Common Legal Basis for Transit Transportation
Common Legal Basis for Transit Transportation
The European Union’s Tacis TRACECA program
for Armenia, Azerbaijan, Bulgaria, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Romania, Tajikistan, Turkey, Turkmenistan, Ukraine, Uzbekistan
Workshop on Corridor Development for
Caucasus Countries
May 18-19, 2004
Tbilisi, Georgia
- Trade and Transport Facilitation EuropeAid
This project is funded by the European Union
A project implemented by
Lamnidis & Associates
GENERAL
Common Legal Basis for Transit Transportation
The three dimensions
TRADE
TRANSPORT
Trade
Facilitatio
n
CUSTOMS
2
Common Legal Basis for Transit Transportation
GENERAL
Interrelation of strengthening of institutional grounds for
investments and Trade and Transport turnover growth
SIMPLIFICATION
OF
INTERNATIONAL ADMINISTRATIVE
PROCEDURES
TRANSPORT
TRADE
3
Common Legal Basis for Transit Transportation
GENERAL
Objective of Trade Facilitation
To provide a world-wide accepted, consistent, transparent and
predictable environment for international trade transactions.
Aims of Trade Facilitation
• To improve the quality of international transport and logistics,
• To adapt commercial trade and transport practices to
international standards,
• To remove obstacles and non-physical barriers to trade.
4
Common Legal Basis for Transit Transportation
GENERAL
Trade Facilitation Goals
• Implementation of WTO, WB, PCA, UN ECE, UN ESCAP,
WCO / regional commitments
• Automated Customs clearance with minimal data
requirements
• Remote filing and simplified clearance procedures
• Pre-arrival processing, post-clearance controls and audits
• "Fast-track" handling for authorized traders, chosen on the
basis of risk assessment
• Single window” solutions and “one stop” clearance by the
co-ordination of activities of Government agencies to
avoid multiple checks of the same cargo at different times
and places
5
Common Legal Basis for Transit Transportation
GENERAL
Trade Facilitation Goals
• A standard time limit for Customs clearance
• Co-operation between Customs agencies and trade
entities such as shippers, transportation operators,
freight forwarders, chambers of commerce and banks
• Transparency of Customs rules and procedures
• Increasing border control capacity (modernization of
infrastructure and computerization)
• Harmonization of data elements and requirements
• “E-commerce
6
STATISTICS
Common Legal Basis for Transit Transportation
Trade Growth
Trade of the countries with the World
import
Trade of EU with the countries
Import
export
300
1000
1133
174
163
1300
398 425
bio Euro
bio Euro
1500
500
Export
200
240
100
27
15
89
134
55
0
0
1980
1990
2001
1980
1990
2001
Country with the world
European Union with the country
Years
1980
1990
2001
1980
1990
2001
Contry/Trade
import
export
import
export
import
export
import
export
import
export
import
ASEAN
45
50
122
110
364
421
7
7
19
18
61
Japan
100
89
178
214
374
425
16
5
53
24
76
China
14
12
41
49
242
292
2
2
10
6
81
Shouth Korea
15
12
57
52
153
162
2
1
7
7
22
Total
174
163
398
425
1133
1300
27
15
89
55
240
Year 2002
ASEAN : Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam
7
Common Legal Basis for Transit Transportation
STATISTICS
Trade Growth
MLA Parties
Years
Armenia
Azerbaijan
Bulgaria
Georgia
Kazakhstan
Kyrgyzstan
Moldova
Romania
Tajikistan
Turkmenistan
Ukraine
Uzbekistan
Total
Country with the world
(mio Euro)
1993
1995
2001
300
800
1400
1390
928
4177
5782
8144
13629
400
400
1700
2393
6914
20157
700
700
1000
951
1213
2334
9800
14000
30100
800
1200
1500
1000
2400
3000
6900
26700
34800
1400
4400
4800
31816
67799
118597
EU with the country
(mio Euro)
1993
1995
2001
55
101
400
69
171
1443
2500
3887
7501
131
122
600
999
806
4562
16
87
120
92
242
530
4300
7200
21800
200
150
130
300
300
500
2600
3700
9700
600
900
1200
11862
17666
48486
8
STATISTICS
Common Legal Basis for Transit Transportation
Caucasus with the world (mio Euro)
5000
4177
4000
3000
1993
2000
1000
1400
800
1390
928
1700
1995
2001
400 400
300
0
Armenia
Azerbaijan
Georgia
EU with the Caucasus (mio Euro)
1600
1443
1400
1200
1000
1993
800
600
600
200
2001
400
400
55 101
69
171
131 122
0
Armenia
1995
Azerbaijan
Georgia
9
STATISTICS
