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CLBTT Progress Report I May 2003 1

Common Legal Basis for Transit Transportation

Project

for Armenia, Azerbaijan, Bulgaria, Georgia, Kazakhstan,

Kyrgyzstan, Moldova, Romania, Tajikistan, Turkey,

Turkmenistan, Ukraine, Uzbekistan

Progress Report I May 2003

This project is funded by the European Union

A project implemented byLamnidis & Associates

The European Union’s Tacis TRACECA programme for Armenia, Azerbaijan, Bulgaria, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Romania, Tajikistan, Turkey, Turkmenistan, Ukraine, Uzbekistan

CLBTT Project Progress Report I May 2003

REPORT COVER PAGE

Project Title : Common Legal Basis for Transit Transportation Contract Number : 2002/027-526 Countries : Armenia, Azerbaijan, Bulgaria, Georgia, Kazakhstan,

Kyrgyzstan, Moldova, Romania, Tajikistan, Turkey, Turkmenistan, Ukraine, Uzbekistan.

Local operator EC Consultant Name : TRACECA IGC Lamnidis & Associates Permanent Secretariat Address : 8/2 General Aliyarbarkov St. 2 Ypsilantou Street, Baku, Azerbaijan 106 75 Athens, Greece/ AZ 370000 8/2 General Aliyarbarkov St. Baku, Azerbaijan AZ 370000 Tel. number : +(994-12) 982-718 +30210 3643 567 +994 12 983801 Fax number : +(994-12) 986-426 +30210 7264 510 +994 12 983801 Contact person : Abdurashid Tagirov Thomas Lamnidis Vadim Turdzeladze Secretary General Team Leader Project Coordinator Signatures : ________________ ________________ ________________ Date of report: May 2003 Reporting period: March 2003 – May 2003 Author of report: Lamnidis & Associates TRACECA _________________ _________________ _____________ [Task manager] [name] [signature] [date] EC M & E team _________________ _________________ _____________ [name] [signature] [date] EC Delegation _________________ _________________ _____________ [name] [signature] [date]


1 Project Synopsis - Contract No 2002/027-526................................................................3 2 Summary of the project progress since the start..............................................................5 3 Summary of the project planning for the remainder of the project ...................................7

3.1 First Draft of the Multimodal transit model law/ Protocols for Amendments and Additions to MLA..........................................................................................................7 3.2 Establishment of Multilateral Legal Working Groups .............................................7 3.3 Drawing-up a Technical Annex on road vehicle technical standards.......................7 3.4 Presenting, analysing and negotiating the legal instruments to the national LWGs .7 3.5 Elaborating the Legal Guide to International Agreements .....................................8 3.6 Promoting ratification and implementation of international transport and trade treaties........................................................................................................................8 3.7 Multilateral road transit permit system feasibility/TRACECA Permit System ............8 3.8 TRACECA Visa....................................................................................................8 3.9 Promoting of adoption of Protocol(s) pertaining to additions/amendments and Technical Annexes to the MLA ......................................................................................8 3.10 Risk Factors Effected Project Objectives ............................................................ 10

4 Project progress in reporting period...............................................................................11 4.1 Advice and assistance to the Permanent Secretariat ........................................... 11 4.2 Setting-up of National Legal Working Groups..................................................... 11 4.3 Setting-up of regional office in Bucharest .......................................................... 12 4.4 Collection of information on domestic laws ........................................................ 12 4.5 Collection of information on regional/bi-lateral/multilateral treaties ..................... 12 4.6 Identification of appropriate international treaties .............................................. 12 4.7 Identification of violations of provisions of MLA and decisions of IGC TRACECA.... 14 4.8 Familiarization with current operational situation per country.............................. 14 4.9 Multilateral Road Transportation Permit System ................................................. 15 4.10 TRACECA Visa.................................................................................................. 16 4.11 Project’s External Relations............................................................................... 16

PROJECT PROGRESS REPORT........................................................................ 19 RESOURCE UTILISATION REPORT................................................................... 19 RESOURCE UTILISATION REPORT................................................................... 20 OUTPUT PERFORMANCE REPORT .................................................................. 21

5 Project planning for next reporting period ......................................................................23 5.1 Provision of advice and assistance to the PS IGC TRACECA................................. 23 5.2 Preparing a LWG’s meeting at multilateral level.................................................. 23 5.3 Drawing-up a Technical Annex on vehicle technical standards ............................ 24 5.4 Presenting, analysing and negotiating the legal instruments to the national LWGs24 5.5 Elaborating the Legal Guide to International Agreements ................................... 24 5.6 Promoting ratification of international transport and trade treaties ...................... 24 5.7 Multilateral road transit permit system feasibility/TRACECA Permit System .......... 24 5.8 Promoting of adoption of Protocol(s) pertaining to additions/amendments and Technical Annexes to the MLA .................................................................................... 25 5.9 Project’s External Relations............................................................................... 25 5.10 Risk Factors Effected Project Outputs ................................................................ 25

PLAN OF OPERATIONS FOR THE NEXT PERIOD.............................................. 26 Working Group meeting held in Tashkent, May 22-23, 2003 .................................. 27

Contents


1 Project Synopsis - Contract No 2002/027-526

Wider Objectives: To perceive legal barriers and to remove the same through harmonization of national transit transport legislation by means of enhancing transparency and efficiency, achieving consolidation of competition and free market practices and bringing TRACECA countries closer to relevant EU transport policy. Specific Project Objectives: To provide the TRACECA States with the necessary elements for organising a common legal basis for transit traffic in each state by proposing accession to the relevant priority international conventions and treaties, drafting and promoting adoption of a multimodal transit law/Protocol(s) of amendment, additions or new annexes to the MLA. Outputs: The following outputs will be provided: • Establishment of:

• National Legal Working Groups (NLWG) • Multilateral LWG (MLWG),

• Bilateral and Multilateral Agreements collected and changes recommended • Recommended conventions and treaties ratified and implementation facilitated • Guide to International Conventions elaborated • Multimodal transit model law promoted/Protocol to the MLA (subject to decision of the Parties

to the MLA) • TRACECA permit and quota system elaborated • Modern technical vehicle standards recommended • Legal assistance to the IGC Permanent Secretariat • Financing support to the National Secretaries of the Parties of the MLA, General Secretary

and Executive Secretary of the PA IGC TRACECA and two working groups Activities: • In close co-operation with the on-going TRACECA Projects, Permanent Secretariat and

National Commissions, to set up National and Multilateral Legal Working Groups (NLWG and MLWG)

• To catalogue the present bilateral and multilateral transport transit agreements applicable to TRACECA states, analysing their impact on the MLA and recommending appropriate action to adapt or modify them where they are in conflict with it.

• To assist TRACECA states to accede to and implement priority international conventions. In respect of each recommended Convention:

• review and report on the difficulties being experienced with implementation in each newly adhering state;

• help counterparts to overcome any problems which can be resolved through technical assistance;

• investigate the opportunities for wider availability of commercial insurance in respect of cargoes and carrier liability;

• prepare a list of recommendations for future action especially where inadequate investment in infrastructure or manpower is impeding implementation.

• To produce a Guide to International Conventions and Agreements for transport operators and traders including:

• a detailed description of the Convention on a Common Transit Procedure of 20.5.87 which is relevant to the parallel TRACECA Harmonisation of Border Crossings project;

• an explanatory section on the MLA and its annexes;


• an explanatory section on international permit and quota systems in road transport. • To propose a draft multimodal transit law using material compatible with the UNCTAD/ICC

Rules and FIATA FBL and codes of practice as devised by the TRACECA Legal Framework project

• In close co-operation initially with the Permanent Secretariat and then with the LWGs at National level to assess the feasibility of introducing a regional system of road haulage permits and quotas.

• To propose technical standards for road freight vehicle construction-and-use that could be incorporated within the road transport Annex to the MLA and phased in over a period of years. Also to suggest how EU standards on Operator Licensing and Drivers' hours could be adapted for use in the region, building on the work recently completed by the International Road Transport Facilitation project.

• To provide advice and assistance to the IGC and Permanent Secretariat in the preparation of any Directives considered necessary to implement recommended changes in accordance with the international practices at the regional level and similar assistance to National Commissions through NLWGs preparing proposals for submission to Ministers or Parliament.

• Financial Support to the General Secretary, Executive Secretary and National Secretaries, including monthly indemnities, travelling and office expenses, and two working groups for the period October 1st 2002 to July 1st 2003.

Target Group: Ministries of Transport or Cabinet of Ministers of beneficiary countries/President’s Office. Beneficiaries: TRACECA National Commissions and IGC TRACECA Permanent Secretariat Inputs: Technical Assistance will include: International expertise: 462 man/days Team leader; 506 man/days long-term senior experts; 518 man/days short-term senior experts. Local expertise: 1452 man/days long-term junior experts; 1320 man/days short-term local senior experts. Setting up of at least three regional offices (Baku, Tashkent and Bucharest) and a sub-office in Tbilisi.

Project starting date : November 21, 2002 Project duration: 24 months


Progress Report I May 2003 2 Summary of the project progress since the start The project started off on the 21st of November 2002, when the Contract was signed. On the same date, the kick-off meeting in Brussels took place. This meeting was attended by Mr. Efstathios Dalamangas, Task Manager of TRACECA Program and Mr. Thomas Lamnidis, the Project Team Leader. The decisions of the meeting and recommendations of the Task Manager were duly implemented: the local experts were recruited in Baku (basic office), Tashkent, Tbilisi and Bucharest. The offices have been sufficiently equipped and are fully operable to date. The daily co-ordination was established with three ongoing projects “The TRACECA Co-ordination Team”, the “Harmonization of Border Crossing Procedures” and the “Unified Policy for Transit Fees and Tariffs” 1. The kick-off meeting in Baku was held by the international experts of the Project in the Permanent Secretariat of the IGC TRACECA on December 3, 2002. The present report covers the project activities of three months of March, April and May 2003. As most of the planned project operations are directly linked with assumed feedback from the new structures of National Legal Working Groups in each of the country and the project regional offices, the Project Team undertook immediate steps towards establishment of personal contacts with beneficiaries and establishment of National Legal Working Groups. Please see Annex 1 for Concluding Remarks of the CLBTT Project’s experts from round trip to the TRACECA MLA Parties. The Annex 2 reports on the establishment of NLWG in each country. The Annex 3 contains Terms of Reference of the NLWG. During the meeting in Tashkent, the ToR was officially presented to the National Secretaries, who will become moderators of these WGs. Please See Annex 4 for presentation paper. At the same time the Project, in close cooperation with the PS IGC TRACECA, collected domestic laws, regional, bilateral and multilateral treaties from the participating countries of the TRACECA programme. Although this constitutes one of the tasks of the NLWGs, in order to be in time with reporting, the project team had to obtain data from NSs, for the working groups became fully operable after the WG Meeting of National Secretaries and Legal Experts held in Tashkent, May 22-23, 2003, i.e. very short time could be dedicated to this task. The task of identification of violations of provisions of MLA and decisions of IGC TRACECA is also included in the list of tasks of the NLWG. However, due to the above mentioned reasons, the Project team found it expedient to proceed with their own findings, which will be in later stage compared with those of NLWGs. The findings are described in Annex 5. In order to identify appropriate international treaties, the project team (1) studied the most appropriate prima-facie international conventions; (2) familiarized themselves with the relevant studies previously performed by other projects; (3) addressed international organizations depositing relevant conventions and agreements. These resulted in a series of recommendations on: the International Convention on the simplification and harmonization of customs procedures (1974) as amended; Convention on International Multimodal Transport of Goods (1980); Customs Convention on Containers (1972); Convention on customs treatment of pull containers used in international transit (1994); Agreement concerning the establishing of global technical regulations for wheeled 1 The projects commenced in November 2001 and will terminate by November 2003


vehicles (1998); The UNIDROIT Convention on International Terminal Operators; European Agreement on Combined Transport Lines (AGTC). After the numerous meetings with the TRACECA Co-ordination Team Leader, the PS IGC TRACECA, HBCP Project Team Leader, it has became obvious that the Project will pay efforts to include the TRACECA Visa issue in the Agenda of the up-coming III Annual Meeting of IGC TRACECA in Yerevan planned for 8-10 October 2003. The Project Team has further elaborated decisions of the Tashkent Annual Meeting and considered the relevant products of Harmonization of Border Crossing Procedures projects, which dealt with it until now. After having discussed the issue of the Road Transportation Permit System Feasibility with the PS IGC TRACECA and the National Secretary of Azerbaijan it was decided to introduce additions to the Technical Annex on International Road Transport to the Basic Multilateral Agreement. Please refer to Annex 6 for Protocol on amendments to the Technical Annexes on International Road Transport and on Customs Documentation Procedures to the MLA. The Protocol was presented to the Parties during the WG Meeting in Tashkent, May 2003 and will be proceeded to the National Commissions for study and it is envisaged that the Protocol will be then agreed at the up-coming WG Meeting preceding the III IGC Annual Meeting in Yerevan and proposed for signatory at the next annual IGC Meeting of 2004. Through bi-lateral consultations the Contractor identified the key operational issues in the field of multimodal transportation and transit in each participating country, so as to facilitate the emergence of a common understanding and consensus, taking into consideration the diversity of the existing situation in individual partner states. In this context, all previous and relevant TRACECA projects have been reviewed and their recommendations were taken on board to a large extent. Throughout the reported period the Project Team continued to provide advice and technical assistance to the PS IGC TRACECA in (1) finalisation of the Statute of the Permanent Secretariat; (2) preparation for the Working Group Meeting of National Secretaries and Legal Experts in Tashkent, May 22-23 and (3) active involvement during discussions made for the adoption of Recommendations to the IGC on the Statute of PS and Rules of Procedure of IGC TRACECA by the WG in Tashkent (please see Recommendations and Decisions, Annex 8/appendix 5); (4) participation of the Project Co-ordinator in the Mission of the PS IGC TRACECA to Afghanistan, please see Annex 7. Please see Annex 8/appendix 4 for the Statute of the PS IGC TRACECA, Annex 8/appendix 1 for the WG Agenda and Annex 8 for the Tashkent Working Group Meeting Report. Along with this the project local experts of the office in Baku, PS IGC TRACECA constantly provided advice and assistance to the PS, including drafting correspondence, follow-up of joint activities, technical consulting on issues pertaining to legal aspects of transport regulation, logistics.


3 Summary of the project planning for the remainder of the project

3.1 First Draft of the Multimodal transit model law/ Protocols for Amendments and

Additions to MLA Having discussed the issue of choice between model law and amendments/additions to the MLA with the Parties, the Contractor came to the following conclusions: As regards the Model law, it is not unlikely that the model law will be more of a model than a law:

• It would be a perfect legal text, in full conformity with international legal standards; • It is relatively easy to draft, in a short period of time;

However,

• It is still a model worked out by technocrats, to be adopted by the TRACECA countries one by one and is hardly “visible”, therefore it is more difficult to “sell” to international markets;

• The enforceability of a model law could still be a big problem between counties. As regards the Protocol to the MLA:

• It is difficult to reach in terms of consensus • Consensus is often reached at the expense of legal perfection.

Yet, • It might be practical and workable if we think minimal set of arrangement that will encounter

the least possible obstacles in national legal orders. • This set of arrangement would be both accepted by TRACECA countries and selected areas • They will be enforceable for two reasons: the commitment of countries through non-financial

guarantees and prospects of attracting investments (“Visibility”). 3.2 Establishment of Multilateral Legal Working Groups The establishment of the MLWG presumes that there are recommendations and decisions made at the level of National Legal Working Groups, which need to find consensus of the MLA Parties and therefore need to be brought to the multilateral level of discussions. Therefore they will be established at a later stage, upon the occurrence of the above said. The Project Team, however, will assist the national based legal working groups in passing relevant decisions, consequently promoting them to the multilateral level. 3.3 Drawing-up a Technical Annex on road vehicle technical standards The Contractor is producing, in close co-operation with the counterparts, a draft of a new Technical Annex and addendum to the Technical Annex to the MLA on Road Transportation on internationally recognised technical standards for road freight vehicle and their use. 3.4 Presenting, analysing and negotiating the legal instruments to the national LWGs The Contractor will present, analyze and negotiate – mainly within the national LWGs – the main legal instruments. To this effect, the Contractor envisages a permanent dialogue by means of holding meetings of the LWG in each participating country at regular intervals.


The Contractor will finalise negotiations within the national LWGs of the main legal instruments (model law/ Protocol(s) pertaining to additions, amendments or new Technical Annexes to the MLA). The Contractor remains convinced about the path selected during the inception phase and shall endeavour to enhance MLA by (1) proposing amendments/additions to the annexes to the MLA; (2) proposing addition of new annexes on (currently considered by the countries) TRACECA Routes; TRACECA Investments; Arbitration and Conciliation. 3.5 Elaborating the Legal Guide to International Agreements The Contractor will produce an annotated Legal Guide to the International Agreements, to which the participating countries will be advised to adhere. The Contractor will present this Guide to the National Commissions and the national LWGs. 3.6 Promoting ratification and implementation of international transport and trade treaties In close co-operation with the national LWGs, the Contractor will promote at national level the implementation of the international agreements, which will be identified in the Legal Guide to International Agreements as necessary to be ratified. The proposed agreements will be then notified to the National Commissions through the National Secretaries, for their consideration and subsequent ratification by the parliaments. 3.7 Multilateral road transit permit system feasibility/TRACECA Permit System The Protocol on amendments to the Technical Annexes on International Road Transport and Customs Documentation Procedures to the Basic Multilateral Agreement (Annex 6) defines the TRACECA Permit, the quotas, the issuing authority/procedure and facilitates the access to the market and transit procedures by supplementing MLA. According to the Recommendations and Decisions of the Tashkent WG Meeting, where the Protocol was presented and generally agreed, it is envisaged that, upon completion of the detailed studies at national level, the issue will be considered during the 3rd IGC TRACECA Annual Meeting in Yerevan, 8-10 October 2003 and proposed for signatory at the 4th Annual Meeting of IGC. 3.8 TRACECA Visa The background was laid during the II Annual IGC Meeting in Tashkent, when the Parties agreed about several measures facilitating transit transport through the TRACECA corridor, which resulted into the protocol on free visas for persons accompanying humanitarian freights to Afghanistan via the TRACECA corridor, imposing of VAT zero-rate on transport services in international railway connection and application of SMGS railway bill as transit custom document. The Protocol (Annex 9) was presented to the Parties during the WG Meeting in Tashkent, May 22-23 and it is envisaged to have it signed during the up-coming 3rd Conference (Annual Meeting in Yerevan, October, 2003). 3.9 Promoting of adoption of Protocol(s) pertaining to additions/amendments and

Technical Annexes to the MLA The Contractor will pursue promotion of the following protocols, which have been brought to the attention of the Parties during the WG in Tashkent, May 2003:


On: TRACECA Routes, which stands for an integrate Interstate Transportation System crossing the territories of more than one state; it can be defined wither: - by specific transportation means and facilities constitution the said Interstate Transportation

System; - or/and by specific goods and passengers transported through the said Interstate

Transportation System. A TRACECA Routes shall be established each time by means of an inter-state agreement between at least two parties’ signatories to the MLA and the Protocols to be adopted. The incorporation of such inter-state agreements into the Internal Legal Orders of the Participating Parties and their implementation shall be pursued in accordance with the constitutional and legislative provisions of those Parties on TRACECA Investment, which means any project relating to: - the rehabilitation of existing infrastructure facilities, including the revitalization and/or

reconstruction and/or refurbishment and/or expansion and/or modification of any existing infrastructure facility or any existing part of such a facility;

- the construction of new infrastructure facilities (through concessions or BOT and other principles) or of any new part of an existing infrastructure facility;

- the operation of infrastructure facilities as resulting from wither rehabilitation or construction activities (concession, BOT);

- any preliminary stages in terms of planning in view of activities as set out above; - any investment on the territories of the parties to the MLA, which will contribute to the

economic development of the parties and increase movement of goods across a concrete TRACECA Route(s).

and on The Settlement of Disputes, which concerns the conduct of reconciliation in case of major difference in the implementation of that Protocol to the MLA. Simultaneously with above Protocol other Protocols of additions to the MLA and its annexes and new annex to MLA have been presented to the Parties: • Protocol for TRACECA Permit, quotas, issuing authority, customs documentation procedures • Protocol for TRACECA Visa, VAT zero rate on international railway service and application of

SMGS railway bill as a customs transit document Also any other Protocol containing Amendments and/or Additions or new Technical Annexes that shall be deemed necessary by the Parties to MLA. The above-mentioned Protocols represent a possibility for amending and enhancing the Basic Multilateral Agreement in order to create a favorable climate for attracting additional freight flow and investment. It has to be emphasized that recent international transport corridors (particularly north & south corridors) compete severely with TRACECA corridor. Therefore stressing on the flexibility component of the MLA would enable IGC TRACECA to respond to the needs of the day.


