Global Market: India and its new customs transit system

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India has launched the multimodal and digital TIR (French Transit International Routier) transit system.
This represents a revolution for the country's trade and transit potential.
The implementation of TIR in India echoes the impressive progress in the nation's development, with this latest milestone taking regional connectivity to the next level.

It will be easier and more efficient to move cargo along multiple trade corridors, including the International North-South Transport Corridor (INSTC) through Iran.

INSTC provides global access to Ecuador Mobile Number List markets, connecting India to the broader TIR network, which includes Iran, Azerbaijan, Russia and Central Asia .

TIR could also contribute to the implementation of regional motor vehicle agreements, which will help India integrate with Myanmar and Thailand, as well as Bangladesh, Bhutan and Nepal.

Deputy General Secretary Nirankar Saxena of the Federation of Indian Chambers of Commerce and Industry, who led the process, said: "The challenge in expanding regional trade has been the incompatibility of transport and customs systems, particularly in the entire Bangladesh, Bhutan, India and Nepal Sub-region.



These countries need a practical tool, such as TIR, to operationalize bilateral and regional transport agreements and facilitate the movement of goods across borders."

He added: "We are grateful for the support of the Government and in particular the support of the Central Board of Indirect Taxes and Customs (CBIC), and the collaboration with IRU – The International Road Transport Organization – to help implement TIR." .

Implementation
Rapid implementation of the TIR system is also critical to help India implement the World Trade Organization Trade Facilitation Agreement.

Umberto de Pretto, Secretary General of the IRU, said: “We are deeply impressed with the full mobilization of resources from India and the transport community to rapidly access and operationalize the TIR system. “Momentum is building as we focus our joint efforts on promoting TIR accession among India’s neighbors.”
               


India's accession to the TIR Convention last year primed a strong commitment from government and business leaders to make TIR the national customs standard.

The TIR system guarantees customs duties and taxes and provides a strong guarantee mechanism, reducing trade transaction costs and facilitating further growth of intra- and inter-regional trade. Without a doubt, this news makes India even more attractive to select as a strategic destination for the global company.