Common Legal Basis for Transit Transportation
Central Asia with the world (mio Euro)
25000
20157
20000
15000
1993
1995
10000
2001
6914
5000
2393
1000
700700
1500
1200
800
3000
2400
1000
4800
4400
1400
0
Kaz
Kyr
Taj
Tur
Uzb
EU with the Central Asia (mio Euro)
5000
4500
4000
4562
3500
3000
1993
2500
2000
1500
1000
1995
999
806
500
0
16 87120
Kaz
Kyr
200150130
Taj
500
300300
Tur
1200
900
600
Uzb
2001
10
STATISTICS
Common Legal Basis for Transit Transportation
Eastern Europe with the world (mio Euro)
34800
35000
30100
30000
26700
25000
1993
20000
15000
10000
2001
9800
8144
5782
5000
1995
14000
13629
6900
2334
9511213
0
Bulgaria
Moldova
Romania
Ukraine
EU with the Eastern Europe (mio Euro)
25000
21800
20000
15000
10000
5000
1993
9700
7501
2001
7200
3887
2500
1995
4300
3700
2600
Rom ania
Ukraine
92 242530
0
Bulgaria
Moldova
11
STATISTICS
Common Legal Basis for Transit Transportation
Container transport
Graph 1. Europe and Eastern Asia Trade TEU
8000
6329
7000
7205
6764
5426
6000
4899
5000
West-East
TEU (000s) 4000
3000
2604
2822
2880
3035
3194
2001
2002
2003
2004
2005
East-West
2000
1000
0
12
Common Legal Basis for Transit Transportation
STATISTICS
TRANSIB
TRACECA
SOUTH
NOSTRAC
TRANSOCEAN
13
PROJECT ACTIVITY
Common Legal Basis for Transit Transportation
Project Environment
Project’s
environment
Intermediary
Supplier/
Customer
Purchase
Transportation
Payment
Customer/
Supplier
State
authorities
14
Common Legal Basis for Transit Transportation
PROJECT ACTIVITY
Overall Project Objectives
Facilitation of development of economic relations, trade
communication in the TRACECA region by means of:
-
-
devising of a common legal framework for multimodal carriage
of goods and cargo insurance;
harmonization of national legislation with international principles
and requirements relevant to transit traffic;
facilitation of accession to, ratification and efficient
implementation of the priority international conventions;
harmonization of legal and regulatory framework in the field of
transport and customs regulation, incorporating international
standards and requirements;
Improvement of the investment environment for IFI’s and
particularly for private investors
15
Common Legal Basis for Transit Transportation
PROJECT ACTIVITY
Project Objectives
•
•
•
•
•
•
National Legal Working Groups (NLWG) established and efficient operation ensured
Bilateral and multilateral transport transit agreements collected, catalogued and analysed
Ratification of identified recommended conventions and other treaties promoted and
implementation facilitated by means of, inter alia, management development and training
Guide to International conventions and agreements for transport operators and traders
elaborated
Training program for IGC NLWGs conducted
Draft New Technical Annex(es) to the MLA
–
–
–
•
•
•
•
•
on multimodal transit transport
on TRACECA investments
on freight forwarding operations
TRACECA road haulage permit and quota system elaborated
Modern technical vehicle standards: needs studied, regulative innovations recommended
Legal assistance to the IGC Permanent Secretariat provided throughout the project
duration
Introduction of the TRACECA Visa
Draft Main strategic directions of Intergovernmental Commission of TRACECA in the
development of transport networks of international transport corridor “Europe-CaucasusAsia” (TRACECA) for 2005-2010 proposed
16
Common Legal Basis for Transit Transportation
PROJECT ACTIVITY
Project Steps towards Increased TRACECA Transport
Corridor Competitiveness (tasks of LWG)
Short-term tasks (1 phase)
– Analysis and monitoring of the
existing transport legislation;
– Adoption of the Rules of
Procedures IGC and Statutes
PS IGC TRACECA;
– Adoption of recommendations
on accession to International
Conventions (Multimodal, Kyoto
Convention etc.);
– Approval of the “TRACECA
Permits System” concept for
the road transport;
– Identification of violations of
MLA
Long-term tasks (2 phase)
– Adoption of amendments/
annexes to the MLA;
– Introduction followed by
approval
of
common
technical standards on waits
and dimensions for the road
transport
in
TRACECA
region;
– Accession to the priority
international conventions in
the
field
of
transit
transportation.
