5.1 Traffic Facilitation in ECO Region

Transcription

1 5. LAND TRANSPORT BORDER-CROSSING FACILITATION 5.1 Traffi Failitation in ECO Region EGO region omprises ten ountries1 seven of whih are "land-loked. Development of transport has rightly been identified as the priority setor by EGO member ountries whih are laying equal stress on the need for adoption of omprehensive failitation measures to enable smooth movement of traffi, in aordane with internationally aepted standards. The outline Plan for the Development of Transport Setor in the EGO region2 and its long-term perspetive inlude following in its objetives: a) Conlusion of bilateral and multilateral agreements within or beyond the region to failitate transportation and aess through new borders. b) Development of multilateral onvention on transit regulations and reate a ommon system of ustoms proedures in the region in aordane with international laws and onventions. ) Creation of regulatory framework for multi-modal transport in the region. Before the analysis of the traffi failitation problems in the region, it would be useful for a proper appreiation to take a look at the status of existing land routes in the ECO region. Railways: railway systems: The region an be divided into three sub-regions on the basis of their Central Asia with 1,52 mm gauge; Turkey-Islami Republi of Iran with 1,435 mm gauge; Pakistan with 1,676 mm gauge; The above three sub-regions are not inter-onneted at present. A projet to link Central Asia with Iran is under implementation. The Outline Plan for the Development of Transport Setor in the ECO region stipulates the interonnetion of railway networks of ECO member ountries. I ECO members are: Afghanistan, Azerbaijan, Islami Republi of Iran, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkey, TurkmenIstan and Uzbekistan. Turkey is not a member of ESCAP, but ECE. 2 "Outline Plan for the Development of Transport Setor in the ECO Region" adopted bythe Transport Ministers of the ECO member ountries on Otober 1993 in Almaty, Kazakhstan. 6

2 61 Turkmenistan and the Islami Republi of Iran signed a memorandum to onfirm establishment of railway onnetion for handling external trade and transit of argo on the basis of tariff in effet in eah ountry and timely learane of rolling stok on 6th January, The ontrating parties have agreed that in border, ustoms and sanitary ontrol relations the onditions of international agreements to whih they are parties will prevail,signifiantly, the memorandum identifies otton and oil produts for movement from Turkmenistan to Europe throuqh Islami Republi of Iran (Art,S) An agreement on railways between the two ountries has to be prepared within six months of the signing of thismemorandum, Railways of Kazakhstan, Turkmenistan and Uzbekistan are party to the Organization for Railways Cooperation (OSShD, Warsaw) and use the system of Agreement on International Railway Freight Communiation (SMGS) whih is different from that adopted by the Islami Republi of Iran. The Islami Republi of Iran, as party to the Convention onerning the International Transport of Goods by Rail, Berne, 198 (COTIF), follows the International Consignment Note System (CIM). Efforts are now being made by ECE and OSShD to harmonize the two systems. Roads: Despite several shortomings, the road network today provides an operative link among the EGO ountries. Even otherwise, the role of roads as a mode of transport is expeted to inrease signifiantly. The Central Asian ountries have transparent borders among themselves and as suh onstitute a virtual ustoms union for purposes of border-rossing with the rest of the ECO members. In other words, the ustoms hek point of say Kazakhstan with the Islami Republi of Iran would start at Turkmenistan whih in this ase is the front Centr.al AsianState. There are twenty-one road border points among the EGO ountries. these is given in Table 5.1 below. Distribution of

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4 2. In respet of imports, a transit doument in dupliate, is issued on the freight ustoms delaration form (annexed to the agreement) by the border ustoms of the first CIS transit ountry. The doument gives information about the number of shipping pakages, seal number, destination ustoms, transit ustoms and purpose of onsignment (for u,stoms learane). One opy is retained by border ustoms and the other, along with shipping douments, sent to destination ustoms. There is provision for follow up by border ustoms in the event of non-reeipt of information about termination of transportation from destination ustoms (Art. 2). Transit doument is not issued when transportation transit proedure (Art. 2.6). is fulfilled under international In respet of exports from CIS ountries no transit doument is issued. The departure ustoms stamps shipping doument indiating possibility of exit to third ountries (Exit permitted) and makesja notifiation about guarantees. (Art. 3). Speial learing proedures are presribed for heavy and bulky goods transported in open vehiles and in respet of re-exported goods. The Agreement follows the Single Administrative doument. It may be realled here that the former USSR was party to the International Convention on the Harmonization of Frontier Control of Goods (1982). Memorandum between Turkmenistan and the Islami Republi of Iran on Customs Proedures for the transit transport and goods (signed at Tehran on ) The objetive of the Agreement is to develop transit traffi through their respetive territories by providing free transit of goods (exept weapons, ammunition, narotis and forbidden goods) on determined routes lists of whih is to be exhanged between the twoparties. The transit transport has been exempted from ustoms duties, taxes and olletions exept those stipulated by laws of both nations (Art. 3). Transit douments and stamps of eah other's ustoms will be mutually reognized (Art. 4). Goods and transport in transit annot be sold or given as gift (Art. 5). Instead of giving ash for goods, argo and passenger transport in transit, written obligations from the orrespondinq organizations would be aepted (Art. 6). The Agreement speifies the kind of information whih the douments aompanying transit goods should provide. This inludes ountry of despath, origin, destination, name and address of sender and reeiver, names of ustoms posts of transit value, weight and number of goods. The information has to be aiven in Enalish. (Art. 8). Goods originating in ontrating parties have to bear ustoms registration details. Simple inspetion is to be done in respet of goods where seals are undamaged. This is apparently a landmark failitation Agreement as both Turkmenistan oupy strategi transit position. and Iran 63

