The Union Cabinet on 6 March 2017 gave its approval for India's accession to the Customs Convention on International Transport of Goods under cover of TIR Carnets (TIR Convention).
The approval was given at a meeting of the Cabinet chaired by the Prime Minister Narendra Modi in New Delhi.
How accession to the Convention will benefit India?
• By joining the Convention, the need for inspection of goods at intermediate borders as well as physical escorts en route shall be obviated due to reciprocal recognition of Customs controls.
• Indian traders will have access to fast, easy, reliable and hassle free international system for movement of goods by road or multi-modal means across the territories of other contracting parties.
• Customs clearance can take place at internal Customs locations, thereby avoiding clearances at border crossing points and ports that may often be congested.
• Movement under the TIR can be allowed by checking only the seals and the external conditions of the load compartment or the container.
• This procedure will reduce border delays, transport and transaction costs, thereby leading to increased competitiveness and growth of the trade and transport sectors.
• Compliance with the Convention shall ensure enhanced security in the supply chain as only approved transporters and vehicles are allowed to operate in terms of the Convention.
• As the TIR Carnet represents a guarantee for Customs duties and taxes and traffic in transit, there is no need for payment of such taxes and duties en route.
• The TIR carnet also serves as a Customs declaration, and hence it precludes the need to file multiple declarations satisfying national laws of the different transiting countries.
When: 6 March 2017