Organisation and Functioning

of the TIR Guarantee Chain

WP.30 Geneva, 12 October 2004

Page 1 © International Road Transport Union (IRU) 2004

 TIR Actors

IRU

Association

Holder

Page 2 © International Road Transport Union (IRU) 2004

 Holder

Customs

Page 3 © International Road Transport Union (IRU) 2004

 TIR System at Work
IRU
Issuing
Association
International
National
Financial
Institution Financial
Institution
Holder

Guaranteeing
Association

Customs

Page 4 © International Road Transport Union (IRU) 2004

 IRU Role & Responsibilites

IRU
IRU is authorised by the
Administrative Committee to
Issuing
take on responsibility for the
Assoc.
Natl.
effective organisation and
Intl.
Financial Financial functioning of an international
Institution Inst. guarantee system
Holder (article 6.2 bis
bis))
Guaranteeing ““A
A Credible, Reliable & Solid
Assoc.
financial back -up”
back-up”

Re-inforced with…
Global International
Financial Institution National Financial Institution
Page 5 © International Road Transport Union (IRU) 2004
 Association & Holder
DECLARATION OF
ENGAGEMENT SIGNED Issuing
Association
• Association submits Holder’s
application to National Customs
• Holder lodges an Admission
Guarantee of minimum $5’000
Holder
• A quota of TIR Carnets is
allocated to each Holder

The Declaration of Engagement includes a written

undertaking by the Holder to comply with Customs rules.

Page 6 © International Road Transport Union (IRU) 2004

 Holder & Customs

The Holder, as the Customs

Declarant …

• presents TIR Carnet, goods and

vehicle to Customs Holder
• alerts Customs in case of incidents
• assists with enquiries and
identification of “Person(s) Directly
Liable”. Customs

Page 7 © International Road Transport Union (IRU) 2004

 Guaranteeing Association
& Customs
DEED of
Article 1.q :TIR Convention: GUARANTEE (Surety)

• A Guaranteeing Association is
approved by the Customs Guaranteeing
authorities of a Contracting Association
Party to act as surety for
persons using the TIR
procedure.
Customs

Page 8 © International Road Transport Union (IRU) 2004

 IRU & Financial Institutions
Current Global Contract (Zurich)
• Territorial limit
• Maximum coverage of carnets as defined in the
Deed of Guarantee at national level in each country.
Annual aggregate indemnity limit = CHF 300 ’000’000
300’000’000
• No arbitration clause
• Claims handling
• National layer - covers responsibility of Holder to
the guarantee chain (clause 31)

• Risk Management & SafeTIR

• Annual Certificate of cover.
Page 9 © International Road Transport Union (IRU) 2004
 Chain of Guarantee
International Financial Institution
GLOBAL CONTRACT

backing-up the surety provided by the Guarantee chain to Customs

DEED OF ENGAGEMENT
ASSOCIATION IRU
backing-up the surety provided
by the association to Customs
Natl. Fin. Inst.
/ Holder
DEED OF GUARANTEE (SURETY)
ASSOCIATION CUSTOMS
- subject to national legislation
- sets the maximum amount of surety
- national and foreign holders
Page 10 © International Road Transport Union (IRU) 2004
 Case handling process

PAYMENT NO CASE
Person(s)
CUSTOMS Directly NO REPLY CASE
Liable HANDLING
PROCESS
OBJECTION

Page 11 © International Road Transport Union (IRU) 2004

 Involvement of Surety
Customs debt defined

Surety provider Customs debtor identified

Person directly liable
• Same rights as Customs debtor • Goods in possession
• Own rights based on guarantee • Introduced the goods
documents (national legislation) • Customs declarant
Usually the Holder

Page 12 © International Road Transport Union (IRU) 2004

 Case handling process
NATIONAL
GUARANTEEING CUSTOMS CASE
ASSOCIATION CLOSED
PAYMENT

International
Financial IRU
Institution
National
Financial
Institution
ISSUING
ASSOCIATION