5 3. 4. Agreement 7). 1). Agreement on bilateral Road Transportation of Go'o'ds between the Government of the Islami Republi of Pakistan and the Government of the Islami Republi of Iran (signed at Islamabad on ). The Agreement between Iran and Pki.stan overs bilateral trade originating in twoountries. The trade has to be arried by vehiles registered in either ountry by drivers who are itizens of ontrating parties. While the vehiles under TIR Carnet are exempted from guarantees, the introdued transport Companies an aive written guarantees. Others have to provide guarantees as per the national law. The Agreement thus provides for three kinds of approah: one for TIR Carnet, the seond for reognized or registered ompanies and thethird, whih apparently is more strit, for operators outside the first two ategories. For truks/ontainers with seals intat and goods onfirming to law, subjet to other onditions being alright, entry is allowed. Regarding weight and dimension of vehiles, loal laws will apply. The agreement was signed in 1987 i.e. muh before EGO was expanded to inlude Afghanist an and the Asian Republis. It does not speifially over third ountry trade. between the Government of the Islami Republi of Pakistan and the Government of the Kingdom of Afghanistan for regulation of Traffi in Tansit ( ) (The Agreement is supported by a Protool signed on ) Afghanistan being a land-loked ountry required aess to high seas. This agreement provides freedom of transit on reiproal basis. Two routes are speified with provision for more, if required, and the ommitment is made for adequate faility for traffi in transit (Art. 3). Freedom from ustoms and other duties is allowed (Art. 4). "Afghan Transit Area" in the post of Karahi has been granted by Pakistan on nonreiproal basis for non-hazardous argo (Art. 5). Commitment to meet in full all requirements of wagons on both routes is made (Art. National treatment to traffi in transit for railway and port harges is ommitted (Art. Art. 13 is signifiant as it tries to ensure that "nothing in this Agreement or its Annexes will affet in any way the politial stand of the two ountries or the politial differenes existing between them, and the ontrating parties fully reserve their rights with regard to these subjets". This is essentially a bilateral arrangement between Pakistan and Afghanistan. 64

6 International Road Transport Agreement between the Government of Turkmenistan and the Government of the Republi of Turkey (signed atashkhabad on ). International Road Transport Agreement between the Government of Turkmenistan and the Government of the Islami Republi of Iran (signed atashkhabad on ). Agreement on International Road Transport between the Government of the Islami Republi of Iran and the Government of the Republi of Kazakhstan (signed at Tehran on ). 8. Agreement between the Ministry of Transport of the Republi of Kazakhstan and the Ministry of Motor Vehile Transport and Roads of Turkmenistan on motor vehile ommuniations (signed on ). Analysis of above bilateral aareements The Turkmenistan-Islami Republi of I ran agreement (Art 8) states that transportation of goods by vehiles between two ountries and in transit shall be operated without any limitations. However, Turkmenistan-Turkey agreement stipulate that arriage of goods in transit shall be subjet to prior permit based on quota (Art 12). Without speial permit a arrier shall not arry goods from territory of other ontrating party to third ountries (Art 8).Again, an unloaded vehile registered in one ontrating party an not enter the territory of other to ollet goods without a permit. (Art 9). The Agreement goes on to say that a vehile delivery registered of in goods one territory to the other an ontrating not ollet return party load without to its permit. territory or to third ountries. after The Turkmenistan-Islami Republi of Iran agreement allows number plates of vehiles and douments of registration of vehiles and driving liene to follow International Vienna Convention of The Turkmenistan-Turkey agreement reognizes TI R arnet and "Tryptique" or "Carnet de passage" and other douments required by national laws and regulations (Art 17). Islami Republi of Iran-Kazakhstan agreement allows the temporary importation of vehiles subjet to national laws (Art 8). Another feature is with regard to levy of harges. While the vehiles are exempted from import-export duty, the Turkmenistan-Islami Republi of Iran agreement provides fortolls, road tax et. (Art 4), the Turkmenistan-Turkey agreement provides, in addition to roadtaxes, "fees" to over differene between national and international prie of fuel, harge for weight/dimension exeeding the limit (Art. 5). Islami Republi of Iran-Kazakhstan and Islami Republi of Iran-Turkmenistan agreements do not presribe any harge. The above analysis bring out the wide variations among the agreements entered by the same party with different ountries. Lak of uniformity an seriously impede the movement of vehiles and traffi. Problem areas and solutions 1. EGO region has large number of border rossings. This number is likely to go up further with the strengthening of road and rail infrastruture. In order to failitate border rossing, it is neessary that the ustoms and administrative proedures are streamlined, ideally in 65

