India has recently flagged off the first Intermodal Digital TIR Pilot Transport between India and Iran in INSTC which streamlines paperless cross-border goods movement under the customs guarantee of the TIR system.
The TIR system, an international road transport system, has always been a successful model for bringing down trade transaction costs and improving higher growth of infra and inter-regional trade. It adds value to improving regional trade mechanisms as now it offers complete digital capabilities that make international freight movement faster, secure and efficient.
India has lately accepted the United Nations TIR Convention – the global customs transit system that allows the movement of goods between countries connected via the TIR convention. The whole system is supervised by the United Nations Economic Commissions for Europe and managed by the International Road Transport union, Geneva.
The process is quite simple as the convention enables goods to be mentioned in a TIR carnet and sealed in load compartments. The customs validates the carnet and verifies the seal. With no physical checking of the content, the shipment crosses through countries without being opened at the borders.
TIR plays a vital role as it facilitates trade and transport, prevents delays in borders by reducing the formalities that bring down transportation costs, and encourages the development of international trade. The system is advantageous to the national economy as it easily manages the transport of national and international consignments as there are 64 TIR- accepted operational countries.