3.10 Risk Factors Effected Project Objectives The Project has had a very constructive and cooperative start from all Beneficiaries and Partners and it is not perceived that there will be any significant change in this attitude. However, the Contractor identified the following areas that could become risk factors to the Project objectives. The principal assumption is that the approval of the Contractor’s methodology, as results of the Working Group Meeting in Tashkent evidences, provides a sufficient mandate for the National Commission and National Secretaries in each state to resolve many issues that will arise at National level in attempting to implement more coherent regulation of international transit traffic. It is assumed that that they are given sufficient tools (ToR for NLWGs, proposed amendments and new annexes to the MLA, establishment of the TRACECA Conference of Heads of railways, ports and shipping companies, etc.) for achieving this task. The following risks identified during the inception phase have effected current project objectives: • Decisions are taken contrary to the Articles in the Multi-Lateral Agreement • The Articles and Technical Annexes to the MLA are not being implemented; • The IGC, National Commissions and National Secretaries in the framework of the MLA do not

take decisions on key issues, or are not in a position to do so; • Various agencies are not informed of the engagements of the MLA and its Technical Annexes.

The Contractor is aware that this is the situation in a number of TRACECA states. However, the Contractor will ensure that such entities are made aware of these obligations within the course of the project;

• Decisions prove incapable of implementation because of insufficient financial resources in individual states. This risk is considered to be low as the funding necessary for phased implementation is not considered to be high. It is considered that the higher risk is of non-implementation due to legislation or inflexibility of the various organisations in accepting new approaches;

• Decisions are taken contrary to the provisions of the International Conventions ratified • International Conventions ratified are not being implemented


4 Project progress in reporting period 4.1 Advice and assistance to the Permanent Secretariat The Contractor is providing and will continue the provision of advice and assistance to the TRACECA Permanent Secretariat on the development of the TRACECA institutional framework, so as to create favourable conditions for the successful implementation of the Basic Multilateral Agreement. The Contractor, through NLWGs and using it’s regional facilities, assisted in the identification of violations (1) of the provisions of multilateral agreements, the Basic Multilateral Agreement in first turn, (2) international agreements and treaties; (3) decisions of the IGC, particularly the ones of the II Annual IGC TRACECA Tashkent Meeting. It is the project’s position that the institutional structure of TRACECA needs to be strengthened with the more concerted actions of the Parties, particularly, of the TRACECA National Secretaries. The Contractor was persistently consulting with PS IGC TRACECA, the National Commissions and the National Secretaries of IGC TRACECA to emphasize the importance of their increased role for sustainable development of TRACECA and implementation of the legal concept, commenced by the Project. The perceived future role of the National Secretaries will have much wider scope and broader responsibilities, dedicating their time and efforts to maximum possible extent to the post of the National Secretary. Please refer to Article 4 of the Statute of the PS IGC TRACECA, in Annex 8/appendix 4, which reflects the proposed common approach of the Project Team and the Permanent Secretariat IGC TRACECA to modification of legal status of the TRACECA National Secretaries.

The Project Team suggests been immediately involved in preparation of the Working Group Meeting of National Secretaries and Legal Experts held in Tashkent 22-23 May 2003. Delegations from all 12 TRACECA member countries namely: Armenia, Azerbaijan, Bulgaria, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Romania, Tajikistan, Turkey, Ukraine, and Uzbekistan comprising of NSs and Legal Experts attended the Meeting. Representatives of the European Commission, the technical assistance projects: HBCP, UPTFT, CLBTT, TRACECA Coordination Team and the PS attended the Meeting as well. The list of participants is attached as appendix 2 to the Tashkent WG Meeting Report (Annex 8). 4.2 Setting-up of National Legal Working Groups The Project’s experts took it as a prioritized action to establish permanent contacts with the legal experts representing the Parties, through the set-up of the local national Legal Working Groups (LWGs). Please refer to Annex 3 for the Terms of Reference of the National Legal Working Groups approved by Tashkent WG Meeting. This effort have generated enough links between the participants of the beneficiary states to enable them to continue a creative dialogue among themselves (ideally, without major external assistance), through the build-up of mutual trust, sustainable multilateral relations and “a consensus culture” between the states concerned. The NLWGs assist the respective Parties to the MLA and the Project’s Team in correct perception of legal barriers and removal of the same through harmonization of national transit transport legislation. For this purpose, the NLWGs use their expertise to (1) analyse existing legislation and collect required data/information, followed by dedicated reporting, and also to (2) draft legal acts, propose and promote amendments/addendum or new technical annexes to the MLA in order to raise competitive capacity of the transport corridor Europe-Caucasus-Asia (TRACECA) to the MLA and current legislation (3) propose actions on further efficient implementation of the MLA, etc.


The NLWGs also help strengthen the institutional capabilities of the IGC, TRACECA National Commissions and TRACECA National Secretaries in their efforts to organize a common legal basis for transit traffic with the aim to increase competitiveness of the TRACECA corridor. 4.3 Setting-up of regional office in Bucharest The office in Bucharest has been set up in April 2003. The junior legal expert has been approved by the EU Commission and started off the same months. 4.4 Collection of information on domestic laws The domestic normative acts applicable for transit transportation have been collected from the countries by means of (1) addressing the National Secretaries with requests and by (2) using Project regional facilities. The material is being analyzed for identification of violations of MLA and contradictions with international treaties on transit transport. Some of the countries have assured their constitutional provisions prevent any kind of such violations. 4.5 Collection of information on regional/bi-lateral/multilateral treaties International Conventions and relevant agreements on transit transportation have been collected from the countries by means of (1) addressing the National Secretaries with requests and by (2) using Project regional facilities. The material is being analyzed for identification of possible violations or contradictions to the MLA. 4.6 Identification of appropriate international treaties In order to identify appropriate international treaties, the project team (1) studied the most appropriate prima-facie international conventions; (2) familiarized themselves with the relevant studies previously performed by other projects; (3) addressed international organizations depositing relevant conventions and agreements. These resulted in a series of recommendations on: the International Convention on the simplification and harmonization of customs procedures (1974) as amended; Convention on International Multimodal Transport of Goods (1980); Customs Convention on Containers (1972); Convention on customs treatment of pull containers used in international transit (1994); Agreement concerning the establishing of global technical regulations for wheeled vehicles (1998); The UNIDROIT Convention on International Terminal Operators; European Agreement on Combined Transport Lines (AGTC). The Project Team used the floor of the WG of NSs and Legal Experts in Tashkent in order to present these instruments to the countries’ representatives. There are few facts that have to be noted in this connection. The International Convention on the simplification and harmonization of customs procedures (1974) as amended (Kyoto Amended) contains all the most modern and innovative procedures. The body of the Convention and its General Annex are obligatory for accession. In addition, Contracting Parties may accept Specific Annexes and/or Chapters therein. However, differently from the convention of 1974, which allows to file reservations when acceding to the convention, if not all items in one annex had been yet fully realised within one administration, this possibility does not exist for the Kyoto Amended. The new Convention also requests, that all secondary and administrative acts are in full accordance with the standards, while the Convention of 1974 has left open this question. The recommendation of the World Customs Organization is, for Bulgaria and Turkey, which are Parties to the Kyoto 1974, to start accession procedure to the Kyoto Amended and, for the rest of


TRACECA states – to start considering accession to the newly revised convention. It is expected that in a year term the Kyoto amended enters into force. The Convention on International Multimodal Transport of Goods (1980) provides for freedom for shippers to choose between multimodal and segmented transport services, at the same time imposing liability of the multimodal transport operator based on the principle of presumed fault or neglect. In other words, the Convention stipulates common rules for operators of multimodal transport, if they choose to become subject to it. Customs Convention on Containers (1972) facilitates the international transport of containers. The convention provides Customs authorities with a flexible instrument to reduce administrative work while at the same time, safeguarding customs control. Once a party, the Government has to modify national legislation in line with provisions of the Convention and train customs officials in the operation of the temporary importation procedures. The Article 2, of the Technical Annex on Customs Documentation Procedures to the Basic Agreement, recommended to the Parties to accede to this Convention, quote: “as soon as possible”. However, the following TRACECA countries did not accede to it: Azerbaijan, Armenia, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan. UN/ECE Convention on customs treatment of pull containers used in international transport (1994) further facilitates the use of containers in international trade and transport by the participants of pull on the grounds of equivalent compensation. The Government, once a pull member, grants admission to containers, without payment of import prohibitions or restrictions of an economic character, without limitations as to use in internal traffic and without requiring, on their importation and exportation, Customs documents and security, provided that the conditions stipulated therein are compiled with. With this Convention, containers are no longer considered being merchandises in international trade. Agreement concerning the establishing of global technical regulations for wheeled vehicles (1998) is aimed at the achievement of high level of operational features in the field of safety, environmental protection, energy efficiency and anti-theft performance; reduction of technical barriers to international trade by means of harmonization of the existing technical regulations and development of new global technical regulations applied to the operational features of wheeled vehicles. European Agreement on Combined Transport Lines (AGTC) (1991) is meant to facilitate the international transport of goods and, at the same time, providing legal measures for mitigation of the negative effect on the environment caused by combined transport, defined as “the transport of goods in one and the same transport unit using more than one mode of transport”, in trans-alpine traffic. The Agreement establishes a legal framework for the development of combined transport services and the operational infrastructure based on internationally agreed performance parameters and standards. The UNIDROIT Convention on International Terminal Operators The Draft Convention would apply to transport related services such as storage, warehousing, loading, unloading, stowage, trimming, dunnaging and lashing, performed in relation to goods involved in international carriage, provided: the services were performed by an operator whose place of business was located in a contracting state; or the service provided was governed by the law of a contracting state. Extent and period of responsibility: the operator of a transport terminal would be responsible: when it undertook transport related services in respect of the goods in an area under its control; or in respect of which it had a right of access or use; and during the time the goods were in its charge. However


the responsibility would not include any responsibility as a carrier or multi-modal transport operator when these activities are regulated by other laws. According to the Convention, the terminal operator would be liable for itself and the actions of its employees, agent and sub-contractors unless it showed that it or they took all measures that could reasonably be required to avoid the occurrence and its consequences. This is the same standard of care based on negligence as in the Hamburg Rules, the burden of proof being with the operator. The Project Team suggests that countries should be considering either (1) to consider accession to those of the aforementioned international treaties which are in force and to pass IGC decisions on the most expedient provisions of the pending conventions or (2) to include the provisions of the most appropriate treaties into the relative national legal acts. The example is Kazakhstan, which has incorporated some of the provisions of Kyoto Amended into its Customs Code. 4.7 Identification of violations of provisions of MLA and decisions of IGC TRACECA The task is being implemented along with task of “Familiarization with current operational situation per country”. The lack of feedback from the National Legal Working Groups was emphasized during the WG in Tashkent, May 22-23. Please refer to Annex 5 for relative findings. 4.8 Familiarization with current operational situation per country 1. The Project Team undertook familiarization visits to the TRACECA countries, envisaged by the inception phase report. Visits embraced also bi-lateral and multilateral meetings with TRACECA National Secretaries, experts of the relevant governmental institutions and representatives of the freight forwarding companies. While visiting each country, getting familiar with current operational situation, experts have intentionally emphasized investigation on: (1) identification of violations/non-fulfilment of obligations contained in the MLA for the period 1998-2003; (2) identification of the key problems and methods of elimination of theirs, which would facilitate development of international multimodal transportation. Short list of violations and failures to fulfil obligations under MLA (for 1998-2003) was submitted to the PS IGC TRACECA for inclusion into the Tashkent WG Meeting of May 2003. See Annex 5. 2. The Contractor identified the need for drafting ToR for National Secretaries in their capacity of head of Permanent Representation, maintained by PS in each country (reference is made to clause 4.1 of the Statute of the PS IGC TRACECA), which emphasized by the PS IGC TRACECA. The Contractor proposes to develop the ToR for TRACECA National Secretaries based upon: - the needs of the ongoing TRACECA projects - the IGC Rules and Statute of the PS - the interpretation of the MLA The ToR would entitle a TRACECA National Secretary to:

- head the office of the Permanent Representation maintained by the PS IGC TRACECA, and, in this capacity, to: - have access to the documents defining his/her rights and powers and stipulating

requirements relevant to the organization of work of the Permanent Secretariat and the Permanent Representations.

- be provided in timely manner with the documents and papers, required for efficient implementation of functions of the TRACECA National Secretary


- decide about pending matters at his/her discretion, unless the matter is subject to higher competences

- participate in all regular and ad-hoc meetings whenever a decision is made relevant to the TRACECA matters

and be committed to:

- act fully supportive to the TRACECA Program related activities throughout all of his/her service

- promote TRACECA Program in the country of his/her nationality - refrain from any activities or support of such ones, which may directly or indirectly interfere

with TRACECA programme development - to adhere to the Decisions made by the IGC TRACECA and to monitor implementation

thereof - to observe the rules stipulated by the PS IGC TRACECA with regard to internal orders

applicable to confidential information processing - to maintain his/her professional capacity at the level sufficient for effective conduct of his/her

service 3. During the visits, the experts’ attention was in all cases drawn to the absence of unanimous approach to the concept of multimodal transportation, which, as Contractor opines, is one of the key measures facilitating trade between TRACECA countries both within them and externally. In pursue of this goal the Contractor thinks it expedient to include the above issues into the NLWG agendas. Having these issues developed together by Contractor and experts of NLWGs, would bring the MLA countries closer and determine the ways and methods of elimination of such problems. 4. The Contractor opines that facilitation, development and legal provision for international multimodal transportation in the TRACECA countries should be based also upon the following principles:

- adoption of rules applied to freights transportation in accordance with international multimodal transportation agreements, including fair provisions on liability of operators of multimodal transport;

- facilitation of smooth development of rational and effective multimodal operations, which meet the requirements of relevant kinds of trade;

- provision for balanced interests of users and suppliers of international transport services. The above findings and also the need for development of international multimodal transportations, may bring to, which may become the case, that the MLA Parties agree upon and instruct to draft the Protocol on amendments/additions to MLA or to submit the new draft Technical Annex to MLA on international multimodal transport (see Annex 10 for the Draft Declaration of the TRACECA Conference of the Heads of Railways, Ports and Shipping Companies, drafted by the UPTFT Project experts and finalized by mutual efforts of CLBTT Project and Co-ordination Team experts). In this connection the Contractor is ready to provide technical assistance to the PS IGC TRACECA upon request, for all matters mentioned above. 4.9 Multilateral Road Transportation Permit System The background was laid by the Working Group of the National Secretaries on legal aspects held in June 2001 in the PS IGC TRACECA, Baky, which raised the issue of feasibility study for International


Transit Permit System for TRACECA countries. Consequently, following the request of the General Secretary of Permanent Secretariat, this issue was included into the Project’s ToR. In close co-operation with the PS, the Contractor assessed the feasibility of introducing a regional system of road haulage permits (e.g. TRACECA permit) and quotas to replace the existing bilateral and multilateral regional agreements. At this stage of the Project, the matter is studied through two aspects: equivalent ECMT permit systems and bilateral agreements. This issue was also incorporated into the List of priority tasks for the National Legal Working Groups. The Project Team, in Co-operation with the experts of the Permanent Secretariat has drafted the Protocol on Amendments to the Technical Annex on Road Transport to the Basic Multilateral Agreement, which was presented to the TRACECA National Secretaries and Legal Experts during the WG Meeting in Tashkent, May 22-23 2003. It is planned that, upon completion of the detailed studies at national level, with consensus of the Parties of the multilateral Working Groups, if required, the issue will be considered during the next IGC TRACECA Annual Meeting. It is envisaged that the Protocol on amendment will be signed during the IV IGC Annual Conference next year. 4.10 TRACECA Visa Considering the significance of the TRACECA Visa issue in terms of development and intensification of trade and economic relations, the Contractor, in cooperation with the PS, HBCP project, Co-ordination Team and TRACECA National Secretaries, is providing dedicated technical assistance in elaboration and implementation of the relevant decisions adopted by the IGC. In pursue of this, and taking into account Final Resolutions of the Annual Meeting of IGC TRACECA held in Tashkent, the consultations with the experts of PS and current projects within TRACECA, the Contractor has recommended to propose, during the WG of NSs and legal experts of the Ministries of Foreign Affairs in Tashkent, 2003, 22-23 May, to include in the Agenda of the IGC Annual Meeting in Yerevan, the signing of the Protocol on additions to the MLA. After having the issues discussed in the WG Meeting in Tashkent, in order to secure the consensus of the Parties in the IGC TRACECA Annual Meeting in Yerevan, October 20034, the Contractor recommends to expose this issue to discussions by the National Commissions of TRACECA prior to the Meeting. 4.11 Project’s External Relations During the reported period experts of the project have attended/organized meetings, amongst others, with the following persons and organizations: • Janny Bosschier, Coordinator of Europa House in Baku, Azerbaijan. The project has delivered

earlier its Inception Report. No major comments were made from her side, because, as it was explained, Europe House activities embrace TACIS national programs in Azerbaijan rather than regional programs like TRACECA.

• Asker Alekperov, Executive Director of National Coordinating Unit of the EU Technical Assistance of Azerbaijan. The Project Coordinator gave the Project Inception Report and briefed them on TRACECA recent developments.

• Barry Cable, Director of Transport and Tourism Division, UN ESCAP and Martin Lentsch, Chief of Land Transport Section, Transport and Tourism Division. Sub-regional Seminar on Intergovernmental Agreement on Asian Highways and the SPECA WG on Transport and Border Crossing Facilitation Meeting took place in Baku on 27-29 March 2003 and was attended by the Project experts. ESCAP representatives were briefed on the project developments and invited to


learn about the experience of the ESCAP initiatives in the region. Through subsequent correspondence the experts exchanged information, which was than used in the project activities.

• Eva Molnar, Transport Sector Manager, Infrastructure and Energy Unit, Europe and Central Asia Region, World Bank. The meeting took place in Tashkent, in the days of WG Meeting of NSs and Les, Tashkent, 22-23, 2003. The project Coordinator briefed Ms. Molnar on the recent TRACECA developments relevant to the project’s activities. Ms. Molnar expressed her interest in learning about the project and requested a copy of the Project Inception Report. She has also invited for consequent exchange of information. She has also mentioned about her willingness to attend the Annual Meeting in Yerevan if timely invited.

• Gulnara Botobaeva, Project Manager, Technical Co-operation Section, EC Delegation to Kyrgyzstan. Project objectives were presented and comments made and received by the Project Team Leader.

• Alfred Supik, EU Advisor, TACIS Coordinating Unit in Kyrgyzstan, Team Leader. Project objectives were presented and comments received by the Project Team Leader.

• Valery Tyan, ADB Kyrgyzstan, Senior Project Implementation Officer. Comments exchanged and information updated.

• Jyldys Galiyeva, Deputy Resident Representative, Principal Banker, EBRD in Kyrgyzstan. Comments exchanged and information updated.

• A A Abduvaliyev, General Director of Uzbek Agency for Automobile and River Transport. Comments exchanged and information updated.

• A Ramatov, Chairman of the Uzbek Railways. Comments exchanged and information updated. • Peter Reddish, Coordinator of Europa House, Tashkent, Uzbekistan. Project objectives were

presented and comments made and received by the Project Team Leader. • I Kasimov, Director of National Coordination Unit in Uzbekistan. Project objectives were

presented and comments made and received by the Project Team Leader. • D Khamrayev, General Director of Uzbek International Forwarders Association • A Waddams, Head of EC Delegation in Almaty, and A Baidebekova, TRACECA Officer at EC

Delegation in Almaty, Kazakhstan. Project objectives were presented and comments made and received by the Project Team Leader.

• I Segal, Director of the Kazakhstan Forwarders Association. Project objectives were presented and comments made and received by the Project Team Leader.

• O Cetin Nuhoglu, Chairman of the Board of UND, International Transporters Association, Turkey. Project objectives were presented and comments made and received by the Project Team Leader.

• Merab Adeishvili, Minister of Transport and Communications of Georgia, George Nijaradze, Deputy Minister of Transport and Communications; Gogi Gogiashvili, TRACECA National Secretary of Georgia and Marc Graille, Team Leader of TRACECA Co-ordination Team/Supervisor to the PS IGC TRACECA. The Project Team Leader reported on the Project progress made so far with special note on recent WG meeting in Tashkent and upcoming Conference of Heads of railways, ports and Shipping companies. Mr. Adeishvili expressed his willingness to attend the Conference, which is planned for 17-18 July 2003. The Project Team Leader presented his ideas regarding TRACECA Route, TRACECA Investments. The minister welcomed the idea of attracting private funds to TRACECA.

• Richard Lax, EU Delegation in Georgia. The Project Team Leader reported on the progress made so far with special note on the results of the recent WG meeting in Tashkent. Project objectives were presented and comments made and received by the Project Team Leader.

• Musa Panakhov, Deputy Head of Azeri Railways. The meeting with Project Coordinator discussed the issues of organization of the Conference of Heads of railways, ports and Shipping companies, the draft Declaration, and development of multimodal transportation with particular emphasise on legal aspects of multimodal operations.


19

PROJECT PROGRESS REPORT

Project title: Common Legal Basis for Transit Transportation Project number: 2002/027-526 Beneficiary countries: Armenia, Azerbaijan, Bulgaria, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Romania, Tajikistan, Turkey, Turkmenistan, Ukraine, Uzbekistan.