7 aordane with international onventions. An important onvention is the Convention on Harmonization of Frontier Control of Goods (1982). A omplete list of relevant Conventions is given in Chapter 6, para 4(a)(1) The aession of the EGO member ountries to the intrnational onventions refleted in the ESGAP resolution 48/11 on road and rail transport modes in relation to failitation measures (Table 5.2) will reate a minimum legal basis for effiient ross-border land transport in the region. In addition, EGO ountries may also onsider entering into uniform bilateral agreements on ustoms proedures between themselves. 2. The existing bilateral agreements ontain several lauses whih seek to regulate transit trade through the system of quotas, permits, speial permits and so forth. The experiene of other ountries has been suh provisions tend to reate ompliations, hold ups and eventually prove ostly: with argo going to third parties. While protetion to nasent enterprises may be neessary in some ases, ECO ountries may onsider minimizing suh provisions in the interest of promoting and failitating transit trade. The national rules and regulations relevant to areas of environment, road protetion and safety vary from ountry to ountry and onstrain the movement of vehiles. While ountries are entitled to safeguard their interests, it may be remembered also that nothing an be more frustrating than long waits for vehiles beause a rule about visa, fumigation or load restritions is not satisfied. In order to overome suh problems, in the short run, these ountries may onsider bringing out booklets in different languages highlighting important rules for the use of freight forwarders/drivers. The long term solution lies in following international standards and aeding to onventions as mentioned in the.preeding paragraph. The possibility of onluding a regional transit treaty may also be onsidered to failitate movement of traffi. (This has been dealt with in detail separately in this report). Anillary failities at border-rossing for vehiles and drivers are needed to be improved. Importane of failities in the form of exhange of urrenies, repairs, first-aid, rest and eatingrooms, petrol pumps, telephones annot be over emphasized. There is at present some misinformation about the apaity and onditions of the roads near border points. Can a 2' and 4' ontainer pass through a partiular border? Is all kind of vehiular traffi allowed at funtional border-rossing? There have reportedly been oasions when large truks had to return beause of standards/parametres of roads. The information gap needs to be bridged. 5.2 Problem areas and land transport failitation needs of Central Asian Republis This setion is in two parts. Part I deals in detail with the legal framework for transportation of goods aross the borders. Part II details ountry-wise failitation steps already taken and suggests additional measures required. 66

8 PART I LEGAL FRAMEWORK FOR BORDER-CROSSING The Chanaina Senario Before disintegration of the USSR, the traffi needs of former Republis, espeially on long-haulage, were mainly served by railways whih aounted for over 7 per ent of the tonne-kilometre arriage; roads arrying about 8 per ent4. This situation is undergoing fast hange and in fat evidene of suh a hange are already manifesting themselves at plaes like the Turkmenistan-Iran border where hundreds of vehiles are reported to be passing everyday. Turkmenistan sees auto transport as the future mainstay of its eonomy and antiipates an annual movement of million tonnes by road by the year 21 although railway would ontinue to play an important role. Same pattern is expeted in Uzbekistan, Kyrgyzstan and Tajikistan. Kazakhstan, may find railway to be the main mode beause of the size of the ountry. Whatever be the mode-split, it is almost ertain that the role of roads in Central Asia is going to be muh larger than before. This would neessitate more attention to road failitation measures where the number of operators is usually very large involving small and medium enterprises. However railways will be playing an inreasing important role in providing aess to the sea ports in the South (partiularly after a new Islami Republi of Iran-Turkmenistan railway line is ompleted in 1996) and the East. Another important feature to be underlined is that the ountries of Central Asia are passing through a period of transition. They are in the proess of organizing their ustoms and administrative servies, evolving new proedures and odes, introduing ustom.s tariffs and other taxes, adjusting urrenies and formulating their eonomi poliies. They are desperately trying to find new road, rail and land-um-sea routes to reah all possible regions of the world. At the same time, their effort is also to keep the existing systems lubriant and going so as to avoid disruptions. To ahieve above objetives, a large number of agreements are being signed in suession. The rapidity of the hanges make it diffiult to trak them by seuring even vital douments. ANALYSIS OF AGREEMENTS A number of agreements have been onluded to failitate movement of argo within CIS and beyond. For our study, these agreements are divided into two ategories:.ategory those relating to transportation within CIS and transit argo; CATEGORY II: those relating to border-rossings with ountries other than CIS. CATEGORY I: A total of nine agreements available in this ategory have been studied (full list at annex VI). These over the areas of Customs proedures: priniples of ooperation and onditions of interrelations in the field of transport and those speifi to railway and roadsetors. 4 ESCAP doument No. TAC/IAL T1/ (Para 4 of ECE Paper). 67

