Transcript Nature, Structure and Functioning of theTIR Guarantee System & Risk Management Virginia Tanase Head – TIR Policy, Training & Information Moscow, October 2003

Nature, Structure and Functioning
of theTIR Guarantee System
& Risk Management
Virginia Tanase
Head – TIR Policy, Training & Information
Moscow, October 2003
NATURE
TIR =TRADE FACILITATION
 Harmonisation
TIR Convention
 Simplification
TIR Carnet =
Customs Declaration & surety
 Costs reduction
5 cents for
100 USD of guarantee
Page 2
© International Road Transport Union (IRU) 2003
NATURE
 TIR is a privilege not a right
 Guaranteeing Association acts as
surety for persons using the
TIR procedure
(Art. 1(q) - TIR Convention)
Page 3
© International Road Transport Union (IRU) 2003
STRUCTURE
SURETY AGREEMENT
ASSOCIATION
CUSTOMS
 Subject to national legislation
 Main conditions for surety
 Maximum amount of surety
 SafeTIR agreement (annex)
Page 4
© International Road Transport Union (IRU) 2003
STRUCTURE
DEED OF
ENGAGEMENT
ASSOCIATION
IRU
 Rules & responsibilities for
administration of TIR system
 Engagement from the IRU to
guarantee the surety provided
by the association to Customs
Page 5
© International Road Transport Union (IRU) 2003
STRUCTURE
ASSOCIATION
IRU
Page 6
© International Road Transport Union (IRU) 2003
STRUCTURE
GLOBAL GUARANTEE
CONTRACT
ZH
IRU
 3 Mil TIR Carnets issued per year
 500 Mil USD of guarantees per day
 Guarantee Chain is backed by a financial institution (ZH)
 ZH guarantees the surety provided by the Guarantee
Chain to Customs
Page 7
© International Road Transport Union (IRU) 2003
STRUCTURE
ASSOCIATION
IRU
ZH
Page 8
© International Road Transport Union (IRU) 2003
FUNCTIONING
 TIR is a financial security for Customs
 Persons directly liable
=> Financially liable to Customs without limits
Page 9
© International Road Transport Union (IRU) 2003
FUNCTIONING
Holder of TIR Carnet = Declarant of transit
operation => responsible for the presentation of:
(Art. 1(o) – TIR Convention)
 goods
 vehicle
 TIR Carnet
at the Customs office of destination
=> Legitimate contact person for Customs
Page 10
© International Road Transport Union (IRU) 2003
FUNCTIONING
Holder of TIR Carnet must assist the
Customs to solve any problem related to a
TIR operation. He must:
 Provide relevant documents
 Cooperate for the proper identification of the
persons directly liable
OR
 Pay the Customs debt when at fault
(Art. 8.7 – TIR Convention)
Page 11
© International Road Transport Union (IRU) 2003
FUNCTIONING
BASIC PRINCIPLE:
Article 8.7 – TIR Convention
« ...the competent Authorities shall so far as
possible require payment from the person
or persons directly liable before making a
claim against the Guaranteeing
Association… »
Page 12
© International Road Transport Union (IRU) 2003
FUNCTIONING
Liability Chain:
 Importer
 Company responsible for transport and
Customs clearance (forwarding agent)
 Company owning or disposing of the goods
 Holder of TIR Carnet
 Guaranteeing Association acting as surety
Page 13
© International Road Transport Union (IRU) 2003
FUNCTIONING
The Chain of Guarantee can only function
efficiently when the TIR Convention is
properly implemented:
 Persons directly liable quickly identified
 Proper procedure engaged to obtain payment
from them
 Sanctions are applied in due course against
non-compliant operators
Page 14
© International Road Transport Union (IRU) 2003
FUNCTIONING
Role of the IRU:
 Make sure that all irregularities and claims are handled
according to the same principles (TIR Convention)
throughout all the Contracting Parties.
Role of the Association:
 Implement the decisions of the Chain of Guarantee and
follow the procedures to handle claims.
Page 15
© International Road Transport Union (IRU) 2003
FUNCTIONING
For the correct functioning of the TIR System and
the Guarantee Chain it is essential to have a
systematic application of:
 Appropriate (strict) Management rules
 Preventive measures by all actors (IRU, Associations,
Holders of TIR Carnets, Customs)
 Risk Management: SafeTIR
Page 16
© International Road Transport Union (IRU) 2003
RISK MANAGEMENT: SafeTIR
Why SafeTIR?
 To confirm at any time and in real - time the validity of
the Customs stamp on the TIR counterfoil (souche)
Page 17
© International Road Transport Union (IRU) 2003
RISK MANAGEMENT: SafeTIR
Holder returns
TIR carnet to
Association
TIR Carnet
Physical
check with
Electronic
SafeTIR
cross-check
If OK issue new
carnet
If not OK,
request proofs
+ reconciliation
If still not OK,
suspend
issuance
SafeTIR = Risk Management
Page 18
© International Road Transport Union (IRU) 2003
RISK MANAGEMENT: SafeTIR
Real Time
Capture & Transmission
of SafeTIR data
Page 19
IRU
Database
© International Road Transport Union (IRU) 2003
RISK MANAGEMENT: SafeTIR
ONLY
% of SafeTIR
data transmitted
within 24 hours
ONLY
% of SafeTIR
data transmitted
within 2 - 4 days
% of SafeTIR
data transmitted
within 15 days
0.4%
7%
75%
Real time capture and transmission of SafeTIR data
is needed for effective Risk Management
Page 20
© International Road Transport Union (IRU) 2003
RISK MANAGEMENT: SafeTIR
Efficiency of SafeTIR also depends on the
reconciliation procedure:
BUT
50 % of the reconciliation requests take
up to 50 days for response
Page 21
© International Road Transport Union (IRU) 2003
RISK MANAGEMENT: SafeTIR
Tool Accessibility: CUTE-Wise
 Secure Customs data
 Internet based
 Low cost
 Download possibilities
Page 22
© International Road Transport Union (IRU) 2003
RISK MANAGEMENT: SafeTIR
Efficient if Customs:
 Capture and transmit ALL SafeTIR data
 In Real Time
 For each Termination of TIR Operation at
each Customs office of destination
 Implement efficient Reconciliation procedure
Page 23
© International Road Transport Union (IRU) 2003
CONCLUSION
TIR Guarantee System is based on:
 Proper implementation of TIR Convention
 Early detection of potential irregularities
through Risk Management
 Collection of duties and taxes from real
debtors
 Sanctions of Fraudsters
Page 24
© International Road Transport Union (IRU) 2003