What is the TIR Convention and why does it matter?


The Convention on International Transport of Goods Under Cover of TIR Carnets (TIR Convention) is a multilateral treaty that was concluded at Geneva on 14 November 1975 to simplify and harmonise the administrative formalities of international road transport.


What you need to know

  • TIR stands for "Transports Internationaux Routiers" or "International Road Transports".

  • The conventions were adopted under the auspices of the United Nations Economic Commission for Europe (UNECE).

  • As of December 2018, there are 76 parties to the Convention, including 75 states and the European Union.

What does the TIR convention do?

The TIR Convention establishes an international customs transit system with maximum facility to move goods:

  • in sealed vehicles or containers;

  • from a customs office of departure in one country to a customs office of destination in another country;

  • without requiring extensive and time-consuming border checks at intermediate borders;

  • while, at the same time, providing customs authorities with the required security and guarantees.

The TIR system not only covers customs transit by road but a combination is possible with other modes of transport (e.g., rail, inland waterway, and even maritime transport), as long as at least one part of the total transport is made by road.


To date, more than 33,000 international transport operators had been authorised (by their respective competent national authorities) to access the TIR system, using around 1.5 million TIR carnets per year.


e-TIR

In light of the expected increase in world trade, further enlargement of its geographical scope and the forthcoming introduction of an electronic TIR system (so-called "eTIR-system"), it is expected that the TIR system will continue to remain the only truly global customs transit system.


TIP procedures

  • Truckers making use of the TIR procedure must first obtain an internationally harmonised customs document, referred to as a TIR carnet.

  • TIR carnets are issued by national road transport associations.

  • This customs document is valid internationally and as well as describing the goods, their shipper and their destination represent a financial guarantee.

  • When a truck arrives at a border customs post it need not pay import duties and taxes on goods at that time. Instead, the payments are suspended.

  • If the vehicle transits the country without delivering any goods, no taxes are due.

  • If it fails to leave the country with all the goods, then the taxes are billed to the importer and the financial guarantee backstops the importer's obligation to pay the taxes.

  • TIR transits are carried out in bond, i.e. the lorry must be sealed as well as bearing the carnet. The security payment system is administered by the International Road Transport Union (IRU).

  • The TIR procedure is mostly used with Eastern European countries that are not in the EU (e.g. Russia and Ukraine), Turkey, and parts of the Near East.

  • Since the formation of the European single market, the TIR procedure has become unnecessary for intra-EU goods transport.

  • TIR carnets could become part of the solution to merchandise traffic between GB and other European countries - or transit intra-EU - for example between Ireland and mainland Europe.


Changes to the TIR convention proposed include


  • A new paragraph (s) of Article 1 of the TIR Convention is to define the ‘eTIR procedure’ applicable to electronic exchange of data between customs authorities.

  • A new Article 58 quater of the TIR Convention is to establish a technical implementation body which is to adopt the technical specification of the eTIR international system, without prejudice to the existing substantive and institutional framework of the TIR Convention.

  • A new Article 60 bis is to lay down the special procedure for the entry into force of the new Annex 11 to the TIR Convention and any future amendments to that Annex.

  • Amendments to Articles 43, 59 and 61 of the TIR Convention are to make adaptations necessary for the introduction of the new Annex 11.

  • The new Annex 11 to the TIR Convention is to enable the Contracting Parties bound by that Annex to use eTIR operations. It is to enable the Union and its Member States to choose at what point in time to connect their systems to the eTIR international system.

Sources


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