9 During the disussions with the offiials of Customs Department in Uzbekistan, Kazakhstan and Turkmenistan, the study mission was apprised that borders amonq Central Asian ountries were transparent and pratially no heks were made in respet of interountry traffi. However, transit arqo was subjeted to hek. Single administrative doument was followed for transit argo. Agreement on priniples of ustoms poliy among the Commonwealth of Independent States (exept Ukraine) signed at Mosow on 13/3/1992 The objetive of this Agreement is to establish a Customs Union made up of the total ustoms area of the ontrating parties (Art. 1). Goods irulated inside the Customs Union will not to be subjet to Customs duties and other taxes and olletions having the same effet (Art. 2). No quantitative restritions will be imposed on suh goods (Art. 3). Aording to the agreement the ontrating parties will oordinate a ommon ustoms tariff and "will promote uniform domesti taxation of goods and other artiles imported in to the ommon ustoms area and exported from this area". A Customs Counil has been formed to ensure the funtioning of the Customs Union; to prepare and implement single ustoms poliy; to ollet and analyze ustoms statistis and so on. A further agreement has been signed among CIS on 2/4/1992 laying down the ustoms proedures for goods in transit argo. Under the agreement; a redued system of ustoms inspetion, mutual reognition of ustoms seals, and other ooperative arrangements are followed. The goods are inspeted at the destination ustoms only, if the seals are not damaged. Agreement between the Government of the Russian Federation and the Government of the Republi of Kazakhstan on the Priniples of Cooperation and Conditions of Interrelations in the field of Transport (signed on ). Agreement between the Government of Kazakhstan, the Republi of Kyrgyzstan, the Republi of Tajikistan, Turkmenistan and the Republi of Uzbekistan on Priniples of Cooperation and Coordinations of Relations in the area of Transport (signed at Bishkek on ). These are very signifiant agreements as they tend to ement and sustain in future the integrity of the transport systems of CIS. These are in fat the mother agreements laying down the priniples in pursuane of whih further speifi agreements on road and rail have been onluded. The agreements ommit the parties to promote mutual eonomi, sientifi and tehnologial ooperation in the field of all modes of transport. Benefiial treatment is seured for all modes on the territory of ontrating parties. Goods, passengers and means of transport are exempted from all taxes inluding those relating to "use and maintenane of roads or other ways". The operators' inome is also exempted. 68

10 CIS. The Contrating parties have to maintain valid rules. requlations. instrutions, standards and tehnial onditions whih regulate transportation. Amendments are to be made with onsent and effort to seure unifiation of transport legislation has to be made. Aording to the Agreements the parties have to maintain valid the order of international traffi whih was set up before the intergovernmental agreements of the USSR with other ountries, as well as privisions of Conventions and Other Agreements in the field of transport to whih the USSR was a party. Failitation, promotion of joint ventures among the ountries, arrying out training aording to uniformed methodology et. are other important provisions. In short, these agreements maintain the unified harater of the transport setor of These agreements also faililtate aession of Central Asian Republis to various UN Conventions as the USSR was party to several of the Conventions in the field oftransportation. CATEGORY II: A total of six agreements have been analyzed. (Full list of agreements at annex VI). Following agreements deserve speial mention. Memorandum between Turkmenistan and the Islami Republi of Iran on Customs Proedures for the Transit Transport and Goods (signed at Tehran ). This presribes ustoms proedures for transit argo. The Memorandum follows international proedures. A simple inspetion is suggested where ustoms seals are undamaged. Goods and vehiles are exempted from ustoms duties and other taxes. The kind of details whih douments aompanying the argo should ontain are learly desribed. The provision with regard to guarantees required by third party vehiles during transit is not quite lear. Agreement on Motor Transport between the Government of the People's Republi of China and the Government of the Republi of Kazakhstan (signed at Beijing on ). The objetive of the agreement is to promote motor passenger and freight transport. Transportation is to be allowed through hauliers holding permits. Eah trip is to require a permit. Third ountry argo an be arried through speial permits. Speial permits are also needed by vehiles not satisfying national rules relating to load et. Waybills are to be as per proedures are to be as agreed between two parties. Apparently the Agreement is oriented to bilateral trade. 69

