Smooth trade: TIR Convention gets approval for legal framework

Will help establish transit system across borders.

ISLAMABAD: The government has given approval to the ‘International Transports of Goods’ (TIR) Convention to provide a legal framework for traffic-in-transit of goods across borders among the contracting parties without involving payment of customs duties, taxes and undergoing checking. The convention will likely be signed by Pakistan within a week.

Addressing a press conference on Tuesday, Minister for Commerce Khurram Dastgir said that Prime Minister Nawaz Sharif had given the formal approval to accede the TIR Convention. “This is a great step for trade facilitation to neighbouring countries on western borders and beyond,” he said. United Nations Economic Commission for Europe (UNECE) produced the TIR Convention that came into force in 1975. International Road Transport Union (IRU) Geneva is responsible for implementing the Convention and as many as 68 states along with the European Union (EU) are parties to it.

At present, Pakistan has to pay 101% guarantee to Afghanistan to reach the Central Asian countries. However, Pakistan will not be bound to pay this guarantee once the convention is signed.

The salient features of TIR convention includes goods traveling in customs secure vehicles or containers, duties and taxes at risk to be covered by an internationally valid guarantee throughout the journey, goods to be accompanied by an internationally accepted customs document (TIR Carnet) which is to be carried from the country of departure, serving as a customs control document, and custom control measures taken in the country of departure to be accepted by all countries of transit and destination.

“Goods from our country can enter Afghanistan, Central Asian countries and Turkey without paying any guarantee,” said Dastgir, adding that this convention will play an effective role in promoting trade with these countries.

The minister stated that some information and undocumented trade will also be formalised after this convention. “It will provide international guarantee to truckers.”

Responding to a question, Dastgir informed that the ministry had proposed a major tariff reform and clearance of all refunds of exporters.

He said the ministry has also sought more allocation for the Export Development Fund.

“The EDF has Rs25 billion with the finance ministry and this year it would reach Rs30 billion,” he said.

Published in The Express Tribune, May 27^th,  2015.

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