Claims and loss prevention in international road transport Geneva, 10 November 2010
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1 Claims and loss prevention in international road transport Geneva, 10 November 2010 Marek Retelski Head TIR Department International Road Transport Union (IRU) 2010
2 This is the IRU
3 Evolution of IRU Membership Created 1948 National Associations from 8 founding countries Belgium Belgium Denmark Denmark Norway Norway Sweden Sweden France France Netherlands Netherlands UK UK Switzerland Switzerland Members 74 Countries Page 3 International Road Transport Union (IRU) 2010
4 Activities of IRU Through its national associations on every continent, the IRU speaks for the entire road transport industry. In all international bodies that make decisions affecting road transport, the IRU acts as the industry's advocate.
5 The IRU and TIR System
6 Geographical scope of the TIR Convention 68 Contracting Parties 57 TIR Operational Countries 2 Contracting Parties in admission process 3 In negotiation process 6 Interested Parties TIR Carnets Issued/Year 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000, , Year
7 TIR system is The only transit system with a world-wide wide coverage. TIR is an international transit system for goods. It can be applied for multimodal transports whenever one leg is carried out by road.
8 TIR system is 57 TIR operational countries Around 3 mio of the TIR transports per year Less than 0.010% of irregularities leading to claims per year
9 Benefits of the TIR System Facilitates trade through the implementation of harmonised controls & documents Ensure the secure and sustainable development of international trade (controlled access, traceability) Through mutual recognition of Customs Controls and the guarantee, transport costs, formalities and delays are reduced.
10 IRU s Role in TIR Mandated by the Contracting Parties to the TIR Convention to centrally print and distribute TIR Carnets and to take on the responsibility for the effective organisation and functioning of an international guarantee system Article 6.2bis, TIR Convention
11 TIR Claims
12 TIR regular transport Customs office of departure OUTWARD TRANSIT Customs office THROUGH TRANSIT of exit Customs office International of entry Customs office of exit Customs document and International financial guarantee INWARD TRANSIT Customs office of destination Start of TIR transport End of TIR transport
13 What is TIR Claim? Claim by customs authorities In connection with an irregularity during TIR transport (TIR transit operation) Theft of cargo Fraud/smuggling Provided state incurred financial loss in a form of unpaid customs taxes = customs debt Transported cargo did not arrive to designated customs office Principal debtor (transport operator) has not paid the customs debtd Presented by national customs authorities to national guaranteeing ng associations (IRU memeber associations) following the procedure set forth by the TIR Convention
14 Typical claim situation in road transport s e i t i l a m r o f ct e r ut r o d Co e carri Custo ms O Desti ffice of nation?
15 Page 15 International Road Transport Union (IRU) 2010 Claims procedure In case of irregularity Customs shall Conduct investigation, require payment of the Customs debt from the principal 1 debtors Present valid timely notification of claim 2 Present claim for taxes and duties 3
16 Claims handling Assessment of the legitimacy of a claim Irregularity has occurred under the TIR procedure Irregularity has occurred in the claiming country Irregularity gave rise to a Customs debt Claims procedure respected by customs Decision on settlement of the valid claim or on contestation of invalid claim Communication with the principal debtor (transport operator) urging to settle customs debt Payment of the claim Recovery from the transport operator
17 Page 17 (c) International Road Transport Union (IRU) 2010 Vyborg series example of invalid claims The major claims series of recent years: 605 transport from Finland to Russia Manipulations by Customs officers, electronic data proving regular termination of transit operation destroyed IRU received 605 notifications and claims 30 million USD 200 Court proceedings in Russia 100 % success
18 Risk Management and Loss Prevention
19 Page 19 (c) International Road Transport Union (IRU) 2010 Computerisation Since 60 years, IRU has always been working to reinforce the security of the TIR System through its computerisation: By developing free of charge, easy-to to-use, secure application for submitting pre-declaration (advance cargo information) By computerising the exchange of transit termination data and invalid TIR carnets (transit declarations) data amongst Customs, Associations and IRU By making available for Customs, online and free of charge, the statuses of all TIR carnets (CUTE-Wise)
20 Page 20 (c) International Road Transport Union (IRU) 2010 Real-Time SafeTIR (RTS) Allows real-time transmission of data and immediate detection of fraud Customs query mechanism allows real-time check of the validity of the TIR Carnet at any customs point RTS first implemented in Russian Federation in 2006: this allowed the diminution of irregularities from per year down to 10!
21 IRU FCS Real Time SafeTIR The status of the TIR Carnet is: Valid (with the following details: Holder ID, validity date, Issuing Association name) Invalid Not issued/false/other situations IRU Geneva What is the status of the TIR Carnet? GNIVTs Moscow SafeTIR data Real Time SafeTIR: The association can issue in security The Customs can take into charge the TIR Carnet in security knowing that the association has issued it in security Page 21 (c) (c) International Road Road Transport Union Union (IRU) (IRU)
22 Electronic TIR Pre-Declaration 2 (NCTS/TIR) Pre-declaration Pre-Declaration 1 TIR 2 1 Fulfils two requirements: Electronic pre-declaration Computerised exchange of information TIR Transport Madrid TIR - One guarantee - One regime - Independence
23 Page 23 International Road Transport Union (IRU) 2010
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