17
PROJECT ACTIVITY
Common Legal Basis for Transit Transportation
TRACECA National Trade and Transport Facilitation
Working Groups
NATIONAL
COMMISSIONS
PROJECTS
TRACECA IGC
CLBTT
PROCOMMITTIEES
PERMANENT
SECRETARIAT
NATIONAL
SECRETARIES
UPTFT
HBCP
Trade and Transport Facilitation Working Groups
LEGAL
TARIFFS
BORDERS
TFWG
TFWG
TFWG
18
Common Legal Basis for Transit Transportation
PROJECT ACTIVITY
Trade & Transport Facilitation Legal Working Groups
National Legal Working Group
(NLWG)
•
•
•
•
•
•
•
Monitoring of current legislation in
international transit transportation
Identification of deviations from the
international
agreements
and
conventions in force
Promotion of compliance of the national
legislation with provisions of international
agreements and conventions
Facilitation of accession to the existing
priority conventions
Development of recommendations for
simplification of the existing regulations
applicable to transit transportation
Simplification
of
border-crossing
procedures
keeping
sufficient
administrative control preventing illicit
trafficking of goods
Active cooperation with Pro-Committees
established by the World Bank
Multilateral Legal Working
Group (MLWG)
•
•
•
•
Analysis of the current national
TRACECA member states laws and
regulations for international and transit
transportation
Consideration of the recommendations
on simplification and harmonization of
international transit transport regulations
in the TRACECA member states
Elaboration of the common action plan for
increased
competitiveness
of
the
TRACECA transit corridor
Devising recommendations to the PS and
IGC on incorporation of amendments and
additions to the Basic Multilateral
Agreement and it’s annexes
19
Common Legal Basis for Transit Transportation
PROJECT ACTIVITY
Amendments, Additions and Technical Annexes to the MLA elaborated
by the CLBTT project in order to Facilitate Trade and Transport
Protocol on Amendments to the MLA
Facilitation of Trade and Transport
Documentation Procedures
VAT zero-rate on railway transport services on
international and transit railway connection
New Technical Annex on International Customs
Transit Procedures for carriage of goods by rail using
“SMGS” railway bill to the MLA
Signed
Draft Protocol on Amendments to the TAs on
International Road Transport and Customs
Documentation Procedures
7 additions and amendments to the Technical Annex
on International Road Transport
3 additions and amendments to the Technical Annex
on Customs Documentation Procedures
Under
consideration
Draft Protocol on Amendments to the TAs on
International Road Transport
8 additions and amendments to the Technical Annex
on International Road Transport
Under
consideration
Draft Protocol on Amendments to the MLA
Draft New Technical Annex on multimodal
transport (10 articles)
Under
consideration
Draft Protocol on Amendments to the MLA on
TRACECA Investment
Draft New Technical Annex on TRACECA
Investment (17 articles)
Under
consideration
Draft Protocol on Amendments to the TA on
Customs Documentation Procedures
5 additions and amendments to the Technical Annexes
on Customs Documentation Procedures
Under
consideration
Draft New Technical Annex to MLA on Freight
Forwarding Activities
22 Articles
Under
consideration
Draft Main strategic directions of IGC TRACECA
in the development of transport networks of
international transport corridor for 2005-2010
20
Under
consideration
Common Legal Basis for Transit Transportation
Milestones in Project induced harmonization process
TRACECA VISA
Tangible results (OVIs) achieved by the Project at Yerevan Conference
The Protocol of amendments to the Basic Multilateral Agreement
on international transport for development of the Europe – the
Caucasus – Asia corridor signed on the Third IGC Annual Meeting
in Yerevan, October 9-10, 2003 was the first amendment to MLA
since its signature in 1998.
