IRU - Compliance of the TIR System with the WCO Framework of Standards

Conference Programme
"CONTRIBUTION OF THE TIR SYSTEM TO THE SECURITY OF TRADE AND TRANSPORT"

Conference Hall of the Federal Customs Service of the Russian Federation (FCS RF)
1-a, Komsomolskaya Ploschad, Moscow
13-14 March 2007

Ladies and gentlemen! As mentioned by Mr. Marmy earlier this morning, the IRU has been the implementing partner of the TIR transit system based on the UN TIR Convention. For many years the IRU has worked in close collaboration with the customs administration and with the UNECE in order to develop the TIR System to ensure that it meets the changing needs of both the private and public partners who use this important facilitation tool. Today the TIR System is unique in that it facilitates the secure and efficient transport of goods traded between the 55 countries where the system is currently in operation.

(Slide 2)
It has already been mentioned that the TIR System has demonstrated its ability to accompany the radical changes in the world economy resulting from the globalization of trade. The purpose of my intervention is to illustrate now precisely how the TIR System meets the requirements set by the WCO Framework of standards to secure and facilitate global trade, thus demonstrating that international tools already exist to meet the concerns expressed by WCO members and shared by traders in connection with security and facilitation.

(Slide 3)
Security and facilitation are two concepts which at first glance may look antonymic. But actually, the link between these two notions relies on trust granted by public authorities to the private sector, and as a consequence on a true and efficient, reliable, partnership between these the public and private partners.

Today, the WCO standards, under the SAFE Framework, are recognised by customs administrations in 139 countries. This is a great achievement. But it entails also great challenges, which are precisely connected to trust and partnership. Let me explain which are these challenges.

(Slide 4)
The practical implementation of such concepts presents the WCO with two major challenges:

These two challenges were also challenges for the TIR System. Indeed, safe and secure trade and transport have been for almost 60 years the cornerstone of the TIR System. Controlled access, mutual recognition of the AEO, advanced cargo information and efficient risk management are essential aspects for a secure facilitation tool such as the TIR System.

The TIR System has successfully managed to address the challenges of mutual recognition and effective communication. But before I explain how these challenges have been met in TIR, in order to demonstrate how TIR and the SAFE requirements are similar, let me explain how the TIR System achieves the objectives of controlled access, advanced cargo information and risk management.

(Slide 5)
Firstly, according to the TIR Convention the access to use the TIR System is strictly controlled jointly by the public authorities and by the private sector. All 40,000 transport companies operating about 250,000 trucks currently authorized by their national customs authorities, as well as by their national road transport association have been duly checked and tested for their:

Due to the effectiveness of these selection criteria, the IRU – through its network of national associations – is able to deliver more than 3 million TIR carnets per year. This represents the issuance every day of a major amount of financial guarantee for the TIR fleet operators in 55 countries. The magnitude of the financial amount delivered every day by the international guarantee chain managed by the IRU demonstrates clearly that the risk management as well as the very selective process and criteria in place to authorise transport companies to use the TIR System is very effective.

(Slide 6)
In the WCO SAFE framework, the Authorized Economic Operator is one of the pillars of the risk management of the Public-Private Partnership. The criteria just mentioned for access to the TIR System, which have proven their effectiveness for almost 60 years, are essentially the same as the criteria to obtain the authorization as Authorized Economic Operator.

(Slide 7)
Secondly, all the road vehicles currently used for the 3 million TIR transports taking place every year have all been technically approved. Indeed at the start of any TIR transport, the vehicle is sealed and the vehicle is designed in such a way that nothing can be introduced or removed from the load compartment without breaking the seals. In addition the quality and method of fixing the seals are constantly improving through, for example, the use of technically sophisticated sealing devices. The implementation of the electronic seal for ISO maritime containers – which incidentally are all also approved according to the technical specifications of the TIR Convention – is not far away.

(Slide 8)
Thirdly, following a recommendation of the UN TIR bodies an electronic control system for use of TIR Carnets was introduced 12 years ago as part of improving the risk management of the TIR System. The control system, also called SAFE TIR, introduced as Annex 10 of the TIR Convention, was developed in a true and effective Public-Private Partnership, in cooperation with the national Customs authorities and the road transport industry.

