Turkics nations streamline trade: Dawn of simplified customs era One declaration, one system

In a relatively short time, member nations of the Organisation of Turkic States (OTS) have made significant strides in launching effective and sustainable integration mechanisms, with a clear focus on enhancing economic cooperation. A key priority for the Turkic countries is the development of transport corridors, the establishment of trade preference regimes, and the simplification of customs procedures. One major development in this regard was the recent 10th meeting of the heads of customs services of OTS countries, held in Baku, where critical topics such as the creation of a simplified customs corridor, the introduction of the e-TIR information system, and the implementation of the Trans-Caspian Customs Transit Portal project were discussed.

The OTS nations view the expansion of trade and transport links as a vital strategy for fostering growth and diversifying their national economies. Alongside the modernization of transport infrastructure and the establishment of large multimodal logistics centres along the Middle Corridor's transport routes, these states are fast-tracking reforms to digitalize trade processes and streamline cross-border and customs procedures. This involves harmonizing cross-border transport standards, adopting flexible tariff and customs policies, simplifying logistics protocols, and improving the system for issuing electronic visas and other documents for road transport carriers.

The 10th meeting in Baku brought together the heads of customs services from Azerbaijan, Türkiye, Kazakhstan, Uzbekistan, and Kyrgyzstan, as well as representatives from UN specialized agencies, the International Road Transport Union, and the customs services of Georgia and Hungary. During the forum, delegates focused on discussing and advancing these crucial steps toward greater trade facilitation.

“For the effective organization of global trade flows in the modern world, it is crucial to strengthen the coordination of customs services, introduce unified standards, and utilize modern digital technologies,” said Shahin Bagirov, Chairman of the State Customs Committee of Azerbaijan (SCC), during a recent meeting. He emphasized that the harmonization of customs procedures and the optimization of transit routes open up new opportunities for realizing the economic potential of Turkic states and accelerating regional development. One of the most significant initiatives in this regard is the creation of a simplified customs corridor.

Bagirov highlighted that the project to simplify transit customs procedures along the international Trans-Caspian corridor, specifically the “East-West” route, is a crucial step forward. This project, based on the application of the "single window" principle, will allow the movement of goods and vehicles along the corridor using a single declaration, electronic data exchange, and a pre-submitted customs transit declaration as the key transit document.

“We believe that this initiative will contribute to more efficient and simplified trade processes, as well as help achieve key objectives, such as boosting the region’s logistical capacity,” Bagirov stated.

In today's world, the automation of customs services and the adoption of electronic document management systems and digital controls play a pivotal role in streamlining border procedures, curbing illegal trade, and enhancing transparency in trade operations. According to Bagirov, the integration of electronic seals and GPS-based tracking systems is particularly crucial. These technologies not only bolster the security of cargo shipments but also enable real-time, reliable tracking of goods in transit, fostering trust among traders and preventing unauthorized interference.

It’s important to highlight that, over the past few years, the countries within the Organisation of Turkic States have actively advanced the simplification and automation of customs processes, both bilaterally and multilaterally. Notably, Azerbaijan and Kazakhstan have agreed to update their roadmap for removing bottlenecks and enhancing the Middle Corridor's infrastructure from 2022 to 2027. This includes collaborative efforts to digitize logistics for the Trans-Caspian International Transport Route (TITR) and establish a unified statistical database for cargo transhipment. These objectives are supported by the proposed Global Transit Document (GTrD) concept, a blockchain-based universal solution introduced in June 2021.

Significant progress has been made in digitalizing regional logistics. For instance, the railway systems of Azerbaijan and Kazakhstan have integrated their information systems with the customs module of the Digital Trade Corridor (DTC) platform, Tez Customs, with Georgia’s railways planning to join this initiative. Additionally, Azerbaijan and Ashgabat's adoption of the UN’s electronic consignment note (e-CMR) protocol is driving further advancements. Meanwhile, Uzbekistan and Türkiye use the E-PERMIT and E-TIR systems, which are also implemented by Kazakhstan, Kyrgyzstan, and Tajikistan. Notably, December 2022 saw the first road freight transport under the E-TIR system between Uzbekistan and Azerbaijan.

During the meeting of the heads of customs services from Turkic countries in Baku, an action plan was discussed to implement the e-TIR procedure across all OTS member states, in line with the TIR Convention (1975, Geneva). Kairzhan Zhumagulov, Deputy Chairman of the State Revenue Committee of Kazakhstan's Ministry of Finance, emphasized the importance of this initiative, stating, "The implementation of the e-TIR information system is crucial for simplifying and speeding up freight transport, and it will bring significant benefits to carriers in OTS member countries." He further highlighted the need to accelerate collaborative efforts to integrate the e-TIR system into each country's national information systems.

According to Kubanychbek Omuraliyev, Secretary General of the OTS, the strategic document "Turkic World Vision 2040" calls for urgent coordination among OTS countries to simplify customs and trade procedures. He highlighted the significant progress made in 2022 through the use of the electronic TIR system between Uzbekistan and Azerbaijan, in cooperation with UNICEF, and expressed the ambition for the Turkic region to become a leader in implementing the e-TIR system.

Omuraliyev also stated that all OTS countries have completed the necessary internal legal procedures for the creation of a simplified customs corridor agreement to come into effect. "This agreement entered into force on November 29, 2024, and we are now focused on the implementation of a pilot project to develop information exchange technologies outlined in the agreement," he said. He added that several expert meetings have been held, leading to the agreement of documents, including the action plan and roadmap for implementing e-TIR procedures according to the TIR Convention, as well as the technical conditions for information exchange under the simplified customs corridor agreement. These documents are expected to be signed at the conclusion of the current meeting in Baku.

The OTS countries are on the brink of launching a groundbreaking initiative: the Trans-Caspian Customs Transit Portal. With a robust legal framework in place and a framework agreement ready to go, the project is nearly complete. "Thanks to the expertise of specialists from Azerbaijan, Kazakhstan, Kyrgyzstan, and other Turkic nations, we've almost finished developing the transit portal. We are optimistic that, in the near future, this e-portal will become a vital tool for boosting mutual trade between the Turkic states," said Shahin Bagirov, Head of the State Customs Committee.