There is no denying the fact that TIR (International Road Transit System) provides a number of benefits. The first and most significant one is that it helps transport companies save a lot of time and money in transporting goods through international borders. On a broader level, it increases the efficiency of logistics companies, delivering a massive push to national economies. The same can be seen in the GCC region, as it has been reaping the benefits of a faster, and more efficient border transport system since the time Oman and other GCC countries adopted the system.
TIR is the only global customs transit system that allows goods to be transported from the country of origin, through various transit countries, to the destination country. This entire movement is backed and supported by a multilateral, mutually recognized system that has been developed and implemented to make cross-border trade more beneficial. With TIR usage increasing in the GCC countries, shipping companies are increasingly witnessing higher benefits of reduced time and expenditure. This has been a real boon for the entire GCC region which has been marred by complicated geo-political relations. And Oman, one of the major contributors to the logistics industry in the region, has been reaping the benefits by maximizing the TIR approach.
TIR – A consolidated approach toward a cost-effective, quicker transport system
The first few consignments that left the Oman borders crossing to the UAE, took less than 24 hours to reach their destination, a remarkable reduction of time from their previous trips. As they say, time is money – saving a considerable amount of time on every trip would mean an equally considerable amount of money for the logistics companies. This is what TIR is providing the shipping companies in Oman. While the TIR system has been around for several years, the latest developments in infrastructure, developing cross-border relations, and a stronger will to ease business with the neighboring GCC countries are further boosting trade in Oman. Joining hands with 100 more countries, and creating better trade relationships with the Gulf countries, India and Africa are opening new frontiers for Oman and bolstering its status quo as the rising logistics power in the region. The TIR system has allowed shipments to cut down on customs fees by 30 percent and travel time by 50 percent, a considerable shift from how things were earlier.
While time and cost are two major benefits of TIR, it also provides faster custom clearance, making the entire cross-border trade easier and faster. Under TIR, all customs control measures are ensured at the point where the shipment starts (country of departure). These measures are accepted by all countries of transit as well as the destination cutting down the need for physical control on the borders. The customs must only check and cross-verify the TIR seals and the shipments can move forward. The fast a shipment reaches its destination; the more consignments can be moved on the same route. Faster, more efficient, and a greater number of consignments means that more customers can be reached through such a system, increasing business for the logistics and shipping companies.
Yet another benefit of TIR is security. Since the TIR seals remain intact throughout the journey of the consignment, it is not possible to tamper with the goods. This also ensures that customs duties are guaranteed for all those nations through which shipments pass.
What also comes as a bonus benefit of the TIR system is the effect it will have on the environment. All shipments waiting at the international borders for customs clearance for weeks and months would mean more power consumption. But with quicker clearances, the logistics companies can reduce their carbon footprint, giving a boost to environmentally friendly trade and transport.
Reducing cost and enabling faster border crossing
The entire TIR system has proved to be a boon to the logistics companies in Oman. The country has been pumping huge amounts of money to expand its logistics power in global trade. In such a scenario, cross-border trade requires an equal amount of effort to further establish the logistics sector as the primary source of development. And TIR has been providing that push. More efficient customs clearance means that waiting time reduces to a great extent at the borders. This not only means that shipments can reach their destinations faster, but it also reduces the probability of time-critical goods reaching without any damage. Businesses can now look at transporting perishables, time, and temperature-critical goods across borders in the GCC regions without having to worry about damage and loss.
The TIR system has brought about a paradigm shift in the way shipping companies are transporting goods within the land network. While the Oman government has ensured its sea routes and port infrastructure is nothing short of global standards, the TIR system is ensuring that land transport matches up to it. This is a boon and the much-needed push that the GCC region’s road transport needed for establishing a trade network that remained independent of the deficiencies.