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Pakistan to sign UN convention for allowing transit facilities to signatories

ISLAMABAD: Pakistan has agreed to become a signatory to a United Nations-backed international transit system under which it will allow other signatories to transport cargoes via Wagah border to Afghanistan and beyond central Asian states, official sources disclosed on Friday. The sources said last week the cabinet had approved

By Mehtab Haider
August 29, 2015
ISLAMABAD: Pakistan has agreed to become a signatory to a United Nations-backed international transit system under which it will allow other signatories to transport cargoes via Wagah border to Afghanistan and beyond central Asian states, official sources disclosed on Friday.
The sources said last week the cabinet had approved the country’s accession to the Transports Internationaux Routiers, or International Road Transports, (TIR), which is an international transit system based on a UN convention.
Under the convention, the country will allow transit facilities to all the signatory states to the system.
There were 69 parties to the convention, including 68 states and the European Union as of July 2015.
Following the ratification, a debate ensued in the government circles that whether or not Islamabad has to grant the transit facilities to New Delhi if the neighbouring India becomes a contracting party of the system.
Officials said currently India is not signatory to this system, but if the country becomes one then the transit facilities will have to be provided to Indian trucks for transportation of goods through Wagah border to Afghanistan and Central Asian Republics.
The ministry of commerce is, however, sanguine that India could not be a beneficiary.
A commerce official said there are sufficient safeguards available under Articles 45, 57 and 58 of the TIR Convention, which can be invoked to disallow India of transit facilities if it accedes to TIR.
“If Pakistan is not willing to give its transit rights to India it can do so,” the official said.
Well-placed sources confirmed to The News that the top military brass had initially expressed reservations on the ratification to the TIR convention, which could later turn a bone of contention if Pakistan denies another signatory that is India of transit facility.
“After lengthy discussions, the Ministry of Defence and GHQ (general headquarters) had given their consent to the signing of this treaty in writing,” an official source said.
“After which the ministry of commerce had moved a summary to the federal cabinet for getting its approval.”
The TIR is a multilateral treaty that was concluded at Geneva on 14 November 1975 to simplify and harmonise the administrative formalities of international road transport.
Under Article 55, the termination of agreement can be done If, after the entry into force of this convention, the number of states, which are contracting parties, is for any period of 12 consecutive months reduced to less than five; the convention shall cease to have effect from the end of the 12-month period.
For termination of the operation of the TIR Convention, 1959, upon its entry into force, this convention shall terminate and replace, in relations between the contracting parties to this convention, the TIR Convention, 1959.
Certificates of approval issued in respect of road vehicles and containers under the conditions of the TIR Convention, 1959, shall be accepted during the period of their validity or any extension thereof for the transport of goods under customs seal by contracting parties to this convention, provided that such vehicles and containers continue to fulfill the conditions under which they were originally approved.
The commerce ministry is planning to build capacity of different stakeholders on TIR convention in collaboration with Economic Cooperation Organization (ECO) and International Road Transport Association secretariats.
Pakistan is working to improve its regional connectivity and facilitate trade with the regional countries, especially ECO countries, many of which are landlocked.
Accession to this convention can play a very important role in facilitating trade through land transport, by providing the transit countries with the required guarantees under TIR Carnet system to cover the customs duties and taxes at risk.
The system reduces the risk of presenting inaccurate information to customs administrations and simultaneously reduces the need of physical inspection in countries of transit.
However, it allows checking of seals and external conditions of the load compartments and containers in case some irregularity is suspected. As such, it is great facilitator of transit trade.