India's accession to the Customs Convention on International Transport of Goods approved
Accession to the TIR Convention does not result in any direct financial implication for India as it pertains to India's accession to an international convention.
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.