BILATERAL CROSS- BORDER TRANSPORT AGREEMENTS IN THE CAREC REGION PRESENTATION OF THE KYRGYZ REPUBLIC

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BILATERAL CROSS- BORDER TRANSPORT AGREEMENTS IN THE CAREC REGION PRESENTATION OF THE KYRGYZ REPUBLIC Roundtable Seminar on Ways Forward for Corridor-Based Transport Facilitation Arrangements in the CAREC Region Beijing, PRC 2-3 July 2012

CONTENT CAREC Cross-Border Transport Agreement between TAJ and KGZ, of 2010. Description Expectations and benefits KR experience in transport relations with SCO member countries Republic of Kazakhstan Republic of Uzbekistan People s Republic of China Russian Federation Republic of Tajikistan

AGREEMENT ON THE CROSS-BORDER TRANSPORT OF PERSONS, VEHICLES AND GOODS WITHIN THE FRAMEWORK OF CAREC Signed between the Republic of Tajikistan and the Kyrgyz Republic within the framework of the Central Asian Regional Economic Cooperation (CAREC) on December 2, 2010 in Dushanbe city. The Agreement was ratified on June 28, 2011 by Law of the Kyrgyz Republic, # 60 ADB has facilitated negotiations within the regional technical assistance which supplements the Regional Road Corridor Improvement Project The Agreement aims at facilitating the border crossing formalities between Tajikistan and Kyrgyzstan, and further, in the entire Central Asian region, with other CAREC countries joining the Agreement.

AGREEMENT ON THE CROSS-BORDER TRANSPORT OF PERSONS, VEHICLES AND GOODS WITHIN THE FRAMEWORK OF CAREC Under Article 28 of the above mentioned Agreement The Agreement is open for accession by any other country upon the consent of the Contracting Parties Benefits of signing the CBTA Reduced cost and delays through facilitation of the document registration and other procedures Saving funds for transit transport, for instance, due to exemption from the physical customs inspection, making deposits, and escort Savings due to a more liberalized visa regime, particularly for those engaged in transport operations Increased number of tourists due to facilitation of the transport of people Afghanistan expressed a desire to join, and has filed a request to the Agreement participating countries and the ADB On August 23-25, 2011, in Bangkok, Thailand, experts held a meeting on Afghanistan accession and to prepare an implementing action plan.

Republic of Kazakhstan (RK) To facilitate the transit road transportation for the Kyrgyz carriers going to Russia and Europe, the KR MOTC and the RK MOTC have revised and developed a new bilateral international road transport agreement, which envisages the free (without need to obtain permit) transportation of cargo and passengers, including transit. In December 2003 in Astana, the Agreement was signed by both parties and entered into force on July 1, 2004. In order to avoid levying informal taxes on the territory of Kazakhstan, as well as streamline and simplify control of motor vehicles at the Republic of Kazakhstan border-crossing points, the joint order of the Minister of Transport and Communications, Chairman of the National Security Committee, Chairman of the Customs Committee Agency, Ministry of Agriculture and Minister of Health of Kazakhstan was issued. Besides, the Instruction on the procedure of interaction between the regulatory authorities in the common checkpoints was approved, which establishes the procedure of the integrated control of vehicles based on the single window principle. After the single control, a coupon confirming passage of such control is issued. The coupon exempts the carrier from further re-checks at the internal posts within the territory of the Republic of Kazakhstan. However, checks at internal posts of Kazakhstan are reported to continue taking place.

Republic of Uzbekistan. The Intergovernmental Agreement on the International Road Transport between Kyrgyzstan and Uzbekistan was signed on September 4, 1996. The Agreement envisages the system of free (without need to obtain permit) transportation of persons and passengers both under bilateral transportation, and transit in the territories of both countries. This agreement was mainly implemented by both countries, however: Since January 27, 1999, in violation of Articles 2, 3, 4 of the Agreement, the Uzbek party has unilaterally cancelled 34 regular passenger routes linking the Osh and Jalal- Abad regions of the Kyrgyz Republic with the neighboring oblasts of Uzbekistan and the route Bishkek- Tashkent-Bishkek

Republic of Uzbekistan. Some reported issues that need to be addressed: Cancellation of passenger routes Charges on customs escort Non-recognition of third-party motor liability vehicle insurance Lack of transit provisions in the bilateral transport agreement Disallowed routes Border closure

People s Republic of China Activities on road transport are continuously implemented in accordance with the International Road Transport Agreement signed by the Government of the Kyrgyz Republic and People s Republic of China on June 4, 1994. All or almost all the problematic issues are discussed and addressed at the annual meetings of representatives of MTC of the KR and representatives of the Department of Transport XUAR, PRC. There is only one understanding issue which is always discussed at the annual meetings of the Parties which is the international road transport by the Kyrgyz carriers to Urumqi city. Currently, despite the fact that, in accordance with the bilateral Agreement the cargo is carried based on the permits, and there are no restrictions on routes in the territory of two countries, the Kyrgyz carriers are allowed to go up to Kashgar city and Artush city, while the Chinese carriers can go up to Osh city (south of our country) and to the capital Bishkek. It does not refer to the regular bus (passenger) transport, where the routes are agreed upon by the Contracting parties. During last meeting of the Parties, PRC assured that the issue of allowing the Kyrgyz carriers to go on the route Bishkek-Torugart-Urumqi and Osh-Irkeshtam- Urumqi will be raised with the Ministry of Transport of PRC. Then, the Chinese Party informed that it held adequate expert review, and the results were submitted to the Ministry of Transport of PRC. Unfortunately, there is no response yet.

Russian Federation On April 16, 2002, the updated trans-border road transport agreement between the Government of the Kyrgyz Republic and the Russian Federation was signed in Moscow city. There is an annual exchange of forms of permits for international road transport to/ from third countries. Due to creation of the Customs Union (Russia, Belarus, Kazakhstan), problems occur in the Siberian Federal region faced by the Kyrgyz carriers with the Siberian Customs. There are no other transport problems with the Russian Federation.

Republic of Tajikistan In addition to the CAREC Agreement on the Cross-border Transport of Persons, Vehicles and Goods was signed on December 2, 2010 in Dushanbe city, there is an Agreement between the Government of the Kyrgyz Republic and Government of the Republic of Tajikistan on the international road transport, of 1996 which envisages the permit-based transportation system. This Agreement was ratified by the Tajik Party at the end of 2010, and the Kyrgyz Republic was informed already in the 2 quarter, 2011. The parties have not yet worked out the mechanism of implementation of the agreement, i.e. transition to the permitting system (negotiations for the manufacture, quantity, price and exchange of permit forms). However, the Parties came to mutual conclusion that the permitbased system is not beneficial for any of the parties, therefore, a new draft agreement between the Kyrgyz Republic and Republic of Tajikistan on the permit-free system, is being processed

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