TIR in Trade Facilitation for the Region

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TIR in Trade Facilitation for the Region
Max EE (BBA Hons, GDipSA, MSc Logistics)
Senior Transport Specialist
USAID trade project
August, 2014
1
Personal Profile
Max Ee
Singapore
• Senior Transport Specialist, USAID trade project
• Ten years of working and operational experience
in the private sector, working in third-party
logistics (3PL)
• Ten years of consulting experience for public
and private sectors.
• Started work for Asian Development Bank since
2005.
• Worked in Afghanistan, Kazakhstan, Kyrgyz
Republic, Mongolia, Pakistan, PRC (Xinjiang),
Uzbekistan.
• Focused on transport and trade facilitation
project
• Course Convener in Singapore Logistics
Association, Director for ASEAN-China Chamber
of Commerce
2
Agenda
1
Regional Transit Corridors
2
Regional Trade Flows
3
TIR in Connecting Central and
South Asia
4
Road-Map for Implementation
3
Regional Transit Corridors
4
Transit Routes in Afghanistan
Uzbekistan-Afghanistan-Pakistan
(845 km)
Ayratan-Hairatan-Mazari SharifPol e homri-Kabul-JalalabadTorkham-Peshawar
Tajikistan-Afghanistan-Pakistan
(740 km)
Nizhni Panj-Shirkhan Bandar-KundozPol e homri-Kabul-JalalabadTorkham-Peshawar
5
Transit Routes in Pakistan
India-Pakistan-Afghanistan
(AH-1, 520 km)
Wagah-Lahore-PeshawarTorkham
Pakistan-Afghanistan
(AH-7 1 857 km)
Karachi-Khuzdar-QuettaChaman-Spin Buldak
Pakistan-Afghanistan-Central Asia
(AH-2 and AH-14 1,431 km)
Karachi-Sukkur-DI KhanPeshawar-Torkham
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Transit Corridors
with Heavy 5
Traffic
CAREC
Corridor
Shirkhan Bandar –
Torkham
Urumqi –
Dushanbe
Hairatan –
Torkham
Trade Flows
Industrial
Materials
Cotton
Machineries
Scrap
Iron
Fruits
Cement
7
Pakistan’s Potential in the Region
Central Asia
Land-locked region
Energy-Rich
Complicated Border Crossing
Middle East
Energy-Surplus Region
Capital Surplus
U.A.E. just acceded to TIR
East Asia
Economically Vibrant
Huge Demand for
Energy and Resources
Large Demographics
South Asia
Favourable Demogrpahics
Access to seaports
8
Connecting Central and South Asia : Global View
9
Connecting Central and South Asia : Key Questions
1. Central Asian Countries are land-locked and do
not access to seaports.
2. Why is Central Asia not using South Asia to
access seaports?
3. What Pakistan need to provide, invest and
improve to attract more transit trade?
10
Connecting Central and South Asia : TIR’s Role
1. This transit corridor is the shortest path
for Central Asia to access seaports.
2. Only land transport is feasible for this
route.
3. Rail transport in Pakistan serves mainly
passengers. Commercial and noncommercial cargoes move by roads.
4. Using trucks, TIR can facilitate a more
efficient and faster way of moving goods in
either direction.
11
Annual TIR Carnets in Use (Central Asia)
Countries
Iran
Kazakhstan
Kyrgyz Republic
Tajikistan
Turkmenistan
Uzbekistan
2008
48,000
32,150
17,060
400
1,000
5,000
2009
58,000
31,000
15,050
900
2,000
6,500
2010
54,000
30,050
14,050
700
3,200
9,000
2011
78,000
24,500
20,700
1,500
4,700
14,100
2012
85,000
19,000
17,100
2,950
6,000
17,500
2013
105,000
25,000
22,200
3,500
7,500
7,500
Source : IRU
Observations
In most countries, the use of TIR is increasing rapidly, shown by the increased number of
TIR Carnets in use. This is especially so for Afghanistan’s neighbours such as Iran,
Tajikistan and Turkmenistan.
The successful re-activation of TIR in Afghanistan and Pakistan as a Contracting Party will
create a new TIR Corridor linking Central and South Asia.
12
Challenges of TIR Re-Activation in Afghansitan
Association
Very limited number of
TIR Carnet Holder(s)
Only three banks offer cargo
insurance
Not ATI
Companies
Need financing to invest
in new secure trucks
Weak route planning for
international shipments
Unfamiliar with costing for
international shipments
Rudimentary understanding
of TIR
Implementation
Challenges
Banks
Visa Restrictions
Officers at border unsure
about the documentation
Customs
Not conversant with
English, French, Russian
Risk of abandoning cargoes
in foreign countries
Poor knowledge of geography,
border crossing and routes
Drivers
Factors highlight in blue and italic can be partially or fully addressed through capacity building
13
Implementation Action 1 : International Agreements
Year of Accession to CMR and TIR
Countries
Azerbaijan
Kazakhstan
Kyrgyz Republic
Tajikistan
Turkmenistan
Uzbekistan
CMR
2006
1995
1998
2002
1996
1995
TIR
1996
1996
1998
2002
1996
1995
Source : United Nations Economic Commission for Europe
(UNECE)
(www.unece.org/trans/conventn/agreem_cp.html)
Note that many Central Asian countries acceded to
both CMR and TIR in the same year. There is a good
reason for this. Both Conventions are
complementary.
CMR is the Convention for the
Contract of International
Carriage of Goods by Road. It
deals with the various legal
issues in road transport. What is
especially lacking in
Afghanistan is the absence on
the carrier liability issues. If
goods are lost or damaged in
transit, the carrier has no
insurance coverage and the
consignee or consignor have
little recourse. Accession to the
CMR Convention is useful for
Afghan transport operators in
international transit.
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Implementation Action 2 : National Legislation
• Revision to the Transport Laws
Mandatory for international transport
operators to have TIR Compliant trucks
• Revision to the Customs Code
Recognize mutual customs control
• Third-Party Carrier Liability
Develop and incentivise the underwriting
of carrier liability insurance
• Green Lanes for TIR
Permit faster movement of trucks
15
Implementation Action 3 : Trucks Specifications
16
Implementation Action 4 : Capacity Building
TIR User Guide
Train the Trainers
Framework
Overview
Secure Vehicle
and Container
International
Guarantee Chain
Mutual
Acceptance of
Customs Controls
Administrative
Structure
TIR Carnet
Controlled Access
SafeTIR
Sheeted Vehicles
and Trailers
Contractual
Mechanisms in
TIR System
TIR Transport
The TIR Carnet
Using the TIR
Carnet
(Association)
Admission to the
TIR System
SafeTIR and
CUTE-WISE
Siders
Dealing with
Claims
Customs
Procedures
Using the TIR
Carnet (Holder)
Using the TIR
Carnet (Customs)
General Admin
Procedures for
Holders
Anti-Fraud
Actions
(Association)
Termination and
Discharge of TIR
Operation
Using the
Certified Report
Form
Opening a TIR
Carnet
Suspension and
Exclusion
Anti-Fraud
Measures
(Holder)
Dealing with
Problems EnRoute
Returning a TIR
Carnet
Containers,
Tankers and
Small Vehicles
Approval
Certificate and
TIR Plate
Anti-Fraud
Measures
(Customs)
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Implementation Action 5 : Optimize the Admission Process
http://www.acci.org.af/services/tir.html
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Contacts
Thank You!
Contact : +93 7958 44845 (Afghanistan)
Email: max.ee@scmigroup.com
Skype : maxkkee
Max Ee
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