INTRODUCTION OF 5 PILLARS OF TIR SYSTEM

Background
Under the auspices of the United Nations Economic Commission for
Europe (UNECE), the TIR transit system was developed soon after the Second World
War in order to help revitalise the economies of post war Europe. The TIR Agreement
was concluded in 1949 and its success led to the establishment in 1959 of the first TIR
Convention.
From 6 countries to 68 countries (Operational: 56)
During the last 15 years: 24 new Contracting Parties
Objective: Customs Authorities
• Efficient Customs procedures for transit traffic
• Provision of an international guarantee
• Revenue protection
Transport Sector
• Facilitation of transit procedures
• Simplification and harmonization of Customs
formalities
• Minimum procedures at borders
• Reduced transport costs
The 1959 Convention was replaced by the current Customs Convention on the
International Transport of Goods Under Cover of TIR Carnets in 1975 (TIR
Convention 1975). The TIR Convention 1975 was approved by Council Regulation
(EEC) No 2112/78 of 25 July 1978 and entered into force in the European Community
on 20 June 1983. The annex to this Council Regulation has been replaced by the
Council Decision 2009/477/EC of 28 May 2009 (OJ L 165 of 26 June 2009). This
annex contains the consolidated TIR Convention as amended until the end of 2008.
Each EU Member State, including the Union itself, is a Contracting Party to the TIR
Convention 1975.
The TIR Convention is maintained by the UNECE who, in co-operation with the TIR
secretariat, also maintain a publication known as the TIR Handbook. The Handbook
not only contains the text of the Convention but also a wealth of other useful
information concerning the practical application of the Convention.
The TIR transit system is founded on the following five main principles (the so-called
pillars):

 the use of Secure Vehicles or Containers,

  the international Guarantee Chain,
 the TIR carnet,
 the mutual recognition of customs controls, and
 controlled access to use the system.

1. Secure Vehicles or Containers

 Goods are carried in containers or load compartments that are constructed for
cargo containers:
+ There is no access to the interior after being externally sealed with the Customs
seal located in a conspicuous place
+ If tampered with, this will be clearly visible
 The TIR Convention sets out technical standards of construction and approval
procedures.

The Convention sets out the structural standards of containers and procedures for
the verification of goods when stored and transported under the TIR Agreement if
such containers or containers meet the criteria. (Công ước quy định các tiêu chuẩn
kết cấu các thùng chứa và quy trình thẩm định để hàng hóa khi được chứa và
chuyên chở theo Hiệp định TIR nếu các thùng chứa này hay container thỏa mãn
các tiêu chuẩn)
 If the container or load compartment meets the requirements, national
inspection/approval authorities (usually Customs) issue 'approval certificates'. An
approval certificate is valid for two years and can be renewed.
+ The authorities of the countries or the inspection agency will issue the certificate
+ This certificate is valid in all signatory countries
 Goods may only be carried under a TIR Carnet if the sealed container or load
compartment has a valid approval certificate, unless "heavy and bulky goods" are
being transported.

If there is any doubt about the conformity to the technical standards specified
under the Convention, the competent authority may request an investigation
through the relevant governmental authority of the host country.
 No goods can be removed from or introduced into the sealed part
Customs seal: simply and effectively
No concealed spaces
All spaces accessible for customs

Approval of road vehicles and containers

2. International guarantee
 The pillar of international guarantee was designed to ensure that customs duties
and taxes at risk during transit operations are covered, at any moment, by a
national guaranteeing association, in the event that such payment cannot be
obtained from the directly liable person(s).
 This national guaranteeing association guarantees the payment of duties and taxes
of national and foreign carriers under TIR Carnets which have been issued by this
national guaranteeing association itself or by an association insome other country
 To date the only existing and well-functioning TIR guarantee chain is administered
by the International Road Transport Union (IRU) in Geneva (Switzerland)
Ex: When there is a problem in country C with a TIR Carnet issued in country A the
customs of country C can claim the duties against the national association in country
C. (IRU organise the settlements between the insurance company and the national
associations of countries A and C)

3. TIR Carnet
• What is TIR Carnet?
A document issued pursuant to the TIR (Transport International Routier) permitting
sealed road transport shipments to traverse European TIR-members countries without
undergoing customs inspection until reaching the destination country. Each TIR
Carnet has a unique reference number. A TIR Carnet may have 4, 6, 14, or 20
vouchers, as one pair of vouchers is used per country; the number of vouchers
indicates the number of countries that can be transited, including the countries of
departure and destination, under cover of this type of Carnet (e.g. a 20-voucher Carnet
may be used for a TIR transport through up to 10 countries). Each individual TIR
Carnet can be used for only one TIR transport. Once the TIR transport has been
terminated at the Customs office of destination of the goods, the driver is handed back
the TIR Carnet duly endorsed by the Customs authorities of destination.

