TIR carnet is a customs document that is issued in the country of origin for international transit of goods and makes the goods be and remain sealed as passing through the intermediary countries. A convention related to the transformation of the good over roads named TIR carnet was formed through the initiation of The International Road Transport Union (IRU) in 1959 to facilitate international goods transportation and eliminate customs formalities, and it was replaced by another convention holding the same name in 1975.
The goods passing through the country without being inspected must go through some measures in the country of origin including:
- Sealing the vehicle carrying the goods in the customs of origin after drawing up the declaration and inspecting where the sealing is done using polish and lead seal. Also, both parties to the convention send the picture of the seal to each other to prevent any violations.
- Implementing the protective instructions for different chambers and containers to prevent any type of smuggling
- The vehicle should also comply with the standards of the convention.
- Providing for and covering any type of risk in customs law and duties along with the travel by the guaranteeing organization
- In most cases the customs formalities make the vehicle delay reaching the destination, thus exerting extra costs, even there is a possibility that the goods be damaged during inspection or the goods be stolen.
- Installing the rectangular plate holding the TIR sign in front of and at the back of the sealed car.
- The letter of guarantee or a cash deposit should be put up depending on the type of goods.
What is TIR carnet?
TIR carnet is an international agreement applied to facilitate quick transportation of goods from a third country to the country of destination. In fact, it is an international land transit agreement that aligns with TIR convention regulations, the names of the authorized customs of origin and those of destination and the authorized routes for the transit goods to be transported through are determined by the customs officials in advance, and the freight does not need to go through customs formalities and inspections on the routes through different countries.
The countries accepting this agreement should appoint a certain organization to issue a license so that the drivers can go through the route they are to travel without the need to perform the customs formalities in other countries that are members of this agreement.
Particulars of TIR carnet document
TIR carnet is published in French and it may include some extra pages like the translation of the carnet text into the language of the issuing country. According to this convention, a document, for international transit of goods, named TIR carnet is issued along with the TIR manual.
The people involved in the convention are bound to hold an organization to issue TIR carnet and guarantee the costs resulting from the violations.
A TIR carnet is issued for the goods carried by each vehicle, that is, a combination of vehicles or for some containers that are loaded on a vehicle or a combination of vehicles, that is only valid for one travel.
The number of detachable documents to control customs and clearance documents have been mentioned for transportation operations. The number of the sheets used in this document varies between 6 to 20 sheets depending on the countries between the origin and destination. The specifications of the goods are written on the sheets that are called volets.
If the goods are supposed to only pass through the customs of origin and the custom of destination, TIR carnet should at least include two sheets for the origin and two sheets for the destination and two other sheets for any other country the goods pass through, and there is a need for two other sheets for any extra sites used for loading and discharging the goods; numbers 1 and 2 has been inserted on these carnet sheets.
The goals of TIR carnet
All systems seek to achieve some particular goals and the following goals can be mentioned as the goals of the TIR carnet system:
- In this system, there is a possibility that the goods be carried through the roads with TIR carnet and they continue to be carried without the need to provide extra guaranteed to the customs on the roads from the origin to the destination.
- Better facilities for commercial transportation.
- Decrease in the road travel costs and also decrease in the delay in the transit system operation of TIR carnet.
- The possibility to purchase goods according to the uniform and standard methods in controlling and supervising.
- Similar control and supervision under the contents of the TIR carnet Convention.
- Promotion and development of international road transport and trade.
- For the transportation industry, the goods pass through the border involving the least intervention of competent authorities.
- Decrease in delay and costs of goods transit.
- Simple and standardized documents to provide customs guarantees in the inbound borders to the customs.
- Guaranteeing the customs rights and duties up to $50000 in the TIR carnet system.
- Only competent authorized transportation companies are allowed to use the TIR system which increases system security.
- Decrease in the need for physical control of the transit road.
- Provision of better facilities to control documents by customs.
Advantages of TIR carnet system
- Preparing a proper, trustworthy, and acceptable ground for the countries to guaranteed the customs rights and duties and to facilitate transportation and simplify customs formalities
- Facilitation of movement of possessions without the need for uniform and standard methods and customs formalities particular to each country
- Minimization of the misuse thorough opening the freights and substituting them or the risk of robbery or other probable damages in the TIR system
- Prevention of unauthorized interventions
- Observing the national rules and regulations of each country
Principles of TIR carnet system
The items comprising the TIR carnet system:
- Container security or road vehicle, that is, the container or the loading segment of the vehicle is made to be able to carry transit freights leaving no room for manipulation. Therefore, the possessions can only be carried under the coverage of TIR carnet that the vehicle or containers comply with TIR convention standards, and be accepted by the customs as they are.
- International Guarantee System has been established to protect customs rights, duties, and taxes. Therefore, the rights and customs that are claimed by the customs are covered by a series of international guarantees.
- The third principle is TIR carnet, the carnets are now provided by ISO organization certain conditions stipulated in the signed contracts with guarantor institutions of different countries as the other party, and they are exempted from importation limits, and the customs rights and duties.
