New Study shows how TIR, the World’s only Universal Customs Transit System, can Radically reduce Trade Costs in Africa

logo-1Since 1949, TIR has made international freight transits faster, more efficient and more secure, helping increase trade, boosting economic growth and making communities stronger

Asia 728x90

GENEVA, Switzerland, September 29, 2016/ — The International Road Transport Organisation (IRU) (https://www.IRU.org) report, “Transit costs in East and Southern Africa” clearly demonstrates how African countries implementing the TIR Convention can reduce the costs of trade in southern and eastern Africa thus saving billions of dollars and increasing GDP in African countries.

Since 1949, TIR has made international freight transits faster, more efficient and more secure, helping increase trade, boosting economic growth and making communities stronger.

With TIR, goods are contained in sealed load compartments, and the contents are detailed in a TIR Carnet. This essential document accompanies the driver and the cargo along its journey. Customs simply have to verify the Carnet and that the seals are intact, rather than spend time to open the container and physically check the load.

Umberto de Pretto, IRU Secretary General said “Some of the world’s highest trade costs can be found in Africa and the world’s road transport organisation, IRU, is working to support governments and the private sector to reduce these costs.”

He continued “The report results show that TIR is up to 16 times less expensive than the national bond system on the Northern Corridor between Walvis Bay and Lubumbashi, and is also substantially more cost efficient on the three other African trade corridors in the study.”

The report unequivocally concludes that the TIR system is the most cost effective transit bond method and could be deployed on all trade corridors in Africa.

TIR, the world’s only universal customs transit system and one of the most successful international transport conventions, has a big role to play in reducing the costs of trade. TIR makes border crossings faster, more secure and more efficient, reducing transport costs, and boosting trade and development.

The TIR Convention is gaining momentum with government authorities and businesses on Africa’s trade corridors. IRU is working closely with stakeholders in Kenya, Uganda, Tanzania, Zambia and Namibia to analyse the potential benefits of TIR and to work towards accession and implementation.

The report analyses the comparative costs of using a national bond, the Common Market for East and Southern Africa (COMESA) Regional Customs Transit Guarantee (RCTG) Carnet, and the IRU TIR Carnet, for two types of cargo (containerised load and tanker transporting liquid bulk).

The comparisons are along four major transit corridor routes; namely North South Corridor (Durban to Lubumbashi), Walvis Bay-Ndola-Lubumbashi Corridor, Dar Corridor (Dar es Salaam to Lubumbashi) and the Northern Corridor (Mombasa to Kigali).

Distributed by APO on behalf of International Road Transport Organisation (IRU).

About IRU Report: Transit costs in East and Southern Africa
IRU commissioned this report (http://APO.af/PpB9a5) to analyse the comparative costs of a national bond. This final report is submitted by Michael Laurence Fitzmaurice, a consultant based in Port Elizabeth (South Africa). The report describes the methodology and approach adopted by the consultant in undertaking the analysis and provides detailed cost comparisons between the three different methods of acquiring guarantees for goods in transit to meet the requirements of the different revenue authorities.

The study methodology included contacts with reputable clearing agents who were approached for information on how national transit bonds are applied and costed along the different corridors.

The two categories of cargo used for comparisons in each case were;
a) 1x 40ft container of tyres with value USD 100,000
b) 1x road tanker of diesel fuel with value USD 30,000

About IRU:
IRU (www.IRU.org) is the world’s road transport organisation, promoting economic growth, prosperity and safety through the sustainable mobility of people and goods. Founded in 1948, IRU has members and activities in more than 100 countries.
www.IRU.org

About TIR:
The world’s only universal customs transit system and one of the most successful international transport conventions, TIR makes border crossings faster, more secure and more efficient, reducing transport costs, and boosting trade and development.
Building economies, driving prosperity

IRU started the TIR System in the late 1940s, helping a war-torn Europe to rebuild devastated trade and commercial links.
By 1959, the successful system led to the United Nations TIR Convention, still in place today with almost 70 contracting parties – nations and multinational bodies – on four continents, and overseen by the United Nations Economic Commission for Europe (UNECE).
With the continued expansion of TIR, and the benefits it has brought across the Eurasian landmass, many countries in Africa, Asia, the Middle East and South America are now joining the system.

SOURCE
International Road Transport Organisation (IRU)

Print Friendly, PDF & Email