• Goods moved under TIR carnet

The TIR carnet is used for almost all types of cargo. Tobacco products and alcohol are
excluded from such transport, although wine, beer, and raw tobacco for further
processing are allowed. In that case, the TIR carnets must be clearly marked
“TABAC/ALCOOL” or “TOBACCO/ALCOHOL” on the cover and all vouchers.

For the transport of bulky or heavy goods, a special indication on the voucher:
“HEAVY OR BULKY GOODS” or “marchandises pondéreuses ou volumineuses” in
bold is used. Such goods are carried by means of a non-closed vehicle or container.

The transported goods are sealed (containers or vehicles) by the Customs office of
departure. If it is necessary to transship the goods, a customs authority drawing up the
report must be present during the transshipment.

• Which countries use the TIR carnet?

There are 75 parties to the TIR Convention. The TIR carnet can be used in every
European country, as well as in some African and Asian countries and the Middle
East. The United States of America, Canada, Chile, and Uruguay are also parties,
although TIR carnets are not used in these countries.

The goods must be moved between customs territory for the TIR procedure to apply.
Therefore, the TIR carnet is not applicable in the event of transport between EU
countries. However, if the goods are moved through a third country’s territory
applying the TIR procedure, the carnet is valid. Thus, it applies when you import, or
dispatch goods from outside the EU to an EU country or the load passes through a
country that is not an EU Member State.

Countries with which a TIR transit operation can be established:

Afghanistan, Albania, Armenia, Austria, Azerbaijan, Belarus,Belgium ,Bosnia and

Herzegovina, Bulgaria, China, Croatia, Cyprus, Czech Republic, Denmark, Estonia,
Finland, France, Georgia, Germany, Greece, Hungary, India,Iran (the Islamic
Republic of), Ireland, Israel, Italy, Jordan, Kazakhstan, Kuwait, Kyrgyzstan, Latvia,
Lebanon, Lithuania, Luxembourg, Malt, Moldova, Mongolia, Montenegro, Morocco,
Netherlands, Norwa, Oman, North Macedonia, Pakistan, Poland, Portugal, Romania,
Russian, Federation, Saudi Arabia, Serbia,Slovakia, Slovenia, Spain, Sweden,
Switzerland, Syrian Arab, Republic, Tajikistan, Tunisia, Turkey, Turkmenistan,
Ukraine, United Arab Emirates, United Kingdom , Uzbekistan.

• How to obtain the TIR carnet?

TIR carnets are owned by International Road Transport Union – IRU and printed in
Geneva. Each of the TIR carnets is printed on a special paper and has a number of
safeguards; therefore, it is relatively easy to spot false documents. Each of TIR carnets
printouts has a TIR identification number, barcode, and a watermark.

Authorized national road transport associations issue TIR carnets. The documents are
valid internationally.

You must apply to the association to receive access to the TIR procedure. The
association may demand that you provide certain information regarding your
company, namely registration, ownership, direction, and shareholding.

An authorized TIR carnet holder’s status requires that the minimum conditions and
requirements imposed by the TIR Convention, the national legislation, and the
Associations’ rules are permanently met.

TIR Convention, Article 6 and Annex 9, Part II on Minimum Conditions and

Requirements for Holders states that holders of TIR carnet must:

_ Prove experience or, at least, the capability to engage in regular international

transport in regular international transport
_ Sound financial standing
_ Prove knowledge in the application of the TIR Convention
_ Prove an absence of serious or repeated offenses against Customs or tax legislation.

Moreover, the holder is required to lodge guarantees, such as:

_ “admission” guarantee (in the form of a cash deposit, bank guarantee, or a Letter of
Guarantee)
_ Special guarantees to cover claims lodged against the guarantee chain
_ Guarantees related to unreturned TIR
_ Additional guarantees in other situations.
When you already have the TIR carnet, you are responsible for payment of all duties,
taxes, fines, and penalties relating to a TIR transport.

• What does the TIR carnet consist of?

The TIR carnet is printed in French (the cover also in English). It consists of a cover, a
yellow goods’ manifest, and vouchers in pairs: one white and one green. Some of the
parts are intended to be torn out.

The TIR Carnet Holder established in the EU is obliged to register it in the

Community electronic system NCTS.

The boxes are completed as it follows:

_ When issuing the carnet, the association completes boxes 1-5 on the cover
_ The carrier completes boxes 6-12 on the cover and boxes 2-15 on all volets and the
manifest before commencing the journey
_ The authorities at the customs office of departure complete boxes 16-23 and 1-6 on
counterfoil No. 1
_ The authorities at the customs office of destination complete boxes 24-28 and 1-6 on
counterfoil No.2.
There are several types of TIR carnet:
_ 4-volet (journey between two customs territories)
_ 4-volet-PILOT, applicable from any EU country to a third country having a direct
border with the EU, for example, Poland–Belarus and vice versa
_ 6-volet (up to three customs territories)
_ 6-volet-PILOT for transport from or to a country of the European Union or from a
third country to a third country, with transit through any EU country (Switzerland–
Belarus; Turkey–Ukraine, etc. through the EU customs territory)
_ 14-volet (up to seven customs territories)
_ 20 volets.
Volet is a pair of documents fastened with a cover. There is one pair per customs
border. All volets must be completed.