In order to facilitate Trade and Transport, the above mentioned
protocol with 3 amendments and a new Technical Annex have been
signed by Parties of the MLA as follows:
• Armenia, Azerbaijan, Kyrgyz Republic, Moldova, Romania,
Tajikistan – fully endorsed;
• Kazakhstan, Turkey Bulgaria, Georgia and Ukraine - endorsed
with reservations;
• Uzbekistan - did not sign the Protocol because the representative
did not have an authority for signature.
21
Common Legal Basis for Transit Transportation
Milestones in Project induced harmonization process
Tangible results (OVIs) achieved by now by the CLBTT NLWGs
Azerbaijan –
ratified the Protocol on amendments to the MLA
Kazakhstan – waived the reservation to the Technical Annex on
international railway transport to the MLA
Turkey –
apply for accession to SMGS Agreement
Ukraine –
made amendments to the Low of Ukraine “On
transit” about using SMGS railway bill as a single
transit document
Uzbekistan – signed Protocol on amendments to the MLA
22
PROJECT ACTIVITY
Common Legal Basis for Transit Transportation
Trade Facilitation National Legal Working Groups - Monitoring and Evaluation Indicators
NS's Report
Aze
Description of Tasks
Arm
Bul
Geo
Kaz
Kyr
Mol
Rom
Tur
Ukr
Uzb
Reference
Category
Nov
Oct
Nov
Oct
Nov
Oct
Nov
Oct
Nov
Oct
Nov
Oct
Nov
Oct
Nov
Oct
Nov
Oct
Nov
Oct
Nov
Oct
Nov
Oct
Road
Tad
List of Abbreviations:
Road
Review and collection
ToR 3.1
ST
Identification of violations
ToR 3.2
LT
ToR - Terms of Reference of
National Legal Working Groups
ToR 3.3, 3.4
LT
ToR (A) - Annex to ToR NLWGs
TA - Technical Annex
PO PR, 5
ST
ST
ST
LT
L - Letter of General Secretary
PS IGC TRACECA Feb-5-03
Proposals/recommendations
Consideration of Protocol TRACECA Permit System
Decision-making on necessity of TA to MLA on road vehicle tech.
