Economic Cooperation Organization Perspectives of the TIR System

Economic Cooperation Organization Perspectives of the TIR System in the context of implementation of TTFA Presented by Ms. Zukhra Abisheva Transport and Communications, ECO Secretariat, at ECO/IRU Regional Conference on Facilitation of Transit Trade by Road and TIR Convention, Tehran, 26 th October 2014

Content Transit Facilitation ECO Transit Transport Framework Agreement (TTFA) Status of Implementation of TIR Convention in the Region Trainings and Workshops Regional study Promotion of the Regional interest of the ECO through UNECE’s WP 30 and AC 2 Development of the ECO Road Transport Islamabad-Tehran-Istanbul Road Corridor Kyrgyz Republic-Tajikistan-Afghanistan-Iran Road Corridor Regional Studies/Regional Plans on Road Transport ECO/IRU Project for Regular Monitoring Run of Trucks

Transit Facilitation

Transit Facilitation ECO Transit Transport Framework Agreement (TTFA) TTFA is in force since 2006 with the ratification of the Parliaments of eight Member States, including Afghanistan, Azerbaijan, Iran, Kazakhstan, Kyrgyz Republic, Pakistan, Tajikistan, and Turkey Objectives • Facilitation of movement of goods and passengers • Ensuring the safety of goods and passengers and avoiding unnecessary delays during the transit traffic • Cooperation and coordination of the efforts to avoid the incidence of customs frauds and tax evasion • Harmonizing necessary administrative affairs dealing with transit traffic

Transit Facilitation ECO Transit Transport Framework Agreement (TTFA) A special mechanism and a FUND has been established to coordinate, support and monitor L I NC U the implementation of the TTFA CO N IO AT DIN Customs Transit Committee R OO C T R PO S AN R T IT NS A TR Railway Committee TTCC Insurance Committee Road Committee

ECO Transit Transport Framework Agreement (TTFA) Transit Facilitation Implementation of road and customs provisions of the TTFA being administered by Road and Customs Transit Committees of TTCC: Article 5: Customs Duties, Taxes and other Levies and Charges Article 9: Measures designed to expedite clearance of Transit Traffic Article 10 Safety of Transit Traffic Article 14 Traffic Regulations Article 15 Road Transport Permits Article 17: Temporary Admission of Means of Transport Article 20 Mutual Recognition of Driving Licenses Article 21 Mutual Recognition of Certificate of Road Worthiness Article 24: Transit Services Article 28: Setting up Customs Transit System Article 29: Simplification and Harmonization of Customs Procedures Article 30: Consolidation and Alignment of Documentation Article 31: Notification of Change in Documentation and Procedures Article 32: Basic Documentation and Procedures Article 34: Domestic Legislation Article 35: International Conventions

Transit Facilitation ECO Transit Transport Framework Agreement (TTFA) According to the TTFA, the TIR System is anticipated as underlying transit system among the member States. The ECO has a mandate to strengthen the implementation of the TIR system in the region and facilitate the operation of this system in the Member States. Article 28 Establishment of Customs Transit System 1. The Contracting Parties shall establish a Customs Transit System for the cargo and means of transport in accordance with the relevant International Customs Conventions for the purpose of facilitating the movement of goods in their territories. 2. The Contracting Parties, which are also parties to the Customs Convention on the International Transportation of Goods under cover of TIR Convention 1975 will apply the provisions of that Convention amongst themselves. The Contracting Parties which are not yet parties to that Convention shall not be required to follow the provisions of that Convention. 3. The Contracting Parties which are not yet parties to this Convention will consider the possibility of acceding to this Convention.

Transit Facilitation Status of Implementation of TIR Convention in the Region All ECO Member States, except Pakistan are Contracting Parties to the TIR Convention. The first ratification of the TIR Convention in the region dates back to 1983 for Afghanistan, followed by Turkey and Iran and Central Asian Republics respectively in 1985, 1996 and 1997. q TIR Convention has been reactivated in the Islamic Republic of Afghanistan in coordination with ECO and IRU in the official ceremony which was held on 4 September 2013 in Kabul. q The Islamic Republic of Pakistan is finalizing formalities on accession to the TIR Convention, .

Transit Facilitation Trainings and Workshops The ECO organized following capacity building workshops /training workshops on TIR Convention, in partnership with the relevant international organizations in 2012 -2014 q The 2 nd ECO/IRU Regional Conference on Transit Transport and the TIR System, Istanbul June- July 2012. q Training Course on TIR for Afghanistan, (Mashhad, June 2012). q Training Course on TIR for Afghanistan (Ankara, 2012). q Training Course on TIR for Pakistan (Ankara, May 2013). q Capacity Building Workshop on TIR for Pakistan, Islamabad, August 2014. q The 3 rd ECO/IRU Regional Conference on Transit Transport and the TIR System, Tehran, 26 th October 2014.