11 Agreement on International Road Transport between the Government of the Islami Republi of Iran and the Government of the Republi of Kazakhstan (signed at Tehran on ). International Road Transport Agreement between the Government of Turkmenistan and the Government of the Islami Republi of Iran (signed at Ashkhabad on ). Both Agreements over bilateral and transit traffi. The operations would be without limitations. Vehiles registered in ontrating ountries are allowed to arry passengers and argo. The vehiles are exempted from import/export taxes or ustoms tax but not from harges for using roads and other failities. Plate number of vehiles, registration douments and driving liense are to be in aordane with International Convention of 1968, Vienna. Problem Areas Customs failitation is apparently not a major problem at present within Central Asian ountries. However, the situation may hange and barriers inrespet of transit arao mav start showing UP in one form or the other if we take into aount fators suh as: The third ountry traffi at present is very limited. With the development of transport infrastruture, and settling of relations, this is antiipated to grow signifiantly; Some of the bilateral agreements (e.g., Turkmenistan-Turkey and Kazakhstan- China) seek to protet domesti transport by stipulating the permiuspeial permit and quota requirements. These may result in greater amount of hek andsrutiny. Customs servie is newly born in Central Asian ountries. One it grows and aquires expertise, the position is likely to be different espeially if there are ases of drug smuggling et. (some ases have already been deteted). Some diffiulties are beginning to be experiened by a ountry in its exports and imports through another CIS ountry. The latter is demanding ertifiates of origin on the basis of atual inspetion of export goods and ash guarantees in respet of goods imported on private aount. Similar demands may grow with the inreased role of private setor. To forestall future problems, the ountries of Central Asia may onsider aeding at the earliest to international Conventions that are listed Chapter 6, para 4(a)(1). These will help in streamlining the proedures. Many offiials in Central Asian ountries expressed interest in beoming party to Conventions but were not aware of the impliations and proedures to be followed. ESCAP may organize a workshop in one of the ountries on various international Conventions and proedures for aeding to suh Conventions. A representative eah from Departments of External Affairs, Customs and Transport from every ountry need to be assoiated for quikresults. The Central Asian ountries may also onsider seriously entering into a transit treaty with Iran, Turkey, Pakistan and China. One of the objetives to be ahieved ould be to 7

12 71 seure (a) separate area at onvenient ports for handling of transit argo and (b) speial onessions in the form of priority berthing of ships bringing transit argo, free time, onessional port harges et. Transit Treaty for the whole EGO region ould also beonsidered. Keeping in view the enormous importane of transport and transit in the eonomi growth of the nations, the Central Asian ountries may onsider setting up National Transit Failitation Authorities with the objetives of:- formulating national transport poliy to ahieve optimum use of infrastrutural assets through modal-split; promote the use of modern tehniques like Information management system, eletroni data interhange et.; explore alternative transit routes; seure ooperation of neighbouring ountries for transit failitation; arry out ost analysis of transportation through various routes/modes to guide potential users; exhange data/information among adjaent land-loked ountries; enourage multimodalism, ontainerization and institution of freight forwarders; at as government foal point for ontat with other governments and international bodies. Due attention also needs to be paid to the development of trained persons to manage ustoms administrative (automation, testing laboratories, enforement) business of freightforwarding, management of inland ontainer depots and ontainer freight stations,assoiations of bodies and so on. PART II COUNTRY-WISE PLAN OF ACTION TO IMPROVE TRAFFIC FACiliTATION IN ADDITION TO SETTING UP NATIONAL TRANSIT FACiliTATOR AUTHORITIES Turkmenistan Steps taken Turkmenistan is fully onsious of its ruial geographial position and has already taken several measures to failitate transit trade. It has been the first ountry among Central Asia to aede (1993) to the International Conventions on (1) Road Traffi (1968) and (2) Road Signs and Signals (1968) and onsidering the possibility of the aession to other onventions as refleted in the ESCAP Resolution 48/11 on road and rail transport modes in relation to failitation measures. Turkmenistan has signed a number of bilateral agreements with neighbouring ountries to failitate traffi. It is bestowing due attention to bridging the missing railway link with Iran and in fat has already ompleted 55 per ent of the 132 km rail streth whih lies in its territory. Further Steps needed On aount of its strategi loation, Turkmenistan has important role to play in the failitation of transit and trade. Areas for priority ation would be:

