Summary: The Customs Convention on the International Transport of Goods under Cover of TIR Carnets (TIR Convention, 1975) constitutes the international legal framework for the TIR system. TIR is the only universal Customs transit system, today operational in 58 countries, that allows the goods to transit from a country of origin to a country of destination in sealed load compartments with Customs control recognition along the supply chain. This minimizes administrative and financial burdens, while Customs duties and taxes that may become due are covered by an international guarantee (covering more than USD 1 billion worth of international trade every day). In order to ensure the security of the TIR System, electronic controls run in parallel with the security elements already specified in the TIR Convention. TIR handbook can be found at: http://www.unece.org
Full review: The TIR system is an international Customs transit system for goods. ‘TIR’ stands for Transports Internationaux Routiers (International Road Transport) and is an international harmonized system of Customs control that facilitates trade and transport whilst effectively protecting the revenue of each Country through which goods are carried. It is based on six essential principles and an electronic security and risk management control system composed of four tools:
- Secure vehicles or containers: Goods are carried in sealed vehicles or containers which are approved for use by Customs and re-approved every two years.
- International chain of guarantee: Duties and taxes due in case of irregularity are secured by an international guarantee chain throughout the journey.
- TIR Carnet: The goods are accompanied by the TIR Carnet: a harmonized control document accepted by the Customs authorities of the countries of departure, transit and destination.
- Mutual recognition of Customs controls: Control measures taken in the country of departure are accepted by countries of transit and destination.
- Controlled access: Access to the TIR system for national issuing and guaranteeing Associations is given by the competent national authorities, and for transport operators, by the national Customs authorities and the national Association.
- SafeTIR: An electronic control system for TIR Carnets that provides traceability and risk management, as described in Annex 10 to the TIR Convention.
Real-Time SafeTIR (RTS) allows customs officers to enhance their risk management procedures and comprises following three modules:
- SafeTIR data transmission module: Once a TIR operation is terminated, RTS automatically sends a SafeTIR message to the IRU.
- TCHQ: TIR Carnet Query Module allows any customs office to obtain immediate information on the status of the Carnet for the prompt detection of any possible irregularities.
- SafeTIR Reconciliation Automation module: automates the SafeTIR data reconciliation procedure.
TIR Customs Portal is an online service developed by the IRU, which allows customs officers to:
- obtain immediate information on the status of the TIR Carnet for the prompt detection of any possible irregularities; and
- transmit SafeTIR data on the termination of the TIR operation.
ASKTIRweb makes it easier for TIR associations to manage the entire life-cycle of the TIR Carnets from the time of order and delivery from IRU until their return to the IRU and the subsequent administrative procedures such as claims and SafeTIR. ASKTIRweb is a mandatory TIR Carnet management system for all new TIR associations.
The TIR-EPD application is intended for submission of advance information on transported goods to Customs Authorities. Fully compliant with WCO SAFE Framework of Standards and with the national regulations of connected countries, TIR-EPD enables Customs Authorities to perform advance risk analysis. TIR Carnet Holders can send advance information free-of-charge simultaneously to the Customs Authorities of the countries according to their itineraries.
In order to ensure the security of the TIR System, electronic controls run in parallel with the security elements already specified in the TIR Convention.
The perceived strengths of the TIR-system include: Access to 58 TIR operational countries; Management of a low cost, high value guarantee; Intermodality; Security in the supply chain; Reduced delays and costs for the international transit of goods; and Trade facilitation – goods move across international borders with minimum interference. Future opportunities include: Increased trust with national Customs; Encouragement of international trade; and Economic benefits for supply chain actors and nations.
Detailed analysis and relevance for CORE:
Research and analysis: The TIR system is based on proven business-to-governments solutions and both CORE and the TIR system could benefit from an investigation and evaluation of the legal, technical and operational feasibility as well as the business benefits of integrating TIR data to the CORE ecosystem and CORE concepts and solutions such as “trusted trade lane”, “data pipeline”, “piggy-backing” for customs and “dashboards”.
Demonstrators: The use of TIR and its security and risk management electronic tools in the framework of CORE demonstrators can have four different types of advantages which meet CORE’s overarching objectives to optimize the security of global supply chain whilst maintaining or improving business performance:
- Compliance with customs requirements: customs duties attached to the goods guaranteed by the TIR guarantee chain.
- Security of exchanges: transmission of safety and security data, in accordance with e.g. EU Customs legislation, to national customs before the arrival of the goods at borders.
- Facilitation of international trade: mutual recognition of customs controls for all TIR countries and reduction of customs formalities at borders.
- Visibility of data: use of TIR security and risk management electronic tools to check the status of TIR operations in real-time.
CORE Impact anticipation: CORE can have an important impact on the TIR system by reinforcing its place as a global multimodal logistics and trade solution. The investigation and evaluation of the legal, technical and operational feasibility as well as the business benefits of using the existing features of the TIR system within the CORE ecosystem and opening cargo-related datasets can contribute to improving freight and logistics services provision and operations by shippers, LSPs, transport operators, ports and customs authorities. The efficiency and security upgrades will come by significantly reducing waiting times and administrative burden at borders and at the same time providing a more cost efficient way of improved supply chain visibility and traceability of cargo to the benefit of all private and public stakeholders.
Application of the TIR Convention in the EU: Council Regulation (EEC) No 2913/92; Commission Regulation (EEC) No 2454/93 and Regulation (EU) No 952/2013 of the European Parliament and of the Council applicable as of 1 May 2016.
Youtube video on TIR: https://www.youtube.com