Legal Arrangements for the Smooth Movement of Goods

Internationally

Geetha KarandawalaGeetha KarandawalaChief, Transport Facilitation SectionChief, Transport Facilitation Section

Transport and Tourism DivisionTransport and Tourism DivisionUNESCAP SecretariatUNESCAP Secretariat

4th Expert Group Meeting on Developing Euro-Asian Transport Linkages

21-24 November 2006, Thessaloniki, Greece

International transport

Ensure free movement of goods & people

Accessible & open environment

Exists only within the limits that each country is prepared to accept

Norms, standards, rules, independent to each other

As trade & transport developed – so did the rules

Transport is one of the most regulated sectors

National rules, bilateral treaty, multilateral treaty

Smooth Movement of Goods & People

In the early 1950’s the UN took the lead to help Governments create an enabling environment

Large number of legal instruments elaborated

Transit rights

o Statute of freedom of transit, Barcelona (1921)o Convention on Transit & Trade of landlocked

states (1965)o Convention on Law of the Sea (1982)

To ensure right of transit To ensure right of transit

Regulations are vital to safety, security & environmental protectiono UN Agencies & international organization: ECE,

IMO, ICAO, WCOo ECE initiated over 50 international conventions &

agreements

1992 ESCAP & ECE helped countries in Asia & the Pacific to select 7 of the most important ECE Conventions

A set of convenctions that provide a basic level of harmonization to facilitate trade

Envisaged as an initial step to be further developed

Objective -> International Integrated Intermodal Transport System

To regulate & harmonize standards & processes

RESOLUTION 48/11: THE CONVENTIONS

Convention on Road Traffic, 1968 Convention on Road Signs and Signals, 1968 Customs Convention on the International

Transport of Goods under Cover of TIR Carnets (TIR Convention), 1975

Convention on Temporary Importation of Commercial Road Vehicles, 1956

Customs Convention on Containers, 1972 International Convention on the

Harmonization of Frontier Control of Goods, 1982

CMR Convention 1956

1998: Launching of UN special programme for Economics of Central Asia (SPECA)

1999 SPECA countries proposed expansion of resolution 48/11 to include other conventions

1. European Agreement supplementing the convention on road traffic (1971)

2. European Agreement supplementing the convention on road signs & signals (1971)

3. Customs convention on the temporary importation of private road vehicles (1954)

4. Agreement on the international carriage of perishable food stuffs & on the special equipment to the used for such carriage (ATP) 1970

Promoting the conventions

Profound influence on globalizationMajor structural changes in some

countriesCentrally planned to market oriented

economiesPolicies & tools developed by other

international organizationsRegional integration & physical

inter-connectivityResolution 48/11 is an important tool

and validProgress seen & more effort & some

adjustment needed

Resolution 48/11 Intervening years Resolution 48/11 Intervening years

Future Direction-Ministerial Conference on Transport 2006

Future Direction-Ministerial Conference on Transport 2006

Include the most relevant instruments from UNECE/WCO/IMO1) Convention on Temporary Admission (Istanbul

Convention) 19962) Convention on the simplification &

harmonization of customs procedures, as amended (Revised Kyoto Convention) 1999

3) Convention on facilitation of International Maritime Traffic (FAL Convention) 1965 as amended

4) Protocol to the convention on the Contract for International Carriage of Goods (CMR) 1978

Harmonization through accession & implementation of international legal instruments

Towards a refined & expanded resolution 48/11

THE CONVENTION ON TEMPORARY ADMISSION (ISTANBUL CONVENTION), 1990

Benefits:

High degree of simplification and harmonization of Customs procedures

Facilitation of temporary admission in pursuit of economic, humanitarian, cultural, social or touring objectives

Standardized model temporary admission papers.

THE INTERNATIONAL CONVENTION ON THE SIMPLIFICATION AND HARMONIZATION OF CUSTOMS PROCEDURES, AS

AMENDED (REVISED KYOTO CONVENTION), 1973

Benefits:

Facilitation of international trade and transport

Goods move faster across national borders reducing the need to maintain security or buffer stocks

Reduced work load of Customs officials

Beneficial consultative relations with the business community, in particular for traders and transport operators.

