Goods transport cross borders

Logistics service providers having registration as Authorised Economic Operators may now obtain a TIR-Carnet from the Federation of Indian Chambers of Commerce and Industry (Ficci) for transport of goods without intermediate reloading. In road vehicles, combinations of vehicles or in containers, across one or more international borders. TIR stands for Transports Internationaux Routiers or International Road Transports.

The Convention on International Transport of Goods Under Cover of TIR Carnets (TIR Convention) is a multilateral treaty. Concluded at Geneva on November 14, 1975, it was to simplify and harmonise the administrative formalities in international road transport. Adopted under the auspices of the United Nations Economic Commission for Europe, there are 76 parties to the Convention, one being the European Union, the rest being states. India acceded in 2017.

About 35,000 international transport operators have been authorised (by their respective competent national authorities) to access the TIR system, using around 1.5 million carnets a year. The 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 the customs authorities with the required security and guarantees.

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

Movement of goods under the Convention is under the cover of a carnet issued by the National Guaranteeing Association (NGA). The Carnet issued in the country of departure serves as a Customs control document in the countries of departure, transit and destination. And, as proof of the existence of an international guarantee for the goods transported under the Carnet.

Ficci has been appointed by the Central Board of Indirect Taxes and Customs as the NGA for issue in India of Carnets under the Convention. NGAs in each contracting party to the Convention constitute a guarantee chain, linking all TIR countries with the International Road Transport Union, a non-governmental body in Geneva, Switzerland, at the apex of the guarantee chain. Presentation of a valid TIR Carnet bearing the names, stamps and signatures from IRU and those of the issuing association, duly filled-in by the transport operator, is proof of the existence and validity of the guarantee.

The basic principles for coverage of containers under TIR are that Customs seals be easily and effectively affixed to these, they contain no concealed spaces where goods may be hidden, and all spaces capable of holding goods are readily accessible for Customs inspection. Constructed and equipped in such a manner that no goods can be removed from, or introduced into, the sealed part of the container without leaving visible traces of tampering or without breaking the Customs seal.

The convention is expected to facilitate the movement of goods along the International North-South Transport Corridor, an ambitious project for a 7,200-km multi-mode network — ship, rail and road — for moving cargo between India, Iran, Afghanistan, Armenia, Azerbaijan, Russia, Central Asia and Europe, reducing transportation costs significantly.

Email: tncrajagopalan@gmail.com