The international IT network necessary to ensure the transmission of data is at the core of the Safe TIR control system. This system enables all customs authorities to be fully informed about a particular TIR transport, including its termination, as well as the name of the holder of the TIR document and the validity date of each specific TIR Carnet.

Let me also inform you that in a fruitful partnership between the Russian Federal Customs Service (RF FCS), IRU and the Russian road transport association ASMAP, the Safe TIR control system has recently been dramatically enhanced. This system currently provides the customs authorities and any other authorised control administration with all the requested data about any TIR transport in Russia in real time. My colleagues and the representatives of the FCS and ASMAP will further elaborate on that today.

But it can already be pointed out that the same real time Safe TIR control system as uded in the Russian Federation could be expanded without any problem to any Road or Container transport under the TIR System and to any country.

(Slide 9)
Finally the IRU fully agrees with the WCO SAFE Standard: the “pre-notification” to the customs authorities of any transport vehicle with the goods conveyed, also called “summary declarations” or “advanced cargo information” are important tools for the customs to improve the security of trade.

In this respect the IRU has developed in cooperation with several national customs administrations another IT tool enabling any TIR transport operator to provide the required data based on the contents of the TIR Carnet and the CMR consignment note, electronically in advance to the customs or any authorised control administration. The electronic declaration matches both the demands of the TIR Convention and the demand of the EU electronic transit system. Here also, my colleagues will elaborate further on this later today.

I will limit myself here by pointing out that the SafeTIR control system coupled with the application ensuring the advance cargo information can be used for ISO maritime container transports.

Now, let me come back to the two current challenges faced not only by the WCO, but also by the road transport industry, the mutual recognition of AEOs and the need for efficient communication platforms.

As mentioned earlier, the status of authorized TIR transport operator is essentially based on the same criteria as those necessary to obtain the status of AEO according to the SAFE Framework.

TIR transport operators are recognized in the 55 countries where the TIR System is operational. The controls made in the country where the TIR operator is established, as well as the certificates of approval issued for the vehicles and the seals applied by the Customs offices of departure are accepted by all other Customs offices during the TIR transit operation within the 55 TIR contracting parties. All this is a concrete example of the mutual recognition of the TIR procedure and controls.

This is also the concrete result of the current functioning of a true and effective Public-Private Partnership between the national Association issuing TIR Carnets and the competent public authorities to ensure that all the elements for a secure transit are all present.

It is obvious that the effective mutual recognition of the Authorised Economic Operator (AEO) is dependent upon the existence of and access to a real time AEO communication platform or central database, whereby Customs administrations can verify at any time the particulars and authenticity of any Authorised Economic Operator.

(Slide 10)
In the TIR System such a database already exists for transport operators authorised for TIR. This database called Cute-Wise is made fully available to Customs administrations in order to facilitate and support their risk management. Therefore through this database, Customs are able to check at any time the status and validity of a specific TIR Carnet as well as the current status of a TIR transport and TIR operator.

In conclusion, the IRU, through its major financial investments for the development of the appropriate risk management and data exchange between the transport industry, the Customs authorities and the authorized control administration, has already clearly demonstrated its commitment and its readiness to offer its 60 years of expertise in 55 countries, to improve the security of the international supply chain. While everyone recognises a blue TIR plate on the truck, very few people are aware of all that has already been achieved and of what can still be achieved by the reinforcement of the current Public-Private Partnership to meet, without any duplication of the work, the WCO SAFE Framework.

The accomplishments achieved in the TIR system demonstrate clearly how the TIR Convention can be instrumental in guaranteeing to the WCO framework of standards valuable success and achievement.

(Slide 11)
Security and facilitation are finally not antonymic, but they require a lot fine-tuning, experience and cooperation to ensure that one is not developed to the detriment of the other. It is only by working together that we can ensure that trade and Customs authorities can achieve their common objectives to secure and facilitate trade in the best interest of all partners. By its involvement in the TIR System, and in a spirit of real public-private partnership, the IRU is proud to assist the WCO and its members to face the challenges presented by a globalized economy.