You are using an older browser version. Please use a supported version for the best MSN experience.

India ratifies TIR Convention to access transnational multi-modal connectivity

LiveMint logoLiveMint 19-06-2017 Utpal Bhaskar

New Delhi: India ratified the Transports Internationaux Routiers or International Road Transports (TIR) Convention, IRU, the global road transport organization said in a statement on Monday.

The multilateral international transit treaty—Customs Convention on International Transport of Goods under cover of TIR Carnets—is also referred to as the TIR Convention and functions under the auspices of the United Nations Economic Commission for Europe (UNECE).

It will help India access transnational multi-modal connectivity and play an important role in the proposed transportation architecture in the region and beyond in the backdrop of India recently ratifying the trade facilitation agreement (TFA) of the World Trade Organization (WTO).

India became the 71st signatory to this international transit system, designed to facilitate the seamless movement of goods throughout the countries in Asia and Europe

TIR will help facilitate India’s trade with its eastern and western neighbours and comes against the backdrop of China’s ambitious “One Belt One Road” initiative aimed at connecting some 60 countries across Asia, Africa and Europe to boost trade and economic ties on the lines of the Silk Road, an ancient maritime route.

India became the 71st signatory to this international transit system, designed to facilitate the seamless movement of goods throughout the countries in Asia and Europe. Interestingly, the two countries which signed TIR before India were Pakistan (2015) and China (2016).

“On the eastern front, it will help India to integrate with Myanmar and Thailand as well as Bangladesh, Bhutan and Nepal. On the western front, it will enable India to move cargo along the International North-South Transport Corridor via Chabahar port in Iran, to access landlocked Afghanistan and the energy-rich Eurasian region,” the statement said.

The Union Cabinet in March approved the signing of the TIR Convention by the Indian government.

Chabahar port in Iran being developed by India is expected to play an important role in this evolving transportation stratagem. The port is located on the Gulf of Oman, near Iran’s border with Pakistan and will allow India access to landlocked Afghanistan and energy-rich Central Asia through Jawaharlal Nehru and Kandla ports on India’s west coast.

"India’s decision to implement the TIR system will have far reaching benefits for trade and will save significant time and money by streamlining procedures at borders"- Boris Blanche, chief operations officer at IRU

“The TIR system secures customs duties and taxes and provides a robust guarantee mechanism, thereby reducing trade transaction costs, and facilitating higher growth of intra-regional and inter-regional trade,” the statement added.

TIR will also help India move goods along the International North-South Transport Corridor (INSTC)—an ambitious multi-modal transportation established in 2000 by Iran, Russia and India to promote transportation cooperation. INSTC is to connect the Indian Ocean and Persian Gulf to the Caspian Sea through Iran and then onwards to St. Petersburg and northern Europe through Russia.

India has been putting in place the building blocks for its transnational multi-modal connectivity plan. This includes a proposed passenger ferry service to Bangladesh, a plan to operationalize the Trans-Asian Railway (TAR) route of Dhaka-Kolkata-Delhi-Amritsar-Lahore-Islamabad-Zahedaan-Tehran-Istanbul, India-Myanmar-Thailand Trilateral Highway project, as well as the Bangladesh-Bhutan-India-Nepal Motor Vehicles Agreement.

####SUBBOX####

“I am delighted to welcome India into the TIR family of nations. This is an important step in harmonising standards and boosting transport, trade and development across South Asia,” Umberto de Pretto, IRU secretary general said in the statement.

“India’s decision to implement the TIR system will have far reaching benefits for trade and will save significant time and money by streamlining procedures at borders, reducing administration and cutting border waiting times,” added Boris Blanche, chief operations officer at IRU.

More From LiveMint

image beaconimage beaconimage beacon