FICCI has been appointed by the Central Board of Excise & Customs (CBEC) as National Guaranteeing Association under the Customs Convention on the International Transport of Goods under the Cover of TIR Carnets or the operation of TIR System in India.
TIR is an internationally successful customs transit system that enables movement of goods between countries affiliated to the TIR Convention, a 1975 UN-ratified agreement allowing for duty-free movement of freight across nations. It is overseen by the United Nations Economic Commission for Europe (UNECE) and managed by IRU, Geneva. TIR stands for “Transports Internationaux Routiers”.
India ratified the convention on 15th June 2017 and today, it has 71 contracting parties and 58 operational countries, including India. It covers the whole of Europe and reaches out to North Africa and the Near and Middle East. More than 35,000 operators are authorized to use the TIR system and in 2016 around 1.5 million TIR Carnets were issued. Ultimately, the system facilitates and encourages international trade and thereby creates benefits for individuals and nations.
TIR will be a boon to India’s trade and aims to integrate the economy with global and regional production networks through better connectivity. It 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.
Welcoming the government’s announcement, Dr. Sanjaya Baru, Secretary General, FICCI said “I would like to acknowledge and thank the Central Board of Excise & Customs (CBEC) for its proactive role in early ratification of TIR system in India. He stated that the system which removes cross-border barriers is one of the successful examples of Public-Private-Partnership (PPP) Model in international trade facilitation and will effectively contribute Government of India’s “Ease of doing business – Make in India” initiative.
Mr. Nirankar Saxena, Assistant Secretary General, FICCI stated “FICCI will deliver its best for the smooth implementation in India and look forward to working closely with CBEC and IRU for the successful first TIR pilot in early 2018”
FICCI, in its capacity as an apex organization is already recognized as National Guaranteeing Association of India under the ATA Carnet System since 1989. ATA Carnet covers several areas for use including trade fairs, shows, exhibitions, meetings etc. for temporary export/import into a country, which is a signatory to the conventions governing ATA Carnets. It is administered worldwide by the World ATA Carnet Council (WATAC), Paris in association with the World Customs Organization (WCO). At present 77 countries recognize ATA Carnet including India. A large number of Indian exporters are benefited and a number of Carnets were issued by FICCI contributing to the growth of exports from India.
