Road Transport and Border Crossing Facilitation in the Arab World Riyadh, Kingdom of Saudi Arabia,...

Road Transport and Border Crossing Facilitation in the Arab World

Riyadh, Kingdom of Saudi Arabia,13 November 2013

Jean AcriSpecial TIR Advisor

« Towards Trade and Road Transport Facilitation Strategy for the LAS

Region »

Study prepared by Wissam Hossari, TIR Consultant

IDB-AULT-IRU JOINT PROJECT FOR FACILITATION OF TRADE

AND ROAD TRANSPORT IN THE ARAB REGION

1. Promotion and facilitation of international road transport and trade in the LAS Member States

2. Developing professional training at international standards

3. Improving road safety

Main Objectives:

© International Road Transport Union (IRU) 2013

How can we change this view and let road transport drive trade,

progress and prosperity?


Solutions: Use UN multilateral instruments

UN multilateral instruments:• Open to all UN Members• Global (no geographical

restriction)


Scope of work of the TIR Consultant

o Inventory of UN Trade and Transport Facilitation Conventions in LAS Region

o Data collection on Customs Transit Procedures in the region

o Identification of key benefits of TIR for LAS Member States

o Preparation of Action Plan for promoting TIR in LAS Region


I – Identification of key UN Trade and Transport

Facilitation Conventions


Diagnosis of the current implementation of the UN Conventions by Arab

contracting countries

Despite the global coverage of the UN trade and road transport facilitation instruments, and their successful contribution to developing trade in other regions of the world (Europe, Central Asia, Caucasus), Most Arab countries seem to have a low interest, and remain inactive with respect to ratifying and implementing these global UN Conventions.


Diagnosis of the current implementation of the Key UN Conventions by Arab

contracting countries

Status of UN Conventions in the LAS region (as of January 2013)

3 2

1

1

53

3

0

0

8

0

0

0

2

0

1

310

3

0


II: Identification of the Bilateral and Multilateral Transport

Agreements in the LAS Region

The Agreement Organising “Transit Transport” between member states of the Arab League, 1977;

Protocol unifying rules and measures for the crossing of vehicles of participant countries between their territories and through them in transit (Lebanon, Syria, Jordan, KSA, and Yemen), 2001;

United Nations ESCWA Agreement on the International Roads in the Arab Mashreq, 2001;

Road Transport Agreement of the Arab Maghreb Union (AMU).


Identification of the Bilateral and Multilateral Transport

Agreements in the LAS Region

Lots of efforts deployed to regulate and harmonise road transport in the LAS Region ………. But ……..

Sometimes leading to confusion and conflict, focus mainly on certain aspects of transport (e.g. transit) and largely neglect other fundamental aspects such as the training for drivers, vehicle conditions, road security, etc…

Limited geographical scope to only a few of the LAS countries, and its non-harmonised implementation has undermined its contribution to facilitate inter-Arab trade and transport.


III: Applicable Customs Transit Procedures in the LAS Region

Description of Customs transit procedures; Costs (transit fees, formalities, etc…); Guarantees; Time needed for completion; Main land transport border posts; Documentation needed; Statistics on the number of international transports by road.



- Takes time and requires the involvement of local intermediaries

- Creates additional costs for bilateral or inter-Arab trade and transport.

Oblige transport operators to handle these national procedures at the Customs office of entry of each country

• Disparity of the national procedures

• Lack of mutual recognition

Penalty to regional trade and integration



The national regulations and procedures are well documented and have proven their efficiency at national level.

The disparity of rules, documentation, data to be submitted to Customs, cost of the transit Customs guarantees, the compulsory intervention of intermediaries, and time necessary to accomplish national transit procedures have not contributed to facilitate and develop inter-Arab trade and transport.

These regulations and procedures are carried out and repeated at each and every border transited. This generates important waiting times which increase the cost of the transported goods.


IV: TIR Member States in the Arab Region

MOROCCOMOROCCOTUNISIATUNISIA

LEBANONLEBANONJORDANJORDAN

SYRIASYRIA

KUWAITKUWAIT


Implementation of TIR System in LAS Region

The benefits of the TIR System are dramatically underused. The TIR System is widely used by foreign transport operators to deliver goods in the TIR Arab countries. Efforts should be undertaken by both public and private players in the transport industry to promote the use of the TIR procedures by Arab transport operators, in order to allow them to compete on equal terms with foreign road transport operators.

LEBANON

JORDAN

KUWAIT

TUNISIA

MOROCCO


Implementation of TIR System in LAS Region

The issuance of TIR Carnets had been constantly increasing (2000-2011), thanks to an active promotion of the TIR System by Public Authorities and the local Association.

SYRIA


V: Comparison between the TIR System and the Arab

Transit System

TIR System Arab Transit System

Geographical Scope

68 signatory countries.TIR is operational in 57 countries

13 Arab countries.

Guarantee systems

One unique guarantee system for all Carnets.

Multiple suppliers of guarantees in each country of transit.