- Uniform cooperation to control customs
- Additional controls
- Making TIR and electronic declaration safe in advance
Methods related to TIR carnet management
1- Using TIR carnet causes a lot of financial risk for the institute. As a result, the institution has determined a virtual capacity for the working TIR carnets to limit the risks arising from this.
For example, the number of TIR carnets that can be used by the holder at any time (issued for the holder of TIR carnet, but not referred to them), this capacity can be decreased or increased at any time at the institution’s discretion.
2. At the time when taking action and referring to the institution, to attach to TIR carnet, the institute demands you some information including the company’s name, registration code, ownership, and the names of stockholders and partners.
The names that are provided to the institution as attaching to the TIR system, should be complete and update.
3. Execution and control of TIR operation requires some particular information on the usage of TIR convention content on the part of the company and driver. If TIR transportation is not used, the institute can suspend the activities connected with the use of the TIR carnet, or implement some other actions to examine and detect the knowledge level of personnel of the company.
4. You, as the holder and to preserve the interests of the company, are bound to keep all records of the issued TIR carnet with full particulars of each travel for at least five years and these records must at least include the following items:
* Serial number of TIR carnets
* Date of reception of TIR carnet
* The number of the truck that is used to perform TIR carnet carriage operation
* Names of drivers
* Date and place of loading
* Route of the goods to be carried
* Name and address of the customs of destination, the point where a certificate of termination of TIR operation is received
* Date of presence in the destination or departure customs
* The date when TIR carnet is referred to the institution along with the referral method, that is, if through posting, registered mail, manual, etc.
You should have with you all documents (CMR or other goods documents that are signed by the sender, factors, warehouse receipt, goods delivery receipt, goods origin certificate, entrance receipt be customs area, etc.) indicating the soundness and dynamics of goods delivery to the destination customs or the probability of importation or giving the goods to under customs regiments. The above-mentioned documents of TIR carnets must be provided immediately at the request of the institution.
5. In case of observing any problem with the goods or freight in the destination customs department or departure point, you must take action according to the procedure to address the violations, problems and not receiving TIR carnet full settlement, and if you are unable to refer the document to the institution for any reason, you must act according to the rules of TIR carnet referral to the institution. Suspension, deprivation, and termination of operation permit in TIR procedure.
6. You accept and confirm, by signing a contract declaration, that the institution will be entitled to suspend TIR at any time and without issuing a declaration or any notifications based on the principles and contents of your activities as defined in the system.
7. In addition to the conditions listed in the contract declaration, the institution can declare its regulations concerning the suspension conditions using TIR carnet.
8. The workforce and insurer of the TIR system can cancel the activities of the holder of the TIR carnet in the system and the guarantor institution is bound to carry out the decisions.
9. In case of permanent suspension, you are bound to immediately return all TIR carnets you have. In case of temporary suspense, you must take action according to the institution’s instructions.
10. In case of permanent suspension, if all TIR carnets issued by the holder of the TIR carnet are not returned to the institution, the institution will make them void from the suspension date. Of course, the institution can also take action under some particular conditions to discredit the TIR carnet over the temporary suspension period.
11. According to Article 38 of the TIR Convention, Iran Customs Head Office as a party to the contract can suspend the activities of the holder of the carnet either temporarily or permanently in the TIR system at its discretion. If the institution or the insurer of the TIR system finds it necessary, the deprivation of the holder in the country can be imposed along with the suspension of the use of TIR carnet and discrediting the TIR carnets that have not been returned.
12. According to Article 4, 6 of the TIR Convention, the customs authorities of the country can fully terminate your license in the TIR procedure in which case the institution will declare all TIR carnets owned by the company as void.
13. Suspension, deprivation, or termination of operation permit in TIR procedure can go with the blockade of guarantees provided to the institution.
Method of filling out TIR carnet form
TIR carnet includes the page on the document’s cover, the yellow manifesto of non-customs goods, a pair of white and green volets, a confirmed report, and the last volume with the detachable stub of the check.
TIR carnet 6 and 14 of volet is available. Every TIR operation requires a pair of volet (1 white sheet, and 1 green sheet).
Some points about filling out the form
Pay attention to the following tips when filling out the form:
1. It is not allowed to delete or rewrite anything in the TIR carnet.
The mistakes should be marked by a multiplication sign and the correction of the mistakes should be confirmed by the customs authority.
2. The information on any car or container should be mentioned separately with the registration number.
3. The date mentioned in the TIR carnet should include year/month/day format.
4. The customs office should determine its name and place (if necessary)
If you were supposed to have to let the detectors detect the freight you are carrying to another country at each customs checkpoint, to gain their permission to enter any given country, it would be very time-consuming. In this case, there would be also the probability that the freight is damaged or even be robbed and the goods couldn’t reach the destination sound and safe. However, TIR carnet provides both the seller and buyer peace of mind and lets the loads reach the destination without any further ado. Contact our experts in GTGTRADE Commercial Firm for counseling.