What makes the Transports Internationaux Routiers, International Road Transport (TIR) system so profound in the global freight network?

An introduction to the TIR system, and its profound role in global freight 

Not only is the TIR (Transports Internationaux Routiers, International Road Transport) system the international customs transit system that enjoys the broadest geographical coverage – the procedure currently being used by more than 66 countries – but it also continues to be the only universal customs transit system to exist. 

The principle behind the TIR system is to enable vehicles to cross various national borders without the need for repeated customs checks. Under this procedure, goods can move from one territory to the next without the duties and taxes that would usually be due at importation (or exportation) having to be paid. 

The TIR carnet, and the role of the IRU 

When the TIR procedure is followed, shipments can be transported from one country’s customs office of departure to the customs office of destination in another jurisdiction, under the cover of the TIR carnet. 

The TIR carnet is an internationally accepted customs transit document, which sets out a financial guarantee for the payment of the suspended duties and taxes. One million TIR carnets are issued every year. 

An international organisation – presently the International Road Transport Union, or IRU – is responsible for managing this guarantee system. It is a system that has long greatly helped streamline border procedures for the transportation of goods. 

The TIR arrangements have been key to minimising the administrative burden for transport and logistics firms and customs authorities alike, at the same time as saving time and money and supporting the economies of countries that use the procedure. 

The historical context of the TIR system’s development – and thoughts for the future 

Rewind to the late 1940s; a war-torn and battered Europe was in desperate need of new legal frameworks and commercial links to help rebuild its societies and economies. 

It was this world of tentative recovery in which the TIR system was developed, with the ambition of bolstering the efficiency and ease of inter-European trade by enabling the smoother flow of goods across borders. 

The TIR system has unquestionably lived up to such promise – and so much more – over the generations since then. The conclusion of the first TIR Agreement in 1949 – then between a small number of European countries – was followed by the adoption of the TIR Convention in 1959, and the Convention’s subsequent revision in 1975. 

With TIR cutting transport time by up to 80%, and costs by as much as 38%, the system continues to be an international success story. 

Looking forward, it is expected that the coming years will see significant increases in road transportation, as well as ever-greater emphasis on the development of a cleaner and more sustainable road transport network. It is a process of continued evolution – and revolution – in which the TIR system will surely play as instrumental a role as ever. 

Would you appreciate further advice and help in relation to logistics processes and the worldwide freight partnerships that will aid your efforts to move goods from one location to another? If so, please don’t hesitate to contact the KTL team today.