India gets first TIR shipment via Chabahar
Why in the news?
The first shipment under the United Nations ‘Transports Internationaux Routiers’ (TIR) convention arrived in India from Afghanistan through Iran’s Chabahar Port.
‘TIR’ stands for Transports Internationaux Routiers (International Road Transport) and the TIR Convention facilitates the international carriage of goods from one or more customs offices of departure to one or more customs offices of destination.
The Customs Convention on International Transport of Goods under cover of TIR Carnets, 1975 (TIR Convention), is an international transit system under the auspices of the United Nations Economic Commission for Europe (UNECE) to facilitate the seamless movement of goods within and amongst the Parties to the Convention.
Reciprocal recognition of customs controls is at the heart of the Convention. This enables a facilitative and non-intrusive environment for multi-modal transport of goods through several countries.
The International Road Transport Union (IRU) administers the TIR international guarantee chain under UN mandate.
TIR & India
India’s acceded to the Customs Convention on International Transport of Goods under cover of TIR Carnets (TIR Convention) in 2017.
FICCI is the National Issuing & Guaranteeing Association (NIGA) for TIR Carnets in India.
It is jointly responsible with customs for the operation and administration of the TIR system at national level.
National Customs Authorities implement TIR at national level, including border controls, approvals of national TIR operators and vehicles. They can also contribute to amendments to the TIR Convention.
Advantages for India:
The Convention will help Indian traders to have access to fast, easy, reliable and hassle free international system for movement of goods by road or multi- modal means across the territories of other contracting parties.
By joining the convention, the need for inspection of goods at intermediate borders as well as physical escorts en route shall be obviated due to reciprocal recognition of Customs controls.
Customs clearance can take place at internal Customs locations thereby avoiding clearances at Border Crossing Points and ports. This leads to decrease in cost and time.
Compliance with the Convention shall ensure enhanced security in the supply chain as only approved transporters and vehicles are allowed to operate in terms of the Convention.
The TIR Convention can be an instrument for movement of goods along the International “North-South” Transport (INSTC) Corridor and in particular using ports in Iran like the Chabahar port.
It is an effective tool to implement the World Trade Organization’s Trade Facilitation Agreement, the revised Kyoto Convention and is Compliant with the World Customs Organization SAFE Framework.