Across the Trans-Caspian region there is an apparent need for a universal framework to digitize their customs procedures.  By adopting digital customs measures, akin to those of the European Union (EU) and Eurasian Economic Union (EAEU), the countries of this crossroads region can streamline trade, reduce reliance on Russian transit routes, and capitalize on the growing flow of goods through the Middle Corridor.  One such measure is the electronic implementation of the UN TIR (Transport International Routier) Convention (eTIR) system, which modernizes international customs procedures and facilitates the secure exchange of data between participating states.

Recognizing the benefits of eTIR, in January, the Organization of Turkic States (OTS) took a significant step toward its full implementation.  On January 16, the heads of customs administrations of OTS member states convened in Baku, alongside officials from the United Nations Economic Commission for Europe (UNECE) and the World Road Transport Organization (IRU).  During the meeting, OTS members signed an action plan aiming for full implementation of eTIR by 2025.  Türkiye, an early promoter of eTIR, began integrating the system into its customs procedures in 2020 to enhance its logistics and trade competitiveness.

Attention to digitizing border points through the trans-Caspian region is nothing new. Azerbaijan and Uzbekistan were the first two countries to successfully conduct an eTIR transport operation in 2022.  Similarly, Türkiye, Georgia, and Iran have been running eTIR pilot projects since 2017, which aim to enhance regional trade efficiency. 

Since its implementation in 1975, the United Nations TIR Convention standardized the secure exchange of data between customs of the participant countries and parties to facilitate the international movement of goods, vehicles, and containers.  This regulation has streamlined customs procedures and decreased waiting period of goods since then.  So far, the TIR convention reduces cross-border transport time by up to 80% and the costs by up to 38%. With the proliferation of the internet, the paperless execution of the TIR is possible, which can significantly reduce waiting times and allocate the resources of customs more efficiently. 

Digitizing borders is additionally not only a matter of speed. A 2016 IRU estimated that implementation of eTIR will reduce the rate of fraudulent actions and corruption in cross-border trade activities such as clearance, transit, transport, warehousing, guarantees, and insurance. Border corruption is a pressing problem in the Caspian region; thus, the implementation of digitizing customs by the OTS is timely.

However, complicating things for Caspian-region countries is the fact that there is still not a single OTS or Caspian market. Countries belonging to customs unions, such as the EU’s New Computerized Transit System or the EAEU’s digital customs integration, prioritize internal digital harmonization.  However, countries that are not fully integrated into such a customs union face greater challenges in trade with their neighbors. 

Türkiye (linked to the EU Customs Union) and Kazakhstan (a member of the EAEU) still trade extensively with countries that are not in customs unions of any kind, which creates additional complexities.  The situation is even more challenging for countries like Georgia, Uzbekistan, and Azerbaijan, which are not part of any customs union and border multiple non-union states.  Therefore, these countries have a strong incentive to implement a single digital customs framework like eTIR to streamline trade with their neighbors.

Nevertheless, bottlenecks remain. As Trans-Caspian transit states continue to position themselves as trade hubs, the full implementation of eTIR will play a crucial role in reducing trade barriers and facilitating cross-border commerce.