ISLAMABAD: Accession to the Customs Convention on the International Transport of Goods (TIR Convention) has come at a good time as work on the China-Pakistan Economic Corridor is underway, Commerce Minister Khurram Dastagir Khan said on Thursday.

“The prospects of enhancing trade with Iran after lifting of sanctions have become a perceptible reality,” the minister observed.

He was addressing a seminar, ‘Pakistan’s recent accession to TIR Convention and its Implementation’, organised by the Ministry of Commerce.

The convention will open the way for traffic-in-transit of goods across borders with countries in the region, entailing no payment of customs duties and taxes. It will become effective from January 21, 2016.

On July 21, the United Nations also accepted Pakistan’s instrument of accession to the TIR Convention. As many as 68 countries have acceded to the convention so far.

Replying to a question, the commerce minister said that accession to the TIR Convention will provide a great opportunity for Pakistani trucking and freight industry to upgrade and expand its fleet.

Accession to the TIR Convention will create new corridors, linking Central and South Asia as well as China with Turkey and Europe which in turn will enhance Pakistan’s connectivity in the region.

In his inaugural address, the commerce minister said that Pakistan’s geopolitical location in the heart of main North-South and East-West corridors makes this region a natural bridge between Asia and Europe via its transport communications.

The convention provides that goods would be accompanied by an internationally accepted customs document (TIR Carnet), opened in the country of departure and serving as a customs control document in the countries of departure, transit and destination.

Pakistan National Committee of International Chambers of Commerce Chairman Tariq M. Rangoonwala said the TIR system has six core pillars: secure vehicles or containers, international guarantee chain, TIR Carnet, reciprocal recognition of customs control, controlled access by Customs and International Road Transport Union and TIR IT risk management tools. He said that the WeBOC is an effective and efficient customs operations system with appropriate portals to accommodate international transit movements.

Published in Dawn, August 28th, 2015

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