UN accepts Pakistan’s access to customs convention

It will facilitate trade with Central Asia, ECO without duty payment

ISLAMABAD: The United Nations has accepted Pakistan’s Instrument of Accession to the Customs Convention on International Transport of Goods (TIR Convention).

The convention will come into force for Pakistan on January 21, 2016. This accession will greatly facilitate Pakistan’s trade with Afghanistan, Central Asia, Economic Cooperation Organisation (ECO) member countries and even Europe.

The TIR Convention is a legal framework for traffic-in-transit of goods across borders among contracting parties without involving the payment of customs duties and taxes. The United Nations Economic Commission for Europe (UNECE) introduced the TIR Convention in 1975, which became effective in 1978.

The International Road Transport Union, Geneva is responsible for implementing the convention. At present, 68 states and the European Union are parties to the convention.

In May 2015, the government of Pakistan gave approval to the TIR Convention to provide a legal framework for traffic-in-transit of goods across borders without payment of customs duties, taxes and undergoing checking.

According to the Ministry of Commerce, the TIR Convention states that goods would be accompanied by an internationally accepted customs document (TIR Carnet), opened in the country of departure. This would serve as a customs control document in the countries of departure, transit and destination.

Goods will travel in customs-secured vehicles or containers and throughout the journey, duties and taxes at risk would be covered by an internationally valid guarantee.

The customs’ control measures taken in the country of departure would be accepted by all countries of transit and destination. At present, Pakistan has to pay 101% guarantee to Afghanistan to reach the Central Asian countries.

With the increased focus on trade and connectivity with Afghanistan, Central Asia and the ECO, implementation of different transit trade agreements including the TIR Convention has become crucial.

All ECO member countries, except for Pakistan, had acceded to the TIR Convention. This will facilitate free movement of all goods carried within the ECO region under the ECO Transit Transport Framework Agreement.

Published in The Express Tribune, August 11^th,  2015.

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