Saudi Arabia will join the TIR (International Road Transport) convention on November 18, 2018
A TIR carnet makes it possible to transport goods across the borders of affiliated countries, without having to unload them.
The carrier does not have to pay a deposit. The customs authority to visit goods continues to exist, although this may only be used in exceptions (Article 5 and 23 TIR Convention). The goods are loaded at the time of departure in a well-sealed location. Subsequently, checks on goods will no longer take place at border crossings between affiliated countries. The border formalities are limited in validating new sheets of the TIR carnet. The center of gravity of the inspection therefore lies in the loading and departure part (Article 2 TIR Convention).
You can find specific information about the use of TIR for Saudi Arabia on the website of the European Commission. One of the advantages of the TIR Carnet is, among others, that goods are not subjected to payment of duties or levies on import or export at border crossings (Article 4 TIR Convention).
The International Road Transport Union
The issuing authority is the International Road Transport Union / Union International des Transports Routiers (IRU) in Geneva. This authority releases the carnets to the its users through the national guarantee organizations. TIR carnets cannot be issued in a Member State of the convention if there is no national federation established.
Issuing organizations must be accredited by the customs authorities. In the Netherlands, Transport en Logistiek Nederland (TLN) is the organization that guarantees the correct use of the scheme. The TIR issuing authority is the Nationale en Internationale Wegvervoer Organisatie (NIWO). The TIR carnet is usually published bilingual: both in English and in French.
A transport transaction of a single carnet may comprise a maximum of four customs offices of departure and destination. The actual number of copies / vouchers varies depending on the number of transit countries. The number of vouchers in the carnet must be stated on the front page.
The TIR agreement is based on an international system of guarantees. The amount of the comprehensive guarantee per TIR carnet, which reflects the full amount or a certain part of all customs duties and other charges, is EUR 60,000. Even tough individual guarantees are possible, the national guarantee association usually guarantees transport and therefore no actual down payment is required. Goods carried under a TIR carnet shall be deemed to be non-Union goods unless their Union status has been determined. Certain goods, however, can be considered as sensitive goods and can therefore temporarily be excluded from TIR coverage.
The TIR contract
In order to qualify for TIR carnets, you must first be registered as a TIR contract holder. The TIR contract will be sent to you by the NIWO in duplicate for your application for signature. By signing the contract, you automatically accept the conditions stated in the TIR agreement. The TIR agreement is also known as the TIR declaration of engagement:
'Declaration of acceptance of obligations by the transport company for admission to the TIR system and for the authorization of the use of ordinary Carnets-TIR' (Source: NIWO)
Are you interested in more information about the TIR carnet? Please visit the following useful websites:
- IRU (the global industry association for road transport)
- Overheid (substantive legal text of the agreement)