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TIR – a customs transit system enabling goods to flow across borders.

2024-06-12

TIR – a customs transit system enabling goods to flow across borders. 

What is TIR?

TIR is a global customs clearance system for cargo transportation based on the United Nations Convention on International Road Transport (also known as the TIR Convention). It aims to simplify customs clearance procedures, improve customs clearance efficiency, and enhance the level of global trade facilitation. my country officially joined the TIR Convention in 2016. The United Nations authorizes the International Road Transport Union (IRU) to manage the TIR system globally. Approved vehicles holding TIR certificates can conveniently pass customs between TIR implementing countries. At present, there are 76 contracting states of the TIR Convention in the world, most of which are located along the Silk Road Economic Belt.

Quick facts about TIR

  • Cuts transport time by up to 80% and costs by up to 38%

  • Over 30,000 transport and logistics companies use TIR 

  • TIR is managed by IRU under a UN mandate 

  • One million TIR carnets are issued every year

  • TIR enables transit across any TIR countries under a single guarantee

  • TIR offers a maximum protection of up to EUR 100,000 per transport operation

  • TIR is an effective tool to implement the World Trade Organization’s Trade Facilitation Agreement and the revised Kyoto Convention

  • TIR is compliant with the World Customs Organization SAFE Framework



What customs clearance procedures are required:

"When TIR goods go through customs clearance procedures on the road, the customs of each country only needs to check the TIR certificate information and the customs seal of the transport unit. They can be released directly without unpacking and inspection, reducing the time the goods stay at the port and reducing the transportation costs of enterprises.

It is understood that the average TIR transportation time between China and Europe is 10-15 days, which is 1 week faster than rail, more than 2 weeks faster than sea transportation, and 1 week slower than air transportation, but the average transportation cost is less than 50% of air transportation. Compared with air, sea, rail and other transportation modes, TIR transportation also has the characteristics of low dependence on infrastructure, flexibility, and convenient loading and unloading. It is especially suitable for freight with high unit prices and high timeliness requirements. TIR transport enables enterprises to handle relevant customs formalities in the inland area, and TIR transport vehicles can pass through countries that also implement the TIR Convention with one document (TIR document). In TIR cross-border road transport, there is no need to continue loading and changing goods in the middle of the TIR business, and the customs of the transit country generally do not open the box for inspection, which can effectively shorten the waiting time at the border port. It is estimated that compared with non-TIR cross-border road freight, TIR transport can save up to 58% of transportation time and 38% of transportation costs. At present, sea and air freight rates continue to rise. In order to alleviate the adverse effects of energy shortages on import and export trade, TIR transport is a good choice for export companies.

Advantages of the TIR system:

Simplify transit procedures, improve international trade efficiency, reduce transportation costs, only need to go through customs formalities at the departure and destination, exempt from customs inspections in transit countries, provide customs tax payment and guarantee; support multimodal transport, and have achieved digitalization

"Compared with traditional road transport, the TIR transport mode does not require loading or unloading throughout the entire process. During the customs clearance process, if the TIR certificate information is checked and the vehicle customs seal is checked, there is no need to open the box for inspection, and no taxes and guarantees are paid."

The TIR transport process is as follows:

Goods transported by TIR cross-border international road trucks are assembled in Yiwu and then transported to the bonded logistics center by road. The bonded logistics center reclassifies, sorts and declares the goods, and then arranges a local freight company to transport them to Xinjiang Baktu Port.

Customs clearance process comparison

TIR transport

1
1
Preparation  

Prepare packing list, invoice and other accompanying documents;

Make TIR electronic pre-declaration and generate CMR waybill in the system

1
1
Departure 

The departure city of Country A

Go through the export declaration formalities;

The driver goes to the customs to get the TIR certificate endorsed and the vehicle sealed.

1
1     
Transit                       After the customs inspection and sealing, the driver goes directly to the customs of countries A, B, C, and D to apply for TIR certificate endorsement. In principle, the customs along the way will not open the box for inspection.
1
1
Arrival     

Arrived at the destination city in country D

Customs inspection and seal, the driver went to the customs to handle TIR certificate endorsement procedures;

Handle import declaration procedures.

Road transport

1
1
Preparation 

Prepare packing lists, invoices and other accompanying documents;

Manually input and print CMR waybills required by countries along the transit route

1
1
Departure   

The departure city of Country A

Handles export customs clearance formalities;

Entrusts the customs broker at the departure place of Country A to go to the customs to handle the customs transfer formalities;

The customs seals the vehicle and conducts inspections as appropriate.