Page: 1 of 1

Planning period: March 2003 - May 2003 Prepared on: May 2003 EC Consultant: Lamnidis & Associates Project objectives: To provide the TRACECA States with the necessary elements for organising a common legal basis for transit traffic in each state by proposing accession to the relevant priority international Conventions, drafting and promoting adoption of a multimodal transit law/Protocol(s) of amendment, additions or annexes to the MLA.

TIME FRAME 2003 INPUTS PERSONNEL Months INTERNATIONAL LOCAL

EQUIPMENT & FURNITURE OTHER No ACTIVITIES IMPLEMENTED

March April May Planned Utilised Planned Utilised Planned Utilised Planned Utilised 1.

Provide advice and assistance to the PS* 504 445 462 334

2. Draft new Statute of the PS

3. Setting-up of NLWG

4. Setting-up of MLWG

5.

Setting-up of regional office in Bucharest

6. Setting-up of sub-office in Tbilisi

7. Collection of information on domestic laws*

8. Collection of information on regional treaties*

9. Identification of appropriate international treaties

10. Familiarisation with current operational situation per country

11. Identification of violation of provisions of MLA and decision of IGC TRACECA*

12. Multilateral road transportation permit system feasibility*

13. TRACECA Visa*

4 Computer tables, 6 Bookcases, 4 Computers, 2 Laptops, 3 Printers, 1 Scanner, 1 Copy machine, 1 Network Switch 8 ports, 5 UPS, 1 fax modem etc.

4 Computer tables, 6 Bookcases, 4 computers, 2 Laptops, 3 Printers, 1 Scanner, 1 Copy machine, 1 Network Switch 8 ports, 5 UPS, 1 fax modem etc.

15 flights Europe-Baku-

Europe

19 flights Europe-Baku-

Europe

TOTAL

504 445 462 334

* Still in progress


RESOURCE UTILISATION REPORT


Page: 1 of 1

Planning period: March 2003 - May 2003 Prepared on: May 2003 EC Consultant: Lamnidis & Associates Project objectives: To provide the TRACECA States with the necessary elements for organising a common legal basis for transit traffic in each state by proposing accession to the relevant priority international Conventions, drafting and promoting adoption of a multimodal transit law/Protocol(s) of amendment, additions or annexes to the MLA.

RESOURCES/INPUTS

TOTAL PLANNED

PERIOD PLANNED

PERIOD REALISED

TOTAL REALISED

AVAILABLE FOR REMAINDER

PERSONNEL

Long-term international experts

Team Leader 440 140 140 300 Senior expert 528 127 127 401

Short-term international expert

Senior experts 518 289 289 229

Local expert

Senior experts 1320 231 231 1089 Junior experts 1452 176 176 1276

Sub-total 4258 963 963 3295

FEES & ACCOMODATION EXP.

For P.S. and N.S.

220 000 178 800,00 1065

WORKING GROUP 40 134,65

Equipment and Material

25 000 24 529,38 470,62

Sub-total 245 000

243 464,03 1536

OTHER INPUTS 555 000 160 306,17

Sub-total 555 000

160 306,17 394 693,83

800 000 403 770,20 396 229,80 466 243,04


OUTPUT PERFORMANCE REPORT


Page: 1 of 1

Prepared on: May 2003 EC Consultant: Lamnidis & Associates

Output results Deviation original plan + or - % Reason for deviation

Comment on constrains & assumptions

1. Provide advice and assistance to the PS Continued The advice and assistance will be provided throughout the project No comment

2. Draft new Statute of the PS Completed No comment

3. Setting-up of NLWG Continued Armenia will establish the National Legal Working Group in the nearest future No comment

4. Setting-up of MLWG Continued Legal experts participated in two working groups (Baku 2003 and Tashkent 2003). Official set up is

expected No comment

5. Setting-up of regional office in Bucharest Completed No comment

6. Setting-up of sub-office in Tbilisi Completed No comment

7. Collection of information on domestic laws On target National Legal Working groups were recently

established and are in the process Insufficient time

8. Collection of information on regional treaties On target National Legal Working groups were recently

established and are in the process Insufficient time

9. Identification of appropriate international treaties Completed No comment

10. Familiarisation with current operational situation per country Completed No comment

11. Identification of violation of provisions of MLA and decision of IGC TRACECA On target National Legal Working groups were recently

established and are in the process No comment 12. Multilateral road transportation permit

system feasibility On target Draft Protocol was presented during the working group held in Tashkent May 22-23, 2003 No comment

13. TRACECA Visa On target Draft Protocol was presented during the working group held in Tashkent May 22-23, 2003. No comment

CLBTT Project Progress Report I May 2003 23

5 Project planning for next reporting period 5.1 Provision of advice and assistance to the PS IGC TRACECA The Contractor is providing and will continue provision of advice and assistance to the TRACECA Permanent Secretariat on the development of the TRACECA MLA framework2, so as to increase attractiveness of the TRACECA Corridor. The Contractor will continue to provide advice and assistance to the TRACECA Permanent Secretariat on the development of the TRACECA multilateral framework, so as to create favourable conditions for the successful implementation of the MLA by dedicated activities of the Project. The Project Team will assist the PS IGC TRACECA in preparation for the III Annual IGC Meeting in Yerevan in October 8-10, 2003. The tentative agenda was proposed to the WG in Tashkent and iterated the following:

a. adoption of Rules of Procedure of the IGC TRACECA b. adoption of the Chapter I of the Statute of the Permanent Secretariat c. signatory of the Protocol on additions and amendments to the Basic Multilateral

Agreement on international transport for development of the Europe-Caucasus-Asia corridor (in accordance with Final Resolutions of the Tashkent Conference 24-25 April 2002 and Recommendations and Decisions of the WG of National Secretaries and Legal Experts, Tashkent, May 22-23, 2003)

d. approval of the draft Protocol on additions to the Technical Annex on Customs and Documentation Procedures and Technical Annex on International Road Transport to the Basic Multilateral Agreement on international transport for development of the Europe-Caucasus-Asia corridor, and to be considered by the Parties and signed thereafter on the next annual meeting of IGC TRACECA (in accordance with a.m. Recommendations and Decisions)

e. Adoption for a new TRACECA Strategy for the period of 2004 – 2008. f. Adoption of the new project proposals, according to the Tacis Regional Strategy Paper

2004-2006. g. Creation of the TRACECA Conference of the Heads of Railways, Ports and Shipping

Companies. h. Agreement of the Parties about joint financing of PS IGC TRACECA.

5.2 Preparing a LWG’s meeting at multilateral level The Contractor assisted the PS to prepare a meeting of the National Secretaries and Legal Experts, held in Tashkent 22-23 May 20033. The Contractor will arrange for regular meetings of the newly established NLWGs under the Trade Facilitation Concept. Please refer to Annex 4 for presentation paper. The Project Team will keep on monitoring and facilitate the activities of the national-based working groups, so that the decisions made on national level will form a ground for establishing working group on multilateral level. Depending on the area of concern, the proposals elaborated by the national-based LWGs will be implemented in either national or multi-lateral level subject to consensus of the Parties. Those proposals which do not require approval of the IGC members (accession to international conventions, cancellation of acts impeding implementation of MLA or other international 2 Reference is made to particular task, i.e. drafting of the Rules of Procedure of the IGC TRACECA and Statutes of the PS IGC TRACECA and relevant activities. 3 See Annex 8/appendix 1 for the Agenda of the Meeting

CLBTT Progress Report I May 2003

obligations, contradictions of local norms, etc.), shall be finalized with the national agency (Ministry of Transport, Ministry of Foreign Affairs, etc.) involved and further national procedures for correspondent legislative initiatives shall apply. Those proposals which do require multilateral approval (amendments/addendum proposed to MLA,/its annexes, recommendations for IGC TRACECA, etc.) will be exposed to discussions at Legal Working Groups meeting on multilateral level and subsequent finalization at IGC conferences. 5.3 Drawing-up a Technical Annex on vehicle technical standards The Contractor will produce, in close co-operation with the counterparts, a draft of a new Technical Annex or addendum to the Technical Annex to the MLA on Road Transportation on internationally recognized technical standards for road freight vehicle and their use. 5.4 Presenting, analysing and negotiating the legal instruments to the national LWGs The Contractor will present, analyze and negotiate – mainly within the national LWGs – the main legal instruments. To this effect, the Contractor envisages a permanent dialogue by means of holding meetings of the NLWG in each participating country at regular intervals. The Contractor will finalise negotiations within the national LWGs of the main legal instruments (model law/ Draft Protocol(s) pertaining to additions, amendments or annexes to the MLA). The Contractor will present the final drafts to the MLWG established by the IGC. 5.5 Elaborating the Legal Guide to International Agreements The Contractor will produce an annotated Legal Guide to the International Agreements, to which the participating countries will be advised to adhere. The Contractor will present and analyse this Guide to the National Commissions and the national LWGs. On this occasion, the Contractor will provide training to the members of the TRACECA National Commissions and of the national LWGs. 5.6 Promoting ratification of international transport and trade treaties In close co-operation with the national LWGs, the Contractor will promote at national level the ratification of the International Agreements, which he will have identified as necessary to be ratified in the Legal Guide to International Agreements. An alternative proposal addressed to the countries would be to accept recommended provisions of particular international treaties in the field of transit transport in the national laws and regulations. The example is promotion of the ASEAN Framework Agreement of Goods in Transit of 1998, in the countries of Southeast Asia. In this context the project could receive support from the UN ESCAP, which administers the Agreement. The Agreement is still not ratified/accepted by all of the subject countries, however its provisions have been incorporated into the national legal orders and are being implemented. 5.7 Multilateral road transit permit system feasibility/TRACECA Permit System The background was laid by the Working Group of the National Secretaries on legal aspects held in June 2001 in the PS IGC TRACECA, which raised the issue of feasibility study for International

CLBTT Progress Report I May 2003

Transit Permit System for TRACECA countries. Consequently, following the request of the General Secretary of Permanent Secretariat, this issue was included into the Project’s ToR. In close co-operation with the PS and the national LWGs, the Contractor assessed the feasibility of introducing a regional system of road haulage permits (e.g. TRACECA permit) and quotas to replace the existing bilateral and multilateral regional agreements. The Draft Protocol on addition and amendments to the Technical Annex to the Basic Multilateral Agreement on International Road Transport was presented to the WG of National Secretaries and Legal Experts in Tashkent on 22-23 May, 2003. It is planned that, upon completion of the detailed studies at national level, with consensus of the Parties of the multilateral Working Groups, the issue will be considered during the next IGC TRACECA Annual Meeting. 5.8 Promoting of adoption of Protocol(s) pertaining to additions/amendments and

Technical Annexes to the MLA It is envisaged that the adoption of above Protocol(s) to the MLA at the appropriate multilateral level, will be elaborated in close cooperation with the Permanent Secretariat and the NLWG and MLWG established by the IGC, and will be presented at the Yerevan IGC meeting, which will take place in October 2003. 5.9 Project’s External Relations The Project will maintain relations with the following counterparts: World Bank, UN ESCAP, World Customs Organization, UN ECE, World Trade Organization. 5.10 Risk Factors Effected Project Outputs Provided that NSs, NLWGs, National Commissions will, throughout their activities, prioritize development and intensification of the regional cooperation in the domain of trade and transport facilitation, as provided by the MLA, it may be assumed that this factor will become one of the most significant and decisive for achievement of the project objections.

CLBTT Project Progress Report I May 2003 26

PLAN OF OPERATIONS FOR THE NEXT PERIOD Project title: Common Legal Basis for Transit Transportation

Project number: 2002/027-526 Beneficiary countries: Armenia, Azerbaijan, Bulgaria, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Romania, Tajikistan, Turkey, Turkmenistan, Ukraine, Uzbekistan.

Page: 1 of 1

Planning period: June 2003 – November 2003

Prepared on: May 2003 EC Consultant: Lamnidis & Associates

Project objectives: To provide the TRACECA States with the necessary elements for organising a common legal basis for transit traffic in each state by proposing accession to the relevant priority international Conventions, drafting and promoting adoption of a multimodal transit law/Protocol(s) of amendment, additions or annexes to the MLA. TIME FRAME INPUTS 2003 (months) PERSONNEL No ACTIVITIES June July August September October November International Local

EQUIPMENT & FURNITURE

OTHER

1. First Draft of the Protocol(s) for amendments and additions to MLA

2. Setting-up of NLWG

3. Setting-up of MLWG

4. Collection of information on domestic laws

5. Collection of information on regional treaties

6. Drawing-up a Technical Annex on vehicle technical standards

7. Presenting, analysing and negotiating the legal instruments to the NLWGs

8. Elaborating the Legal Guide to International Agreements

9. Promoting ratification of international transport-trade treaties

10. Continuing to provide advice and assistance to the PS

11. Multilateral road transportation permit amendments and additions

370 690 15 flights Europe-Baku-

Europe

12. TRACECA Visa

TOTAL

370 690 15


Working Group meeting held in Tashkent, May 22-23, 2003

Annex 1
TRACECA CLBTT Project - Progress Report I – Annex 1 – CLBTT Concluding Remarks

CLBTT Concluding Remarks


Concluding remarks of the CLBTT Project’s experts from round trip to the TRACECA MLA Parties

Following the NS Meeting in Baky and relevant instructions of NSs concerning harmonization questions and bilateral consultations the Project Team Experts conducted meetings all over TRACECA countries with all NSs and relevant authorities. During these consultations a lot of peculiarities and weaknesses have been identified. Out of them the most important weaknesses are as following:

• Lack of experience of the administration in the area of international transit transportation practices;

• Lack of knowledge of the international treaties and conventions concerning international transportation;

• Heavy bureaucracy and complicated structure of existing legislation which differs from country to country;

• Lack of information flow among the TRACECA countries due to weak communication system;

• Poor transport infrastructure facilities, including cross border infrastructures;

• Lack of modern transportation means friendly to the environment;

• Extensive sense of insecurity for the various players, Transporters, IFIs, Forwarders, Banks, commodity Traders, Insurers;

• Different views and priority interests of all TRACECA countries;

• Different level of implementation of the international practices, treaties and conventions, especially because among TRACECA countries there are candidates to accede to EU;

• Lack of common terminology in the relevant legislation of each party, which further complicates common understanding, common measures and regional cooperation;

• Volumes of intra-regional TRACECA trade could be much higher;

• Promotion of national interest at the expense of regional benefit

Parameters to be taken into consideration: In the afford of approaching potential solutions for the above mentioned weaknesses in respect of the CLBTT scope and the taking into consideration all the principles of TRACECA MLA some parameters should be taken into consideration These parameters are “condition sine qua non” to reach an effective legislative/institutional structure for the international common transit transportation among TRACECA countries

• International transportation corridors are connected with extensive interstate and international trade;

• The international transportation necessitates “Hard investment”;

• In order to implement the international treaties and conventions it is necessary a lot of “Soft investments”;

• Legislative changes in all countries are time consuming because of involvement for their preparation of a lot of various authorities differing from country to country.

• The differentiation in the development trends of each TRACECA counties; In order to successfully implement the requirements of CLBTT project and taking into consideration some further objectives such as:


• Transparency of all transactions involved; • Safe transportation of the consignment; • Reliability of the transportation; • Minimization of delays and “hidden” costs;

Is a need also:

• To facilitate transport at border crossings; • To simplify and harmonize custom procedure;

Since these matters have already been tackled by the ongoing HBCP Project, it is envisaged that CLBTT project shall have a complementary effect on the outcome on that Project. All above mentioned weaknesses, parameters, objectives and requirements that has been commonly emphasized during the bilateral consultations lead to a less sophisticated and simplified customized solution for the harmonization of international transportation legislation in TRACECA countries. Out of three potential solutions

• Model law • Application of existing international conventions • Protocols of amendments and additions/new technical annexes to MLA

As regards the Model law, it is not unlikely that the model law will be more of a model than a law:

• It would be a perfect legal text, in full conformity with international legal standards; • It is relatively easy to draft, in a short period of time;

However,

• It is still a model worked out by technocrats, to be adopted by the TRACECA countries one by one and is hardly “visible”, therefore it is more difficult to “sell” to international markets;

• The enforceability of a model law could still be a big problem between counties. As regards the application of existing International conventions:

• They are in conformity with the needs of the international transport industry; • We would be re-inventing the wheel without the existing international conventions; • They are relatively easy to ratify by national parliaments, at least in procedural terms

However,

• They may be hard to enforce at national level, due to national peculiarities, including contradictions with national interests and normally requires long transitional periods.

Despite the fact of this disadvantage, it is accepted by everyone that they are absolutely useful and necessary for the harmonization of legislation in TRACECA countries.

As regards the Protocol to the MLA:

• It is difficult to reach in terms of consensus • Consensus is often reached at the expense of legal perfection.

Yet, • It might be practical and workable if we think minimal set of arrangement that will

encounter the least possible obstacles in national legal orders. • This set of arrangement would be both accepted by TRACECA countries and selected

areas • They will be enforceable for two reasons: the commitment of countries through non-

financial guarantees and prospects of attracting investments (“Visibility”). The cornerstones of this Protocol are:


• TRACECA Route; • TRACECA Investment; • Settlement of Disputes;

A TRACECA Route means an integrate Interstate Transportation System crossing the territories of more than one state; it can be defined wither: - by specific transportation means and facilities constitution the said Interstate

Transportation System; - or/and by specific goods and passengers transported through the said Interstate

Transportation System. A TRACECA Route shall be established each time by means of an inter-state agreement between at least two parties’ signatories to the MLA and the Protocols to be adopted. The incorporation of such inter-state agreements into the Internal Legal Orders of the

Participating Parties and their implementation shall be pursued in accordance with the constitutional and legislative provisions of those Parties

A TRACECA Investment means any project relating to: - the rehabilitation of existing infrastructure facilities, including the revitalization and/or

reconstruction and/or refurbishment and/or expansion and/or modification of any existing infrastructure facility or any existing part of such a facility;

- the construction of new infrastructure facilities (through concessions or BOT principles) or of any new part of an existing infrastructure facility;

- the operation of infrastructure facilities as resulting from wither rehabilitation or construction activities;

- any preliminary stages in terms of planning in view of activities as set out above. The Settlement of Disputes Protocol concerns the conduct of reconciliation in case of major difference in the implementation of that Protocol to the MLA. In parallel to the above Protocol other complementary Protocols shall be promoted such as the following:

• Protocol for TRACECA Permit, Quotas, issuing authority, Documentation procedures • Protocol for TRACECA Visa, VAT zero rate on international railway service and

application of SMGS railway bill as Customs Transit Document. Also any other Protocol containing Amendments and/or Additions or new Technical Annexes that shall be deemed necessary by the Parties The above mentioned Protocols represent a possibility for amending and enhancing the Basic Multilateral Agreement in order to create a favorable climate for attracting additional freight flow and investment. It has to be emphasized that recent international transport corridors (particularly north & south corridors) compete severely with TRACECA corridor. Therefore stressing on the flexibility component of the MLA would enable IGC TRACECA to respond to the needs of the day. As by use of:

a) International conventions b) Protocols to MLA

It would be easy to eliminate non calculated risks, which means that the three basic pillars of an international financing: Legality, Stability and Profitability of an investment can be reached. This procedural approach will achieve the necessary investment to increase transportation and trade flows from TRACECA countries to Europe and International Markets in general. Recognizing the above mentioned approach in the meeting of NS and Lawyers in Tashkent a special charter within their recommendation has been incorporated.

TR
Annex 2
ACECA CLBTT Project - Progress Report I – Annex 2 – Report on establishment of NLWG

Report on establishment of NLWG

TRACECA CLBTT Project - Progress Report I – Annex 2 – Report on establishment of NLWG

Annex 3
TRACECA CLBTT Project - Progress Report I – Annex 3 – Draft Terms of Reference of NLWG

Draft Terms of Reference of NLWG


Common Legal Basis for Transit Transportation

-- Draft Internal Document --

TERMS OF REFERENCE FOR NATIONAL LEGAL WORKING GROUPS (NLWG-ToR)

1. BACKGROUND The Common Legal Basis for Transit Transportation Project (CLBTT) was designed by Tacis TRACECA programme to establish a common legal framework for the inter-state transportation of goods and passengers. This has been acknowledged by all the TRACECA governments as an urgent need for further development of export and import trade, consolidation of competition and free market practices, and bringing TRACECA countries closer to relevant EU transport policies.

