangements for the Smooth Movement of Goods Internationally

4th Expert Group Meeting on Developing Euro-Asian Transport Linkages 21-24 November 2006, Thessaloniki, Greece. Legal Arrangements for the Smooth Movement of Goods Internationally. Geetha Karandawala Chief, Transport Facilitation Section Transport and Tourism Division UNESCAP Secretariat.

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Legal Arrangements for the Smooth Movement of Goods Internationally

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  1. 4th Expert Group Meeting on Developing Euro-Asian Transport Linkages21-24 November 2006, Thessaloniki, Greece Legal Arrangements for the Smooth Movement of Goods Internationally Geetha Karandawala Chief, Transport Facilitation Section Transport and Tourism Division UNESCAP Secretariat

  2. Smooth Movement of Goods & People International transport Ensure free movement of goods & people Accessible & open environment Exists only within the limits that each country is prepared to accept Norms, standards, rules, independent to each other As trade & transport developed – so did the rules Transport is one of the most regulated sectors National rules, bilateral treaty, multilateral treaty

  3. To ensure right of transit • In the early 1950’s the UN took the lead to help Governments create an enabling environment • Large number of legal instruments elaborated • Transit rights • Statute of freedom of transit, Barcelona (1921) • Convention on Transit & Trade of landlocked states (1965) • Convention on Law of the Sea (1982)

  4. To regulate & harmonize standards & processes • Regulations are vital to safety, security & environmental protection • UN Agencies & international organization: ECE, IMO, ICAO, WCO • ECE initiated over 50 international conventions & agreements • 1992 ESCAP & ECE helped countries in Asia & the Pacific to select 7 of the most important ECE Conventions • A set of convenctions that provide a basic level of harmonization to facilitate trade • Envisaged as an initial step to be further developed • Objective -> International Integrated Intermodal Transport System

  5. RESOLUTION 48/11: THECONVENTIONS • Convention on Road Traffic, 1968 • Convention on Road Signs and Signals, 1968 • Customs Convention on the International Transport of Goods under Cover of TIR Carnets (TIR Convention), 1975 • Convention on Temporary Importation of Commercial Road Vehicles, 1956 • Customs Convention on Containers, 1972 • International Convention on the Harmonization of Frontier Control of Goods, 1982 • CMR Convention 1956

  6. Promoting the conventions • 1998: Launching of UN special programme for Economics of Central Asia (SPECA) • 1999 SPECA countries proposed expansion of resolution 48/11 to include other conventions • European Agreement supplementing the convention on road traffic (1971) • European Agreement supplementing the convention on road signs & signals (1971) • Customs convention on the temporary importation of private road vehicles (1954) • Agreement on the international carriage of perishable food stuffs & on the special equipment to the used for such carriage (ATP) 1970

  7. Resolution 48/11 Intervening years • Profound influence on globalization • Major structural changes in some countries • Centrally planned to market oriented economies • Policies & tools developed by other international organizations • Regional integration & physical inter-connectivity • Resolution 48/11 is an important tool and valid • Progress seen & more effort & some adjustment needed

  8. Harmonization through accession & implementation of international legal instruments Future Direction-Ministerial Conference on Transport 2006 • Include the most relevant instruments from UNECE/WCO/IMO • Convention on Temporary Admission (Istanbul Convention) 1996 • Convention on the simplification & harmonization of customs procedures, as amended (Revised Kyoto Convention) 1999 • Convention on facilitation of International Maritime Traffic (FAL Convention) 1965 as amended • Protocol to the convention on the Contract for International Carriage of Goods (CMR) 1978 Towards a refined & expanded resolution 48/11

  9. THE CONVENTION ON TEMPORARY ADMISSION (ISTANBUL CONVENTION), 1990 Benefits: • High degree of simplification and harmonization of Customs procedures • Facilitation of temporary admission in pursuit of economic, humanitarian, cultural, social or touring objectives • Standardized model temporary admission papers.

  10. THE INTERNATIONAL CONVENTION ON THE SIMPLIFICATION AND HARMONIZATION OF CUSTOMS PROCEDURES, AS AMENDED (REVISED KYOTO CONVENTION), 1973 Benefits: • Facilitation of international trade and transport • Goods move faster across national borders reducing the need to maintain security or buffer stocks • Reduced work load of Customs officials • Beneficial consultative relations with the business community, in particular for traders and transport operators.

