This document summarizes intergovernmental agreements Mongolia has signed regarding transit transportation access to the sea. Mongolia has signed agreements with China (1991), Russia (1992), and Kazakhstan (1993) on this issue. The document compares these bilateral agreements to the 1965 UN Convention on Transit Trade of Land-Locked States and finds some provisions in the China and Russia agreements do not fully align with international standards. Current problems include high tariffs, lack of information for transporters, and unofficial fees. Recommendations include ratifying more conventions, amending agreements to reflect landlocked country rights, passing supportive laws, and increasing monitoring of implementation.

1. Intergovernmental Treaty on the
Transit Transportation to have
access to the sea
Purev NARANTSETSEG
11 March 2008
Ulaanbaatar

2. Content
• Objective of Agreement
• Basic content and results of agreement
• Results of comparative research
(Matrix Analysis)
• Actual issues in transit transportation
(Law and Regulatory research of present conditions)
• Deciding problems
• Recommendations

3. Objective of Agreement
1. Agreement between the MPR Government and
Government of Chinese Republic on the transit
transportation to have access to the sea through
Mongolian and Chinese territory.
- To develop friendly relations and cooperation of two countries in
the further.
2. Agreement between the Mongolian Government and
Government of Russian Federation on the transit
transportation to have access to the sea through
Mongolian and Russian territory.
-To support development on the extending international trade on
the base of variety cooperation, trust and traditional friendly
relations of two countries.

4. Results of Agreement
• Signed contract with three countries
– China
– Russia
– Kazakhstan
• Contract Signed Date
- 1991, 26 August, with China
- 1992, 19 October, with Russia
- 1993, 22 October, with Kazakhstan

5. Basic Content of Agreement
1. Contract signed with China
-Definitions,
-Discount and possibilities of land locked countries,
-Regulations of ships flying flag of land locked countries,
-Forms of transit transportation,
-Regulating transportations of hazardous and special goods,
-Transportation cost,
-Customs operations and activities,
-Delaying Method of Barriers and Difficulties ,
-To sign the implementing contract, amendment,
-Termination.

6. 2. Contract signed with Russia
-Definitions,
-Rights of Land Locked countries,
- Regulations of ships flying flag of land locked countries,
-Transportation facilities,
-Transportation fees, dues and tariff,
- Regulating transportations of hazardous and special goods,
-Delaying Method of Barriers and Difficulties ,
-Customs operations and activities,
-Special zones and Authority of Representatives,
-Measures to protect rights of land locked countries,
-Dispute resolutions,
-Amendment
-Termination.

7. Comparative Analysis
Compared documentations
– Agreement between the MPR Government and Government of Chinese Republic on the transit
transportation to have access to the sea through Mongolian and Chinese territory.
– Agreement between the Mongolian Government and Government of Russian Federation on the
transit transportation to have access to the sea through Mongolian and Russian territory.
– Agreement between the Mongolian Government and Government of Kazakhstan on the transit
transportation procedure and rules
Basic Documentations
- Convention on Transit Trade of Land-Locked States
8 July 1965, United Nations, New-York
-Date of signature, ratification by Mongolia
11 May 1966

8. Results of Comparative Analysis
¹ Problems Conventi
on of
transit
trade of
land
locked
states
Agreement
between the
MPR
Government
and
Government
of Chinese
Republic
Agreement
between the
Mongolian
Government
and
Government
of Russian
Federation
Agreement
between the
Mongolian
Government
and
Government
of
Kazakhstan
1 Do not impose tax in transit goods + -√ √ √
2 Right to penetrate free + + √ √
3 Do not impose special tax and dues in
transit traffic
+ -√ √ √
4 Transit dues and tariffs + + √ √
5 Providing transportation means and
facilities
+ + √ +
6 Dues and charges of transportation
means and facilities
+ √ √ √
7 Tariffs and Charges not be higher than
tariffs and charges of states with access
to the sea
+ - - √