1
1
Transit     

Departure from Country A

Entrust the customs broker at the exit of Country A to go to the customs to handle the customs clearance procedures;

Customs checks the vehicle seal and conducts inspections as appropriate.

Transiting through Country B

Entrust the customs broker at the entry point of Country B to prepare the declaration materials and go to the customs of Country B to handle the entry formalities of the goods:

The vehicle is sealed upon entry, and the customs will conduct inspections as needed:

Entrust the customs broker at the exit point of Country B to go to the customs to handle the exit formalities of the goods;

The exit customs will check the seals and conduct inspections as needed.

Transiting through Country C

Entrust the customs broker at the entry point of Country C to prepare the declaration materials and go to the customs of Country C to handle the entry procedures for goods;

The vehicle is sealed upon entry, and the customs will conduct inspections as needed;

Entrust the customs broker at the exit point of Country C to go to the customs to handle the exit procedures for goods

The exit customs will check the seals and conduct inspections as needed.

Entering Country D

Entrust the local customs broker to prepare the declaration materials and go to the customs to handle the transfer declaration procedures;

The customs will seal the vehicle and conduct inspections depending on the situation.

1
1
Arrival    

Arrive at the destination city in Country D

Entrust the destination customs broker in Country D to go to the customs for customs clearance procedures

Customs will check the vehicle seal and conduct inspections as appropriate;

Handle import declaration procedures.


TIR routes from China to Asia and Europe:

  • June 28, 2021, several container trucks loaded with light strings, charging plugs and other goods slowly started from Sichuan Tianfu New District, marking the official opening of the Sichuan-Europe (Chengdu-Budapest) TIR cross-border road freight route.


  • September 19, 2023, the China Linyi-Kyrgyzstan Bishkek TIR international road transport route was opened. A batch of tapes produced in Linyi was inspected and sealed by Linyi Customs and then sent to Kyrgyzstan by car across 5,600 kilometers. This is the first TIR export cargo in the country with Kyrgyzstan as the destination country.


  • June 9, 2023, four trucks marked with TIR signs and carrying machinery and equipment worth about one million US dollars and cross-border e-commerce products set off from the checkpoint of Xixian Airport Comprehensive Bonded Zone in Shaanxi Province and will go directly to Dostyk, Kazakhstan. This not only marks the opening of the first TIR international cross-border highway freight route in Shaanxi Province, but also means that the open channel from Shaanxi to Central Asia and even the world is further improved.


  • February 20, 2023, at the port operation area of Zhengzhou Xinzheng Comprehensive Bonded Zone, a TIR transport vehicle loaded with office supplies set off under the supervision of Zhengzhou Customs, and the Zhengzhou-Moscow TIR cross-border highway freight route was officially opened.


  • December 7, 2023, a TIR international transport vehicle with a Henan A license plate and fully loaded with solid-state hard drives, routers and other goods slowly drove into Tashkent, the capital of Uzbekistan, marking the successful operation of the first TIR international road transport route from Henan to Central Asia.

    It is understood that the vehicle completed customs procedures at the Zhengzhou Xinzheng Comprehensive Bonded Zone on the evening of November 29, departed from Zhengzhou, passed through the Xinjiang Irkeshtam Port, and transited through Kyrgyzstan. After 8 days, it finally arrived in Tashkent. This means that the Zhengzhou-Tashkent TIR international road transport route has been officially opened. It is also the second international cross-border road transport route in our province since the opening of the Zhengzhou-Moscow TIR route in February 2023.


  • May 15, 2024, a "Chinese" transport truck with a TIR signboard loaded with e-commerce goods departed from the Urumqi Multimodal Transport Center and headed for Georgia. The goods mainly consisted of lamps and sound insulation cotton, weighing about 5 tons and worth about 220,000 yuan. After leaving the country from the Horgos highway port, the vehicle will pass through the Kuryk Port in Kazakhstan, cross the Caspian Sea, and reach the Baku Port in Azerbaijan, and finally arrive at its destination, Tbilisi, the capital of Georgia. The transportation mileage is 3,000 kilometers and is expected to arrive in about 10 days.

 

 

 

If you have any question about shipping goods from China to Asia/Europe by TIR please feel free to consult Viputrans  Lora Yang E-mail: sales02@viputrans.com

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