For this purpose, one of the key tools throughout the project implementation will be the National Legal Working Groups (NLWGs). Each NLWG will facilitate interaction between the Inter-Governmental Commission (IGC) TRACECA, the respective National Commission and National Secretary, the TRACECA IGC Permanent Secretariat (PS), the concerned Ministry of Transport or the Cabinet of Ministers or the President’s Office or other state authorities (whichever is appropriate) through the tasks set below. Constituting the legal component of the Trade Facilitation Working Group (See TF Concept, Annex 11 of the Inception Report dated February 2003), the NLWGs will contribute to a better understanding the internal legal orders of the TRACECA countries. Another substantial reason for the establishment of the NLWGs, as is the case with the respective Working Groups for Customs and Tariffs, is to provide for the sustainability of the TRACECA institutions: IGC, PS, National Secretaries and Commissions, and of those, which will be established in the course of the CLBTT Project (e.g. Settlement of Disputes Protocol). It is envisaged that the NLWGs will remain in place upon the completion of the Project. 2. OBJECTIVES The first objective of each NLWG is to assist the respective Party to the MLA and the Project Team in obtaining a correct perception of legal barriers and modes of removing them through the harmonisation of national transit transportation legislation. For this purpose, the NLWG will contribute its expertise to: (a) analyse the existing legislation and to collect required data/information, followed by systematic reporting; (b) draft legal acts, propose and promote amendments/addenda to the MLA and current national legislation in order to raise the competitive capacity of the transport corridor Europe-Caucasus-Asia (TRACECA); (c) propose actions for the further implementation of the MLA, and its Protocols and Annexes. The second objective of each NLWG is to help strengthen the institutional capabilities of the IGC, the respective National Commission and National Secretary in their efforts to establish a common legal basis for transit transportation. One of the constituting acts for the IGC, the Rules and Procedures, which is to be adopted by the Parties, shall contain specific provisions on the institutionalisation of a multi-country Working Group, established by the IGC, which will legally sustain the activities of the NLWGs. 3. SCOPE OF WORK The specific tasks of the National Legal Working Group will be as follows: 3.1. Monitoring of current domestic legislation relating to transit transportation This includes the collection and analysis of legal documents pertaining to:


(a) road transport; (b) rail transport; (c) maritime transport; (d) customs procedures; (e) investments closely related to transport infrastructure. The requested legal documents to be collected and analysed for each of the above areas shall cover laws, regulations, directives and any other relevant legislative acts in force. The description and analysis must also cover all the legal documents relevant to inter-state transit transportation. The analysis must contain all those points of the above items that contradict each other and should focus on those aspects that have a direct effect on the MLA, namely, by contradicting and/or infringing any of its provisions. 3.2. Monitoring of bilateral and multilateral agreements relating to transit transportation The requested legal documents must be listed as follows: (a) relevant bi-lateral agreements concluded between the country of the NLWG and other TRACECA countries; (b) relevant multilateral agreements concluded between the country of the NLWG and other TRACECA countries (i.e. in the framework of CIS, TRACECA, BSEC, ECO, PETRA, etc.); (c) relevant international treaties to which the country of the NLWG has acceded. 3.3. Identification of reasons that impede the implementation of decisions of the Second IGC

TRACECA Conference NLWGs will actively pursue to invigorate national legislatures in either introducing changes into domestic legal acts or adopting new ones promoting implementation of the decisions made by their countries in the framework of IGC TRACECA and international treaties. This task will be undertaken in conformity with the Final Decision of the Second IGC TRACECA Conference held in Tashkent in April 2002. 3.4. Elaboration of proposals for further implementation of the MLA These proposals must not only be geared towards changing the domestic legislation, but also towards joining international agreements and conventions, signing additions and amendments/addenda or new Technical Annexes to the MLA in order to create more favourable conditions for the development of inter-state transit transportation and to enhance the competitiveness of the TRACECA corridor. 3.5. Competences of the NLWGs The members of each NLWG will be required to consult with their respective organisations on possible physical and legal barriers, will undertake the task to bring up any contradictions between the internal legal order and the MLA, and will facilitate the enforcement of the respective MLA provisions. Those proposals of the NLWGs which do not require approval of the IGC members (accession to international conventions, cancellation of acts impeding implementation of MLA or other international obligations, contradictions of local norms, etc.), shall be implemented by the competent national authorities (e.g. Ministry of Transport, Ministry of Foreign Affairs, etc.) and additional national procedures for corresponding legislative initiatives, if necessary, shall apply. Those proposals of the NLWGs which do require multilateral approval (amendments/addenda to MLA and its annexes, recommendations to IGC TRACECA, etc.) will be subject to discussions at Legal Working Group meetings at multilateral level and subsequent adoption at IGC meetings. 4. MEMBERSHIP In each Member State the President’s Office, the Ministry of Foreign Affairs, the Ministry of Transport, the Ministry of Justice and other appropriate authorities are requested to appoint the members of the NLWG.


At the same time, it has been recommended to the parties (in the official letter of the Secretary General, Annex 9 of the Inception Report dated February 2003) that the legal experts, who attended the meeting of National Secretaries and Legal Experts in Baku in January 2003, should be members of the respective NLWGs. The final selection of working group members is at the discretion of each Member State and approved by the TRACECA National Commissions. A minimum of three (3) members should participate in the NLWGs. The exact number may vary from country to country, taking into consideration the effectiveness of the operation of this body and the powers of the key authorities in each country separately. Members of the NLWGs should be lawyers or experts who have an adequate command of legal matters preferably in the field of international transport and who are acquainted with the domestic legal system. The nominated representatives should hold a position within their organisation whereby they can discuss the proposals with senior Government officials within their authority, if they are not already senior officials, and should be in a position to promote necessary implementation. The Chairman of the each NLWG will be the National Secretary of the respective TRACECA National Commission or another official nominated by the national government. He/she shall be responsible for convening meetings of the NLWG at regular intervals, participating in and supervising the progress of relevant activities. 5. MEETINGS OF NATIONAL LEGAL WORKING GROUPS Following the inaugural meeting, it is expected that each NLWG will meet every two months at least, in order to formulate and advance the proposals. The Chairman of each NLWG shall inform both the Project Team and the Permanent Secretariat of the IGC TRACECA well in advance. CLBTT Project Experts will try to attend these regular meetings as often as possible. Each meeting of the NLWGs shall be held on the basis of the following procedures: (a) a meeting agenda drafted and distributed beforehand; (b) detailed minutes of the meeting; (c) a list of proposals, if any, drawn at the end of the meeting; (d) copies of the above documents to be sent out to: - relevant national authorities - the Permanent Secretariat of the IGC TRACECA - CLBTT Project Team.

Annex 4
TRACECA CLBTT Project - Progress Report I – Annex 4 – Presentation Paper for Tashkent

Presentation Paper for Tashkent

The European Union’s Tacis TRACECA programfor Armenia, Azerbaijan, Bulgaria, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Romania, Tajikistan, Turkey, Turkmenistan, Ukraine, Uzbekistan

A project implemented byLamnidis & Associates

EuropeAidThis project is funded by the European Union

Trade Facilitation Legal Working Group

Юридическая Рабочая Группа по Развитию Торговли

Common Legal Basis for Transit TransportationОбщая Юридическая База для Транзитных Перевозок

2

There are three TRACECA Projects that were designed to strengthen the Institutional Capabilities of the IGC and the National

Secretaries. They are:

Учреждение следующих трех проектов TRACECA было предназначено для усиления Институциональных Возможностей

МПК и Национальных Секретарей:

• Common Legal Basis for Transit TransportationОбщая Правовая База для Транзитных Перевозок

• Harmonisation of Border Crossing ProceduresГармонизация Процедур Пересечения Границ

• Unified Policy on Transit Fees and TariffsЕдиная Политика по Транзитным Расценкам и Тарифам

3

The Three Projects will all develop topic-specific ‘Working Groups’ that will progressively but

quickly evolve under unified ‘Trade Facilitation Working Groups’ within each

Member State and have the National Secretaries as Chairmen

Посредством этих проектов, в рамках каждой страны-участницы, будут разработаны

специфические «Рабочие Группы», которые постепенно, но достаточно быстро

трансформируются в «Рабочие Группы по Развитию Торговли», во главе которых будут

находиться Национальные Секретари

4

The TRACECA Trade Facilitation platform will be used to establish three parallel but integrated TRACECA National Based Working Groups

NATIONAL NATIONAL COMMISSIONSCOMMISSIONS

НАЦИОНАЛЬНЫЕ НАЦИОНАЛЬНЫЕ КОМИССИИКОМИССИИ

NATIONAL NATIONAL SECRETARIESSECRETARIES

НАЦИОНАЛЬНЫЕ НАЦИОНАЛЬНЫЕ СЕКРЕТАРИСЕКРЕТАРИ

TRACECA IGCTRACECA IGC

МПКМПК TRACECATRACECA

PERMANENT PERMANENT SECRETARIATSECRETARIAT

ПОСТОЯННЫЙ ПОСТОЯННЫЙ СЕКРЕТАРИАТСЕКРЕТАРИАТ

UPTFTUPTFT

ЕПТРТЕПТРТ

PROJECTSПРОЕКТЫ

Trade Facilitation Working GroupРАБОЧАЯ ГРУППА ПО РАЗВИТИЮ ТОРГОВЛИ

LEGALLEGAL

TFWGTFWG

BORDERSBORDERS

TFWGTFWG

TARIFFSTARIFFS

TFWGTFWG

CLBTTCLBTT

ОПБТПОПБТП

HBCPHBCP

ГППГГППГ

5




ПОСТОЯННЫЙ ПОСТОЯННЫЙ СЕКРЕТАРИАТ СЕКРЕТАРИАТ

NATIONAL NATIONAL COMMISSIONSCOMMISSIONS


NATIONAL NATIONAL SECRETARIESSECRETARIES

НАЦИОНАЛЬНЫЕ НАЦИОНАЛЬНЫЕ СЕКРЕТАРИСЕКРЕТАРИ

PresidentPresident’’s Office, Parliament, s Office, Parliament, Cabinet of Ministers, Cabinet of Ministers, MoTMoT & other & other

relevant state authoritiesrelevant state authorities

Президентский Аппарат, Парламент, Президентский Аппарат, Парламент, Кабинет Министров, Министерство Кабинет Министров, Министерство

Транспорта и другие Транспорта и другие соответствующие соответствующие госгос. органы. органы

IFI’sIFI’s

МФИМФИ

EUROPEAN EUROPEAN DELEGATIONSDELEGATIONS

ЕВРОПЕЙСКИЕ ЕВРОПЕЙСКИЕ ДЕЛЕГАЦИИДЕЛЕГАЦИИ

EUROPA HOUSEEUROPA HOUSE

ЕВРОПА ХАУЗЕВРОПА ХАУЗ

COORDINATION UNITCOORDINATION UNIT

КООРДИНАЦИОННОЕ КООРДИНАЦИОННОЕ БЮРОБЮРО Ongoing TRACECA Ongoing TRACECA

projectsprojects

Текущие проекты Текущие проекты ТРАСЕКАТРАСЕКА

Operational environment Среда функционирования

CLBTTCLBTT


6

Trade Facilitation Legal Working GroupЮридическая Рабочая Группа по

Развитию Торговли

MembershipСостав

ChairmanChairmanПредседательПредседатель

National SecretaryNational SecretaryНациональный СекретарьНациональный Секретарь

NATIONAL NATIONAL COMMISSIONSCOMMISSIONSНАЦИОНАЛЬНЫЕ НАЦИОНАЛЬНЫЕ

КОМИССИИКОМИССИИ

WG membersWG membersУчастники РГУчастники РГ

(min. 3 members per country(min. 3 members per country) ) ((минимум 3 участника от минимум 3 участника от

каждой страны)каждой страны)

approveapproveутверждаютутверждают

appointappointназначаютназначают

PresidentPresident’’s Office, s Office, Cabinet of Ministers, Cabinet of Ministers, MoTMoT & other relevant & other relevant

state authoritiesstate authorities

Президентский Президентский Аппарат, Кабинет Аппарат, Кабинет

Министров, Министров, Министерство Министерство

Транспорта и дрТранспорта и др. . соотвсоотв.. госгос. органы. органы

7

Immediate and Permanent TasksПоследующие задачи

Краткосрочные задачи

• Мониторинг действующего национального законодательства по транзитным перевозкам;

• Выявление причин блокирующих выполнение решений Второй ежегодной Конференции МПК ТРАСЕКА с целью дальнейшего содействия их имплементации;

• Выявление фактов нарушений ОМС и действующих международных конвенций;

Short term

• Monitoring of current domestic legislation relevant to the transit transportation

• Identification of reasons that impede execution of decisions of the Second IGC TRACECA Conference with the aim of promotion of their subsequent implementation

• Identification of violations of the MLA and international conventions in force

8

Long term

• Collection and analysis of the bilateral and regional agreements relevant to transit transportation

• Development of recommendations for simplification of the existing regulations related to transit transportation

• Development of recommendations for simplification of border-crossing procedures.

• Promotion of legislative initiatives for bringing the national legislation into compliance with the International Conventions, which your respective countries are being parties to.

• Promotion of compliance of the domestic legislation to the provisions of the MLA;

• Elaboration of amendments and addendums or new Technical Annexes to the MLA for further consideration by the TRACECA National Commissions.

Immediate and Permanent TasksПоследующие задачи

Долгосрочные задачи

• Сбор и анализ двусторонних и региональных соглашений, относящихся к транзитным перевозкам;

• Разработка рекомендаций для упрощения существующих правил по транзитным перевозкам;

• Разработка рекомендаций для упрощения процедур пересечения границ;

• Развитие законодательных инициатив для приведения национальных законодательств в соответствие с Международными Конвенциями, участниками которых являются Ваши страны;

• Содействие приведению внутреннего законодательства в соответствие с положениями ОМС;

• Разработка изменений и дополнений или новых технических приложений к ОМС для последующего их рассмотрения на заседании Национальных Комиссий ТРАСЕКА

9

TRACECA NATIONAL SECRETARIES ARE THE VITAL ELEMENT TO THE FUTURESUCCESS OF TRACECA AS A TRANSPORT AND TRADE FACILITATION CORRIDOR

НАЦИОНАЛЬНЫЕ СЕКРЕТАРИ TRACECA ЯВЛЯЮТСЯ ЖИЗНЕННО ВАЖНЫМИ ЭЛЕМЕНТАМИ БУДУЩЕГО УСПЕХА TRACECA В КАЧЕСТВЕ ТРАНСПОРТНОГО

КОРИДОРА, СОДЕЙСТВУЮЩЕГО ТОРГОВЛЕ

THE TRACECA NATIONAL SECRETARIES ARE CURRENTLY FUNDED BY THE EUROPEAN UNION THROUGH THE CLBTT PROJECT BOTH FOR SALARY AND

EXPENSES.

В НАСТОЯЩЕЕ ВРЕМЯ НАЦИОНАЛЬНЫЕ СЕКРЕТАРИ TRACECAФИНАНСИРУЮТСЯ СО СТОРОНЫ ЕВРОПЕЙСКОГО СОЮЗА ПРОЕКТОМ ОПБТП.

THIS MEANS THAT THE NATIONAL SECRETARIES HAVE ADEQUATE RESOURCESTO CARRY OUT THEIR TASKS

ЭТО ОЗНАЧАЕТ, ЧТО НАЦИОНАЛЬНЫЕ СЕКРЕТАРИ ИМЕЮТ В РАСПОРЯЖЕНИИ ДОСТАТОЧНО РЕСУРСОВ ДЛЯ ВЫПОЛНЕНИЯ ПОСТАВЛЕННЫХ ПЕРЕД НИМИ

ЗАДАЧ

10

WHAT SUPPORT CAN THE NATIONAL SECRETARIES EXPECT?КАКОГО РОДА ПОДДЕРЖКУ МОГУТ ОЖИДАТЬ НАЦИОНАЛЬНЫЕ СЕКРЕТАРИ?

• FUNDING FOR SALARY AND OFFICE EXPENSESФИНАНСИРОВАНИЕ ДЛЯ ВЫПЛАТЫ ЗАРАБОТНОЙ ПЛАТЫ И ПОКРЫТИЯ ОФИСНЫХ ЗАТРАТ

• CERTAIN FUNDING FOR WORKING GROUP ACTIVITIES (CLBTT)ФИКСИРОВАННОЕ ПОЭТАПНОЕ ФИНАНСИРОВАНИЕ НЕОБХОДИМОЕ ДЛЯ ДЕЯТЕЛЬНОСТИ РАБОЧИХ ГРУПП (ОПБТП)

• TRAINING MATERIALМАТЕРИАЛЫ ПО ТРЕНИНГУ

• EUROPEAN EXPERT ADVICE AT MEETINGSКОНСУЛЬТАЦИИ С ЕВРОПЕЙСКИМИ ЭКСПЕРТАМИ НА СЕМИНАРАХ

• IGC AND PERMAMENT SECRETARIAT SUPPORTПОДДЕРЖКА МПК И ПОСТОЯННОГО СЕКРЕТАРИАТА

UPTFTUPTFT

ЕПТРТЕПТРТ

PROJECTSПРОЕКТЫ NATIONAL NATIONAL

COMMISSIONSCOMMISSIONS





ПОСТОЯННЫЙ ПОСТОЯННЫЙ СЕКРЕТАРИАТСЕКРЕТАРИАТTrade Facilitation Working Group

РАБОЧАЯ ГРУППА ПО РАЗВИТИЮ ТОРГОВЛИ

LEGALLEGAL

TFWGTFWG

BORDERSBORDERS

TFWGTFWG

TARIFFSTARIFFS

TFWGTFWG

CLBTTCLBTT


HBCPHBCP

ГППГГППГ

11

Immediate and Permanent Tasks for the National Secretaries

Published May 2003

This publication has been produced with the assistance of the European Union.The contents of this publication is the sole responsibility of

Lamnidis & Associates and can in no way be taken to reflect the views of the European Union.

Издано в мае 2003 года

Данный отчет произведен при поддержке ЕС. Сведения, изложенные в данном документе, принадлежат исключительно

Lamnidis & Associates и ни при каких обстоятельствах не должны восприниматься как политика или мнения, излагаемые ЕС.

Annex 5
TRACECA CLBTT Project - Progress Report I – Annex 5 – Violations of provisions of the MLA and decisions of IGC TRACECA

Violations of provisions of the MLA and decisions of IGC TRACECA

TRACECA CLBTT Project - Progress Report I – Annex 5 – Violations of provisions of the MLA and decisions of IGC TRACECA

Summary of violations and unexecuted obligations of the MLA for the period of 1998-2003. After signing by the Heads of the States, ratification by the Parliaments of 12 States and coming to force of the MLA for the reporting period of 1998-2003, following violations and unexecuted regulations of the MLA regulations were detected:

1. Discriminatory policy in the field of railway transit tariffs has been carried out in Georgia and Uzbekistan towards Armenia and Tajikistan for recent years, which contradicts clause 2 of Article 6 of the MLA.

2. In Georgia (2000-2002), Bulgaria and Ukraine additional dues for quarantine, sanitation

and veterinary services were initiated in violation of Article 5 of the MLA.

3. In Georgia, Ukraine (until 2001) and Kazakhstan, in violation of clause c) Article 3 and sub clause g), clause 6 of Article 8, financial and bank guarantees for taxable freight transit transportation (oil products, alcohol, tobacco goods, etc.) were initiated.

4. Obligations in joint financing of the Permanent Secretariat work, stated in clause 3 of

Article 9, have not been fulfilled until now.

5. Obligations in establishment of representative offices of PS in States signed MLA, stated in clause 2 of Article 9, have not been fulfilled.

6. Obligations in establishment of representations of the Parties stated in sub clause d),

clause 1, Article 6 of the Technical Annex on Railway Transport, have not been fulfilled.

7. Obligations in railway transport concerning coordinated method of prime cost analysis, stated in sub clause c), clause 1, Article 6 of the Technical Annex, have not been fulfilled.

8. Obligations stated in clause 4, Article 4 of Technical Annex on customs procedure and

documentation process have not been fulfilled. Concerning establishment and development of customs broker licensing services.

9. Obligations stated in clause b) и c), Article 7 of Technical Annex on International

Commercial Navigation have not been fulfilled.

10. Obligations of Article 9 of Technical Annex on International Commercial Navigation concerning providing with the most favored nation treatment in ports have been fulfilled partly. The most favored nation treatment is mainly applied in ferry transportations.

11. Regulations of clauses 1 и 2, Article 4 of the MLA concerning facilitation of international

transport are not carried out in full measure.

Annex 6
TRACECA CLBTT Project - Progress Report I – Annex 6 – Protocol (2) on amendments to the Basic Agreement

Protocol (2) on amendments to the Basic Agreement


Document IGC TRACECA

Draft Protocol / MLA / 10.10.03/ page 1(2) Original: English

PROTOCOL ON AMENDMENTS TO THE TECHNICAL ANNEXES ON INTERNATIONAL ROAD TRANSPORT

AND ON CUSTOMS DOCUMENTATION PROCEDURES TO THE BASIC MULTILATERAL AGREEMENT ON INTERNATIONAL TRANSPORT

FOR DEVELOPMENT OF THE EUROPE- THE CAUCASUS-ASIA CORRIDOR

In accordance with Article 11 (Presentation of Amendments and Additions) of the Basic Multilateral Agreement on International Transport for Development of the Europe- the Caucasus-Asia Corridor and the Final Resolutions of the 4th Conference (Annual Meeting) of the Intergovernmental Commission “TRACECA” on the transport corridor Europe - the Caucasus - Asia it was agreed to incorporate the following amendments to the Basic Multilateral Agreement on International Transport for Development of the Europe- the Caucasus-Asia Corridor:

1.To make the following amendments to the Technical Annex on International Road Transport:

1.1 Supplement the Article 2 “Definitions” with new clauses stipulated as follows: “9. The term «TRACECA permit» means a multilateral permit, valid for an unlimited

number of journeys between Parties and for the period of one year, issued to a Carrier (specific individual or a legal entity) for a specific motor vehicle to effect international transport of goods by road and approved by a Party to the Basic Multilateral Agreement.

