Transport International Routier
What does TIR stand for? The full-extension from the French is Transport International Routier. Often confused with a tractor-trailer, it actually stands for the 1975 convention signed in Geneva that regulated the international carriage of goods by truck between member countries. The TIR Convention exempts you from many obligations and customs clearance provided you meet guidelines imposed by the signing parties. The TIR name appears on placards that are on the mandatory equipment of every truck operating under TIR transport.
Application for TIR membership
TIR transport and the current rules are regulated by the International Road Transport Union, whose English acronym is IRU. The basic document for international transport within the convention is the TIR carnet. This means that no additional security is collected at Customs offices in the interim or at the border in order to cover any possible Customs duties and taxes. A vehicle bearing the TIR transport label, after being closed and sealed at the Customs office of departure, is accepted by all Customs services through which it passes with its load.
Requirements under the TIR Convention
To enjoy the benefits of the TIR Convention, you must first obtain an appropriate permit issued by the director of the Customs Chamber in Warsaw along with a positive opinion from the IRU. Only an entity that has obtained a license for international transport can apply for such a document. It is also necessary to meet all criteria required by the TIR transport convention itself. The requirements are:
- confirmation of experience or ability to carry out international transport
- Stable financial conditions of each entity applying for TIR Carnet
- Proof of knowledge of the rules of the TIR Convention
- No serious offenses or violations of Customs or tax laws
- A written declaration of commitment to the TIR Convention.
Within the written undertakings each operator has to declare that:
- he will comply conscientiously with legal formalities at Customs offices of departure, en route, and of destination
- pay the necessary fees which result from the membership of the TIR Convention and of the IRU organization
- as far as national legislation allows, to allow the IRU association to verify the information given and whether the entity meets the requirements set.
After that, the Tax Administration Chamber in Warsaw has 120 days to examine the application, but until then the applicant will not bear any costs. In case of refusal, the applicant has up to 14 days to appeal the office's decision.
Countries participating in the Convention
Currently, there are 68 countries operating within the TIR Convention worldwide, which accept the conditions and rules established by the international organization IRU. Member countries include all European Union countries, countries in North Africa, and the Middle East. More and more Asian countries are interested in the TIR rules and the IRU membership. They would like to improve the forwarding system within the framework of clear and transparent rules. Currently, under the rules, the transport should end or begin within the European Union, but it can also begin and end within the community, and the road transport can pass through a third country outside the Union.
Transit Customs Regime
- Under the provisions of the TIR transport, you have to comply with several basic rules that operate under the transit Customs system at all times.
- Each load should be transported in containers and secured according to Customs security requirements
- Each shipment, customs duties, and any taxes should be secured by international guarantees
- A valid and acceptable international Customs document, commonly known as a TIR Carnet, must be carried
- The aforementioned document must be valid in the country of departure, transit countries, and in the country of destination
- The Customs supervision measures of the country of departure must be acceptable and must be valid in the country of destination as well as in third countries of transit.
What is a TIR Carnet?
Once all approvals for a TIR transport have been obtained, each trader applies to the international association IRU for a TIR Carnet 6 or 14 Woalet. A Woalet is a pair of documents bound together by a cover. Such a carnet has a double function during international cargo transportation. Firstly, it is an important customs document valid in the country of departure as well as in countries of transit. Secondly, it is an important financial guarantee, which is activated upon payment of a deposit to the IRU. Currently, such a fee in the countries of the European Union is 100 thousand euros. Only in Russia the fee is slightly lower and closes at 60 thousand euros. A TIR carnet obtained in the IRU is valid for up to 120 days from its issue. According to established IRU rules, each completed Carnet and Customs Tax Guarantee are valid until you arrive at your destination and all paperwork is completed.
How to fill out the TIR Carnet and what to do in case of its loss?
Every Carnet is filled out and is binding on all three parties. These are the IRU association, which is responsible for the transparent rules under the TIR Convention, the customs authorities of the countries through which the transport is taking place and which have committed themselves to abide by customs and legal procedures, and the entrepreneur who wants to carry out such international transport. The trader is obliged to complete boxes 6-12 on the cover sheet and the goods manifest in boxes 2-15. If one of the vouchers or the complete TIR Carnet is lost, this must be reported immediately to the IRU Association. If a Woalet voucher is used or not confirmed at the Customs office, the trader will be required to pay a financial penalty. Most often this will result in a requirement for additional transport security amounting to $1,000 for a period of up to 27 months.