HOLDER

Page 13 © International Road Transport Union (IRU) 2004

 Payment
CUSTOMS

NATIONAL
GUARANTEEING ASSOCIATION

IRU

International
Financial Institution

National
Financial Institution

HOLDER

Page 14 © International Road Transport Union (IRU) 2004

 Case handling process
NATIONAL ADMIN.
GUARANTEEING CUSTOMS CLOSURE
ASSOCIATION
OBJECTION

International
Financial IRU
Institution CONFIRMS
PAYMENT
National
Financial REQUEST
Institution NATIONAL
ISSUING COURT CUSTOMS
ASSOCIATION CLAIM
CANCELLED

HOLDER

Page 15 © International Road Transport Union (IRU) 2004

 Payment
CUSTOMS

NATIONAL
GUARANTEEING ASSOCIATION

IRU

International
Financial Institution

National
Financial Institution

HOLDER

Page 16 © International Road Transport Union (IRU) 2004

 Claims Statistics

Dec.1994 - Sept. 2004

Closed without payment 1'527

Cases paid 4'167

Claims under dispute 4‘536

Total Cases handled 10'230

In this period 26 ’000’000 TIR Carnets were issued

26’000’000

Page 17 © International Road Transport Union (IRU) 2004

 IRU

IRU

IRU performs its responsibilities with:

• Equity
• Neutrality
• Independence

Page 18 © International Road Transport Union (IRU) 2004

 Chain of Guarantee

Financial
Holder Association IRU
Institutions

Page 19 © International Road Transport Union (IRU) 2004

 Life Cycle of the TIR Carnet

Printer
IRU
IRU

Association
Association

Holder
Holder

Customs
Page 20 © International Road Transport Union (IRU) 2004
 IRU

• Authorisation:
IRU to print & distribute TIR Carnets,
plus 6.2 bis
Association
Association • Admission of TIR Associations
- Selects Associations
- Legal requirements
- TIR Training
- Technical requirements
- SafeTIR
DEED of
ENGAGEMENT • TIR Audit

Page 21 © International Road Transport Union (IRU) 2004

 Association

• Selectsreliable Holders and handles

the admission procedures Issuing
• Issues TIR Carnets according to rules Association
(quotas etc.)
• Reacts by revoking Holder status if
Association or Customs rules are
infringed
• Handles claims for national Customs
• Performs physical check of TIR
Carnets and cross-check against
SafeTIR data.
Page 22 © International Road Transport Union (IRU) 2004
 Association & Holder

A Holder must have at ALL times:

• Provencapability to engage in international
Issuing
transport
Association
• Be of sound financial standing
• Proven knowledge in the application of the
TIR Convention
• Written undertaking to comply with Customs
rules, to pay taxes that are due, & to assist Holder
with enquiries
• Absence of serious or repeated offences
against Customs or tax legislation
• Acceptance by Customs.
Page 23 © International Road Transport Union (IRU) 2004
 Association & Holder

At all times, the Holder must be aware that..

Using the TIR System is a privilege

- NOT a right

Page 24 © International Road Transport Union (IRU) 2004

 Association

To become an authorised TIR Association:

• Proven existence of representing
the transport sector Association

• Proof of financial standing

• Absence of serious or repeated
offences against Customs or tax
legislation
• Proven staff knowledge in the proper
application of the TIR Convention.

Page 25 © International Road Transport Union (IRU) 2004

 Customs

• Apply TIR procedures as

defined in the TIR Convention
• Organise rapid discharge
procedures (sending
termination certificates)
• Send SafeTIR information
on termination of all TIR Customs
operations (with unloading or
partial unloading).

Page 26 © International Road Transport Union (IRU) 2004

 Risk Management
Initial issue data:
Archiving which Association; TIR Carnet;
information type; language; status

Final check information: ARCHIVE IRU-ISSUE Information on issue:

status of TIR Carnet ISSUING TIR Carnet; when;
IRU-
ASSOCIATION
CONTROL to whom; HVG

HOLDER
ISSUING dbase
ASSOCIATION

Information on return:
TIR Carnet; by whom;
DRIVER
when; status
HOLDER

CUSTOMS

Termination information:
TIR Carnet; voucher page; when; where; reservations
Page 27 © International Road Transport Union (IRU) 2004
Page 28 © International Road Transport Union (IRU) 2004