Common Legal Basis for Transit Transportation

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Common Legal Basis for Transit Transportation
The European Unions Tacis TRACECA program for
Armenia, Azerbaijan, Bulgaria, Georgia,
Kazakhstan, Kyrgyzstan, Moldova, Romania,
Tajikistan, Turkey, Turkmenistan, Ukraine,
Uzbekistan
Workshop on Corridor Development for Caucasus
Countries May 18-19, 2004 Tbilisi, Georgia -
Trade and Transport Facilitation -
A project implemented by Lamnidis Associates
EuropeAid This project is funded by the European
Union
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The three dimensions
GENERAL
TRADE
TRANSPORT
Trade Facilitation
CUSTOMS
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Interrelation of strengthening of institutional
grounds for investments and Trade and Transport
turnover growth
GENERAL
SIMPLIFICATION OF ADMINISTRATIVE PROCEDURES
Institutional grounds for investments Economic
development
INTERNATIONAL TRANSPORT
TRADE
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Objective of Trade Facilitation
GENERAL

• To provide a world-wide accepted, consistent,
  transparent and predictable environment for
  international trade transactions.

Aims of Trade Facilitation

• To improve the quality of international transport
  and logistics,
• To adapt commercial trade and transport practices
  to international standards,
• To remove obstacles and non-physical barriers to
  trade.

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Trade Facilitation Goals
GENERAL

• Implementation of WTO, WB, PCA, UN ECE, UN ESCAP,
  WCO / regional commitments
• Automated Customs clearance with minimal data
  requirements
• Remote filing and simplified clearance procedures
• Pre-arrival processing, post-clearance controls
  and audits
• "Fast-track" handling for authorized traders,
  chosen on the basis of risk assessment
• Single window solutions and one stop clearance
  by the co-ordination of activities of Government
  agencies to avoid multiple checks of the same
  cargo at different times and places

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Trade Facilitation Goals
GENERAL

• A standard time limit for Customs clearance
• Co-operation between Customs agencies and trade
  entities such as shippers, transportation
  operators, freight forwarders, chambers of
  commerce and banks
• Transparency of Customs rules and procedures
• Increasing border control capacity (modernization
  of infrastructure and computerization)
• Harmonization of data elements and requirements
• E-commerce

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Trade Growth
STATISTICS
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Trade GrowthMLA Parties
STATISTICS
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STATISTICS
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STATISTICS
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STATISTICS
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Container transport
STATISTICS
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STATISTICS
TRANSIB TRACECA SOUTH NOSTRAC TRANSOCEAN
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Project Environment
PROJECT ACTIVITY
Projects environment
Intermediary
Supplier/ Customer
Customer/ Supplier
Transportation
Purchase
Payment
State authorities
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Overall Project Objectives
PROJECT ACTIVITY

• Facilitation of development of economic
  relations, trade communication in the TRACECA
  region by means of
• devising of a common legal framework for
  multimodal carriage of goods and cargo insurance
• harmonization of national legislation with
  international principles and requirements
  relevant to transit traffic
• facilitation of accession to, ratification and
  efficient implementation of the priority
  international conventions
• harmonization of legal and regulatory framework
  in the field of transport and customs regulation,
  incorporating international standards and
  requirements
• Improvement of the investment environment for
  IFIs and particularly for private investors

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Project Objectives
PROJECT ACTIVITY

• National Legal Working Groups (NLWG) established
  and efficient operation ensured
• Bilateral and multilateral transport transit
  agreements collected, catalogued and analysed
• Ratification of identified recommended
  conventions and other treaties promoted and
  implementation facilitated by means of, inter
  alia, management development and training
• Guide to International conventions and agreements
  for transport operators and traders elaborated
• Training program for IGC NLWGs conducted
• Draft New Technical Annex(es) to the MLA
• on multimodal transit transport
• on TRACECA investments
• on freight forwarding operations
• TRACECA road haulage permit and quota system
  elaborated
• Modern technical vehicle standards needs
  studied, regulative innovations recommended
• Legal assistance to the IGC Permanent Secretariat
  provided throughout the project duration
• Introduction of the TRACECA Visa
• Draft Main strategic directions of
  Intergovernmental Commission of TRACECA in the
  development of transport networks of
  international transport corridor
  Europe-Caucasus-Asia (TRACECA) for 2005-2010
  proposed     

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Project Steps towards Increased TRACECA Transport
Corridor Competitiveness (tasks of LWG)
PROJECT ACTIVITY

• Short-term tasks (1 phase)
• Analysis and monitoring of the existing transport
  legislation
• Adoption of the Rules of Procedures IGC and
  Statutes PS IGC TRACECA
• Adoption of recommendations on accession to
  International Conventions (Multimodal, Kyoto
  Convention etc.)
• Approval of the TRACECA Permits System concept
  for the road transport
• Identification of violations of MLA

• Long-term tasks (2 phase)
• Adoption of amendments/ annexes to the MLA
• Introduction followed by approval of common
  technical standards on waits and dimensions for
  the road transport in TRACECA region
• Accession to the priority international
  conventions in the field of transit
  transportation.