10. The term “Quota” means the number of permits available for a Party to the “Basic Multilateral Agreement”, which are allocated and issued by the Permanent Secretariat together with its permanent representations in the Parties and annually approved by the Intergovernmental Commission for each following year.”

1.2 Supplement the Article 3 “Access to the Market” with new clauses stipulated as

follows: “3. Each Party acknowledges the multilateral TRACECA permit issued in accordance

with the provisions of this Technical Annex as a permit document for a motor vehicle to enter, depart and transit via the Parties’ territories. The TRACECA permit holder is entitled to effect back loading on the territory of the Parties.

4.The TRACECA permit system functions on the basis of a quota system, providing for

transport between the Parties to the “Basic Multilateral Agreement” in transit via the territories of one or several Parties to the “Basic Multilateral Agreement” by motor vehicles registered in a Party to the “Basic Multilateral Agreement”;

5. A Carrier from one Party is not permitted to transport goods between two points

located on the territory of any other Party (cabotage). 6. During international transit transport of goods on the territories of the Parties using the

TRACECA permit a motor vehicle shall be exempted from taxes, duties and other payments irrespective of their names and origin excluding trip payment across toll-roads, tunnels and bridges.

7. Permits and other documents required in accordance with the provisions of this

Technical Annex shall be available in the motor vehicle they pertain to and shall be produced at the request of competent controlling bodies.”



Draft Protocol / MLA / 10.10.03/ page 2(2) Original: English

2. To make the following amendments to the Technical Annex on Customs and

Documentation Procedures: 2.1 Supplement the Article 3 “Customs Control” with new clauses stipulated as follows: “3. Provided that the conditions laid down in the customs transit procedure used for the

transit operation are fulfilled to the satisfaction of the customs authorities, goods in international transport including transit:

a. shall not, as a general rule, be subject to customs examination during the journey except to the extent necessary to ensure compliance with rules and regulations which the customs are responsible for enforcing. Flowing from this, the customs authorities shall normally restrict themselves to the control of customs seals and other security measures at points of entry and exit;

b. shall not be subject to any customs formalities or requirements additional to those of the customs transit regime used for the transit operation.”

2.2 Supplement the Technical Annex with a new Article stipulated as follows:

“Article 5

Transit Facilitation

In order to facilitate the transit of goods, the Party shall: 1) If it is the country of shipment, as far as practicable, take all measures to ensure the

completeness and accuracy of the information required for the subsequent transit operations; 2) If it is the country of destination: a) Take all necessary measures to ensure that goods in customs transit shall be cleared,

as a rule, at the customs office of destination of the goods; b) Endeavour to carry out the clearance of goods at a place as near as is possible to the

place of final destination of the goods.”

This Protocol comes into force in accordance with Articles 11 (“Presentation of Amendments and Additions” and 13 (“Entry into force”) of the Basic Multilateral Agreement on International Transport for the Development of the Europe- the Caucasus-Asia Corridor.

Done at the 4th Conference (Annual Meeting) of the Intergovernmental Commission “TRACECA” on the transport corridor Europe - the Caucasus - Asia at …… on ………. in one original copy in the English and Russian languages, both of them being equally authentic.

In witness whereof, the undersigned plenipotentiary Heads of Delegations have signed this Protocol. For the Republic of Armenia

For the Republic of Moldova

For the Republic of Azerbaijan

For Romania

For the Republic of Bulgaria

For the Republic of Tajikistan

For Georgia

For the Republic of Turkey

For the Republic of Kazakhstan

For Ukraine

For the Kyrgyz Republic

For the Republic of Uzbekistan

Annex 7
TRACECA CLBTT Project - Progress Report I – Annex 7 – Mission Report to Afghanistan

Mission Report to Afghanistan


MISSION REPORT of the TRACECA Team

to the Islamic State of Afghanistan

March 5- 9 (11), 2003 In the beginning of March 2003 TRACECA Team visit took place in Kabul / Afghanistan with the assistance of Embassy of Georgia to Afghanistan. Meetings with heads of respective Ministries of Afghanistan were arranged with the assistance of Embassy of Georgia. At the instance of participants of the missions and Ambassador of Georgia Mr. K. Harbo, Head of EC Representation office in Kabul, participated in some of the meetings. The main objective of the mission was detailed informing of Afghanistan Government about TRACECA program development and IGC TRACECA initiatives on support to Afghanistan in rehabilitation of the economy and consideration of possibility of accession to the Basic Multilateral Agreement for the Islamic State of Afghanistan. During several days the following meetings were held in Kabul: Date: March 6, 2003 Time: 12:00 Place: Ministry of Foreign Affairs of Islamic State of Afghanistan, Kabul Participants:

1. Mr. Farid Zikria, Chief of Protocol of the MFA of Afghanistan; 2. Mr. Peter Chkheidze, Ambassador of Georgia to Turkmenistan and Afghanistan; 3. Mr. Zviad Kvatchantiradze, Executive Secretary of the PS IGC TRACECA, Ambassador; 4. Mr. Marc Graille, Team Leader of the Coordination Team of TRACECA Program; 5. Mr. Vadim Turdzeladze, Project Coordinator “Common Legal Basis for Transit Transportation”

During his introductory speech, Ambassador P. Chkheidze mentioned the importance of the regional development in the framework of the Basic Multilateral Agreement reflected in the Letter from H.E. President of Georgia, Mr. Eduard Shevardnadze to H.E. President of the Islamic State of Afghanistan Mr. Hamid Karzay. Amb. Z. Kvatchantiradze gave information on the EU -TRACECA Program and stressed the importance of accession to the Basic Multilateral Agreement for the Islamic State of Afghanistan. Mr. V: Turdzeladze introduced a Special Action Plan adopted during the IGC TRACECA Conference in Tashkent (April 2002) and Final Recommendation of the Extraordinary Meeting of the IGC TRACECA in Tbilisi (December 2001) related to the improvement of the transport infrastructure on the border crossing between Afghanistan – Uzbekistan and Afghanistan – Turkmenistan. In additional to that the importance of the legislation in the field of transport in the region was also mentioned. During the meeting it was agreed to hold several meetings with the Ministry of Commerce and the Ministry of Transport. Foreseen meetings with H.E. Dr. Abdolla Abdolla, the Minister of Foreign Affairs and H.E. Hamid Karzay, the President of Afghanistan did not take place due to the late notice from the Ministry of Foreign Affairs about their absence at that time. At the end of the meeting monthly magazines, brochures, maps of the TRACECA and full set of documents on the decisions of IGC TRACECA related to Afghanistan were handed over.


Date: March 7, 2003 Time: 18:00 Place: Guest House of the Representation of the European Commission in Kabul Participants:

1. Mr. Gilles Bertrand, Head of Political Sector of the Representation Office of the European Commission in Kabul

2. Mr. Marc Graille, Team Leader of the Coordination Team of TRACECA Program 3. Mr. Vadim Turdzeladze, Project Coordinator “Common Legal Basis for Transit Transportation”

Mr. Marc Graille gave detailed information on the TRACECA Program and stressed the importance of accession to the Basic Multilateral Agreement for the Islamic State of Afghanistan in the field of regional cooperation related to the development of transport in the framework of the TRACECA Program. It was also mentioned that in case of Afghanistan joining the Basic Multilateral Agreement, which means reorientation of the TRACECA Program, the necessity to call a TRACECA Summit by the end of 2003 (see Tashkent Declaration, Proposal of Georgia) may arise. In case of Afghanistan joining the Basic Multilateral Agreement, Mr. Gilles Bertrand suggested to consider the possibility of the Summit to take place at the President’s Palace in Kabul. At the end of the meeting monthly magazines, brochures, maps of the TRACECA and full set of documents on the decisions of IGC TRACECA related to Afghanistan were handed over. Date: March 8, 2003 Time: 9:00 Place: Representation Office of the European Commission in Kabul Participants:

1. Mr. Karl Harbo, Head of EC Representation Office; 2. Mr. Peter Chkheidze, Ambassador of Georgia to Turkmenistan and Afghanistan; 3. Mr. Zviad Kvatchantiradze, Executive Secretary of the IGC TRACECA, Ambassador; 4. Mr. Marc Graille, Team Leader of the Coordination Team of TRACECA Program; 5. Mr. Vadim Turdzeladze, Project Coordinator “Common Legal Basis for Transit Transportation”

During the meeting Amb. P.Chkheidze mentioned the high importance of the regional development in the framework of the Basic Multilateral Agreement reflected in the Letter from H.E. President of Georgia, Mr. Eduard Shevardnadze to H.E. President of the Islamic State of Afghanistan H.E. Mr. Hamid Karzay. Amb. P.Chkheidze informed the participants that there meetings held with H.E. Minister of Foreign Affairs Dr. Abdullo Abdullo and H.E. President of Afghanistan Hamid Karzay in Ashgabat/Turkmenistan during which, there were several matters concerning the importance of the closer regional cooperation in the framework of the TRACECA Program in case of Afghanistan joining the MLA discussed. Mr. Marc Graille gave detailed information on the TRACECA Program and stressed the importance of accession to the Basic Multilateral Agreement for the Islamic State of Afghanistan in the field of closer regional cooperation related to the development of international transport in the framework of the TRACECA Program. Amb. Zviad Kvatchantiradze provided detailed information on the activity of the Permanent Secretariat IGC TRACECA, Action plan and plans for the future related to the development of regional transport infrastructure especially in Central Asia.


Mr. Vadim Turdzeladze gave a presentation of the project on “Common Legal Basis for Transit Transportation” and its importance in the field of regional development and harmonization of the transit transportation in the framework of the Basic Multilateral Agreement. During the meeting monthly magazines, brochures, maps of the TRACECA and full set of documents on the decisions of IGC TRACECA related to Afghanistan were handed over to Mr. Karl Harbo. At the end of the meeting all participants agreed that the fact that Afghanistan joins the MLA would positively reflect on the development of international transport and transport infrastructure in the region of Central Asia. Date: March 8, 2003 Time: 12:00 Place: Ministry of Commerce and External Trade, Kabul Participants:

1. Mr. Ziauddin Zia, Deputy Minister of Commerce of Afghanistan; 2. Mr. Peter Chkheidze, Ambassador of Georgia in Turkmenistan and Afghanistan; 3. Mr. Zviad Kvatchantiradze, Executive Secretary of the IGC TRACECA, Ambassador; 4. Mr. Marc Graille, Team Leader of the Coordination Team of TRACECA Program; 5. Mr. Vadim Turdzeladze, Project Coordinator “Common Legal Basis for Transit Transportation”.

Amb. Z. Kvatchantiradze expressed his gratitude for the interest to TRACECA and MLA, which was reflected in the letter of Mr. Zia to the PS IGC TRACECA and provided information on the activity of the Permanent Secretariat IGC TRACECA, Action plan and plans for the future related to the development of regional transport infrastructure, especially in Central Asia. During the meeting Amb. P.Chkheidze mentioned the importance of the regional development in the framework of the Basic Multilateral Agreement reflected in the Letter from H.E. President of Georgia, Mr. E. Shevardnadze to the President of the Islamic State of Afghanistan H.E. Mr. H. Karzay. Amb. P.Chkheidze informed the participants that there meetings held with the Dr. Abdullo Abdullo, the Minister of Foreign Affairs and H.E. Hamid Karzay, the President of Afghanistan in Ashgabat/ Turkmenistan during which, there were several matters concerning the importance of the closer regional cooperation in the framework of the TRACECA Program in case of Afghanistan joining the MLA discussed. President Karzai and Dr. Abdullo Abdullo, the Minister of Foreign Affairs favored the idea of Afghanistan joining the MLA. Mr. Ziauddin Zia stressed the importance of the implementation of the TRACECA program in the field of facilitation of trade and development of transport. It was also mentioned that a Special working group consisting of the representatives of the MFA, Ministry of Transport and Ministry of Commerce had been established to consider the possibility of Afghanistan joining the MLA. In his opinion, the WG established will reach a positive outcome concerning the accession of Afghanistan to the MLA in the nearest future. Mr. Marc Graille gave detailed information on the TRACECA Program and stressed the importance of accession to the Basic Multilateral Agreement for the Islamic State of Afghanistan in the field of closer regional cooperation related to the development of international transport in the framework of the TRACECA Program. Date: March 8, 2003 Time: 18:00 Place: Embassy of France, Kabul Participants:

1. Mr. Eric Lavertu, Counselor for Cooperation and Culture, French Embassy 2. Mr. Marc Graille, Team Leader of the Coordination Team of TRACECA Program 3. Mr. Vadim Turdzeladze, Project Coordinator “Common Legal Basis for Transit Transportation”


Mr. Marc Graille gave detailed information on the TRACECA Program and stressed the importance of accession to the Basic Multilateral Agreement for the Islamic State of Afghanistan in the field of closer regional cooperation related to the development of international transport in the framework of the TRACECA Program. During the meeting it was agreed to organize a meeting between Mr. J.P. Guinit, Ambassador of France in Afghanistan (who was not present during the meeting), Mr. P.Chkheidze, Ambassador of Georgia in Turkmenistan and Afghanistan and Mr. Z. Kvatchantiradze, Executive Secretary of the PS of IGC TRACECA, Ambassador. Date: March 9, 2003 Time: 10:00 Place: Ministry of Transport of the Islamic State of Afghanistan Participants:

1. H.E. Syed Mohammad Ali Javed, Minister of Transport of Afghanistan; 2. Mr. Peter Chkheidze, Ambassador of Georgia to Turkmenistan and Afghanistan; 3. Mr. Karl Harbo, Head of EU Representation Office in Kabul; 4. Mr. Zviad Kvatchantiradze, Executive Secretary of the PS IGC TRACECA, Ambassador; 5. Mr. Marc Graille, Team Leader of the Coordination Team of TRACECA Program; 6. Mr. Vadim Turdzeladze, Project Coordinator “Common Legal Basis for Transit Transportation” 7. Official representatives of the MFA, Ministry of Transport and mass media

During the meeting, Amb. P.Chkheidze mentioned the importance of the regional development in the framework of the Basic Multilateral Agreement reflected in the Letter from President Shevardnadze of Georgia to President Karzay of Afghanistan. Mr. P.Chkheidze informed the participants that there meetings held with the Mr. Abdullo Abdullo, the Minister of Foreign Affairs and Mr. H. Karzay, the President of Afghanistan in Ashgabat / Turkmenistan during which, there were several matters concerning the importance of the closer regional cooperation in the framework of the TRACECA Program in case of Afghanistan joining the MLA discussed. Mr. Abdullo Abdullo, the Minister of Foreign Affairs and Mr. H. Karzay, the President of Afghanistan favored the idea of Afghanistan joining the MLA. Mr. Karl Harbo mentioned the importance of the TRACECA Program in the development of the regional cooperation and kindly asked the Minister to speed up the internal procedures on joining the Afghanistan to the MLA. Mr. Marc Graille gave detailed information on the TRACECA Program and stressed the importance of accession to the Basic Multilateral Agreement for the Islamic State of Afghanistan in the field of closer regional cooperation related to the development of international transport in the framework of the TRACECA Program. Mr. Z. Kvatchantiradze provided information on the activity of the Permanent Secretariat IGC TRACECA, Action plan and plans for the future related to the development of regional transport infrastructure especially in Central Asia. Mr. Z. Kvatchantiradze kindly asked the Minister to appoint a contact person from the Ministry of Transport for the coordination of the current matters on the internal procedures related to the accession of Afghanistan to the MLA. During the meeting monthly magazines, brochures, maps of the TRACECA and full set of documents on the decisions of IGC TRACECA related to Afghanistan were handed over. At the end of the meeting the Minister expressed his gratitude for the detailed presentation of the TRACECA Program and stressed the significance of TRACECA in the development of trade and international transport. The Minister committed to accelerate the procedures related to the accession of Afghanistan to the MLA. The Minister also mentioned that in case if Afghanistan joins the MLA the Government of Afghanistan will present its concept on matters of regional cooperation on the filed of


trade and international transport. The Minister assured the participants of the meeting of “Afghanistan participation in TRACECA will be beneficial for all the members of this important regional co-operation program” Visit prolongation: Considering the importance of the mission, the Executive Secretary extended his visit to Afghanistan for 3 additional days in order to hold meeting with the Minister of the Foreign Affairs and the President of Afghanistan. Unfortunately, because of absence of the President and Minister of Foreign Affairs meeting with them could not been arranged (On Tuesday, March 11, the next day after return to the country the President and Minister of Foreign Affairs were engaged with the visit of Igor Ivanov, Minister of Foregn Affairs of Russia. On Wednesday Executive Secretary left for Baku). Nevertheless, an additional meeting of Executive Secretary with Deputy Minister of Transport, Mr.Hedayat and experts of Ministry of Transport was held in Kabul in “Continental” Hotel on 11 March. The meeting was arranged at the instance of Minister of Transport of Afghanistan. In the course of the meeting Executive Secretary submitted to Deputy Minister TRACECA program development analyses and information on TRACECA initiatives concerning Afghanistan in written form. At the meeting these documents were considered. Consequently, the experts came to an agreement on expediency of joining the MLA and TRACECA program by Afghanistan. On March 17 Ambassador Peter Сhkheidze met with President Karzay and submitted him personal letter from President Shevarnadze (copy of the letter exists). President Karzay expressed his gratitude to President Shevarnadze and highly appreciated efforts of IGC TRACECA and its Permanent Secretariat to support Afghanistan in rehabilitation of the economy and transport infrastructure. President Karzay was given exhaustive information on TRACECA program and initiatives in relation to Afghanistan. President Karzay took an interest in the matter of joining the MLA by Turkmenistan. Ambassador Chkheidze replied the President that work with Turkmenistan is being carried out in this line. The President evaluated positively possibilities of accession to MLA for Afghanistan and declared that he would give a commission to the respective Ministries and authorities to study the matter and prepare official position of Afghanistan concerning joining the MLA. Сonclusions: The mission was quite successful as it succeeded in informing the respective authorities of Afghanistan about TRACECA program and initiatives in relation to Afghanistan. All level authorities of Afghanistan assessed favorably possible signing the MLA. Due to statements of highest authorities it is to be expected that in near future MFA of Afghanistan will apply to MLA bailee forjoining the MLA. Marc GRAILLE Zviad KVATCHANTIRADZE Team Leader of the Coordination Executive Secretary of PS IGC TRACECA Team of TRACECA Program Ambassador

Vadim TURDZELADZE Project Coordinator

“Common Legal Basis for Transit Transportation”

Annex 8
TRACECA CLBTT Project - Progress Report I – Annex 8 – Tashkent WG Meeting Report

Tashkent WG Meeting Report


I. INTRODUCTION

A. Background

The Intergovernmental Commission (IGC) at its second meeting in Tashkent, 2002 requested the

Permanent Secretariat to organize a Working Group of National Secretaries and Legal Experts (WG) to

elaborate on the Rules and Procedures for the IGC and the Statute for the Permanent Secretariat (PS).

The first Meeting of the WG was held on January 23-24, 2003, in Baky. The Secretary General of the PS

has requested to convene a second meeting of the WG to review the implementation progress of

following technical assistance projects:, Harmonization of Border Crossing Procedures (HBCP), Unified

Policy for Transit Fees and Tariffs (UPTFT) and Common Legal Basis for Transit Transportation (CLBTT),

and to continue drafting the Rules of Procedure for the IGC, as well as the Statute of the PS. On

invitation of the Secretary General, National Secretaries and Legal Experts from all 12 TRACECA

member countries (Parties) were requested to represent their country to discuss issues that are proposed

in the provisional agenda.

B. Organization of the Meeting

The second Meeting of the TRACECA IGC WG of National Secretaries (NSs) and Legal Experts

was held in Tashkent, 22-23 May 2003. The PS organized the meeting with financial support of the

European Union, which was conducted in (i) a Joint Meeting of National Secretaries and Legal experts,

(ii) a Meeting of National Secretaries and (iii) a Meeting of Legal Experts.

C. Officers The Secretary General of the PS chaired the Joint Meeting of National Secretaries and Legal

Experts, as well as the Meeting of National Secretaries. The Executive Secretary chaired the Meeting of

Legal Experts. The PS has been entrusted to record the proceedings, conclusions, and recommendations

of the Meeting.

D. Adoption of the Agenda

The Joint Meeting adopted the agenda as attached (Appendix 1 to this report).

E. Attendance

Delegations from all 12 TRACECA member countries namely: Armenia, Azerbaijan, Bulgaria,

Georgia, Kazakhstan, Kyrgyzstan, Moldova, Romania, Tajikistan, Turkey, Ukraine, and Uzbekistan

comprising of NSs and Legal Experts attended the Meeting. Representative of the European

Commission, the technical assistance projects: HBCP, UPTFT and CLBTT, TRACECA Coordination


Team and the PS attended the Meeting as well. The list of participants is attached as Appendix 2 to this

report.

