The Convention on International Transport of Goods

Introduction:

The Customs Convention on the International Transport of Goods under cover of TIR Carnets (TIR Convention, 1975) is one of the most effective international transport conventions and to date, is the only universal Customs transit system in existence. To date, it has 77 Contracting Parties, including the European Union. It covers the whole of Europe and reaches out to North Africa and the Near and Middle East. The TIR transit system is founded on the following five principles:

• the TIR carnet,
• the mutual recognition of customs controls,
• the international guarantee chain,
• the use of secure vehicles or containers,
• controlled access to use the system.

Definition:

TIR Carnet is a customs transit document used to demonstrate the presence of the international guarantee for duties and taxes for the goods transported under the TIR system, under conditions specified in the TIR Convention. Each TIR carnet has a exclusive 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 shows the number of countries that can be transited, including the countries of departure and countries of destination.

Each TIR Carnet can be used for one transport. Once the transport has been completed 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. Customs authorities must instantly approve the conclusion of the TIR transport.

Procedure:

In order to commence the TIR procedure, transport companies must provide a bank guarantee from a bank of EUR 100,000 (maximum amount of guarantee per TIR carnet) and submit the following:

• the bank guarantee;
• the banks full contact details and the contact person at the bank;
• an overview of the last available audited balance sheet.

The transport operator then receives a handbook for TIR carnet holders and 2 copies of the declaration of engagement. The operator must fill in the declaration of engagement, initial every page, sign and stamp the last page. Signatures must be authenticated by the communal administration. When the approval has been granted, the business will receive its TIR approval number by standard mail. As it was mentioned, each individual carnet can be used for only one TIR transport. If a single convoy is made up of several trucks, the transport operator must use a separate carnet for each truck. Before departing, the transport operator must fill in all pages in the carnet. It is recommended to use the company stamp, indicating the company name and address, the TIR approval number and the EORI number. The customs authorities of each transit country will ask for the TIR carnet and take out one voucher upon entry and one upon exit.

When the goods reach the destination, the transporter must present the TIR carnet to the customs authorities who will conclude the TIR transport. The transporter delivers the goods to the recipient and sends back the TIR carnet.

Merits of the TIR system:

• A single guarantee system for all TIRs throughout the journey.
• A single form for transport.
• A single guarantee for the entire container.
• No other representative is necessary in countries where the guarantee is valid.
• Each TIR includes a single guarantee for EUR 60,000 to Customs Offices.
• A single TIR customs form for the entire load.
• Using the TIR system guarantees safe and secure transports, since it is the only system using duly authorized Greek transport operators.
• A single TIR for all transported goods.

In Conclusion:

The TIR system, formed more than 60 years ago, have proven to be one of the most operative international Customs transit systems in the world. In addition, it has played a significant part in facilitating international trade and transport.

With the fast rise of intra-European traffic and with the arrival of many newly independent countries in Central and Eastern Europe. Nevertheless, the TIR Carnet allows road transport of goods in the procedure of transit between member countries of the TIR Convention. It facilitates the movement of goods by simplifying the customs procedures.

Countries