Bureaucratic red tapism mars TIR intermodal transport of country
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KARACHI: TIR is intermodal by which goods can be transported by rail, sea, air, as well as by road. Truck arrives at final destination with load compartment sealed. At customs office of destination, seals are checked to ensure they haven’t been tampered with.
Ministry of Commerce started working to enhance regional connectivity with Central Asian Republics in year 2021. In this regard it started facilitating TIR trial run of logistic companies to Central Asian Republics through Iran and Afghanistan. National Logistic Cell completed trial run to Azerbaijan and Turkiye via Iran.
Logistic company apprised that commercial banks were not issuing E/I Form for consignments transiting through Iran to Central Asia, owing to US Sanctions on Iran. It may be mentioned that consignment were not intended to be delivered to Iran and services were not provided by Iran, but still commercial banks were not issuing E/I Form.
In order to resolve issue meeting was held in Ministry of Commerce on December 2, 2021. Subsequently, State Bank of Pakistan informed that there were no restrictions on transit trade through Iran. However, Pakistani banks were reluctant in settlement of transit trade transactions via Iran under TIR convention of United Nations because of application of US Office of Foreign Assets Control’s sanctions on transit trade through Iran and its consequential implication on continuation of their correspondent relationships and their overall trade business. Ministry of Railways pointed out that this issue has hampered operations of ITI (Islamabad-Tehran-Istanbul) Train as well.
This issue was also discussed by National Assembly Standing Committee on Finance and Revenue held on November 16, 2021. Meanwhile, State Bank of Pakistan advised to engage Ministry of Foreign Affairs and Ministry of Law and Justice with regard to understanding of OFAC’s regulations and seeking clarification from OFAC regarding application of OFAC’s sanction on transit trade through Iran under TIR convention of United Nations. But issue was not resolved in four years.
On other hand first intermodal transport, using TIR from India via Chabahar port in Iran, was completed on March 17, 2020. Carrying factory line components, operation took seven days in total -five by sea and two by road from Chabahar port in Iran to final destination in Afghanistan. In comparison, traditional route from Bandar Abbas Port in Iran is three to four days longer. This was also first TIR operation started from India and by an Indian TIR carnet holder.
In addition to linking Iran to Afghanistan, Central Asia, Russia and eventually Europe, Chabahar also is only Iranian port with direct access to Indian Ocean. This first TIR transport operation is based on Chabahar transit agreement signed between India and Iran and represents initial step towards full activation of the India-Iran-Afghanistan route, informed sources revealed.