Transit Facilitation Regional study The ECO is in close contact with the Islamic Development Bank (IDB) to commence the second phase of the Project on TTFA for preparing a regional programme on customs transit and modernization of border crossing points in the region. A delegation of the ECO Secretariat will visit the IDB headquarters on this matter soon. The beneficiaries of the project are: q The Customs Administration of the member states through promotion of functional and technical solutions, in line with international standards and best practices. q The member governments through adoption of solutions aimed to increase the operational capacity of their Customs Services, producing increased revenue and reducing commercial fraud. q Business community, transport sector and logistics industry through promotion of solutions that will promote faster transit, simplified and harmonized customs and trade procedures and working practices at national and regional levels.

Transit Facilitation Promotion of the Regional interest of the ECO through UNECE’s WP 30 and AC 2 At the international level, the management structure of the TIR Convention includes A) the TIR Administrative Committee (AC 2), B) the TIR Executive Board (TIREx. B), C) the UNECE Working Party (WP. 30), D) the TIR Contact Group, E) UNECE/TIR Secretariat, and F) and the International Organization-IRU. Presence of the ECO at the UNECE Working Party provides opportunities to : i. Introduce the ECO region at International and Global level ii. Obtain the support in implementation of the project such as TIR Pilot Project along the ITI Road Corridor iii. Promote the UN Conventions and agreements in the field of transport in the ECO region iv. Assist the ECO toward harmonization v. Plan and organize capacity building programme and training course vi. Commence cooperation for conducting the studies on custom transit, road safety, etc.

Development of the ECO Road Transport

Islamabad-Tehran-Istanbul Corridor ITI Road Corridor Further to decision of the 8 th Meeting of the ECO Transport Ministers (Ashgabat, 2011), endorsed by the ECO Summit, arrangements for establishing a road corridor between Islamabad-Tehran-Istanbul is initiated. The Corridor is being coordinated by the ECO High Level Working Group The Meeting Adopted an Action Plan for the Establishment of the Corridor, whereby the TIR System would be implemented on a test basis along the Corridor. Terms of Reference for the Field study along this Corridor has been prepared and the study would commence soon.

KTAI Road Corridor Kyrgyz Republic-Tajikistan-Afghanistan-Iran Corridor The KTAI Road Corridor is coordinated by the ECO High Level Working Group Meeting. The 3 rd HLWG Meeting will be held on 27 th October 2014 in Tehran.

Regional Studies/Regional Plans on Road Transport Regional Studies Future initiatives/activities along Road Corridors q Conducting field Study along ITI and KTAI Road Corridors q Organizing test runs along these two Corridors q Conducting study on Road Safety along these corridors with the cooperation of UNECE and organizing workshops on this issue q Following up the progress of construction missing links along Road Corridor ECO Road Network Development Plan Under ECO/IDB Joint Project to prepare a Regional Program for the implementation of TTFA, the ECO Road Network Development Plan has been prepared which represent a valuable and comprehensive roadmap to be implemented as a collective work to strengthen road interconnectivity of the region via identified transit routes. The Plan: q Defines seven ECO Road Transport Corridors. q Identifies regionally important infrastructure projects along the ECO Road Transport Corridors. q Develops an Investment Plan for the priority projects.

Regional Studies ECO/IRU Project for Regular Monitoring of Trucks in partnersip with IRU Started in June 2011 Inspired by successful ECO/IRU Demonstration Truck Caravan 2010

Regional Studies ECO/IRU Project for Regular Monitoring of Trucks The main objective of the ECO RMT/NELTI-3 project was the promotion and facilitation of international road transport and trade in the ECO Member States through monitoring physical and non-physical barriers for transit transport. • The project involved organizing and monitoring around 140 commercial journeys of trucks from different nationalities. • Data analyzed through NEA Institute (Netherlands) using UNESCAP Time. Distance-Cost” methodology • The project formulated concrete recommendations to improve transit operations in the region.

Regional Studies ECO/IRU Project for Regular Monitoring of Trucks • The findings depicted the exact situation on various aspects of transit operations: visa, permit, fuel, speed, costs, unofficial payments, customs procedures, application of the TIR Convention, etc. . For example: • Waiting time in queues takes 30% of the total travel time. • Average speed is only 15 km/h. • Unjustified levies are about 22% of the total costs. • Cost of main procedure (customs clearance, border control, police inspections, and weight and dimensional control) is 32% of official costs

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