Monetary limits of guarantee

Flat-rate guarantee of USD 50.000 or Euro 60.000 per TIR Carnet. The limit is always independent of the value of goods in transit.

Different flat rate guarantee perCountry.

Selection of guarantors

Guarantor is the TIR National Association of the Country,backed by the internationalguarantee chain organised by theIRU.

Approved transit commercial companies in each country are entitled to provide guarantees.



Transit System


Goods Covered by the guarantee

All goods (except alcohol and tobacco that cannot be transported under the TIR procedures).

All goods under transit system(Alcohol is prohibited to transport in many Arab countries).

Selection of transport operators

All users of the TIR regimemust be authorised by thelocal competent authoritiesand approved by the TIR National Association

Any transport company without quality selection according to agreed standards.



Transit System


Security and Risk Management

- SafeTIR is a computerised control system to monitor each TIR transport operation;- The TIR Electronic Pre-Declaration application (TIR-EPD);- Load compartments (vehicles or containers) must be approved for transport under Customs seals, approval certificates provide the benefits of mutual recognition by all TIR Contracting Parties.

- Each Contracting Party organises its own security and risk management mechanism;- Exchange of data is organised between the Contracting Parties, however no international agreed standards are applied;- Some requirements are imposed to ensure security of trucks.


DescriptionsCost (USD) under TIR

Carnet

Cost (USD) under Arab Transit Manifest

LEBANON

Formalities and expenses (Including TIR Carnet)

$220 $300

Customs Guarantee 0 33,000 $/yearly for all operations

Time needed 2 Days 3 DaysExit fees at border 0 $20

Example I: Transport operation from LEBANON to JORDAN (via Syria) (under TIR System and under Arab

Transit Manifest)


DescriptionsCost (USD)

under TIR CarnetCost (USD) under

Arab Transit Manifest

SYRIA

Formalities fees $30 $80

Customs Guarantee

0

50,000 USD/yearly for all operations plus 6 trailers model

2009 should be owned by the transit company and USD 10,000

per each additional branch related to the same transit

company.Time needed 1 Hour 3-4 Hours


Transit Manifest)



Carnet

Cost (USD) under Arab Transit Manifest

JORDAN (Jaber Customs Office)

Formalities fees 0 $22

Customs Guarantee 0Min 60,000 USD /limited and

provided by the transit company.


Transit Manifest)

Costs (guarantees and formalities) 250 USD

422 USD+ deposit of guarantees

Time 2,5 Days 4 Days

Results:


Example II: Transport operation from LEBANON to TURKEY (via Syria)

(under TIR System and under Arab Transit Manifest)

DescriptionsCost (USD) under

TIR CarnetCost (USD) under Arab

Transit Manifest

LEBANON

Formalities and expenses (Including TIR Carnet) $220 $300

Customs Guarantee0

34,000 $/yearly for all operations

Time needed 2 Days 3 DaysExit fees at border 0 $20



CarnetCost (USD) under Arab Transit

Manifest

SYRIA

Formalities fees $30 $80

Customs Guarantee

0

50,000 USD/yearly for all operations plus 6 trailers model 2009 should be owned by the transit company and USD 10,000 per each additional branch related to the same transit company.

Time needed 1 Hour 3-4 Hours





CarnetCost (USD) under Arab

Transit Manifest

TURKEY

Formalities fees 0 $450

Customs Guarantee 0350 USD / TRUCK escorting instead of guarantee.

Time needed 1 Hour 1-2 Days



Results: Costs (guarantees and formalities) 250 USD

1,200 USD+ deposit of guarantees

Time 2,25 Days 5,5 Days


Conclusion

When comparing an international transport undertaken under the TIR procedure or under the Agreement organising Transit Transport, the costs and the time needed for the same transport are almost divided by two when TIR is used, compared to the costs and time incurred under the Transit Transport Agreement .


Advantages of the TIR System

Reduces the normal requirements of national transit procedures and guarantees;

Goods travel across national frontiers with a minimum of interference and delays;

Enables significant economies to be made in transport costs.


Secure Transport &

Trade Facilitation=


How to access the TIR Convention

- Easy

- Simple- Open to all States Members of UN


VI: Proposed Action Plan for the activation of the TIR System in

the LAS Region

The Study recommends the implementation of TIR Activation Action Plan summarising the main steps to be undertaken at country level to facilitate the adhesion procedure to the TIR Convention and its implementation.

Public-Private Partnership13 basic steps

Collaborative actions State Customs / Transport Minister National Association IRU


VII: Conclusion & Recommendation

Global UN Trade and Road Transport Facilitation Agreements and Conventions should be considered by LAS countries as a primary means to:

1. Eliminate the nonphysical barriers and the high transportation costs across the Arab countries.

2. Connect the Arab markets to the global world economy.

3. Benefit from the facilitations and security offered by the TIR System.


Towards a Trade & Road Transport Facilitation Strategy for the LAS

Special thanks to the TIR Consultant,

Wissam Hossari


www.iru.org


Road Transport and Border Crossing Facilitation in the Arab World Riyadh, Kingdom of Saudi Arabia,...

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