India ratifies United Nations Transports Internationaux Routiers(TIR) Convention

In a bid to ensure a secured supply chain and boost trade, Indian Government has ratified the United Nations TIR (Transports Internationaux Routiers) Convention on June 19, 2017. This convention is also called Customs Convention on International Transport of Goods under cover of TIR Carnets.

Background Information:

In March 2017, Union Cabinet had given its approval for India’s accession to the Customs Convention on International Transport of Goods under cover of TIR Carnets (TIR Convention).

• The accession to theTIR Convention is part of India’s multi-modal transport strategy that aims to integrate the economy with global and regional production networks through better connectivity.

What is TIR Convention?

The Customs Convention on International Transport of Goods under cover of TIR Carnets, 1975 (TIR Convention), is an international transit system under the auspices of the United Nations Economic Commission for Europe (UNECE) to facilitate the seamless movement of goods within and among the parties to the convention.

• The convention has been developed and is managed by International Road Transport Union (IRU).
• At present, there are 70 parties to the convention, including the European Union.

Expected Benefits to India on account of accession to the TIR Convention:

TIR will enable India to implement the World Trade Organization’s Trade Facilitation Agreement, which it entered into this year.

• Compliance with the Convention shall ensure enhanced security in the supply chain as only approved transporters and vehicles are allowed to operate in terms of the Convention.
• The Convention will help Indian traders have access to fast, easy, reliable and hassle-free international system for movement of goods by road or multi-modal means across the territories of other contracting parties.
• The Convention will also facilitate India’s current national and multilateral connectivity-related initiatives to improve cross-border road transport, facilitating overland trade integration with both eastern and western neighbours.
• On the eastern front, it will help India integrate with Myanmar and Thailand, as well as Bangladesh, Bhutan and Nepal.
• On the western front, it will enable India to move cargo along the International North-South Transport Corridor via Chabahar port in Iran, to access landlocked Afghanistan and the energy-rich Eurasian region.
• The TIR system secures customs duties and taxes and provides a robust guarantee mechanism, thereby reducing trade transaction costs, and facilitating higher growth of intra-regional and inter-regional trade.

As confirmed by United Nations, the TIR Convention will come into force in India in six months. In order to facilitate prompt implementation, IRU will collaborate with Indian partners on training, development and outreach efforts.