DRAFT STUDY on BORDER CROSSING PRACTICES in RAILWAY TRANSPORT Outline o LEGAL FRAMEWORK ON BORDER CROSSING BY RAILWAY o REVIEW OF RAILWAY BORDER CROSSING PROCEDURES AND PRACTICES o SUGESTED WAYS and PRACTICES o PERFORMANCE MEASUREMENT AND MONITORING MECHANISM LEGAL FRAMEWORK ON BORDER CROSSING BY RAILWAY

- Railway International Conventions and Agreements - OSJD Agreements / COTIF

- Customs - Revised Kyoto Convention / Customs Convention on Containers

- Conventions on Facilitation and Harmonization on Frontier Controls - Annex 9

- Regional Agreements and Initiatives – TARN/

ESCAP RCF Facilitation of International Railway Transport

- Subregional Agreements

EEU / CIS / ECO / TRACECA / ASEAN

- Bilateral agreements on railway transport LEGAL FRAMEWORK ON BORDER CROSSING BY RAILWAY

Railways Customs Other

 railway consignment  pre-arrival  border security and note information immigration  arrival in customs  sanitary, veterinary,  use of wagons territory and phytosanitary quarantine  handover of trains  customs documents  national and cross-  other railway aspects  customs transit and border cooperation relevant for border transshipment crossing  customs sealing  Zabaykalsk (Russian Federation) - Manzhouli (China)

REVIEW OF  Erenhot (China) RAILWAY - Zamyn Uud (Mongolia) BORDER  Sukhbaatar (Mongolia) CROSSING - Naushki (Russian Federation) PROCEDURES  Alashankou (China) - Dostyk (Kazakhstan) AND  Pingxiang (China) PRACTICES - Dong Dang (Viet Nam)

 Padang Besar (Malaysia) - Padang Besar (Thailand) REVIEW OF RAILWAY BORDER CROSSING PROCEDURES AND PRACTICES

• Broader international/national rail transport context

• Distinctive characteristics of BCP (brake of gauge / marshaling / intermodal)

• Capacity & volumes of freight handled, types of cargo, containerized goods

• Border authorities and major stakeholders

• Regulation for border controls and organization of the processes

• Issues and challenges, as well as good practices General outline of the processes at the Dostyk station Exchange of information and main control processes at Zabaykalsk border station

Veterinary, Plant Quaran ne, Forwarders Railway Sta on Border Guard Customs Sanitary Protec on (Importers & Exporters)

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6. Departure (exit) from the border sta on to the territory of the Russian Federa on Railway documents at Padang Besar • Identification of documents in (Malaysia) circulation at border crossing (railways / customs)

• paper based vs. electronic documents

• Electronic Information Systems and Communication

• Formal standardization and harmonization

• EDI R2R; R2C Border Crossing Issues in Freight Transport by Rail

Rail freight traffic Documentary Use of EDI operations requirements

. break of gauge . by railways . Electronic information systems . change of locomotive . by customs and crews . R2R . by OGA . transfer of wagons . R2C

. transfer of goods . G2G

. technical inspections

Border Crossing Issues in Freight Transport by Rail

Customs & OGA formalities Other

. stop at border line for . simplifications (transit/ . intermodal terminals, escort block container trains) logistics and dry port capacities . pre-arrival information . railway consignment note as customs . maintenance hub . risk assessment and transit declaration capacities selective controls . coordinated, . recognition of seals integrated and joint controls (Mode 2 BCP . modern and non- and Mode 1 BCP) intrusive control technologies

Zabaykalsk Er enhot Sukhbaatar Alashankou Padang Pingxiang (Russian (China) (M ongolia) (C h i n a) Be sar (China) Federation) - Zamyn - Naushki - D ostyk (Malaysia) - D on g D an g -Manzhouli Uud (Russian (Kazakhstan) - Padang (Viet Nam) (China) (Mongolia) Federation) Besar (Thailand)

RAIL FREIGHT TRAFFIC Bilateral BORDER OSJD OSJD OSJD OSJD OSJD Agreement CROSSING OPERATIONS Yes Break of Gauge Yes Yes Yes (1,435 - No No (1,520 - (1,435 - (1,435 - 1,000) (1520) (1000) 1,435) 1,520) 1,520) dual gauge available Change of locomotive and Yes Yes Yes Yes Yes Yes crews OSJD / OSJD / Transfer of wagons PGW PGW OSJD / PGW OSJD / Yes - Yes - between Yes - Yes - Yes - change PGW Bilateral Chinese neighboring change of change of of bogie railways Yes Agreement wagons only bogie bogie systems systems systems Technical Handover of Handover at inspections and even (odd) Joint Handover at Handover DD (VN), control of trains at Handover at Operations receiving at receiving joint checks compliance with receiving receiving side at PB side side in case of railway transport (sending) (MY) inconsistency standards side OSJD / OSJD / Transfer of goods SMGS OSJD / between SMGS a. In same SMGS a. In same neighboring wagons a. In same wagons railways (change of wagons (change of OSJD / Bilateral bogies); (change of OSJD / bogies); SMGS Agreement b. transfer bogies); SMGS b. transfer In same In same of b. transfer of In same of wagons / wagons/ containers containers wagons containers containers containers from from wagon from wagon wagon to to wagon or c. to wagon or wagon or c. reloading of c. reloading reloading goods of goods of goods

Suggested ways and practices  regarding rail freight traffic border crossing operations  regarding documentary requirements  regarding electronic information systems and EDI  regarding Customs and OGA formalities Tran s-loading process in Alashankou station

Source: ADB 2014, CAREC CPMM Annual Report for 2013 Clients (Consignors) The systems for Central system for electronic interaction RZD and FCS (AISEV) electronic FCS  Data interchange between RZD and FCS Information  Secure information exchange, including use of electronic signature System interaction  Management of database on sent/received messages  Management of logs on data interchange between RZD and FCS between  Creation of output forms for analysis of data exchange JSC RZD and

ETRAN ASOUP ASU PS Federal Customs Preparation of transport documents Generation of data for FCS: Generation of data for FCS:  Reuse of data from customs  Transfer slip on  Transfer slip Service (FCS) of declaration for preparation of departure/arrival (advance)  Stores transport documents  Declaration on transport  Postal shipments  Generation of data for FCS from means Russian transport documents Federation on movement of IT systems (Users) Users at station level Users at station level goods across at station level the customs Railway border Departure station Control station border crossing station

Source: RZD Presentation (V.A.Titov); September 2015 (Gdansk); Examples of modern and non- intrusive control technologie s

Sources: Lithuanian Railway;, Information Ministry of the Republic of Latvia, Department of Railway Transport Good practices regarding Customs and OGA formalities

 Pre-arrival information, risk assessment and selective controls

 Use of a railway consignment note as a customs declaration

 Use of modern and non-intrusive control technologies

 Border crossing facilitation for container block trains

 Simplification for customs transit procedures

 Coordinated, integrated and joint controls