Workshop on Strengthening

Transport Connectivity among

CLMV-T

Yangon, Myanmar

9-10 October 2018

Paperless Transit Transport System

Sandeep Raj Jain

Economic Affairs Officer

Transport Facilitation and Logistics Section

Transport Division

Outline

WHY paperless customs transit transport system are

getting important in transit transport facilitation?

HOW does the paperless transit transport system work?

WHAT can countries do to develop an automated customs

transit transport system?

About United Nations ESCAP

ESCAP is one of five regional commissions of United Nations. Other

four are in Europe, Africa, Latin America and Middle East.

Mission is to work with our member countries for their social and

economic development that is inclusive, equitable and sustainable

and help them achieving SDGs

Vision: to be the most comprehensive multilateral platform for

promoting cooperation among member States to achieve inclusive

and sustainable economic and social development

Also a pre-eminent inter-governmental organization in the region to

forge norms, agreements, policies on inclusive and sustainable

development; generate innovative research and analysis; and serve as

regional platform for development knowledge and capacity

development

Background

Study on paperless transit under the project found that the only operational

paperless systems were NCTS and ACTS:

(https://www.unescap.org/resources/monograph-series-transport-facilitation-and-

logistics-development-asia-and-pacific-study)

Guide on paperless transit systems to expand the knowledge of stakeholders

in designing and implementing such systems

(https://unnext.unescap.org/content/guide-paperless-transit-training-manual)

Guide on establishing an automated customs transit transport system have

been finalized detailing technical design of the system

(https://www.unescap.org/resources/guide-establishing-automated-customs-

transit-transport-system)

ESCAP role

Integration with Secure Cross border Transport Model further reduction in

guarantee requirements

Why paperless transit transport systems?

Many international, regional, bilateral transit agreements exist to

facilitate transport -Article V of GATT 1947 recognized freedom of

transit

o Goods in transit not subjected to duties and taxes, but transit

countries reserve the right to be compensated for irregularities in

transit through guarantee/security for goods in transit

Establishing customs guarantee system proved challenging - TIR

convention 1975 was the first international legal instrument providing

for a robust guarantee system

Increasing level of integration, rising volume of transit transport /

transit frauds coupled with emergence of ICTs led countries of

European Union to develop a computerized transit system or New

Computerized Transit System

Why paperless transit transport systems?

Success of NCTS provided inspiration to ASEAN countries – ACTS

Mesoamerican countries -TIM

Vienna Programme Action for LLDCs

• Para 37 (c) modernize transit and transport facilities including

Customs and border facilities by fully utilizing the ICT

• Para 52 (b) encourages landlocked countries to promote use of

modern Customs practices including electronic transactions and

exchange of information

WTO Agreement on Trade Facilitation- many provisions of Article 11

on transit can be complied efficiently with automated transit system

o Pre-arrival filing and processing of transit declaration (11.9)

o Prompt termination of transit operation if the transit

requirements are met (11.10)

o Prompt discharge of guarantees (11.11.2)

How does paperless transit transport system work?

A single electronic Customs transit declaration and electronic processing of

the declaration

Exchange of electronic messages, between Customs authorities, at each

stage of the Customs transit procedure, including pre-arrival information

from the Customs office of departure/transit and destination

The possibility to print a Customs Transit Accompanying Document (TAD)

with bar code included, which provides secured yet easily readable

information at Customs offices of transit and destination

Automated termination and discharge of the Customs transit procedure

Electronic connection of economic operators to national Customs offices

Exemption for the means of transport from the need for a guarantee or a

Customs declaration

How does paperless transit transport system work?

Guarantee system

Integrated Customs information systems and guarantee management

systems with flexible guarantees and automated release of the guarantee

Simplifications and reduced guarantee for reliable traders

For regular procedures - individual guarantee

• Full amount of the potential customs duties and taxes covered

• In form of bond (bank guarantee) or vouchers for an amount of EUR

10,000 (and multiple)

For simplified procedures – comprehensive guarantee

• Up to reference amount, (amount that may became a due during one

week)

• In form of bond (bank guarantee)

For comprehensive guarantee, Customs authorities may authorize:

reduction of guarantee amount (30 % or 50% of the reference amount )

or even grant Guarantee waiver

How does paperless transit transport system work?

Declaration processing at departure

How does paperless transit transport system work?

At the office of transit

How does paperless transit transport system work?

At office of destination

How does paperless transit transport system work?

Benefits of automated transit system

For Customs

Improved security of transit operations

• More reliable and real time exchange of information

• Automatic validation processes and reduced manual interventions

• Improved communication through instant electronic exchange of messages

• Better risk management to address security threats and revenue losses

• Improved capacity to deal with various types of fraud

Reduced time for processing transit documents, accelerated transit formalities

For Private Sector

Flexible guarantees and their faster release reduce cost of transit transport

Reduction of repeated data entry and consistency of transit data

Accelerated customs transit formalities

http://www.unescap.org/our-work/transport

Thank you

for

your attention