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TRACECA National Trade and Transport
Facilitation Working Groups
PROJECT ACTIVITY
NATIONAL COMMISSIONS
PROJECTS
TRACECA IGC PERMANENT SECRETARIAT
CLBTT
PRO-COMMITTIEES
NATIONAL SECRETARIES
UPTFT
HBCP
Trade and Transport Facilitation Working Groups
LEGAL TFWG
BORDERS TFWG
TARIFFS TFWG
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Trade Transport Facilitation Legal Working
Groups
PROJECT ACTIVITY

• National Legal Working Group (NLWG)
• Monitoring of current legislation in
  international transit transportation
• Identification of deviations from the
  international agreements and conventions in force
• Promotion of compliance of the national
  legislation with provisions of international
  agreements and conventions
• Facilitation of accession to the existing
  priority conventions
• Development of recommendations for simplification
  of the existing regulations applicable to transit
  transportation
• Simplification of border-crossing procedures
  keeping sufficient administrative control
  preventing illicit trafficking of goods
• Active cooperation with Pro-Committees
  established by the World Bank

• Multilateral Legal Working Group (MLWG)
• Analysis of the current national TRACECA member
  states laws and regulations for international and
  transit transportation
• Consideration of the recommendations on
  simplification and harmonization of international
  transit transport regulations in the TRACECA
  member states
• Elaboration of the common action plan for
  increased competitiveness of the TRACECA transit
  corridor
• Devising recommendations to the PS and IGC on
  incorporation of amendments and additions to the
  Basic Multilateral Agreement and its annexes

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PROJECT ACTIVITY
Amendments, Additions and Technical Annexes to
the MLA elaborated by the CLBTT project in order
to Facilitate Trade and Transport
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TRACECA VISA
Milestones in Project induced harmonization
process
Tangible results (OVIs) achieved by the Project
at Yerevan Conference

• The Protocol of amendments to the Basic
  Multilateral Agreement on international transport
  for development of the Europe the Caucasus
  Asia corridor signed on the Third IGC Annual
  Meeting in Yerevan, October 9-10, 2003 was the
  first amendment to MLA since its signature in
  1998.
• In order to facilitate Trade and Transport, the
  above mentioned protocol with 3 amendments and a
  new Technical Annex have been signed by Parties
  of the MLA as follows
• Armenia, Azerbaijan, Kyrgyz Republic, Moldova,
  Romania, Tajikistan fully endorsed
• Kazakhstan, Turkey Bulgaria, Georgia and
  Ukraine - endorsed with reservations
• Uzbekistan - did not sign the Protocol because
  the representative did not have an authority for
  signature.

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Milestones in Project induced harmonization
process

• Tangible results (OVIs) achieved by now by the
  CLBTT NLWGs

Azerbaijan ratified the Protocol on
amendments to the MLA
Kazakhstan waived the reservation to the
Technical Annex on international railway
transport to the MLA
Turkey apply for accession to SMGS
Agreement
Ukraine made amendments to the Low of
Ukraine On transit about using SMGS railway
bill as a single transit document
Uzbekistan signed Protocol on amendments to
the MLA
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PROJECT ACTIVITY
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PROJECT ACTIVITY
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CLBTT Project Recommendations Creation of
attractive investment environment
PROJECT ACTIVITY

• Facilitation of investment in the field of
  transport along the TRACECA routes
  Draft New Technical Annex to the
  Basic Agreement on TRACECA investment, Article 2
• Creation of attractive environment for IFIs and
  private investors by implementation and
  improvement of modern and flexible form of
  investment
• Modern forms of concession of the transport
  infrastructure objects with active participation
  of private investors (BOT etc.)
• Free economic areas or zones
• Transport logistic centers (hubs)
• TRACECA Guarantee Trust Fund
• TRACECA Economic Interest Grouping
• TRACECA Industrial Advisory Forum/Panel
• Settlement of Disputes.
• Source Draft Main strategic directions of
  Intergovernmental Commission of TRACECA in the
  development of transport networks of
• international transport corridor
  Europe-Caucasus-Asia (TRACECA) for 2005-2010
• Promotion of investment flows and insurance of
  non-commercial risks Convention
  Establishing the Multilateral Investment
  Guarantee Agency, 1985, Chapter 1, Article 2

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CLBTT Project RecommendationsTrade and
Transport facilitation

• Presently Article 5 Payment of taxes, duties and
  other payments of MLA reads

Taxes, duties and other payments, irrespective of
their names and origin shall not be imposed for
transport in transit, except payments for
transport and customs services, services related
to transport, as well as payments for use of
transport infrastructure.
Draft amendment to the article 5 of the Basic
Multilateral Agreement
Taxes, duties and other payments, irrespective of
their names and origin shall not be imposed for
types of transport referred to in Article 1 of
the Basic Agreement, except payments for
transport and customs services, services related
to transport, as well as payments for use of
transport infrastructure.
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CLBTT Project RecommendationsTrade and
Transport facilitation
Presently Clause 2 of Article 6 Preferential
Terms and Tariffs of MLA reads
2. The Parties have agreed that should
preferential terms and tariffs be established
between two Parties for types of transport
referred to in Article 1 of the Basic Agreement,
no less preferential terms and tariffs will be
applicable between these Parties and other
Parties.
Draft amendment to the Clause 2 of Article 6 of
the Basic Multilateral Agreement
2. The Parties have agreed that should
preferential terms and tariffs be established
between two Parties or between a Party/Parties
with a third country/countries, for types of
transport referred to in Article 1 of the Basic
Agreement, no less preferential terms and tariffs
will be applicable for all Parties to the Basic
Agreement.
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PROJECT ACTIVITY
Trade and Transport facilitation measures
recommended by UN ECE and taken on board by the
Project

• Improvement of services on organization of
  transportation of goods by any kind of transport
• Draft New Technical Annex to MLA on Freight
  Forwarding Activities (CLBTT Project)
•  Commercial or transport document as descriptive
  part of transit declaration
• WCO, Revised Kyoto Convention, Specific Annex E,
  Chapter 1 Standard 6
• Technical Annex on International Customs Transit
  Procedures for carriage of goods by rail using
  SMGS railway bill to the MLA (CLBTT Project)
• Provision of high quality services and increased
  economic efficiency of the multimodal transport
  operations
• New Technical Annex on multimodal transport
  (CLBTT Project)