Summary
The accession of several GCC countries to the TIR Convention*, a 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.
Further Details
What is TIR?
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, TIR has 76 Contracting Parties and it covers Europe, North Africa, and the Near and Middle East. TIR is compliant with the World Customs Organization’s SAFE Framework of Standards to Secure and Facilitate Global Trade.
Parties to TIR
The United Arab Emirates implemented the TIR Convention on 20 October 2007, Saudi Arabia on 23 January 2020, and Oman on 27 August 2020. The first shipments between GCC countries are already showing reduced transportation times (e.g. products benefiting of the TIR electronic pre-declaration can see their transport time reduced by up to 72%**).
Benefits of TIR
Claiming benefit of the TIR convention minimizes administrative and financial burdens on companies and allows a better proximity with customers through a more efficient supply chain. Some of the concrete benefits are the following:
- 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 since faster border crossings reduce a truck’s journey and waiting times leading potentially to additional costs.
Our Trade and Customs team is available to advise you on the most adapted means of trade facilitation, such as the TIR convention, and on your business needs.
* The Customs Convention on the International Transport of Goods under Cover of TIR Carnets (TIR Convention) was drafted in 1975 as a replacement of the Transports Internationaux Routiers (TIR) Convention from 1959.
**See https://www.iru.org/resources/newsroom/tir-cuts-transport-times-between-saudi-arabia-and-oman-72
Get in touch
Middle East Trade and Customs Contacts
Wadih Abu Nasr Head of Tax, KSA and Levant |
Pascal Cange Senior Tax Advisor, Customs and International Trade
|
Rhys Penning Partner, Indirect Tax, Lower Gulf |
Nick Soverall Senior Director, Head of Indirect Tax, KSA |
Stuart Ciocarelli Head of Tax, Lower Gulf |