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  • Apr 7th, 2017
  • Comments Off on Global transit system: Customs set to implement UN TIR Convention
Pakistan Customs is finalising arrangements to implement the United Nation TIR Convention enabling the country to become part of an international customs transit system, it is learnt. Under the new system, Pakistani export containers/vehicles will move through over 60 countries via transit routes without extensive border checks at international borders. The convention will boost Pakistan''s exports and trucking industry.

Sources told Business Recorder here on Thursday that Pakistan Customs has upgraded its computerised system ''WeBOC'' for clearance of transit cargo under TIR Convention which would allow transit of goods into Pakistan under TIR carnet through Karachi Port, Gwadar, Taftan, Chaman, Sust and Torkham (TIR customs stations for handling transit trade under the TIR Convention).

Pakistan is going to become part of an international customs transit system under a multilateral treaty ie TIR Convention, enabling Pakistani containers/vehicles to move through over 60 countries via transit routes without extensive border checks at international borders. Sources said Pakistan Customs has upgraded its computerised system WeBOC for clearance of transit cargo under TIR Convention 1975. The new system has been developed in consultation with International Road Transport Union (IRU). Pakistan had acceded to TIR Convention in July 2015 and since them various activities for its practical roll out have been under way in Federal Board of Revenue (FBR) and other related departments.

The IRU was formed by UNECE in 1948 and is now globally responsible for managing the transit trade under TIR Convention 1975. The IRU has lauded the efforts of WeBOC team of Pakistan Customs for making computerised system according to the international standards, linking WeBOC system with TIR - EPD system and RTS - TIR system of IRU. The system will enable TIR holder to file advance declaration through electronic pre-declaration facility.

It is learnt that FBR is in the process of issuance of TIR rules after which goods under TIR carnet shall be allowed transit in Pakistan. The FBR has already notified Karachi Port, Gwadar, Taftan, Chaman, Sust and Torkham as TIR customs stations for handling transit trade under the TIR Convention.

Experts said that the convention will provide a legal framework for traffic in transit of goods across borders among the contracting parties without involving payment of customs duties and taxes. Joining the TIR would facilitate trade with Economic Co-operation Organisation (ECO) countries and China through land routes. The customs'' control measures taken in the country of departure would be accepted by all countries of transit and destination. The implementation of the TIR system is also expected to further enhance and ensure viability of capital intensive projects at the ports of Karachi and Gwadar.

Before this convention, Pakistan had difficulties in conducting trade through land routes with the Central Asian States, Turkey and Europe as there was no mechanism that could provide protection from customs duties and taxes in transit countries.

The Convention on International Transport of Goods Under Cover of TIR Carnets (TIR Convention) is a multilateral treaty to simplify and harmonise the administrative formalities of international road transport. TIR stands for transports internationaux routiers or international road transports.

The TIR 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 and while, at the same time, providing customs authorities with the required security and guarantees.

The TIR system not only covers customs transit by road but a combination is possible with other modes of transport (eg rail, inland waterway, and even maritime transport), as long as at least one part of the total transport is made by road. In light of the expected increase in world trade, further enlargement of its geographical scope and the forthcoming introduction of an electronic TIR system (so-called "eTIR-system"), it is expected that the TIR system will continue to remain the only truly global customs transit system.



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