F. Opening of the Meeting

1. Opening Statement from the Secretary General

In his opening address the Chairman, Mr. Abdurashid Tagirov, Secretary General of the PS,

warmly welcomed the participants. He highlighted the significance of holding the meeting in Tashkent,

Uzbekistan, which is currently presiding over the Intergovernmental Commission. In his speech he

referred to the EBRD’s 12th annual meeting in Tashkent, where the TRACECA programme had been at

the centre of discussion regarding transport sector development in Central Asia and the Caucasus region.

The Chairman emphasized on the following information: The current aims of the TRACECA programme

are oriented on harmonization of legal basis, border-crossing procedures and transportation tariffs. It is

essential for TRACECA to move towards unified transportation system, which will facilitate the

development of international trade and economic well being of TRACECA member-states. For 10 years of

its existence the TRACECA programme played an important role for developing the transportation

systems of the member states. By means of TRACECA, countries joined to different transportation

conventions, and agreements.

He informed about the progress made in implementing the three important TRACECA projects

HBCP, UPTFT and CLBTT; and highlighted the achievements in facilitating transit transport of

humanitarian goods for Afghanistan along TRACECA routes. The Chairman wished for the Meeting to be

conducted in good cooperation and mutual understanding between Parties, in order to achieve positive

results.

2. Opening Statement from Mr. Efstathios Dalamangas, Principal Administrator, European

Commission, EuropeAid Cooperation Office

Mr. Dalamangas appreciated having the opportunity to participate in the meeting. Representing

the European Commission as principle donor to the TRACECA programme he was looking forward to

discuss problem areas and witness progression of the different projects and activities of the PS. Mr.

Dalamangas informed the delegates that the European Commission has agreed on a New policy and

strategy for 2004-2006 for TACIS regional cooperation. The budget 2004 to 2006 for transport in general

has been earmarked with EURO 25 million to be spent, whereas EURO 22 million are allocated for the

TRACECA budget and EURO 3 million for a Programme for Central Asia. In the light of the new policy,

Mr. Dalamangas stressed the need for new project identification and propositions to be adopted by the

next meeting of the IGC. He informed that the Government of the Republic of Armenia has confirmed to

host the 3rd conference of the IGC TRACECA from 08-10 October 2003, in Yerevan. Mr. Dalamangas

wished delegates constructive and fruitful deliberations.


II. PROCEEDINGS

A. 1st session of the Joint Meeting of National Secretaries and Legal Experts 1. Reports of the National Secretaries on the implementation of decisions of the second Annual

Conference of the IGC TRACECA, Tashkent, 2002 and Statements of National Secretaries

The Chairman recalled the agenda items of the Tashkent Conference and the National Secretaries were

requested to deliver their statements:

Armenia: the NS expressed thanks to the host country Uzbekistan and informed that the Ministry of

Transport and the Ministry of Foreign Affaires are giving positive consideration to the implementation of

the three projects HBCP, UPTFT and CLBTT. A national working group has been established to

coordinate the implementation of these projects. Decisions of the second IGC Meeting were already

approved by the Government and are in the process of ratification by the parliament of Republic of

Armenia. The issue of joint financing of PS is under consideration of governmental bodies (namely

Ministry of Transport and Ministry of Foreign Affairs). The NS was confident that a positive decision on

this issue will be taken.

Azerbaijan; the NS of Azerbaijan emphasized on the following three major areas of interest;

(i) the ratification of Tashkent resolution 2002, (ii) issues of joint financing of PS, and (iii) the work of WG

in the framework of current TRACECA projects. The NS reported that considerable progress has been

made in implementing the decisions of the second IGC Conference in Tashkent. The resolution has been

ratified by the Parliament on 13 May 2003. In addition the NS informed that a group of representatives

from Azeri railways, Baky port, Ministry of Interior, Ministry of National Security has been established for

monitoring the transport of humanitarian goods for Afghanistan. He also reported that Azerbaijan was the

1st country to fix TRACECA Hotline signboards on its border crossings and that this mechanism is

operational A Memorandum of Understanding (MOU) is being developed for harmonization of road

vehicles, and the concerned authorities are implementing TRACECA visa regulations. However, he

mentioned that there is yet a dimension for member-states to work more on the issue of TRACECA visa.

Concerning joint financing, the NS pointed out that budget proposals are in process of acceptance and

ratification of the Government. Finally, he assured that the WGs, in the framework of HBCP, UPTFT and

CLBTT were formed and operating successfully.

Bulgaria; the NS informed that the decisions of the second IGC Meeting are in the process of

ratification. He further pointed out that some important parts of the decision are already part of the

national legislation; such as 0% VAT tax for railway service. Therefore, adoption of SMGS as a custom

document is a formal act for Bulgaria. The implementation of the TRACECA Hotline is realised in

cooperation with the freight forwarding companies. The TRACECA Hotline signboards are installed at

ports of Burgas and Varna. The NS mentioned that no signals from transport operators were received so


far. National working groups for project implementation have been established. The WG on HBCP is

working most efficiently. The cooperation between the NS, National Commission and WG is excellent.

Bulgaria is committed to the TRACECA programme and has actively participated in TRACECA meetings

and workshops. Regarding the budget proposal for joint financing of the PS he stated that different

options should be analysed; such as volume of financing obtained by each country, or length of

TRACECA routes within the countries (territories). Financial experts should consider this subject. Later,

this concern was re-emphasized by the Uzbek party.

Georgia; the NS informed that Georgia is giving attention to the shipments of humanitarian goods

on TRACECA routes. He highlighted the involvement of all concerned Government agencies in

monitoring the first two pilot shipments, which have passed Georgia successfully. He further informed that

the TRACECA Hotline has been installed at all border crossing points, and messages concerning

irregularities have been received and resolved thereafter. A new customs code has been developed with

assistance from EURO Customs. The decisions of the second IGC Meeting are still under the

consideration by the Government. Georgia has joined the MOU for container transport between

Azerbaijan, Georgia, Kazakhstan and Turkmenistan.

Georgia is positively considering the financial contributions to the PS and proposed a step-by-

step introduction. He also informed about Georgia’s readiness to host a second summit of the heads of

states of TRACECA countries. The NS also informed that the investment project on Supply of an Optical

Cable System for Communications and Signalling to the Railways of Armenia, Azerbaijan and Georgia

was successfully completed in Georgia. The beneficiary has accepted the work of contractor

Kazakhstan; the NS informed that an interagency committee comprising 12 ministries and

agencies has been established through a Government decree. Kazakhstan has joined the MOU on

container and humanitarian transport. The Implementation of the TRACECA visa regulations is under

consideration by Government. A new customs code has come into force encompassing provisions of the

Kyoto Customs Convention. Kazakhstan is actively involved in implementing the projects HBCP, UPTFT

and CLBTT. He informed that WGs are in place for facilitating the implementation of these projects.

Further, the NS indicated difficulties in implementing the TRACECA hotline due to the dimension of the

country. However, that Kazakhstan is aware if its responsibilities to contribute to joint financing of the PS

IGC. The NS mentioned the procedural difficulties of PS financing out of State budget of Kazakhstan.

Kyrgyz Republic; the NS informed the decisions of the second IGC Meeting are under

consideration of the Government and further will be submitted for ratification of Kyrgyz Parliament. Also

WGs have been established for implementation of the CLBTT, HBCP and UPTFT projects, and they are

working successfully.

Moldova; the NS informed that a working group for implementing the HBCP project has been

established comprising of experts from relevant Ministries. Moldova established the WG for

implementation of the UPTFT. A monitoring group for the implementation of decisions of the second IGC

TRACECA Meeting is created. Positive replies from correspondent ministries have been received. Thus,

ratification of Tashkent resolution was passed for parliamentary consideration. TRACECA Hotline has


been installed at three customs/border crossing points. The NS underlined the effective operational

communication between Customs and other state authorities at the borders.

Romania; the NS informed that the decisions of the second IGC Meeting are in the process of

ratification and the government in principle agree on the financing of the PS and suggest to analyse also

other proposals (see Bulgaria). A working group for implementation of the CLBTT project has been

established.

Tajikistan; the NS informed that the Government is considering the decisions of the second IGC

Meeting. The Ministry of Transport has responded positively for implementation of the Tashkent

resolution. WGs have been established for implementation of the CLBTT and HBCP projects. The NS

also informed that proposal on joint financing the PS is positively considered by the respective ministries

(Ministry of Finance, Ministry of Justice and Ministry of Transport).

Turkey; the NS expressed Turkeys commitment to active participation in the projects of

TRACECA. A group for monitoring humanitarian transports has been established, and implementation of

TRACECA visa is under consideration by the concerned authorities. A telephone and fax number has

been allocated for the TRACECA Hotline and Hotline points are installed at 10 customs points. Also a

national TRACECA website has been established to promote the transport corridor. Sea transport related

to TRACECA is not yet developing and Turkey proposes to hold a seminar to initiate further activities. In

this respect Turkey proposes to develop combined sea/rail transport between the ports of Samsun in

Turkey and Poti and Batumi in Georgia. With regard to the PS Turkey proposed that the regular office

term of the Secretary General may be increased to 2-3 years. In order to facilitate the TRACECA

meetings it would be necessary to receive well prepared documents.

Ukraine; the NS informed that the transport volume transiting Ukraine (namely, via Ilyechevsk-Poti

route) has significantly increased in the past years. Thus, for recent 2 years the volume of sea

transportation has increased 2,4 times. The NS reported about active participation in the three ongoing

projects of TRACECA. He highlighted the further needs for developing the maritime/river transport in the

Black Sea. This has to include also ports and terminals. The TRACECA Hotline has been installed and is

used by truck operators. Messages, which have been received via the Hotline, were resolved thereafter.

Ukraine is supporting the proposal for joint -financing of the PS IGC by the member states. This subject

is under consideration by the ministries involved. He also highlighted the active work of TRACECA Co-

ordination Team in Odessa.

Uzbekistan; the NS informed about the 12th annual EBRD meeting held in Tashkent on May 5-6,

2003. In this meeting, with participation of Presidents of Georgia, Kazakhstan, Kyrgyzstan, Tajikistan and

Uzbekistan, TRACECA programme was discussed as a key factor for future development of Central Asia

and Caucasian regions. A group for monitoring of humanitarian goods has been established. Uzbekistan

supports the expansion of TRACECA routes towards Afghanistan. The NS informed about active

assistance from Uzbek side in the rehabilitation of Afghanistan’s economy.


Uzbekistan is developing new conditions for Transit Transportation via its territory. The NS

mentioned that WGs for HBCP, UPTFT and CLBTT projects were established and are working efficiently.

He congratulated on the effective work done by TRACECA Coordination Team, and he stressed the point

that TRACECA co-ordination should be continued. The TRACECA Hotline signboards installation at

relevant border crossings, as well as implementation of decisions of the second IGC meeting are under

consideration of Uzbek Government. The Uzbek party considered that in order to attract more cargo

traffic on TRACECA routes, member states would have to work more efficiently with IFIs. The NS

expressed Uzbekistan’s wish for TRACECA projects to be allocated in more balanced way across the

Corridor

2. Summary of Comments on the Draft Rules of Procedure IGC TRACECA and the Draft Statue of the PS

IGC TRACECA

The Secretary General introduced the agenda item and requested the NSs to briefly comment on the

position of their Governments on the draft Rules of Procedure of the IGC and the draft Statutes of the PS.

The delegates appreciated the work carried out so far on the draft of Rules of Procedure for the IGC and

the Statute for the PS. However, some countries raised concerns regarding some provisions of the draft.

The following comments were received: (i) Rules of Procedure should be in full compliance to the

Multilateral Agreement (MLA), (ii) the PS statute should be adopted, but the authority of PS should be

clearly specified, (iii) the authority and position of NS should be clearly stated, (iv) all relevant documents

should be adopted in one package at 3rd IGC conference in Yerevan.

In order to consider the positions and proposals of the countries and reach consensus on the

draft provisions, the meeting agreed to convene the Meeting of Legal Experts to undertake further drafting

work.

3. Presentation of the current status of the projects: HBCP, UPTFT, CLBTT

All three Project Managers gave both verbal and computer projected presentations of their

respective projects. The HBCP Project Manager made two presentations and commenced with a graphic

overview of the project progress from inception to the current situation. The presentation also included

achievements and planning for the remainder of the project up to November 2003. The HBCP’s second

presentation was a computer-animated illustration of Integrated Border Management. It depicted the

realistic possibilities for the near future on border crossings of the TRACECA corridor. During both

presentations, the HBCP Project Manager praised the cooperation and progress made by the NSs in

forming and acting as moderator of the National Working Groups that have now evolved into Trade

Facilitation Working Groups (TFWGs).

The UPTFT Project Manager made a presentation on the current status of the project.

He highlighted certain misconceptions concerning the ultimate aims of the project in terms of what Unified


Policy meant. The prime aim was to concentrate on ‘New Cargo’. He emphasised on protocols signed on

the proposed rail TTT tariff and a subsequently dedicated authority, which had been debated in the three

project rail sector workshops. There are three sector-working groups of Road, Rail and Maritime that

addressed modal specific tariff issues in separate WGs. The UPTFT Project is now aligned, through the

NS, into the integrated TFWGs that support the institutional structure of TRACECA. The UPTFT Project

Manager informed the Participants of the WG on the organisations of the joint meeting of the UIC, PS

and the TRACECA Heads of Railways in July 2003 in Baky, Republic of Azerbaijan. This meeting will be

the first step for the establishment of the Council of the TRACECA Heads of Railways.

The CLBTT Project Team Leader and Project Coordinator gave combined verbal and

computer project presentations on the project status. It was explained that the project is now well

established with four regional offices. The project coordinating office was established in Baky, Azerbaijan.

The project experts are working in various fields on evaluation of legislation, international and bi-lateral

agreements, conventions and a review of the MLA statutes, annexes and amendments. This will facilitate

coordinated transit transportation functions of the TRACECA corridor and support the practical operation

of the IGC PS. The CLBTT Project is also aligned with the integrated TFWGs that ensure interaction

between the three projects.

The presentations from all three projects were included in the meeting documents.

4. Discussion on principle provisions of the Trade Facilitation Concept and reports of the National

Secretaries on establishment of the National WGs

and

Identification of Tasks for the National-Based Trade Facilitation WGs

The NSs have been actively embracing the concept of TFWGs under their leadership. The

importance of ‘Trade Facilitation’ and integration of the work of the HBCP, UPTFT and CLBTT projects

was accepted.

It was stated that, all NSs have established and carried out meetings. Customs and Trade

Facilitation WGs were created respectively to combine the efforts of all three projects and enhance the

capability of the TRACECA Corridor.

The reports of NSs highlighted the extent of their commitment and the excellent progress made to

combine resources of NS and projects.


B. Meeting of National Secretaries

The Chairman introduced the agenda items of this meeting and invited the representative of EU

AIDCO, Mr. Dalamangas, to make his presentation on the future strategy of the European Union on

assistance to the TRACECA region for 2004 – 2006. He informed the Meeting about the requirements for

future financing the TRACECA programme, which shall include participation of the Member States.

Funding from November 2003 until November 2004 would be reduced by fifteen percent (15%) and the

statement indicated clearly that a portion of the future TRACECA IGC and Secretariat funding needs to

be contributed by the Member States at a level of 15% from the original budget level. He further indicated

the important role of the Tacis National Coordinators in the Member States and stressed that they shall

become members of the National Commissions of TRACECA and should be actively involved in the

programme implementation.

The presentation was followed by a report of the Team Leader of the TRACECA Coordination

Team, which informed the Meeting about the main principles and criteria for project identification formats,

and for project fiches and Terms of References, which are required to be adhered to in the application

process for future projects. It was agreed to start a new Identification of projects during the next two

months in order to submit a new Action Plan to the IGC Annual Meeting of Yerevan. The PS and the

Coordination Team will contact directly NSs about the specific time schedule by the end of May.

The presentations were followed by an extensive discussion and the Meeting reached consensus

on the proposal to that the Member States contribution of 15% to the financing of the PS for the period

from December 2003 to November 2004, shall be equally shared among the twelve (12) Member States.

Hence, each Member State would be required to contribute EURO 7,000 to the budget of the PS for the

said period. For periods after November 2004 further regulation are to be considered by the IGC and the

Member States. The Meeting also proposed reductions of the budget of the PS. The meeting proposed to

refer the agreed steps for financial contribution of the Member States to the budget of the PS to the IGC

Conference in October 2003 in Yerevan for decision and adoption.

C. Meeting of Legal Experts

The WG Meeting of National Secretaries and Legal Experts, which took place in Baky,

Azerbaijan, on Jan 21-22, 2003 has reached consensus on the text of the Rules of Procedure of IGC

TRACECA and the first 3 Articles of Chapter I of the Statute of the PS IGC TRACECA.

The remaining part of the Statute was elaborated further by the PS IGC TRACECA jointly

with the experts of the CLBTT Project. In preparation for the present Meeting, the proposed draft Statute

of the PS was circulated to the parties along with the Meeting Agenda for their consideration and

comments.

Delegates attended the Meeting of Legal Experts from all Parties to the MLA with exception

of Tajikistan and Kyrgyz Republic. Experts from the CLBTT project and the TRACECA Coordination


Team were also present. The institutional expert of the CLBTT Project assisted in moderating the

Meeting.

Statute of the PS IGC TRACECA (Appendix 4); following extensive discussions the delegations of the

parties reached consensus in respect of Chapter I of the draft Statutes, with the exception of the provision

of article 4.2, with regards to the wording “…in agreement/consultation with the PS.” During the joint

meeting of National Secretaries & Legal Experts it was announced that the final decision, which would

determine the procedure of appointment of a National Secretary, will be made at the up-coming Annual

Meeting of IGC TRACECA in Yerevan 2003.

Rules of Procedure of the IGC TRACECA (Appendix 3); with regard to the Final Draft of the Rules of

Procedure of the IGC TRACECA adopted by the WG Meeting held in Baky in January 2003, certain

constructive comments made by some delegations (among them Romanian, which was unable to attend

that meeting) were taken into consideration by the Meeting of Legal Experts.

Following extensive discussions the delegations of the parties agreed to incorporate the comments made

and therefore consensus was reached.

D. 2nd Session of the Joint Meeting of National Secretaries and Legal Experts

6. Presentation of results of the Meeting of National Secretaries and Legal Experts

General Secretary summarized the reports of the National Secretaries on the implementation of

decisions of the second Annual Conference of the IGC TRACECA, Tashkent, 2002 and their statements

regarding the proposal of the PS on the joint financing of the PS IGC TRACECA.

Executive Secretary briefed on the results of the discussions, which took place at the working

group of legal experts.

7. Discussion on the main items of the Agenda for the III. Annual Meeting of IGC TRACECA

General Secretary has announced the items proposed by the PS for inclusion to the Agenda of the III

Annual IGC Meeting in Yerevan. Please see the Working Group Folder for proposed main items of the

Agenda. Upon completion of discussions the list of items was enhanced by proposal from the Meeting

Participants and agreed as Item 9 of the Recommendations and Decisions of the Meeting attached

hereto.

8.Follow-up of bi-lateral consultations with Parties on the issues immanent to harmonization of transport

legislation The Team Leader of the CLBTT Project has reported on the bi-lateral consultations with Parties held

during his visits to the countries. As he announced to the Meeting, the Project Team will present, analyze

and negotiate – mainly within the national LWGs – the main legal instruments of the harmonization of


transit transport legislation. To this effect, the Team Leader envisages a permanent dialogue by means of

holding meetings of the LWG in each participating country at regular intervals.

The Meeting agreed to adopt a Protocol of Additions or Technical Annex to the MLA as described in Item

8 of the Recommendations and Decisions of the Meeting attached hereto.

III. RECOMMENDATIONS AND DECISIONS OF THE MEETING

After active and constructive deliberation, the Meeting adopted Recommendations and Decisions

(Appendix 5) on 23 May, 2003.