13 72 i) Streamlining of proedures; ii) Institutional arrangements; and iii) Other failitation measures. These may be disussed as under: (i) Aession to international Conventions may be treated as a priority item. A list of relevant Conventions has been refleted in (Chapter 6, para 4(a)(1) to this report whih also inludes International Conventions (Table 5.2) refleted in the ESCAP Resolution 48/11. The national laws and proedures need to be kept in line with the international proedures and praties espeially in matters of frontier ontrols and ustoms regulations pertaining to movement of ontainers and their stuffing/destuffing. (ii) Institutional set up Multimodalism is very important for effiient and ost-effetive transportation espeially in respet of land-loked ountries. Multimodalism an reeive boost through speialized freight forwarding agenies both in the publi and private setor. However, developing the institution of multi-modal transport operators is both apital intensive and time onsuming. It is, therefore, desirable to oneive of joint ventures with publi and private setors partiipation. The publi setor ompanies have onsiderable experiene and finanial standing. The same together with the effiieny and marketing skill of private setor an prove to be a boon in providing fillip to transportation, failitation and proper modal-split. Suh ventures ould ideally be formed in ooperation with other Central Asian ountries keeping in view the uniformity in the transport systems of these ountries and their lose interdependane. (iii).other failitation Measures: (a) Turkmenistan may wish to seriously onsider entering into transit treaties with oastline ountries of Islami Republi of Iran and Turkey. Both ountries are strategially loated and provide links to wider markets. Iran being immediate neighbour may require speial attention. Priority attention may be paid to this treaty. (b) Setting up of Container Freight Stations (CFS) and upgradation of existing ontainer terminals is another area whih deserves priority attention. Turkmenistan may onsider extending speial inentives to the potential entrepreneurs willing to set up suh failities ar Id also onsider a review of the existing terminals with a view to attahing satellite CFSs to suh terminals. () Failities at border hek points need to be improved. Creating amenities like rest houses, repair shops, urreny exhange, telephones, and separation of Kazakhstan Steps taken hek posts for passengers and goods need urgent attention. Kazakhstan and China have entered into bilateral agreements on railways and motor vehile transport. These agreements provide legal base for the traffi to move between the two ountries.

14 There is reportedly already a third ountry transit trade taking plae through China- Kazakhstan rail bridge. There is also not yet movement of ontainers either by rail or road. However an agreement was signed on 1 June 1994 to atively promote suh a traffi. This study Mission learnt during its visit that in the ase of road argo, tran-shipment at b,orders is being resorted on aount of diffiulties faed by operators due to variations in the road safety and other regulations of the two ountries. An agreement has been signed in Islamabad on 9 Marh 1995 between the governments of the Republi of Kazakhstan, Republi of Kyrgyzstan, and the Islami Republi Pakistan, on transit transport. An agreement has also been signed on 12 Marh 1995 between the governments of the Republi of Kazakhstan and the Islami Republi of Pakistan on international movement of motor vehiles. Steps needed: Kazakhstan and China may wish to onsider aession to international Conventions relating to land transport and Customs proedures on priority basis. The International Conventions as refleted in the ESCAP Resolution 48/11 on road and rail transport modes in relation to failitation measures (Table 5.2) and Transit Conventions ould be given a priority for onsideration. The relevant provisions of these Conventions need to be given statutory baking by suitable national laws. Both the ountries may onlude agreement on ustoms proedures so as to provide basis for heks at border-rossings. The provisions, of the International Convention on the Harmonization of Frontier Controls of Goods (1982) and other international praties need to be kept in mind. Kazakhstan may also onsider entering into a transit treaty with China for seuring oastal failities and speial onsideration for the transit traffi at onvenient ports in China. This is an important measure whih ould help in providing boost to the third ountry trade and therefore needs serious onsideration. The existing bilateral motor vehile agreement between the two ountries is restritive as pratially no argo movement an take plae without seuring permits and speialpermits, more so in the ase of transit traffi. If China is to provide a transit route for Pakistan, liberal agreement between the parties would be neessary. Kazakhstan's transit trade through Southern Corridor has inevitably to depend either on road or on modal split as there is no through rail route, yet to ountries of Pakistan, Afghanistan or the Islami Republi of Iran. For making optimum use of the existing modes of transport, the institution of Multi-modal transport operators need to be enouraged, if possible through joint ventures of publi and private bodies. Uzbekistan Steps taken: Uzbekistan has onluded agreements with Turkmenistan, Iran, Pakistan and the Russian Federation. It also has ustoms and transport agreement with CIS. 73