THE CONVENTION ON FACILITATION OF INTERNATIONAL MARITIME TRAFFIC (FAL CONVENTION), 1965

Benefits:

Harmonized standards and practices Reduced bureaucracy and increased automatic

data processing techniques used in shipping documentation

Streamlined procedures of clearance of cargo and persons

Increased safety and security for vessel, cargo, crew and passengers

Proven to be one of the most efficient instruments for facilitation of international maritime traffic.

Status of UNESCAP member states’ accession to international conventions listed in Commission Resolution 48/11,

as of November 2006

Status of UNESCAP member states’ accession to international conventions listed in Commission Resolution 48/11,

as of November 2006Country or area Convention on

Road Traffic[1](1968)

Convention on Road Signs and

Signals(1968)

Customs Convention on

the International Transport of Goods under Cover of TIR

Carnets(1975)

Customs Convention on the

Temporary Importation of

Commercial Road Vehicles(1956)

Customs Convention on

Containers(1972)

International Convention on the Harmonization of

Frontier Controls of Goods(1982)

Convention on the Contract for

the International Carriage of

Goods by Road (CMR)(1956)

Afghanistan x x

Armenia x x x x x

Azerbaijan x x x x x x

China x

Georgia x x x x x x

Iran (Islamic Republic of ) x x x x

Kazakhstan x x x x x x

Kyrgyzstan x x x x x x

Pakistan x x

Russian Federation x x x x x x

Tajikistan x x x x

Turkey x (1949) x x x x x

Turkmenistan x x x x

Uzbekistan x x x x x x x

Source: official UNECE publications. Legend: x – Contracting Party; S- signature; (..)- data are not applicable.1 1949A very interesting situation can be noticed in the case of the Convention that preceded the Convention on R

1 1 1 1 1 1 1 11111 1 11 111 111111111 111 11111111111 1, 1 9 6 8 , 1 9 6 8 : 1 5 1949 1968 1949arties to the Convention, but did not ratify the Conventions. The Convention is still valid in relation

1 1111111 111 11111111111 1111111 11 111

Accession status to international agreements and conventions, indicated in the Protocol of the second session of the PWG-

Transport and Border Crossing

Accession status to international agreements and conventions, indicated in the Protocol of the second session of the PWG-

Transport and Border Crossing

No International Agreements and Conventions Afghanistan Azerbaijan

Kazakhstan Kyrgyzstan

Tajikistan Turkmenistan Uzbekistan

1 Convention on Road Traffic (08/11/1968)* x x x x x x

2 Convention on Road Signs and Signals (08/11/1968)* x x x x x

3 Convention on the Contract for the International Carriage of Goods by Road (CMR) (19/05/1956)* x x x x x x

4 Customs Convention on the Temporary Importation of Commercial Road Vehicles 18/05/1956)* x x x x

5Customs Convention on the International Transport of Goods Under Cover of TIR Carnets (14/11/1975)*

x x x x x x x

6 International Convention on the Harmonization of Frontier Controls of Goods (21/10/1982)* x x x x

7 Customs Convention on Containers (02/12/1972)* x x x

8 European Agreement supplementing the Convention on Road Traffic (01 /05/ 1971)

9 European Agreement supplementing the Convention on Road Signs and Signals (01/05/1971)

10European Agreement concerning the Work of Crews of Vehicles engaged in International Road Traffic (AETR) (01 /07/ 1970)

x x x x

11 Customs Convention on the Temporary Importation of Private Road Vehicles (04/06/1954) x

12European Agreement concerning the International Carriage of Dangerous Goods by Road ADR 30/09/1957)

x x

13Agreement on the International Carriage of Perishable Foodstuffs and on the Special Equipment to be Used for such Carriage (ATP) (01/09/1970)

x x x

14 European Agreement on Main International Traffic Arteries (AGR) (15/11/1975) x x

15 European Agreement on Main International Railway Lines (AGC) (31/05/1985) C

16European Agreement on Important International Combined Transport Lines and Related Installations (AGTC) (01/02/ 1991)

x

Legend: * ‑ Conventions recommended by UNESCAP Resolution 48/11; x– Contracting Party; C- accession procedures ongoing.