Appendix 1
TRACECA CLBTT Project - Progress Report I – Annex 8 – Appendix 1 - Agenda

Agenda


Appendix 1

TRACECA INTERGOVERNMENTAL COMMISSION

WORKING GROUP OF NATIONAL SECRETARIES AND LEGAL EXPERTS

May 22-23, 2003, TASHKENT - UZBEKISTAN

PERMANENT SECRETARIAT OF THE IGC TRACECA ___________________

AGENDA

REGISTRATION 18:00 – 20:00

WELCOME DINNER 20:00

DAY 1 – MAY 22, 2003

MORNING SESSION 9:00 – 14:00

JOINT MEETING OF NATIONAL SECRETARIES AND LEGAL EXPERTS

9:00 –9:10 Opening speech Secretary General 9.10 –9.30 Welcome Speech On behalf of the European Commission/

Mr Dalamangas - AIDCO 9.30 –9.45 Coffee-break 9.45 –10.00 Adoption of the proposed Agenda Secretary General 10.00 –11.30 Reports of the National Secretaries on the

implementation of decisions of the second Annual Conference of the IGC TRACECA, Tashkent, 2002 and Statements of National Secretaries (attitude of the Parties) on the draft methodology of the system of joint financing of the PS IGC TRACECA and NSs

National Secretaries

11.30 –11.45 Summary of commentaries on the Draft Rules of Procedures IGC TRACECA and Draft Statutes of the PS IGC TRACECA

National Secretaries

11:45 -12:00 Coffee-break 12.00 –14.00 Presentation of the current Statute of the projects:

HBCP, UPTFT, CLBTT

Secretary General CLBTT, HBCP, UPTFT Project Managers, National Secretaries

LUNCH 14:00 -15:30


AFTERNOON SESSION 15:30 - 18:00


Chairman: Mr. Abdurashid TAGIROV – Secretary General of the Permanent Secretariat of the IGC TRACECA

Co- Chairman: Zviad KVATCHANTIRADZE - Executive Secretary of the Permanent Secretariat of the

IGC TRACECA

15.30-17.00 Discussion on principle provisions of the Trade Facilitation Concept and reports of the NSs on establishment of the National WGs Presentation and discussion of the Terms of Reference for National-Based Trade Facilitation Working Groups – for each project ( 30 minutes each ) : HBCP UPTFT CLBTT

Secretary General CLBTT, HBCP, UPTFT Project Managers, National Secretaries

17:00-17:10 Coffee-break

17:10-18:00 Summary of commentaries on the Draft Rules of Procedures IGC TRACECA and Draft Statutes of the PS IGC TRACECA

Executive Secretary

DINNER - 20:00


DAY 2 – MAY 23, 2003

MORNING SESSION 9:30 – 13:15 (TWO PARALLEL SESSIONS)

NATIONAL SECRETARIES MEETING Chairman: Mr. Abdurashid TAGIROV – Secretary General of the Permanent Secretariat of the IGC

TRACECA

9:30-10:00 Reports of National Secretaries on implementation of tasks mentioned in the letter of Secretary General IGC TRACECA dated February, 6, 2003 (in the framework of CLBTT Project)

Secretary General National Secretaries

10:00-11:00 Information on the decisions made on the proposed joint financing system of the PS and NSs IGC TRACECA


11:00-11:15 Coffee-break 11:15-13:15 TRACECA 2004-2006 / PROJECT OVERVIEW

TRACECA Co-ordination / Up date of the TRACECA projects + Projects / Identification

Mr E. Dalamangas European Commission / AIDCO Representatives TRACECA Co-ordination

MEETING OF LEGAL EXPERTS

Co- Chairman: Zviad KVATCHANTIRADZE - Executive Secretary of the Permanent Secretariat of the IGC TRACECA Keynote Speaker: Tomas LAMNIDIS - Team Leader of the Project “Common Legal Basis for Transit Transportation”

9:30-11:00 Article-by-article adoption of the Draft Statute of the Permanent Secretariat IGC TRACECA

Team Leader of the Common Legal Basis for Transit Transportation Project

11:00-11:15 Coffee-break 11:15-13:15 Continuation of the previous item Team Leader of the Common Legal

Basis for Transit Transportation Project

LUNCH 13.15 – 14.30


AFTERNOON SESSION 14.30-17.30


DINNER - 20.00

14.30 –15.00 Identification of Tasks for National-Based Trade Facilitation Working Groups.

Secretary General

15.00 – 15.30 Presentation of the results of the Meeting of National Secretaries and Legal Experts

Secretary General Executive Secretary

15.30 - 15.40 Coffee-break 15.40 - 16.30 Discussion on the main items of the III Annual

Meeting of IGC TRACECA Agenda (Erevan 2003)


16.30 – 17.00 Follow-up of bi-lateral consultations with the Parties on the issues immanent to harmonization of transport legislation Presentations of TRACECA Route and TRACECA Investment Concepts

Experts of CLBTT Project TRACECA Co-ordination

17:00 – 17 :30 Adoption of the Final Recommendations of the Working Group of the National Secretaries and Legal Experts

Secretary General

17.30 Closing of the Working Group Secretary General

Appendix 2
TRACECA CLBTT Project - Progress Report I – Annex 8 – Appendix 2 – List of Participants

List of Participants


«TRACECA» INTERGOVERNMENTAL COMMISSION

MEETING OF MATIONAL SECRETARIES AND LEGAL EXPERTS

(WORKING GROUP)

Tashkent, May 22-23, 2003

Permanent Secretariat of IGC TRACECA

___________________________________

LIST OF PARTICIPANTS EUROPEAN COMMISSION

NAME POSITION

Mr. Efstathios DALAMANGAS Principal Administrator, European Commission, EuropeAid Co-operation Office

PERMANENT SECRETARIAT IGC TRACECA

NAME POSITION

Mr. Abdurashid TAGIROV Secretary General of PS IGC TRACECA

Mr. Zviad KVATCHANTIRADZE Executive Secretary of PS IGC TRACECA, Ambassador

Mr. Marc GRAILLE Supervisor of PS IGC TRACECA Dornier Consult/Transtec , TRACECA Coordination Team

Mr. Yaroslav BELY

Road Transport Expert

Mr. Navruz ERKINOV Railway Transport Expert


TRACECA PROJECTS

Mr. Bodo ROESSIG TRACECA Coordination Team, Coordinator for Central Asia

Mr. Thomas LAMNIDIS “CLBTT- Common Legal Basis for Transit Transportation” Team Leader

Mr. Vadim TURDZELADZE

“CLBTT-Common Legal Basis for Transit Transportation” Project Co-ordinator

Mr. Emmanuel MEGALOKONOMOS Ambassador Ad Hon.

Mr. Athanasios KARVELIS Legal Expert CLBTT

Mr. Ioannis DALEZIOS Institutional Expert CLBTT

Mr. Alexandros KALOFOLIAS Management Expert CLBTT

Mr. Georgiou KONSTANTINOS Transport Expert CLBTT

Mr. Dimitriy KOUVARAS Legal Expert CLBTT

Ms. Arina KOMAROVA Legal Expert CLBTT

Ms. Nana ISMAYLOVA Financial Manager

Mr. Rustam IMOMALIEV Legal Expert CLBTT

Mr. Peter RANGER Project Manager “HBCP- Harmonization of Border Crossing Procedures”

Mr. Les CHEESMAN Project Manager “UPTFT- Unified Policy for Transit Fees and Tariffs”

Mr. Mark BOOKER “HBCP- Harmonization of Border Crossing Procedures”, Institutional and Regulator Expert

Mr. Martin LENTSCH TRACECA Coordination Team, Institutional and Legal Expert


TRACECA MEMBER-STATES

№ COUNTRY NAME POSITION

Mr. Akif MUSTAFAYEV National Secretary

1 AZERBAIJAN Mr. Rashad ASLANOV

Ministry of Foreign Affairs of Republic of Azerbaijan Desk Officer

Mr. Gagik GRIGORYAN National Secretary

2 ARMENIA Mr. Vaner HARUTYUNYAN

Legal Expert, Ministry of Foreign Affairs of Republic of Armenia

Mr. Lubomil IVANOV National Secretary, Deputy Minister of Transport of the Republic of Bulgaria

3 BULGARIA Mrs. Anna NATOVA

Ministry of Foreign Affairs of the Republic of Bulgaria International Law Directorate

Mr. George GOGIASHVILI National Secretary

4 GEORGIA Mr. Alexander AKHVLEDIANI

Ministry of Foreign Affairs of Georgia Head of Division of Eurasian Transport and Communications Systems

Mr. Yerzhan SULEIMENOV National Secretary

5 KAZAKHSTAN

Mrs. Madina SHANSHARBAYEVA Director of the Legal Department Ministry of Transport and Communication

Mr. Suleiman ZAKIROV National Secretary

6 KYRGYZSTAN Mr. Erkin MASADIKOV

Director of Main Railway Line Construction Directorate, Expert

Mr. Vecheslav TELEMAN National Secretary 7 MOLDOVA

Mrs. Tatyana PIRVU Legal Expert, Ministry of Foreign Affairs of Moldova

8 ROMANIA Mrs. Ana-Maria POPESCU National Secretary


Ms. Emilia-Alina NICULESCU

Legal Expert, Ministry of Foreign Affairs of Romania

Mr. Soleh MOUMINOV National Secretary

9 TAJIKISTAN Mr. Sherali IHONONOV

Head of Legal Department of Ministry of Foreign Affairs of Republic of Tajikistan

Mr. Barış TOZAR National Secretary

Mrs. Gunseli YASTI Legal Adviser Ministry of Foreign Affairs of the Republic of Turkey 10 TURKEY

Mr. Metin KATI Head of the International Relations Department of the Ministry of Transport and Communications

Mr. Abdulla KHASHIMOV National Secretary 11 UZBEKISTAN

Mr. Eldor MANNOPOV Legal Expert, State Concern “Uzavtoyol”

Mr. Yuri TERTISHNIK National Secretary

12 UKRAINE Mrs. Lali MOROZ

Legal Expert, Ministry of Foreign Affairs of Ukraine

GUESTS

NAME POSITION

Mr. Stoyan GORTCHIVKIN Charge' d'affaires of Bulgaria Republic in Uzbekistan

Mr. Ilie KALIN

Deputy Head of Mission of the Republic of Romania in Uzbekistan

Appendix 3
TRACECA CLBTT Project - Progress Report I – Annex 8 – Appendix 3 – RoP of the IGC TRACECA

Rules of Procedure of the IGC TRACECA


Appendix 3 Final Document/Draft/IGC/WG/05/03 Page 1(4)

Original : English

RULES OF PROCEDURE

OF THE INTERGOVERNMENTAL COMMISSION TRACECA

RULE 1 Application

These Rules of Procedure shall apply to all activities of the Intergovernmental Commission TRACECA, (IGC), as defined in Article 8 of the MLA.

RULE 2 Definitions

The abbreviations and expressions defined below shall bear the same meaning when used in other statutes and official documents issued or approved by the IGC, including but not limited to the Statute of the PS. In all texts issued by the IGC, unless otherwise specified, the use of the masculine gender includes the feminine and the use of the singular includes the plural and vice versa. ‘MLA” means the Basic Multilateral Agreement on International Transport for Development of the Corridor Europe - the Caucasus – Asia, signed September 8, 1998 in Baky, Republic of Azerbaijan, as modified from time to time and includes its Technical Annexes from time to time in force; “PARTIES” means the states-participants of the MLA; “IGC” means the Intergovernmental Commission for the Transport Corridor Europe-the Caucasus-Asia “TRACECA”; “PRESIDING-PARTY” means the State-Participant, which assumes the Chairmanship of the IGC for a one-year term; “CHAIRMAN-IN-OFFICE” means the Head of Delegation of the Party, which assumes the Chairmanship of the IGC or any other High Official designated for this purpose by the Government of that Party; “PS” means the Permanent Secretariat of the IGC; “WG” means Working Groups, established by the IGC upon proposals made by the PS.


Final Document/Draft/IGC/WG/05/03 Page 2(4)

Original : English

RULE 3 Scope

3.1. The IGC was established by the MLA to regulate the issues regarding the implementation and the application of provisions of the MLA.

3.2. The IGC functions as a Meeting of representatives of the Highest Governmental Authorities of the Parties or their authorized representatives. Any representative, one for each Party, shall be nominated by the Government of that Party with full authority to make decisions for the purposes of the MLA.

3.3 Exceptionally, Parties may arrange to be represented by another Party. No Party may, however, represent more than [one] *other Party.

3.4. Exceptionally, the IGC upon proposal of the PS can also invite representatives from Regional Economic Integration Organisations, including the European Union, and representatives from international organisations concerned with international transport matters to attend Meetings of the IGC.

3.5 The IGC is not a legal body.

3.6 The PS, which is based in Baky, Republic of Azerbaijan and registered as a body with international legal personality, functions according to its own Statute being at the disposal of the IGC in order to implement the Decisions and Recommendations of the IGC. 3.7. The IGC establishes the structure of the PS, staff regulations, job description and other issues regarding the organisation and functioning of the PS. 3.8. The IGC elects the Secretary General and Executive Secretary of the PS.

RULE 4

Purposes 4.1 The purposes of the IGC are to promote the objectives of the MLA, facilitate the application of its provisions and to supervise its implementation through the PS. In order to fulfil its mission it requests the PS to carry out the following tasks, employing for that purposes WG established for international road transport, railway transport, commercial maritime navigation, customs and documentation procedures and other fields of international transport as defined in the MLA:

4.1.1 to identify problems linked to the implementation of the MLA and undertake studies to reach solutions and propose to the Parties the measures needed to achieve efficient implementation of the MLA;

4.1.2. to provide upon request of the Parties its assistance and consulting services on all relevant draft laws and regulations elaborated in accordance with the MLA to implement Decisions and Recommendations of the IGC;

4.1.3. to provide upon request of the Parties its assistance and consulting services in their relations with relevant international organisations;

* Number of countries in the article 3.3 is still under discussion.


Final Document/Draft/IGC/WG/05/03 Page 3(4) Original : English

4.1.4 to develop conciliation, mediation and arbitration services as methods of settling disputes arising in the context of international economic relations, in accordance with Article 12 of the MLA;

4.1.5 to develop and co-ordinate the activities among the National Commissions in each Party.

4.2. It shall propose study and approve projects within the framework of the MLA.

4.3. It shall issue a yearly assessment report on the work carried out in relation to the implementation of the provisions of the MLA and the further measures that need to be taken.

RULE 5 Budget

The annual budget of the PS and its Permanent Representations and Working Groups within the framework of MLA shall be proposed by the PS, approved by the IGC and managed by the PS.

RULE 6 Meetings

6.1 The IGC shall meet regularly, not less than once a year in accordance with Article 8 of the MLA.

6.2. The IGC may hold extraordinary meetings at the request of not less than one third of the Parties or, as a matter of urgency, at the request of the Secretary General, approved by one third of the Parties.

6.3. The Chairmanship of the IGC shall rotate every year, according to the English alphabetical order. If a Party is not prepared to assume the Chairmanship, the Chairmanship shall go to the subsequent Party, according to the same alphabetical order.

6.4. Meetings shall be chaired by the Chairman-in-Office.

6.5. The draft agenda prepared by the PS shall be discussed and adopted during the Meeting. The draft agenda, any draft documents and the invitation to a Meeting shall be communicated by the PS to the Parties at least forty days before the Meeting by fax or e-mail. At the opening of the Meeting a new item may be included in the Agenda by consensus.

RULE 7 Decisions and Recommendations of the IGC

The IGC formulates Decisions, which are binding on the Parties, and formulates Recommendations presented to the Parties for adoption, related to subjects listed in Articles 3, 8 and 9 of the MLA.



RULE 8 Consensus and Quorum

8.1 All decisions of the IGC are taken by consensus.

8.2. The IGC shall not meet unless a minimum of two-thirds of the Parties are present or represented. The decisions taken in Meetings duly convened are binding for the absent Parties.

RULE 9 Working Groups

9.1. Upon proposals made by the PS the IGC may establish WG, which shall work on questions related to international road transport, railway transport, commercial maritime navigation, customs and documentation procedures and other relevant matters in accordance with the MLA.

9.2. Subject to approval by the IGC, the WG may establish their own Rules of Procedure with the assistance of the PS. They shall report quarterly to the PS on the results of their work.

9.3 WG shall prepare proposals and drafts for consideration by the IGC.

RULE 10 Languages

10.1. English and Russian shall be both the official and the working languages of the IGC, the WG and the PS.

10.2. Speeches made and documents submitted in either of the two languages shall

be interpreted into the other one.

RULE 11 Amendments

Any amendments of and additions to these Rules of procedure shall be adopted by the IGC and incorporated in these Rules of Procedure.

Appendix 4
TRACECA CLBTT Project - Progress Report I – Annex 8 – Appendix 4 – Statute of PS IGC TRACECA

Statute of the PS IGC TRACECA


Appendix 4


STATUTE OF THE PERMANENT SECRETARIAT

OF THE INTERGOVERNMENTAL COMMISSION TRACECA

• WHEREAS, the Parties signed the Basic Multilateral Agreement on International Transport for Development of the Europe-the Caucasus-Asia Corridor, in Baky, Republic of Azerbaijan, on September 8, 1998 (hereinafter referred to as “the MLA”), with the assistance of the European Union,

• WHEREAS the MLA provided for the establishment of a Permanent Secretariat, which is

based in Baky, Republic of Azerbaijan, and registered as a body with international legal personality in order to implement the actions designated by the IGC and the IGC also adopted the Statute of the Permanent Secretariat, during its First Annual Conference in Tbilisi, on March 11, 2000, which was complemented during the Second Annual Conference in Tashkent on April 25, 2002,

• DETERMINED to entrust to the Permanent Secretariat all powers necessary in order to

fulfil all practical and administrative tasks demanded by its missions as defined by the MLA.

NOW THEREFORE on October 10, 2003, during its Third Annual Meeting the IGC has revised the Statute of the Permanent Secretariat and agreed to adopt it as set out below: ARTICLE 1 Definitions 1.1 For the purpose of this Statute: ‘MLA” means the Basic Multilateral Agreement on International Transport for Development of the Corridor Europe - the Caucasus – Asia, signed September 8, 1998 in Baky, Republic of Azerbaijan; “PARTIES” means the States-participants of the MLA.



“ASSOCIATE MEMBER” means a Regional Economic Integration Organization, which may accede to the MLA as associate; “IGC” means the Intergovernmental Commission of the Transport Corridor Europe-the Caucasus-Asia “TRACECA”; “PRESIDING PARTY” means the Party, which assumes the Chairmanship of the IGC for one-year term. “CHAIRMAN-IN-OFFICE” means the Head of Delegation of the Party, which assumes the Chairmanship of the IGC or any other High Official designated for this purpose by the Government of that Party. “PS” means the Permanent Secretariat of the IGC. “WG” means Working Groups, established by the IGC upon proposals made by the PS. “National WG” means National Working Groups, established by the Governments of the Parties upon proposals made by the IGC and/or PS. “SECRETARY-GENERAL” means the Secretary-General of the PS. “EXECUTIVE SECRETARY” means Executive Secretary of the PS. “PERMANENT REPRESENTATIONS OF PS” means the Permanent Representations of the PS maintained in each Party. “NATIONAL SECRETARY” means the head of the Permanent Representation of PS in each Party. “STAFF MEMBERS” and/or “EXPERTS” mean the persons holding a fixed-term appointment or other position in the PS. 1.2 The abbreviations and expressions defined below shall bear the same meaning when used in other statute and official documents issued or approved by the IGC, including but not limited to the Statute of the PS. In all texts issued by the IGC, unless otherwise specified, the use of the masculine gender includes the feminine and the use of the singular includes the plural and vice versa.

ARTICLE 2 Purposes The purpose of the PS shall be to implement all practical and administrative operations requested by the IGC and all Decisions and Recommendations made by IGC in accordance with the IGC Rules of Procedure.



2.1 In particular the PS is entrusted with the following tasks employing for that purpose WG established for international road transport, railway transport, commercial maritime navigation, customs and documentation procedures and other fields of international transport as defined in the MLA: 2.1.1 to identify problems linked to the implementation of the MLA and undertake studies to

reach solutions and propose to the Parties the measures needed to achieve efficient implementation of the MLA

2.1.2 to provide upon request of the Parties its assistance and consulting services on all relevant draft laws and regulations elaborated in accordance with the MLA to implement Decisions and Recommendations of the IGC related to the MLA;

2.1.3 to provide upon request of the Parties its assistance and consulting services in their relations with relevant international organisations.

2.1.4 to develop and co-ordinate the activities of National WGs, which have been organised by the National Commissions in each Party.

2.2 The PS carries out the following functions:

a) makes arrangements for the meetings of the IGC and its WG established under the MLA and provides the meetings with administrative and technical services as required;

b) attends to other relevant meetings c) prepares drafts and circulates the IGC documents made available by the Parties; d) carries out correspondence pertaining to secretarial services; e) maintains the archives and documentation of the IGC; f) studies the problems that the IGC charged it with and provides recommendations; g) manages the information flow and provides information regarding the IGC, when needed, to

the Parties and to third parties; h) puts forward appropriate proposals to the IGC for any amendments and changes to the

MLA as well as adoption of new technical annexes to the MLA; i) carries out its internal operations, such as:

- Elaboration of the yearly action plan; - Coordination with the WG / National Commissions.

j) prepares Progress Reports on its activities for submission to the IGC; k) manages its budget by:

- Preparing the annual report, - Implementing the budget once adopted,

l) monitors and facilitates in achieving progress in the elaboration and implementation of projects and programs of common interest;

m) conducts consultations with the Parties, Associate members and WG; n) maintains dialogue with international organisations and third countries under mandate

given by the IGC; o) recruits staff and hires consultants and experts; p) carries out other functions and tasks with the approval of the IGC.



ARTICLE 3 Management 3.1 The PS is managed by the Secretary-General, who is the Chief Executive Officer of the

PS, and by the Executive Secretary, who manages the daily administrative tasks of the PS.

3.2 The Secretary-General and the Executive Secretary conduct their duties in accordance

with the MLA, the present Statutes and the Rules of Procedure of the IGC and the decisions and recommendations, issued by the IGC.

3.3 The Secretary-General is elected by the IGC by consensus, among the candidates

proposed by the newly elected Presiding Party for the term of its Chairmanship. The election takes place during the Annual Meeting of the IGC. If appropriate or necessary, the term of duties of the Secretary-General can be prolonged but not beyond the second Annual Meeting of the IGC following his/her election. The Secretary-General can be dismissed by a decision of the IGC.