15 Steps to be taken: Uzbekistan may wish to aede to international Conventions on priority basis. The International Conventions as refleted in the ESCAP Resolution 48/11 on road and rail transport modes in relation to failitation measures (Table 5.2) and Transit Conventions ould be given a priority for onsideration., Uzbekistan may also wish to onsider onlusion of more bilateral agreements with the bordering states to legalize border-rossings of its vehiles, goods and operators. It also needs to align its laws and proedures with international praties. Uzbekistan ould aim to build strong institutions of freight forwarders and multimodal transport operators. This is of great importane beause the eonomy of the ountry is ompletely dependant on adequate, effiient and ost-effetive transportation. In order to ensure that the institutions work effiiently and in ost-effetive manner, assoiation of private setor would be desirable. The question of attrating world lass freight forwarders and multi modal transport operators by extending inentives and speial failities is reommended. Keeping in view the loation of the ountry, it would be worthwhile exploring the possibilities of working jointly with Turkmenistan and Kazakhstan in matters like transit treaty with the oastal ountries. Suh ooperative effort would have tremendous ost saving and failitation advantage. The possibility of Transit Treaty for the whole EGO region ould be also onsidered. 5.3 Container Traffi Failitation Containers, designed to stand multimodal transportation with built-in safety to prevent removal or introdution of goods after they are sealed, provide an ideal mode of transport for the international trade of entral Asian ountries whih, besides many borders to ross, need to ahieve modal split for optimum use of their modes of transport. Containers are however, yet to gain prominene in the new orridors of east and south. To failitate their growth and swift and ost effetive movement, it is imperative to reate international legal framework and also to streamline national proedures. A number of Conventions have been adopted over years to failitate international trade inluding ontainers. Important among these are disussed below. (i) Customs Convention on Containers (1972) This Convention is administered by the Customs Cooperation Counil. The objetive of the Convention is to failitate the use of ontainers in internationaltraffi. The ontrating parties allow free admission to ontainers subjet to their being reexported, normally within a period of three months. The import, both of loaded or empty, ontainers is granted without the need for Customs douments and without seurity or guarantee. However, the owners of ontainers have to be represented in the ountry and maintain full reord of the movement of eah ontainer whih, on demand, has to be made available to the ustoms. The Convention lays down proedure for approval of the design and atual manufature of the ontainer. Eah box has to have its individual distinguishing number, owner's name and other details. It has to be apable of simple and effetive sealing, and one sealed, it must not be possible to introdue or remove any goods without breaking the seal or leaving traes of tampering. 74

16 The Convention provides for the damaged ontainers to remain in the ountry subjet to duty being paid and the ontainer either abandoned or destroyed. Genuine spares/aessoriesrepairs/replaement. are allowed to be imported free of duty for The Convention allows use of ontainer for internal traffi one only on the journey whih brings it nearer to its point of export; The Central Asian and other ECO members onsider aession to this important onvention. (if they have not yet done so) may There are a few more Conventions whih although have wider overage but are very relevant to the ontainer traffi also. These Conventions are: (ii) Convention on Transit Trade of land-loked States of 1965 (New York Transit Convention} This Convention reognizes the freedom of the high seas for ountries who have no diret aess to the sea. The Convention provides that states situated between the sea and a land-loked state should allow the latter free transit through their territory, and should also aess and use of seaports. Goods in transit are not to be subjeted to ustoms duties or taxes. Charges for providing servies may be levied to over expenses. Adequate and timely transport and handling equipment at points of transhipment has to be provided. Operations suh as transhipment, warehousing, break-bulk, hange in the mode of transport shall be allowed. No disrimination is to be exerised whih is based on the plae of origin, departure, entry, exit or destination, or ownership of the goods or plae of registration or flag of vessels, vehiles and other means of transport. The ontrating party is not bound to permit transit of persons whose admission isforbidden. Goods prohibited on grounds of seurity, morals, publi health et. will also not be allowed. This Convention though no exlusively meant for ontainers is of immense relevane bause by ombining sea-um-land routes, full benefits of ontainerization and ost-savings in transportation an be realized. (iii) Customs Convention on the International TransDort of Goods under over of TIR Carnets (TIR Convention) of 1975 This is one of the Conventions whih have led to substantial inreases in transport effiieny and ost savings and is today widely being used in different regions of the world. 75

17 )nternational.national The Convention is being kept up-to-date through amendments. For example, in September 1987 a multimodal TIR Carnet was made available for use. Under the Convention some part of the journey has to be performed by road. The objetive of the Convention is to failitate the international arriage of goods with the minimum of interferene by Customs en route. It provides that goods shall be arried in ontainers or in vehiles whose load ompartment is so onstruted that there shall be no aess to the interior when seured by the ustoms seal. If tampered, results will be visible. Guarantee sstem Contrating Parties are required to approve in their territories assoiations whih belong to international guarantee hain. Suh hains issue arnets for use by the guaranteeing assoiations. (iv) Convention Goods (1982) on the Harmon.iation of the Frontier Control of The aim of the Convention is to failitate the international movement of goods by reduing the requirements for ompleting formalities as well as the number and duration of ontrols. The Convention overs:- (a) Harmonization of Customs and other ontrols; (b) Medio-sanitary inspetion; () Veterinary inspetion; (d) Phytosanitary inspetion; (e) Control of Compliane with tehnial standards speified by relevant laws or regulations; (f) Quality ontrol. For ommon land frontiers the Convention suggests a system of joint ontrol of goods and douments through the provision of shared failities and onurrent working hours of ustoms and other ontrol bodies at hek posts. initiatives To obtain full benefits of ontainerization, the relevant international Conventions have to the translated into national laws to make them legally enforeable instruments. Besides, onsious poliy effort is also required to promote and failitate ontainerization. Following measures are suggested in this regard. The Customs, whih have a major role to play in ontainerization, should lay down lear instrutions for the inland movement, handling, stuffing/de-stuffing of ontainers and the kind of safeguards required to be taken. Suh instrutions should over fatory stuffing/destuffing of ontainers, ost of providing Customs Servies and so on. Guidelines need to be formulated for the setting of ontainer freight-terminals or ontainer freight-stations as ommon user failities. As the Central Asian 76

