eTIR: The success of collaborative digitization in freight forwarding

Although there are not too many examples that demonstrate that public-private collaboration on digitization in transport and logistics is feasible, we cannot overlook the case of the eTIR Regulation.

The eTIR system is a clear example of how collaboration between different stakeholders can drive the digital transformation of freight transport with tangible results.

This system, which digitizes customs transit, demonstrates that international cooperation is key to optimizing processes and achieving more efficient global trade.

What is eTIR?

The eTIR Regulation is the electronic version of the global customs transit system or TIR (Transit International Routier or Transport International Routier).

As explained by the Association for International Road Transport (ASTIC), eTIR, which the United Nations (UN) and the International Road Transport Organization (IRU) launched on May 25 when Annex 11 of the TIR Convention entered into force, allows all contracting parties to carry out cross-border TIR transports by electronic data exchange, without the use of paper TIR Carnets.

This translates into paperless cross-border transport of goods, vehicles and containers in 77 countries on five continents.

Electronic TIR allows Customs to receive advance information from the transport professional’s declaration so that they can perform risk analysis and, ultimately, speed up border crossings and reduce costs.

History of the TIR Regulation

The TIR Regulation was born in 1949 from the IRU’s initiative to help Europe after World War II to revive its trade relations, explains ASTIC.

Its aim was to breathe new life into Europe’s war-torn trade links by facilitating the transit of people and goods.

To this end, an alliance of national passenger and freight road transport associations from eight European countries was formed, which secured representation of this industry in the newly created United Nations Economic Commission for Europe.

By 1959, the success of the TIR system, which significantly reduced waiting times at customs, led to the TIR (Transporte Internationale Routier) Convention, which was updated in 1975 to cover container transport and came into force in 1978.

At present, according to United Nations data, the TIR Convention has 77 contracting parties worldwide, including Spain and the entire European Union.

How does the TIR Regulation work?

According to IRU, TIR has been facilitating and securing international road transport and trade for more than 60 years. Thanks to it, vehicles and cargo containers with customs seals can transit countries without being checked at borders.

In other words, this international customs regime facilitates the transport of goods across borders, minimizing customs controls at intermediate borders.

It operates under a series of principles and procedures that guarantee transport safety and efficiency.

Start of TIR transport:

• Carrier authorization: To operate under the TIR system, the carrier must be authorized by the competent authorities of its country and be a member of a guarantor association (such as ASTIC in Spain).
• Acquisition of the TIR Carnet: The carrier obtains a TIR Carnet from its guarantor association. This document is crucial as it acts as an international guarantee and a simplified cargo manifest. Each TIR Carnet contains several “volets” (vouchers) that are released at each customs office through which the transport passes.
• Loading and sealing: Goods are loaded into a vehicle or container approved for TIR transport. Once loaded, the cargo compartment is sealed by the customs authorities of the country of origin. This seal can only be broken at the customs office of destination.

Transit across borders:

• Presentation of the TIR Carnet: At each customs office of passage (transit), the carrier presents the TIR Carnet to the customs authorities. These authorities verify the integrity of the seals and the correspondence between the goods and the information in the TIR Carnet.
• Minimal controls: Generally, thorough cargo inspections are not carried out at transit customs, unless there are suspicions of irregularities. This speeds up border crossings considerably.
• Detachment of volets: At each customs office of transit, a volet is detached from the TIR Carnet, which serves as a record of passage through that office.

Completion of TIR transport:

• Arrival at destination customs: Upon arrival at destination customs, the carrier presents the TIR Carnet and the customs authorities re-verify the seals and the cargo.
• Lifting of the seal and customs control: If everything is in order, the seal is lifted and the final customs control of the goods is carried out. The TIR Carnet is completed and the TIR operation is finalized.

With the digitization of customs controls, this whole process is simplified and streamlined, as customs will have the vehicle and merchandise information in advance.

eTIR regulation, a success story of collaborative digitization?

We can state unequivocally that the eTIR Regulation is a success story of collaborative digitization.

The supporting reasons are:

• International collaboration. The eTIR is the result of collaboration between multiple countries, Customs, international organizations and the private sector. This cooperation has been fundamental to developing a system that works in a harmonized manner at a global level.
• Interoperability. The eTIR system is based on international standards that allow the electronic exchange of information between different customs systems. This facilitates interoperability and avoids fragmentation, which is crucial for cross-border transportation.
• Global adoption. The eTIR is in force in many countries on different continents, demonstrating its acceptance and its ability to adapt to different contexts.
• Tangible benefits. The eTIR has proven to generate concrete benefits, such as reduced waiting times at borders, reduced administrative costs, increased security and improved traceability of goods. These positive results are proof of the success of collaborative digitization.
• Modernization of the TIR system. The eTIR modernizes an existing system (the paper-based TIR), making it more efficient and adapted to the needs of the 21st century. This evolution is a clear example of how digitalization can improve existing processes.

The eTIR Regulation as a proof of concept for eCMR

The success of eTIR as an example of collaborative digitization offers valuable lessons and a strong impetus to advance the digitization of transport documentation, especially with the implementation of the eCMR or electronic consignment note.

Both eTIR and eCMR share similar objectives, such as:

• Reduce paperwork: Both seek to eliminate the use of paper documents, which reduces costs, errors and time.
• Improve efficiency: Both streamline processes and improve transportation efficiency.
• Increase security: Both improve traceability and security of goods.
• Facilitating international trade: Both simplify procedures and facilitate cross-border trade.

These similarities make the eTIR experience particularly relevant to further progress in the widespread adoption of eCMR.

In summary, the success of eTIR in the collaborative digitization of the TIR system provides a model and motivation to move forward in document digitization with eCMR.

Lessons learned in interoperability, legal framework, industry acceptance and the achievement of similar objectives are crucial for a successful implementation of eCMR.

All in all, it can be said that eTIR paves the way for eCMR, demonstrating the value of collaboration and digitization in the transportation sector.