Future of TIR Convention in transports through Russia (Customs and Excise Duty Alert 7/2013)
Russia decided to terminate effectively TIR Convention
According to latest news, Russia unilaterally decided to terminate effectively TIR Convention. Although no official termination of TIR Convention took place, actions and legal changes planned by Russia will have the same impact. TIR Convention has crucial meaning in customs duty guarantee system in international road transport. TIR carnet is according to TIR Convention treated as customs duty guarantee.
Starting from 14th August Russia (and Member States of Customs Union with Russia – Kazakhstan and Belarus) will no longer treat TIR carnets as sufficient customs duty guarantee. Consequently carriers will have to obtain new guarantee to secure customs duties. Russia is planning to habituate new system of customs guarantees, independent from TIR Convention, which would be binding within territory of Member States of Customs Union (Russia, Kazakhstan and Belarus).
Cost of this newly planned guarantee is not known yet, however the most probably it will be significantly higher than current cost of TIR Carnet.
Bearing in mind that this action initiated by Russian side was not expected in other Signatory States of TIR Convention alternative solutions are not prepared. Therefore serious hindrances for carriers are expected on EU borders with Russia and Belarus since 14th August 2013, unless negotiations between IRU (International Road Transport Union) will end successful. If negotiations failed it may be expected that also days before 14th August will be hard for carriers because of long lines on borders to avoid this newly planned regulations.
We would be pleased to discuss with you possible solutions to this situation and options for developing alternative to TIR carnet scenarios.