3.4 The Executive Secretary is elected by the IGC by consensus among the candidates of

any Party, for a three-year term. The election takes place during the Annual Meeting of the IGC. The Executive Secretary can be re-elected no more than once. He can be dismissed by a decision of the IGC.

3.4.1 The Secretary-General and the Executive Secretary shall be a national of any Party. 3.5 The Secretary-General:

- Directs the tasks of the PS, according to Article 2 of the present Statute; - Coordinates the activities of the National Secretaries in the framework of the MLA and

takes measures pertaining to the implementation of all decisions of the IGC; - Introduces and develops initiatives of the Presiding Party; - Studies tasks and realises decisions and resolutions on problems, with which IGC has

charged the PS; - Promotes deepening and expansion of cooperation between the Parties in the

framework of the MLA; - Supports relations with the Depository of the MLA and with international

organisations; - Speaks for the PS, represents the PS to third parties. - May function as Chairman of Meetings of the WG;

3.6 The Executive Secretary:

- Manages the daily administrative tasks of the PS; - Provides internal organisation of all sessions and meetings in the framework of the

MLA, including meetings of the IGC and its WG for the maintenance and qualitative preparation of the above stated actions;

- Organises preparation and distribution of the information issued by PS among the Parties;



- Makes together with experts examination of projects for representation to the

Secretary-General and further to the IGC; - Supervises the work for the updating of the web-site and the ordering and updating

of the technical library in the PS; - Provides the exchange of appropriate information with the Depository of the MLA

and with international organisations; - Prepares the draft of the core budget of the PS; - Represents the PS in the absence of the Secretary-General from the country of Seat

of the PS and on other occasions with the approval of the Secretary-General or the IGC.

- May Function as Chairman of Meetings of the WG with the approval of the Secretary-General;

3.7 Conducting any private business and holding any active public position shall not be

compatible with the position of Secretary-General and Executive Secretary. 3.8 The Secretary General and Executive Secretary shall not interfere in the internal affairs of

the Parties. No Party shall influence them in the performance of their functions. 3.9 In order to fulfil their functions the Secretary-General and the Executive Secretary may

request the assistance of and appoint Experts by mutual decision. ARTICLE 4 Permanent Representation and National Secretaries 4.1 In accordance with Article 9 of the MLA, the PS maintains Permanent Representations,

headed by the National Secretary in each of the Parties. 4.2 The National Secretary referred to in article 4.1, shall be a national of the Party, he/she

represents and is appointed by the Government of that party in agreement/consultation with the PS.

4.3 The National Secretary shall assist the PS with coordination, supervision and

implementation of projects financed by the EU. 4.4 National Secretaries shall ensure that they work in very close liaison with their own

National Commissions. They are a focal point for TRACECA information, and ensure that there is a two-way transfer of information between the PS and the National Commission.

4.5 National Secretaries shall conduct their day-by-day activities in accordance with the

present Statutes. 4.6 National Secretaries shall be employed full time in their function and devote sufficient

time on a daily basis to fulfil all required tasks.



4.7 National Secretaries shall inform the PS and the National Commissions about their

activities monthly, in writing using a standard format and where possible by electronic post (e-mail).

4.8 National Secretaries shall act as a moderator of TRACECA National WGs of the Party.

4.9 National Secretaries shall prepare and send reports of meetings of National WGs to the PS.

4.10 National Secretaries shall endeavour to ensure that initiatives from WG are pursued through appropriate channels to obtain implementation. 4.11 National Secretaries shall ensure full cooperation and practical support to all relevant

TRACECA Projects including full cooperation with EU and Local Experts.

4.12 National Secretaries shall cultivate relations with International Funding Agencies, Transport Associations, Chambers of Commerce and similar institutions and where possible include their representatives in the National WGs.

ARTICLE 5 Control over the PS activities The Chairman-in-office has a permanent right, during the period of Chairmanship, to exercise administrative and financial control over the activities of the PS. ARTICLE 6 Place of seat of the PS and the Permanent Representations 6.1 In accordance with Article 9 of the MLA the seat of the PS is located in Baky, Republic of

Azerbaijan. The PS maintains Permanent Representation in each of the Parties. 6.2 The Governments of the Parties provide premises on a charge-free basis, for the Permanent

Representations in each Party, as part of the contributions from the host Governments. 6.3 The Seat of the Secretary-General and the Executive Secretary is located in the office of the

PS in Baky, Republic of Azerbaijan.



Original : English ARTICLE 7 Finances 7.1 The Secretary-General in cooperation with the Executive Secretary shall submit the core

budget of the PS and IGC and prepare proposals on the system of joint financing (Article 9 of the MLA) to the IGC for further approval by the Governments of the Parties.

7.2 When sending its annual report and statement of accounts to the Parties the PS shall

invite them to pay their contributions towards the expenditure of the [past][present][next] financial year as soon as possible and not later than 31 December of the year in which the documents are sent out, after which date the amounts due shall bear interest at [5] per cent per annum. If 2 years after that date a Party has not paid its contributions its right to vote in the IGC shall be suspended until it has fulfilled its obligations to pay.

7.3 The salaries and expenses of the PS are covered by the Governments of the Parties

within the framework of the approved budget. 7.4 The PS is allowed to receive grants from donors or organisations. ARTICLE 8 Financial Year 8.1 Each financial year of the PS is to last a calendar year from January 1st to December

31st. 8.2 Exceptionally, the financial year started on the voting day of the first annual Conference

of the IGC, held in Tbilisi, Georgia during the first quarter of year 2000 and ended on December 31st of the same year.

ARTICLE 9 Relationship with the host country The relationship between the Government of the host country and the PS is determined according to the Headquarters Agreement between the Government of the Republic of Azerbaijan and the PS.



Original : English ARTICLE 10 Languages The working languages of the PS shall be English and Russian. All documents issued by the PS shall be available in both languages. Fluent knowledge, oral and written, of at least one of the working languages of the PS is a principal requirement for the staff members of the PS. ARTICLE 11 Entry into force and amendments

11.1 The present Statutes shall be approved by decision of the IGC on the basis of

consensus. 11.2 The present Statutes may be supplemented or amended in accordance with a decision

of the IGC on the basis of consensus. 11.3 The present Statute shall enter into force 30 days after notification to the Depository of

completion of internal state procedures, pursuant to their national legislation by all the Parties.

Appendix 5
TRACECA CLBTT Project - Progress Report I – Annex 8 – Appendix 5 – Recommendations and Decisions

Recommendations and Decisions


Final Document IGC/WG/05/03 Page 1(3) Original: English

INTERGOVERNMENTAL COMMISSION TRACECA

WORKING GROUPS OF THE NATIONAL SECRETARIES AND LEGAL EXPERTS

Tashkent, May 22-23, 2003

RECOMMENDATIONS AND DECISIONS The Working Group Meetings of National Secretaries and Legal Experts of IGC TRACECA were held in Tashkent, May 22-23, 2003 with participation of representatives of the Parties to Basic Multilateral Agreement. Participants of the WGs discussed the issues, in accordance with the agenda (Appendix 1). List of participants of the WGs is attached (Appendix 2). The Working Groups adopted the following recommendations and decisions: Working Group of National Secretaries and Legal Experts was held in the spirit of cordial and friendly relation among its member countries and the Meeting expressed its appreciation to the European Commission the continued financial support to the implementation of the Basic Multilateral Agreement. The Meeting also expressed its appreciation to the Permanent Secretariat for preparing the documents and making excellent arrangements in the organization of the Meeting.

1. Reports of the National Secretaries on the implementation of Decisions of the second Annual Conference of the IGC TRACECA, Tashkent, 2002

Having discussed the reports from the Secretary General of PS IGC TRACECA Mr. Tagirov and TRACECA National Secretaries on implementation of decisions of the Second Annual Meeting of IGC TRACECA (Tashkent, April 24-25, 2002) the WG noted the importance of the work done by the Permanent Secretariat of IGC TRACECA and TRACECA National Commissions.

2. Adoption of Drafts Rules of Procedures of the IGC TRACECA and Statute of the PS IGC TRACECA

The Working Group of legal experts in accordance with the Agenda of the Meeting, has discussed the drafts of the Rules of Procedure of the IGC TRACECA and Statute of the PS IGC TRACECA submitted by the Permanent Secretariat IGC TRACECA and decided, upon the conclusion of discussions, to recommend to the IGC TRACECA to discuss during its forthcoming Meeting the elaborated drafts of the Rules of Procedure of the IGC TRACECA (Appendix 3) and Statute of the PS IGC TRACECA (Appendix 4) for its adoption.


Final Document IGC/WG/05/03 Page 2(3)

Original: English

3. Joint Financing of IGC The subject was discussed and all Participants agreed to contribute to the financing of the PSs Budget by 15 % for the period December 2003 – December 2004. In this respect the Parties will contribute on equal basis i.e. EURO 7.000 each. The total amount of contribution will be raised to EURO 84.000.

4. Development of Trade Facilitation Concepts Participants of the Working Group of the National Secretaries have been very active and supportive in embracing the concept of Trade Facilitation Working Groups under the Chairmanship, where possible, of the National Secretaries. They have fully understood the importance of “Trade Facilitation” and integrating the work of the HBCP, UPTFT and CLBTT projects.

5. Present Status of On-going TRACECA Projects Project Managers of the on-going TRACECA projects gave both verbal and computer projected presentations of their respective projects. The presentations from all three projects can be found in the Meeting Documents Folder.

6. TRACECA Council of the Heads of Railways

The PS informed the Participants of the WG on the organisations of the joint meeting of the of the UIC, PS and the TRACECA Heads of Railways in July 2003 in Baky, Republic of Azerbaijan. This meeting will be the first step for the establishment of the Council of the TRACECA Heads of Railways.

7. Action Plan 2004-2006 (Update and Identification of the TRACECA Projects) After the presentation of the Representative of the European Commission on future of TRACECA Program 2004-2006 the Participants of the WG were agreed to start a new identification exercise for projects in order to present a new action plan during the 3rd Annual meeting of the IGC. Project proposals will be provided to the PS by the end of July 2003 according the criteria of the TACIS Regional Strategy Paper 2004-2006 and the format that was agreed during the meeting.

8. Adoption of Concept of Creation of TRACECA Fund and TRACECA Route The Team Leader of CLBTT Project introduced the idea to adapt a Protocol of Additions or Technical Annex to the MLA creating: A TRACECA Route; TRACECA Investment; Settlement of Disputes Annex. This idea was discussed during bilateral consultations with the relevant authorities and organizations of the Parties.


Final Document IGC/WG/05/03 Page 3(3) Original: English

The Participants expressed their satisfaction for the proposed procedure. CLBTT will prepare a draft Protocol /Technical Annex by the end of June for further elaboration by the relevant authorities of the Parties.

9. Adoption of the Main Items of Third Annual Meeting in Yerevan

The Participants have agreed on the following main items of the Third Annual meeting of the IGC:

1. Report on the actions of the IGC TRACECA. Statement of the Chairman-in-Office of the IGC TRACECA.

2. Hand over to the new Chairman-in-Office

Statement of the Republic of Armenia (Chairman-in-Office). 3. Reports of Parties of the Basic Agreement on the activity done on implementation of the

decisions adopted earlier and recommendations within the framework of the IGC TRACECA. Statements of the Heads of Delegations of the Parties

4. Approval of the Rules of Procedure of IGC and Statute of PS IGC TRACECA

5. Parties Agreement about joint financing of PS.

6. Signature of the Protocol (according to article 11 of the MLA) on amendments and new technical

annexes to the Basic Multilateral Agreement, adopted at the Second Annual Conference of IGC, held on April 25, 2002 in Tashkent.

7. Approval of the new proposals on amendments to Technical Annexes on international road

transport (establishment of TRACECA permit system) and customs procedures and documentation process.

8. Adoption for a new TRACECA Strategy for the period of 2004 – 2008.

9. Adoption of the new project proposals, according to the Tacis Regional Strategy Paper 2004-

2006.

7. Creation of a TRACECA Council of the Heads of the Railways. The Participants of the WG on consensus adopt the above Recommendations and Decisions

A.TAGIROV Secretary General of the PS IGC TRACECA

Annex 9

Protocol (1) on amendments to the Basic Agreement


Document IGC TRACECA Draft Protocol / MLA / .......04/ page 1(2)

Original: English

PROTOCOL ON AMENDMENTS

TO THE BASIC MULTILATERAL AGREEMENT ON INTERNATIONAL TRANSPORT

FOR DEVELOPMENT OF THE EUROPE- THE CAUCASUS-ASIA CORRIDOR

In accordance with Article 11 (Presentation of Amendments and Additions) of the Basic Multilateral Agreement on International Transport for Development of the Europe- the Caucasus-Asia Corridor and the Final Resolutions of the 2nd Conference (Annual Meeting) of the Intergovernmental Commission “TRACECA” on the transport corridor Europe - the Caucasus - Asia it was agreed to incorporate the following amendments to the Basic Multilateral Agreement on International Transport for Development of the Europe- the Caucasus-Asia Corridor:

1. To make the following amendment to Article 4 (Facilitation of International Transport) of the Basic Multilateral Agreement on International Transport for Development of the Europe- the Caucasus-Asia Corridor adding item 4 stipulated as follows: “ 4. For 3 years when the given amendment comes into force, the Parties have to ensure free issue of single/double entry visas for persons transporting and/or accompanying humanitarian goods and reconstruction materials transported to Afghanistan via the “TRACECA” international transport corridor Europe- the Caucasus-Asia”;

2. In accordance with Article 3, Item c) and Article 8, Item 6, p. g) of the Basic Multilateral Agreement on International Transport for Development of the Europe- the Caucasus-Asia Corridor to make an amendment to Article 4 (Documentation Procedures) of the Technical Annex on Customs and Documentation Procedures to the Basic Agreement, adding the item 5 stipulated as follows: “5. The Parties will not apply customs, bank guarantees, financial risk insurance policies, railway guarantees for transit of goods by railway transport”.

3. To make an amendment c) to the Appendix 2 of the Technical Annex on International Railway Transport to the Basic Agreement stipulated as follows: “c) to apply VAT zero-rate on railway transport services on international and transit railway connection, including transportation, forwarding, loading/unloading and storage services” ;

4. In accordance with Article 10 (Technical Annexes) and Article 11 (Presentation of Amendments and Additions) of the Basic Multilateral Agreement on International Transport for Development of the Europe- the Caucasus-Asia Corridor to adopt a new Technical Annex to the Basic Multilateral Agreement on International Transport for the Development of the Europe-the Caucasus-Asia Corridor on International Customs Transit Procedures in the TRACECA transport corridor Europe- the Caucasus-Asia for goods transported by railway with SMGS bill. (Annex: Final document 2 IGC/FD 3).

This Protocol comes into force in accordance with Articles 11 (“Presentation of

Amendments and Additions” and 13 (“Entry into force”) of the Basic Multilateral Agreement on International Transport for the Development of the Europe- the Caucasus-Asia Corridor.

Done on the 3rd Conference (Annual Meeting) of the Intergovernmental Commission “TRACECA” on the transport corridor Europe - the Caucasus - Asia at Erevan on 10th October 2003 in one original copy in the English and Russian languages, both of them being equally authentic.



Draft Protocol / MLA / .......04/ page 2(2) Original: English

In witness whereof, the undersigned plenipotentiary Heads of Delegations have signed

this Protocol. For the Republic of Armenia

For the Republic of Moldova

For the Republic of Azerbaijan

For Romania

For the Republic of Bulgaria

For the Republic of Tajikistan

For Georgia

For the Republic of Turkey

For the Republic of Kazakhstan

For Ukraine

For the Kyrgyz Republic

For the Republic of Uzbekistan

Annex 10
TRACECA CLBTT Project - Progress Report I – Annex 10 – Draft Declaration

Draft Declaration


Draft Declaration (rev. 09-June-03)

TRACECA Conference of Heads of Railways, Ports and Shipping companies of Parties to MLA

The Heads of Railways of Armenia, Azerbaijan, Bulgaria, Georgia, Kazakhstan, Kyrgyz Republic, Moldova, Romania, Tajikistan, Turkey, Turkmenistan, Ukraine, Uzbekistan, and the heads of ports of Azerbaijan, Bulgaria, Georgia, Kazakhstan, Romania, Turkey, Turkmenistan, Ukraine and the heads of Shipping companies of Azerbaijan and Ukraine, representing essential transport infrastructure and transport operators for multimodal transport on TRACECA routes, acting in pursuance of the objectives and tasks arising from the Basic Multilateral Agreement and having regard to the continuing goal of improving the competitiveness of the international transport corridor Europe-Caucasus-Central Asia (TRACECA) at their meeting in Baky on -- July 2003.

Conscious that the countries entered a clear commitment by signing the Basic Multilateral Agreement to strengthen and intensify regional cooperation for improving movements of goods and passengers along the Transport Corridor Europe-Caucasus-Asia (TRACECA).

Being aware that the level of business, in particular transport of container, remains below its potential and that the development of multimodal transport and container logistic in the TRACECA region is seriously impeded by factors such as traditional commodity based inflexible tariff structures for railway services, lack of coordination among railways, ports and maritime services, insufficient harmonized documentation and procedures, and uncoordinated commercial and financial practices.

Agree to establish the TRACECA Conference of Heads of Railway, Port and Shipping companies of Parties to MLA (hereafter referred to as the Conference) as a coordinating body of essential infrastructure and transport operators of the TRACECA countries and meet regularly in order to jointly promote development of TRACECA routes in order to improve multimodal transport and establish favourable conditions for container logistics by formulating and implementing: (i) common policies, (ii) harmonized transport tariffs, (iii) coordinated commercial and financial practices, (iv) harmonized and simplified documentation, (v) as well as to discuss contemporary problems that are of regional interest.

Agree further on an Action Programme that encompasses joint actions that have to be undertaken in indicated fields of cooperation and provides a time frame for its implementation, and urges the parties to give priority to its consideration and implementation. Agreed related actions are formulated in the Baku Action Programme on Multimodal Transport as adopted by the Conference. The Action Programme shall form the platform for coordinated development of multimodal transport on TRACECA routes and the Conference is committed to review and update the Action Programme from time to time.

Requests the Intergovernmental Commission TRACECA to consider and endorse the Declaration and the Action Programme at its next session to be held at Yerevan in October 2003.

Requests the Permanent Secretariat of IGC TRACECA to coordinate the implementation of the Action Programme at regional level and prepare with assistance of all Parties regular reports on its implementation, which shall be submitted to the regular sessions of the Conference.

Invites all Stake Holders from the private and public sector to participate active and constructive in the development of multimodal transport on TRACECA routes.


Requests the Donor Community and International Organizations to lend support to IGC TRACECA, the transport infrastructure agencies and transport operators in implementing the Action Programme

Baky, July – 2003


BAKY ACTION PROGRAMME ON MULTIMODAL TRANSPORT

ACTION TIME FRAME

I. Common Policies

• Review and consider endorsement of a draft regulation proposed for inclusion as a new Technical Annex to the MLA regarding Multimodal Transport

• To adopt a harmonized legal basis for the Multimodal Transport, thereby providing safety and security to customers and insurance companies for freight transportation on TRACECA routes

• To pursue and provide assistance in the countries accession to the European Agreement on Combined Transport Lines (AGTC) in order to integrate the TRACECA routes in to the Europe wide network for combined and multimodal transport.

• To formulate common policy with regard to maintain relations with external agencies such as CIS, ECMT, OSJD, UIC, and other international and subregional organizations

II. Harmonized Transport Tariffs

• Review the proposed TRACECA Transit Tariff, prepare a implementation plan and draft tariff agreement for consideration by all parties.

• To adjust port and shipping tariffs to the TTT structure for international transport on TRACECA routes, thereby establishing a common through tariff for multimodal transport

• To adopt and implement the common TRACECA Transit Tariff which follows a unit based principle and replaces the traditional MTT for international Transport on TRACECA routes

• To use decreasing TRACECA coefficient applied to various types of transported goods, developed by the PS IGC TRACECA and approved by the railways administrations of the parties to MLA, to attract non-traditional types of goods

III. Coordinated Commercial and Financial Practices

• To establish a system for efficient settlement of payments and balances between the parties in line with good commercial practices of the international transport industry

• To establish an efficient resolution mechanism of wagon exchange and demurrage settlement among the railway organizations

• To consider the introduction of the EURO as principle currency for international transactions for transport on TRACECA routes

IV. Harmonized and Simplified Operation and Documentation

• To implement jointly with national customs organizations the SMGS consignment note as a Customs Transit Document, as recommended by the IGC TRACECA conference at Tashkent in 2002


• To coordinate technical and operational parameters among the TRACECA railway organizations while upgrading and modernizing the national railway network

V. Capacity Building

• To develop a regional programme for cooperation among the parties in areas of capacity building, training and exchange of good practices in order to improve experience and qualification of staff and thereby enable the organizations to comply with new challenges of enhancing transport services on the TRACECA routes.


Published May 2003

This publication has been produced with the assistance of the European Union. The contents of this publication is the sole responsibility of

Lamnidis & Associates and can in no way be taken to reflect the views of the European Union.