Status of accession of ESCAP member states to the most relevant UN/IMO facilitation conventions

Status of accession of ESCAP member states to the most relevant UN/IMO facilitation conventions

Country

Convention and Statute on Freedom of

Transit, Barcelona, 1921

Convention on Transit Trade of Landlocked

States, New York, 1965

Convention on Facilitation of

International Maritime Traffic (FAL

Convention), 1965

Convention on the Law of the Sea,

Montego Bay, 1982

Afghanistan S S

Armenia x

Azerbaijan

China, P.R. of S x x

Georgia x x x x

Iran (Islamic Republic of) x x S

Kazakhstan

Kyrgyzstan

Pakistan x

Palau x

Russian Federation x x x

Tajikistan

Turkey x x

Turkmenistan

Uzbekistan x

Legend: x- Contracting Party: S- signature

Status of accessions to the most relevant WCO conventions2 and membership of the WTO

Status of accessions to the most relevant WCO conventions2 and membership of the WTO

Country or areaMembership of the

WTOConvention on temporary

admission (Istanbul Convention)

International Convention on the simplification and harmonization of

Customs procedures, as amended (Revised Kyoto Convention)

Afghanistan observer

Armenia 05.02.2003

Azerbaijan observer x

China 11.12.2001 x x

Georgia 14.06.2000

Iran (Islamic Republic of) observer

Kazakhstan observer

Kyrgyzstan 20.12.1998

Pakistan 01.01.1995 x x

Russian Federation observer x

Tajikistan observer x

Turkey 26.03.1995 x x

Turkmenistan -

Uzbekistan observer

Legend: x- Contracting Party2 The WCO conventions include a number of Annexes which are not all ratified by the Contracting Parties to the convention itself. The list of the Annexes to each convention and the status of their ratification are subject of the ongoing study performed by the ESCAP secretariat.

ECO Transit Transport Framework Agreement, 1998o Coverage:

Afghanistan, Azerbaijan, Iran, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkey, Turkmenistan, Uzbekistan

o Scope: transit transport by road, rail,inland waterway, multimodal & in access port

Subregional Agreements Overview (1)

Objectives: Facilitate movement of goods, luggage &

passengers Ensure safety of goods, luggage & passengers Avoid incidence of customs fraud & tax

evasionFacilities for transit:

Designation of transport routes Multimodal transport Expedite clearance of traffic Safety – offices – visa

Maritime ports & facilities

Subregional Agreements Overview (1) Continued:

ECO Agreement

Subregional Agreements Overview (1) Continued:

ECO Agreement General conditions for road transportTraffic rights (transport services)

Means of transport registered in one country can provide transit services in territory of another

No internal transport in another countryGeneral conditions for rail transport

- Transit servicesGeneral conditions for inland transportRules of carriage by road transportTransit transport coordination council

(TTCC)

TRACECA Agreement, 1998o Coverage: Armenia,

Azerbaijan, Bulgaria, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Romania, Tajikistan, Turkey, Ukraine, Uzbekistan

o Scope: bilateral & transit transport by road, rail, maritime, air, multimodal & pipelines

Subregional Agreements Overview (2):

Objectives: Develop economic relations & trade Access in international markets Facilitate international transport of goods,

passengers, hydrocarbons Ensure traffic safety etc. Harmonize transport policy/legal

framework Create equal conditions of competition

between different types of transport

Subregional Agreements Overview (2) Continued:

TRACECA Agreement

Traffic rights (facilitation of international transport) Parties grant each other the right of transit

of international means of transport, goods & passengers

Inter-governmental commission to regulate issues regarding implementation Wide power Establish secretariat Technical annexes (road, rail, maritime

navigation, customs & documentation) Road annex: access to market through

special permits

Subregional Agreements Overview (2) Continued:

TRACECA Agreement

Further progress

Bilateral Subregional Agreements and international conventions all have role to play:

strong political will, committment and consistency at national, sub-regional and regional levels to reach the goal

Public-Private Partnership Multilateral legal instruments can yield substantial

benefits to public and private sectors For this to happen, they must be fully and effectively

implemented: implementation is a national competency

Need for countries to be able to assess implecations of accession

Need to understand how to implement

Implementation of legal instrumentsImplementation of legal instruments

National level National trade & transport facilitation bodies

Subregional level Clear agenda including periodical analysis of

developments in subregion, region & international level

NTTF bodies along transport corridors Regional level

Countries to deliberate & define policy & strategies Secretariats to assist

Thank you for your attention