1
standards
Consideration of Protocol Liberalization of road transport and Charging
policy
Rail
Rail
NS - National Secretary
Review and collection
ToR 3.1
ST
PR - Progress Report
Identification of violations
ToR 3.2
LT
ToR 3.3, 3.4
LT
PO PR/IR - Plan of Operations
of Progress/Inception Report
ST
IR - Inception Report
Proposals/recommendations
2
Consideration of Protocol (Tash Conf) SMGS 0-VAT rate
Maritime 3
Maritime
LT - Long Term Task
Review and collection
ToR 3.1
ST
ST - Short Term Task
Identification of violations
ToR 3.2
LT
ToR 3.3, 3.4
LT
AP - Baky Action Program on
Multimodal Transport to
Protocol of the Meeting of
Heads of Railways, Ports and
Shipping Companies (17-18
Proposals/recommendations
Multimodal
Multimodal
Review and Report on implementation of AP, I
ST
Review and collection
ToR 3.1
ST
Identification of violations
ToR 3.2
LT
ToR 3.3, 3.4
LT
Proposals/recommendations
Consideration of Protocol TA on Multimodal Transport
Protocol - 6 Protocols on
Amendments to the Basic
Multilateral Agreement
LT
Customs Procedures 4
Customs Procedures
Review and collection
ToR 3.1
ST
Identification of violations
ToR 3.2
LT
The Legend:
ToR 3.3, 3.4
LT
No report received
ST
Report not compliant
Protocol on Transit Facilitation to TA on Customs Doc. Procedures
LT
Protocol on International Conventions
LT
Partial compliance
Full compliance with
recomendations of Project
Team and PS
Proposals/recommendations
Consideration of Protocol (Tash Conf) – in part of TRACECA Visa
5
Transport Investments
Consideration of Protocol on TRACECA Investments
Transport Investments
LT
1
Decision is to be made in view of Minsk Convention on weights and dimensions of transport vehicles for CIS, 1999
2
Task shall become applicable only if the Protocol is not signed in Yerevan in October 2003
3
Special attention must be paid to the Tri-partite Agreement between Ukraine, Bulgaria and Georgia on railway ferry connection operation, 1999
4
This tasks shall be carried out in cooperation with HBCP Project and Customs Working Groups created under this Project
5
Task shall become applicable only if the Protocol is not signed in Yerevan in October 2003
23
PROJECT ACTIVITY
Common Legal Basis for Transit Transportation
Trade Facilitation National Legal Working Groups - M onitoring and Evaluation Indicators
NS's Report
Description of Tasks
Aze Arm Bul Geo
Kaz
Kyr
Mol Rom
Tad
Tur
Ukr
Road
Uzb
Reference
Category
List of Abbreviations:
Road
Review and collection
ToR 3.1
ST
Identification of violations
ToR 3.2
LT
ToR - Terms of Reference of
National Legal Working Groups
ToR 3.3, 3.4
LT
ToR (A) - Annex to ToR NLWGs
TA - Technical Annex
PO PR, 5
ST
ST
ST
LT
L - Letter of General Secretary
PS IGC TRACECA Feb-5-03
Proposals/recommendations
Consideration of Protocol on Permit System
Decision-making on necessity of TA on road vehicle tech. standards
1
Consideration of Protocol on Charging Policies Liberalization
Rail
Rail
NS - National Secretary
Review and collection
ToR 3.1
ST
PR - Progress Report
Identification of violations
ToR 3.2
LT
ToR 3.3, 3.4
LT
PO PR/IR - Plan of Operations
of Progress/Inception Report
ST
IR - Inception Report
Proposals/recommendations
2
Consideration of Protocol (Tash Conf) SMGS 0-VAT rate
Maritime 3
Maritime
LT - Long Term Task
Review and collection
ToR 3.1
ST
ST - Short Term Task
Identification of violations
ToR 3.2
LT
ToR 3.3, 3.4
LT
AP - Baky Action Program on
Multimodal Transport to
Protocol of the Meeting of
Heads of Railways, Ports and
Shipping Companies (17-18
Proposals/recommendations
Multimodal
Multimodal
Review and Report on implementation of AP, I
ST
Review and collection
ToR 3.1
ST
Identification of violations
ToR 3.2
LT
ToR 3.3, 3.4
LT
Proposals/recommendations
Consideration of Protocol TA on Multimodal Transport
Freight forwarding operations
Protocol - 6 Protocols on
Amendments to the Basic
Multilateral Agreement
LT
Consideration of draft TA on FF operations
Customs Procedures 4
Customs Procedures
Review and collection
ToR 3.1
ST
Identification of violations
ToR 3.2
LT
The Legend:
ToR 3.3, 3.4
LT
No report received
ST
Report not compliant
Protocol on Transit Facilitation to TA on Customs Doc. Procedures
LT
Protocol on International Conventions
LT
Partial compliance
Full compliance with
recomendations of Project
Team and PS
Proposals/recommendations
Consideration of Protocol (Tash Conf) – in part of TRACECA Visa
5
