TIR ACTIVATION IN PAKISTAN NEW DIRECTION FOR NATIONAL TRANSIT TRADE

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2 TIR ACTIVATION IN PAKISTAN NEW DIRECTION FOR NATIONAL TRANSIT TRADE PRESENTATION BY : Yasser Kalwar Second Secretary T&BT FBR 2

3 SEQUENCE OF PRESENTATION Existing Customs Transit Trade Regime Measures to Control Pilferage TIR Operational Framework Benefits New Direction for National Transit Trade Issues / Challenges 3

4 EXISTING TRANSIT TRADE REGIME Under APTTA 2010 Afghan forward commercial cargo Afghan forward non-commercial cargo, comprising of diplomatic, NGOs & Afghan government cargo Afghan exports via Torkham and Chaman Under CGO.10/2012 US / NATO/ ISAF cargo (forward/reverse) 4

5 EXISTING TRANSIT TRADE REGIME Notified Customs Rules for Afghan Transit Trade (2011 & 2014) Dedicated Directorate General of Transit Trade established in 2013 with Regional Directorates at Karachi, Peshawar and Quetta Paperless Customs clearance under WeBOC system Transportation of transit goods in containers of international specifications 5

6 EXISTING TRANSIT TRADE REGIME Financial Guarantee System Transport Operators Regime Acknowledgement of transit goods by Afghan Customs Clearance of more than 90% consignments on same day 6

7 EXISTING TRANSIT TRADE REGIME Scanning reduced from 100 % to 20 % Only 5% containers physically examined WeBOC User IDs to Afghan traders issued by Afghan Ministry of Commerce Tracking of GDs online by Afghan traders 7

8 MEASURES TO CONTROL PILFERAGES En-route Tracking & Monitoring Dual sealing Risk based physical examination at Entry & Exit 100 % weighment at Entry & Exit 8

9 MEASURES TO CONTROL PILFERAGES Mobile Enforcement Units (MEUs) Designated Routes Legal Action (Prosecution cases and recoveries) Strict Legal provisions introduced in Finance Act

10 FORWARD TRANSIT CARGO Period Commercial Cargo (No of Containers) Import Value (Rs in Bn) July June

11 TIR OPERATIONAL FRAME WORK Secure vehicles and containers International chain of guarantee TIR Carnet TIR Risk Management Tools (SafeTIR and TIR Electronic Pre-Declaration) Mutual recognition of Customs controls 11

12 BENEFITS Simplified and standardized customs controls and documentation Duty & taxes guaranteed TIR Carnet issued only to approved transport operators Integrated transit operations through electronic control system TIR Convention conforms to WCO Framework of Standard 12

13 NEW DIRECTION FOR NATIONAL TRANSIT TRADE Pakistan s connection with ECO-TIR community New Trade Corridors (beyond ECO region) Multi-modal connect Growth in trade 13

14 S.N o. TIR IMPLEMENTATION ROAD MAP Action 1 Determining the responsibilities of respective Ministries / Departments. 2 Designation of the Pakistani Authority for the approval of road vehicles as TIR Convention. 3 Signature by PNC-ICC as authorized issuing and guaranteeing organization in Pakistan. 4 Establishment of a National Authorization Committee to select transport companies. 5 Publication of a list of Customs offices approved for performing TIR operations. Implementing Agency Ministry of Commerce Pakistan Customs and Pakistan National Committee of the International Chamber of Commerce (PNC-ICC) PNC-ICC and Pakistan Customs Ministry of Commerce & Pakistan Customs, PNC- ICC Pakistan Customs 14

15 S.N o. TIR IMPLEMENTATION ROAD MAP Action 6 Awareness campaign for Customs officials 7 Electronic transmission by Customs to the IRU of Real-Time information on termination of TIR Carnets. 8 Electronic TIR pre-declaration processing 9 Selection and Admission of TIR Carnet holders to the TIR system Implementing Agency IRU, Pakistan Customs, PNC-ICC IRU, Pakistan Customs IRU, Pakistan Customs PNC-ICC National Authorization Committee and Pakistan Customs 10 TIR training IRU, PNC-ICC, 15

16 ISSUES / CHALLENGES Capacity building of stakeholders Completion of TIR roll out formalities Provision of Infrastructure at border stations (scanners/upgradation of customs facilities) Development of Customs TIR clearance module Electronic integration with regional customs administrations 16

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