Persian Gulf countries join transport convention (TIR Convention)

Persian Gulf countries join transport convention

The accession of several Gulf Cooperation Council (GCC) countries to the “Customs Convention on the International Transport of Goods under Cover of TIR Carnets” (TIR Convention) universal transport convention, facilitates the movement of goods within the GCC, minimizes costs, and reduces clearance documentation and time, thus, increasing the efficiency of supply chains.

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GCC country members

  • The United Arab Emirates implemented the TIR Convention on 20 October 2007.
  • Saudi Arabia implemented the TIR Convention on 23 January 2020.
  • Oman implemented the TIR Convention on 27 August 2020.

The first shipments between GCC countries are already showing reduced transportation times (reports indicated that products benefiting from the TIR electronic pre-declaration can see their transport time reduced by up to 72%).


Background

The TIR Convention allows goods to transit from a country of departure to a country of destination in sealed-load compartments with customs control recognition along the supply chain.

To date, the TIR Convention has 76 contracting parties and it covers Europe, North Africa, and the near and Middle East. The TIR Convention is compliant with the World Customs Organization’s SAFE framework of standards to secure and facilitate global trade.

Claiming benefit of the TIR Convention is viewed as minimizing administrative and financial burdens on companies and allowing a better proximity with customers through a more efficient supply chain. Some of the benefits include:

  • Custom control measures taken in the country of departure, eliminate the need for physical and intrusive controls at the destination border where Customs only inspect TIR seals. 
  • Heightened security as goods cannot be tampered with on the journey, since the customs seals must remain intact from the point of departure until the destination is reached. 
  • Reduced environmental and financial impact because faster border crossings reduce a truck’s journey and waiting times leading potentially to additional costs.


For more information on this topic or to learn more about KPMG’s Trade & Customs Services, contact:

Doug Zuvich
Partner and Global Practice Leader
T: 312-665-1022
E: dzuvich@kpmg.com

John L. McLoughlin
Principal and East Coast Leader
T: 267-256-2614
E: jlmcloughlin@kpmg.com

Andy Siciliano
Partner and National Practice Leader
T: 631-425-6057
E: asiciliano@kpmg.com

Steve Brotherton
Principal and Global Export and Sanctions Leader
T: 415-963-7861
E: sbrotherton@kpmg.com

Luis (Lou) Abad
Principal, Washington National Tax
T: 212-954-3094
E: labad@kpmg.com

Irina Vaysfeld
Principal
T: 212-872-2973
E: ivaysfeld@kpmg.com

Amie Ahanchian
Principal
T: 202-533-3247
E: aahanchian@kpmg.com

Christopher Young
Principal
T: 312-665-3229
E: christopheryoung@kpmg.com

Gisele Belotto
Managing Director
T: 305-913-2779
E: gbelotto@kpmg.com

George Zaharatos
Principal
T: 404-222-3292
E: gzaharatos@kpmg.com

Andy Doornaert
Managing Director
T: 313-230-3080
E: adoornaert@kpmg.com

Jessica Libby
Managing Director
T: 612-305-5533
E: jlibby@kpmg.com

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