  11. THE CONVENTION ON FACILITATION OF INTERNATIONAL MARITIME TRAFFIC (FAL CONVENTION), 1965 Benefits: • Harmonized standards and practices • Reduced bureaucracy and increased automatic data processing techniques used in shipping documentation • Streamlined procedures of clearance of cargo and persons • Increased safety and security for vessel, cargo, crew and passengers • Proven to be one of the most efficient instruments for facilitation of international maritime traffic.

  12. Status of UNESCAP member states’ accession to international conventions listed in Commission Resolution 48/11, as of November 2006 Source: official UNECE publications. Legend: x – Contracting Party; S- signature; (..)- data are not applicable. 1 A very interesting situation can be noticed in the case of the 1949 Convention that preceded the Convention on Road Traffic, 1968 and the Convention on Road Signs and Signals, 1968: 15 ESCAP member countries are Contracting Parties to the 1949 Convention, but did not ratify the 1968 Conventions. The 1949 Convention is still valid in relations between the Contracting Parties to it.

  13. Accession status to international agreements and conventions, indicated in the Protocol of the second sessionof thePWG-Transport and Border Crossing Legend: * ‑ Conventions recommended by UNESCAP Resolution 48/11; x– Contracting Party; C- accession procedures ongoing.

  14. Status of accession of ESCAP member states to the most relevant UN/IMO facilitation conventions Legend: x- Contracting Party: S- signature

  15. Status of accessions to the most relevant WCO conventions2 and membership of the WTO Legend: x- Contracting Party 2 The WCO conventions include a number of Annexes which are not all ratified by the Contracting Parties to the convention itself. The list of the Annexes to each convention and the status of their ratification are subject of the ongoing study performed by the ESCAP secretariat.

  16. Subregional Agreements Overview (1) • ECO Transit Transport Framework Agreement, 1998 • Coverage: Afghanistan, Azerbaijan, Iran, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkey, Turkmenistan, Uzbekistan • Scope: transit transport by road, rail,inland waterway, multimodal & in access port

  17. Subregional Agreements Overview (1) Continued: ECO Agreement • Objectives: • Facilitate movement of goods, luggage & passengers • Ensure safety of goods, luggage & passengers • Avoid incidence of customs fraud & tax evasion • Facilities for transit: • Designation of transport routes • Multimodal transport • Expedite clearance of traffic • Safety – offices – visa • Maritime ports & facilities

  18. Subregional Agreements Overview (1) Continued: ECO Agreement • General conditions for road transport • Traffic rights (transport services) • Means of transport registered in one country can provide transit services in territory of another • No internal transport in another country • General conditions for rail transport • Transit services • General conditions for inland transport • Rules of carriage by road transport • Transit transport coordination council (TTCC)

  19. Subregional Agreements Overview (2): • TRACECA Agreement, 1998 • Coverage: Armenia, Azerbaijan, Bulgaria, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Romania, Tajikistan, Turkey, Ukraine, Uzbekistan • Scope: bilateral & transit transport by road, rail, maritime, air, multimodal & pipelines

  20. Subregional Agreements Overview (2) Continued: TRACECA Agreement • Objectives: • Develop economic relations & trade • Access in international markets • Facilitate international transport of goods, passengers, hydrocarbons • Ensure traffic safety etc. • Harmonize transport policy/legal framework • Create equal conditions of competition between different types of transport

  21. Subregional Agreements Overview (2) Continued: TRACECA Agreement • Traffic rights (facilitation of international transport) • Parties grant each other the right of transit of international means of transport, goods & passengers • Inter-governmental commission to regulate issues regarding implementation • Wide power • Establish secretariat • Technical annexes (road, rail, maritime navigation, customs & documentation) • Road annex: access to market through special permits

  22. Further progress Bilateral Subregional Agreements and international conventions all have role to play: • strong political will, committment and consistency at national, sub-regional and regional levels to reach the goal • Public-Private Partnership • Multilateral legal instruments can yield substantial benefits to public and private sectors • For this to happen, they must be fully and effectively implemented: implementation is a national competency • Need for countries to be able to assess implecations of accession • Need to understand how to implement

  23. Implementation of legal instruments • National level • National trade & transport facilitation bodies • Subregional level • Clear agenda including periodical analysis of developments in subregion, region & international level • NTTF bodies along transport corridors • Regional level • Countries to deliberate & define policy & strategies • Secretariats to assist

  24. Thank you for your attention

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