The prices and the list of associations issuing TIR carnets in individual countries
around the world are available in the UNECE document. The websites of associations
in EU countries are available on the official site of the European Commission.
Model of the TIR carnet – page one of cover
 • Rules for using the carnet
_ Customs clearance is carried out at the Customs offices of departure and destination
in the case of undertaking TIR transport to/from/through the European Union territory,
obtain an EORI number and mention it in box 4 of voucher 1 and 2 used for the TIR
operation on the territory of the European Union
_ Valid for one-time-only, by an appropriately sealed vehicle or container
.the TIR carnet is valid only for a specified period; alternation is forbidden
_ Do not present the TIR carnet with an overdue validity date to a Customs Office of
departure
_ Complete all volets, regardless of whether they will be used or not
_ It is forbidden to transmit the TIR carnet to a third party
_ You must return all used and unused TIR Carnets as quickly as possible
_ For at least five years, keep a record of all TIR Carnets issued to you and the details
of all journeys on which a TIR Carnets is used
_ Alternations to the completed boxes are forbidden unless approved by competent
authorities
In the event of destruction or damage to the goods en route, the carrier reports the fact
to the nearest customs authorities to make an official report of the incident
_ A vehicle with the affixed TIR plate must meet the technical requirements
confirmed by a customs certificate (valid for two years)
_ During transport, possible duties and taxes should be secured with international
guarantees.

• Legislations
The most important legal texts concerning the TIR carnet are:

_ The Customs Convention on the International Transport of Goods under Cover of

TIR Carnets (TIR Convention, 1975)
_ 2009/477/EC: Council Decision publishing in consolidated form the text of the
Customs Convention on the international transport of goods under cover of TIR
carnets (TIR Convention)
_ Commission Implementing Regulation (EU) 2015/2447 laying down detailed rules
for implementing certain provisions of Regulation (EU) No 952/2013 of the European
Parliament and of the Council laying down the Union Customs Code

4. Mutual recognition of Customs controls

_ The fourth pillar of the TIR transit system is that customs control measures taken in
the country of departure should not be repeated by the countries of transit and
destination.
_ More specifically, goods carried under the TIR procedure in sealed load
compartments of road vehicles or in containers will not, as a general rule, be examined
at customs offices en route, and that is where the main advantages of the TIR system
for the transport operator come into play. This does not exclude the right of customs
authorities to carry out spot checks in cases where they suspect irregularities, but it is
understood and even stipulated in the Convention, that such checks should be
exceptional.
_ It is pivotal that the controls carried out at the customs office of departure should be
stringent and complete. The customs office of departure must also, before affixing
seals, check the condition of the load compartment of the road vehicle or the container
and, in the case of sheeted load compartments or containers, the condition of the
sheets and sheet fastenings.
_ Principle: Customs control measures taken in the country of departure should be
accepted by the countries of transit and destination
_ No examination of sealed load compartments, except in special case
_ Customs inspection at the office of departure crucial
_ Only documentary control enroute

5. Controlled access
_ By Administrative Committee of International organization (Article 6.2bis)
_ By national Customs authority of national Associations, issuing and guaranteeing
TIR
Carnets (Annex 9, part I)
_ By national Customs authority of transport operators (Annex 9, part II) (40,000
operators registered with the TIRExB)
Data on all authorized operators should be sent by Customs to the International TIR
Data Bank (ITDB) maintained by the United Nations in Geneva

 Customs authorities give access to the TIR procedure

_ To the international organization to distribute TIR Carnets and manage the

guarantee chain
_ To national associations to issue TIR Carnets and act as guarantor for transport
operators to utilize TIR
_ Data concerning all persons authorized to use the TIR procedure is contained in the
International TIR Data Bank (ITDB).

Summary

Advantages: Customs Authorities

• No physical inspection of goods in transit
• No national guarantee system
 • No national Customs document
Transport/Trade Industry
• Minimum of procedures at borders
• Reduced delays at borders
• No restriction in the modes of transport
• Lower transport costs (reduced export and import costs)

References

1. https://www.shiphub.co/tir-carnet/

2. https://www.globalnegotiator.com/international-trade/dictionary/tir-carnet/

3. Slide Pillars of the TIR system

4. https://www.atacarnet.in/tir/how-tir-work.html

5. https://unece.org/sites/default/files/2020-
12/ECE_TRANS_TIR_6_Rev.11_EN.pdf
6. https://unctad.org/system/files/non-official document/cimem7p26_Andre
%20Sceia_en.pdf
7. https://ec.europa.eu/taxation_customs/business/customs-procedures/what-is-

customs-transit/tir-transports-internationaux-routiers-international-road-
transport_en