Transport Investments
Consideration of Protocol on TRACECA Investments
Transport Investments
LT
TRACECA Strategy
Consideration of Draft IGC TRACECA Strategy
1
Decision is to be made in view of Minsk Convention on weights and dimensions of transport vehicles for CIS, 1999
2
Task shall become applicable only if the Protocol is not signed in Yerevan in October 2003
3
Special attention must be paid to the Tri-partite Agreement between Ukraine, Bulgaria and Georgia on railway ferry connection operation, 1999
4
This tasks shall be carried out in cooperation with HBCP Project and Customs Working Groups created under this Project
5
Task shall become applicable only if the Protocol is not signed in Yerevan in October 2003
24
Common Legal Basis for Transit Transportation
PROJECT ACTIVITY
CLBTT Project Recommendations: Creation of attractive
investment environment
•
Facilitation of investment in the field of transport along the TRACECA routes
Draft New Technical Annex to the Basic Agreement on TRACECA investment,
Article 2
•
Creation of attractive environment for IFI’s and private investors by implementation and
improvement of modern and flexible form of investment:
–
–
–
–
–
–
–
Modern forms of concession of the transport infrastructure objects with active participation of
private investors (BOT etc.);
Free economic areas or zones;
Transport logistic centers (hubs);
TRACECA Guarantee Trust Fund;
TRACECA Economic Interest Grouping;
TRACECA Industrial Advisory Forum/Panel;
Settlement of Disputes.
Source: Draft Main strategic directions of Intergovernmental Commission of TRACECA in the development of transport networks of
international transport corridor “Europe-Caucasus-Asia” (TRACECA) for 2005-2010
•
Promotion of investment flows and insurance of non-commercial risks
Convention Establishing the Multilateral Investment Guarantee Agency, 1985,
Chapter 1, Article 2
25
Common Legal Basis for Transit Transportation
CLBTT Project Recommendations:
Trade and Transport facilitation
Presently Article 5 “Payment of taxes, duties and other payments” of MLA reads:
Taxes, duties and other payments, irrespective of their names and origin shall not be
imposed for transport in transit, except payments for transport and customs
services, services related to transport, as well as payments for use of transport
infrastructure.
Draft amendment to the article 5 of the Basic Multilateral Agreement:
Taxes, duties and other payments, irrespective of their names and origin shall not be
imposed for types of transport referred to in Article 1 of the Basic Agreement,
except payments for transport and customs services, services related to transport,
as well as payments for use of transport infrastructure.
26
Common Legal Basis for Transit Transportation
CLBTT Project Recommendations:
Trade and Transport facilitation
Presently Clause 2 of Article 6 “Preferential Terms and Tariffs” of MLA reads:
2. The Parties have agreed that should preferential terms and tariffs be established
between two Parties for types of transport referred to in Article 1 of the Basic
Agreement, no less preferential terms and tariffs will be applicable between these
Parties and other Parties.
Draft amendment to the Clause 2 of Article 6 of the Basic Multilateral Agreement:
2. The Parties have agreed that should preferential terms and tariffs be established
between two Parties or between a Party/Parties with a third country/countries,
for types of transport referred to in Article 1 of the Basic Agreement, no less
preferential terms and tariffs will be applicable for all Parties to the Basic
Agreement.
27
Common Legal Basis for Transit Transportation
PROJECT ACTIVITY
Trade and Transport facilitation measures
recommended by UN ECE and taken on board by the
Project
•
Improvement of services on organization of transportation of
goods by any kind of transport
Draft New Technical Annex to MLA on Freight Forwarding Activities
(CLBTT Project)
•
Commercial or transport document as descriptive part of
transit declaration
WCO, Revised Kyoto Convention, Specific Annex E, Chapter 1
Standard 6
Technical Annex on International Customs Transit Procedures for
carriage of goods by rail using “SMGS” railway bill to the MLA
(CLBTT Project)
• Provision of high quality services and increased economic
efficiency of the multimodal transport operations
New Technical Annex on multimodal transport (CLBTT Project)
28