18 Countries are moving towards market eonomy, the private setor may be allowed to set-up and run suh failities under Customs supervision. Usually a single-window mehanism for learane of proposals for establisment of failities by the Government is found useful in utting delays. In this mehanism, the potential entrepreneurs do not have to approah the various government departments separately. Developing the institution of multi-modal operators in the ountry is useful in promoting ontainerization. The priniples outlined in the Convention on International Multimodal Transport of Goods (198) provide good guide for national legislation. The possibility of setting up joint-ventures with the involvement of state enterprises may be useful in this regard. Conlusion of transit treaties with ountries of the Islami Republi of Iran, Turkey, Pakistan and China who have oastline is strongly reommended for onsideration. Suh treaties an be based on the Convention on Transit Trade of Land-loked states, (New York, 1965) and some of the suessfully operative bilateral transit treates like that of Indo-Nepal. To obtain full benefits of ontainerization, national laws and proedures must also be streamlined to failitate inland movement of ontainers and their stuffing/destuffing near the door steps of the users. This would require provision of ustoms learane faility at approved inland ontainer depots and ontainer freight stations as also at the works of established enterprises. Containers to and from these plaes may be allowed to be moved by both road and rail with minimum of restritions in the form of guarantees/deposits. 5.4 Measures to Improve Border-Crossing Transport Central Asia has 14 road and 3 rail border rossing points with its immediate neighbours in the eastern and southern orridors. The transport infrastruture is under further development and more border rossing points are expeted to open up in the nearfuture. In order to failitate movement of traffi aross the borders, a large number of bilateral and multilateral agreements have been entered into by the Central Asian ountries between themselves and with others. Analysis of suh agreements has been done in the preeding setions of this Chapter. The various agreements have undoubtedly reated legal basis and helped in the transportation of goods and passengers aross the borders. However, keeping in view the multitude of issues whih are inevitably involved in international transit-traffi, more so in respet of land-loked ountries, additional measures need to be taken to provide sound basis for the transit of goods, vehiles and operators aross the multiple borders. These are disussed below: (i) Aession to International Conventions Following table 5.2 indiates the position of aession of Central Asian and its neighbouring ountries to various vital International Conventions refleted in the ESCAP Resolution 48/11 on road and rail transport modes in relation to failitation measures: 77

19 " >- -- :5 on O"O ;.,: C u"'o o--'" ) o"o E(:J()<D' ;.,Eo,.1 () > -C) -"' -"::'" ().E'" () o '"'CoO.,,- >-.. ON;' CIn O t)c -t)oco..1:: 'ON > OI"Oi(!).,.e Oi-u. - Eo "Q CII) > "+C - II) () " " (.) - " I li)o E() >... om'",,'"""')"- IV C "+IV C,, C/).: " --a C:2:' : II) O-a-' Co..u.'" '" Oa:a:II) - --., t).:o> :3:E1:: >f-co > : E E () - t) "in C/) (,) (,) "'I%:. -1,,-- "- "'o"o E o-!!.,,:;:;,,",>,,!'- -om ",:;:;,,> ",,o.>m.>a. > " " -".> '" I.> I- " m"o " " '" IJ) a: 2' O(/) ) '" I "OW oco> ""'" ><1 IJ) >.-C) u(/) '" "C a: Cu Ole'" "' O :.-I- > U I C ::J.-: In..In -..: In -.: C N..>. UI-I : - >.. E 2'.." 78..= "C " ' LL () m -mlr.. um"'--. tv m "E : : 'In N :.9 '" m. C)m"'" N"C_-m" ::J«a.t- 'iq' "t:., : i u E o in m. > '" " OC I

20 As already reommended in ESCAP Resolution No. 48/11, the ountries may onsider aeding to these Conventions on priority basis, as it would help in bringing about uniformity, streamlining proedures and formalities and provide legal base. (ii) Aession to international Transit Conventions Existing status of aession to the above onventions is indiated below: Table 5.3 Aession to international Transit Conventions Country Central Asia Kazakhstan KyrgyzstanTajikistan Convention and Statute on Freedom of Transit, 1921 (Barelona Transit Convention) Convention on Transit Trade of Land-loked States, 1965 (New York Transit Convention) Turkmenistan Uzbekistan Adjaent Countries Afghanistan Azerbaijan China Islami Republi of Iran Pakistan Russian Federation x x x Turkey x x Transit Conventions have been evolved keeping in view the geographial handiaps of the land-loked ountries. Aession to them should be onsidered favourably both by the Central Asian and their adjaent ountries. (iii) Conlusion of bilateral Aareements Several bilateral agreements have been signed to regulate road and railway traffi. The table 5.4 below gives the position of agreements as per information available: 79

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