India to position itself as Regional Trade & Transit Hub; inks UN TIR pact

Posted by Daily Shipping Times on 21-06-2017        Tweet

NEW DELHI: India became the 71st Country on Monday, 19th June 2017 to join the United Nations TIR Convention, the International Customs Transit System, to position itself as a Regional Trading and Transit Hub.

The TIR system is the International Customs Transit System with the widest geographical coverage.

As other Customs transit procedures, the TIR procedure enables goods to move under Customs control across International borders without the payment of the duties and taxes.

TIR Convention is more than a transport agreement and has a strong foreign policy element.

Welcoming India into the global transport arrangement, Umberto de Pretto, the Secretary General of IRU which manages the TIR Convention, said that India's accession would have a big impact on regional connectivity. "TIR can help implement the Bangladesh-Bhutan-India-Nepal (BBIN) Motor Vehicles Agreement by addressing policy incompatibility among the BBIN group. For example, Bangladesh does not recognise insurance policies made in India, Nepal or Bhutan. With TIR, there would be no need for bilateral arrangements as guarantors are covered by the global guarantee chain."

One of the persistent problems for India's connectivity projects has been the disconnect between transport and customs systems with different countries.

Once the systems are integrated with global norms, India reckons it will become easier to service African and Asian markets when the DMIC (Delhi-Mumbai Industrial Corridor) comes online.

It will breathe life into the International North-South Transport Corridor and the Chabahar project that India has been working on for some time.

China joined the TIR in 2016 when its giant inter-regional connectivity projects began to take off. As India ramps up its connectivity ambitions this is a necessary step. For instance, the BBIN motor vehicles agreement needs this convention to make it operational.