9. 9 To sign contract for the facilitating transit traffic + - + +
10 To create conditions for the goods storage in entry,
exit and transit stages
+ + + -
11 Tariffs of storage conditions addressing to the
facilitating transit
+ -√ + -
12 Delay difficulties in transit traffic + -√ √ +
13 To cooperate for delaying difficulties in transit of land
locked states
+ + + +
14 To sign contract of free zones and customs facilities + + √ -
15 To provide the land locked countries on the equal
rights as a states with access to the sea
+ + √ +
16 Ships with flying flag of land locked states same with
those countries have right to have access to the sea
and to use the sea ports
+ + √ +
17 Rights of ships with flying flag of land locked states
in transportation on the using internal water ways
+ + √ +
18 To approve rights and discounts of land locked
states
+ √ √ √

10. Actual problems
• Transit through territory of China
– There is not provision that tariffs of transportation means and facilities should be not higher
than tariffs of states with access to the sea.
– The provisions relating to the imposing tax in transit goods and traffic is not fitting to
regulations of the international conventions.
– The provisions relating to the storage tariff for the facilitating transit traffic is not fitting to the
regulations of international conventions.
• Transit through territory of Russia
– There is not provision that tariffs of transportation means and facilities should be not higher
than tariffs of states with access to the sea.
– The provisions relating to the customs and administrative measures are no fitting to the
international standards.
– The provisions relating to creation of the goods storage conditions in the entry, exit and transit
stages and their tariffs are not fitting to the international standards.

11. Present conditions of laws and regulations
• Research objective:
– To define difficulties and barriers in the conducting transit transportation services
for Mongolian entities.
– To define and to recommend problems relating to the implementations of bilateral
agreements on the transit transportation.
• Research scope:
- International Freight Forwarding companies
- International auto transportation companies
- International trade companies
• Time frame:
- From 15 January until 18 February 2008
• Research structure and form:
– 48 questions with total four chapters
– Direct interview
– Survey

12. Actual problems
• Transit transportation and foreign trade of Mongolia
– Difficulties relating to the documentations. (for timeframe and relating to the arriving countries)
– Not ratifying relevant international conventions and agreements.
– Not approving some laws relating to the foreign trade and transportation.
– Difficulties of awards of the state and administrative organizations.
Transit transportation through territory of Russia
– The provision on tariffs with extra discounts in transit transportation and services are not
implemented. (5th article 3)
– Information relating to the transit transportation is taking in the boundary ports.
– Customs and auditing officials and policemen have taking unofficial fees, payments, dues and
bribe.
– There is not relationship between boundary, customs authorities and professional auditing
authorities.
• Transit transportation through territory of China
– Land locked countries have not discounts in transit transportation through railway.
– The opportunity to use sea ports and storages is not implemented. (7th article 1 )
– Law and regulatory Information relating to the transit transportation is taking in the boundary
port only.
– The provision about opportunity to conduct transit transportation through automobile of
Mongolia is not implemented. (4th article a )

13. Implementing measures
• From side of laws and regulations
– To ratify the relevant international conventions,
– To reflect and to amend the land locked countries discounts and rights in regional and bilateral
agreements,
– To approve laws relating to the foreign trade and transportation and to create law and
regulatory favorable environment.
• Institutional sides
– To create conditions for the providing implementations of agreements with China and Russia,
– To formulate rules, procedures, norms and standards to support foreign trade and
transportation,
– State and administrative decisions should be optimum, easy to understand and without
difficulties for businessmen.
– To create the information intensive providing system on the international laws and regulations
of the transit transportation and trade for businessmen.
• Unofficial dues, fees and bribe
– To decide by support and participation of the international organizations ,
– To create the monitoring system for the implementing discounts and rights of land locked
states,
– To relate with relevant professionals and governments of contracting countries.

14. Explaining: + There is regulation to regulate this problem
- There is not regulation to regulate this problem
√ Bilateral agreement between government is fitting to the provision of multilateral conventions
-√ Bilateral agreement between government is not fitting to the provision of multilateral conventions
° Article of Mongolia laws is not fitting to the international conventions
THANKS