13-Mar-2019: First shipment under TIR Convention reaches India from Afghanistan via Iran's Chabahar Port
The first shipment from Afghanistan under the TIR Convention through Iran’s Chabahar Port arrived at India’s Nhava Sheva port in Mumbai and Mundra port in Gujarat on Monday.
The TIR (Transports Internationaux Routiers) is a United Nations Convention that allows goods to be sealed in compartments and requires no need for physical checking of the contents, enabling shipments to pass through countries without being opened at borders.
Welcoming the arrival of the maiden shipment, Pranab Kumar Das, chairman of the Central Board of Indirect Taxes & Customs (CBIC), Ministry of Finance, said, “The TIR convention will help in fast and easy movement of goods across multiple countries under a common customs document and guarantee.”
Reciprocal recognition of customs controls is at the heart of the Convention. This enables a facilitative and non-intrusive environment for multi-modal transport of goods through several countries.
The convention will help in boosting India’s exports and enable greater participation in the global value chains. We will leverage technology to make the movement more secure and facilitative. We urge our exporters to use this facilitative system to make our exports more competitive.
TIR will play a pivotal role in improving ease of doing business and pave the way for a smoother and safer transport of goods across international borders and will help boost trade between India, Central Asia, Europe, and Russia. It will act as a strong catalyst for moving goods using the multi-modal transportation route like Chabahar and International North-South Transport (INSTC) Corridor. The system is a win-win-win model for Customs, FICCI, and the business community.
India joined the TIR Convention (the United Nations Customs Convention on International Transport of Goods under cover of TIR Carnets) on June 15, 2017. Secretary-General of International Road Transport Union (IRU), Umberto Pretto said, “The opening of Chabahar Port for TIR is hugely significant – offering connectivity for landlocked countries, seamless border crossing facilitation and intermodal capabilities."
"It also highlights how TIR has been chosen by these three countries as a key tool to help activate the Chabahar transport agreement. The operation will definitely open the door for activation of other intermodal corridors such as International North-South Transport Corridor–connecting India to Central Asia, Russia and eventually Europe,” said Pretto.
20-Jun-2017: India ratifies United Nations TIR Convention
India has become the 71st country to ratify the United Nations TIR (Transports Internationaux Routiers) Convention, a move that will help boost trade through smoother movement of goods across territories. The ratification is a part of India’s multi-modal transport strategy that aims to integrate the economy with global and regional production networks through better connectivity.
India’s decision to implement the TIR system will have far reaching benefits for trade and will save significant time and money by streamlining procedures at borders, reducing administration and cutting border waiting times. The TIR 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. It will also help India in implementing the World Trade Organization’s Trade Facilitation Agreement, which entered into force this year.
6-Mar-2017: Cabinet approves India's accession to the Customs Convention on International Transport of Goods under cover of TIR Carnets (TIR Convention)
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for India's accession to the Customs Convention on International Transport of Goods under cover of TIR Carnets (TIR Convention) and for completion of necessary procedures for ratification, for its entry into force.
The Convention will help Indian traders to 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.
By joining the convention, the need for inspection of goods at intermediate borders as well as physical escorts en route shall be obviated due to reciprocal recognition of Customs controls. Customs clearance can take place at internal Customs locations thereby avoiding clearances at Border Crossing Points and ports that may often be congested. Movement under the TIR can be allowed by checking only the seals and the external conditions of the load compartment or the container thereby reducing border delays, transport and transaction costs thereby leading to increased competitiveness and growth for the trade and transport sectors.
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. As the TIR Carnet represents a guarantee for Customs duties and taxes and traffic in transit, there is no need for payment of such taxes and duties en route. The TIR carnet also serves as a Customs declaration, and hence it precludes the need to file multiple declarations satisfying national laws of the different transiting countries. The TIR Convention can be an instrument for movement of goods along the International "North-South" Transport (INSTC) Corridor and would be helpful in boosting trade with the Central Asian Republics and other Commonwealth of Independent States (CIS), particularly using ports in Iran like the Chabahar port.
The proposal does not result in any direct financial implication for the Government of India as it pertains to India's accession to an international 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 amongst the Parties to the Convention. At present there are 70 parties to the Convention, including the European Union.