1. INTRODUCTION

According to international treaties, agreements, and resolutions established between Mongolia and its neighboring countries regarding border matters, a total of 39 border checkpoints have been designated in Mongolia, of which 24 operate on a regular basis under normal circumstances. Among these, 10 border checkpoints facilitate the transportation of mining products to the People’s Republic of China (PRC). In an effort to promote the friendly relations, trade, and economic development between Mongolia and the PRC, and to further enhance international road freight transport between the two countries, the “Agreement on International Road Transport Relations between the Government of Mongolia and the Government of the People’s Republic of China” was signed on June 28, 2023 [1]. Under this agreement, a protocol concerning the issuance of transport permits was signed, including provisions for the issuance of Type “C” border entry permits. These permits are intended for vehicles engaged in regular freight transport and are valid for multiple entries within 120 days from the date of issuance.

 In the year 2024, Mongolia and the People’s Republic of China mutually exchanged 55,000 Type “C” border crossing permits [2, 2]. According to the 2024 statistical data from the National Road Transport Center, a total of 754.1 thousand vehicles exported 81.9 million tons of mining products through Mongolia’s road border checkpoints. It is estimated that each quarter, more than 1,200 business entities and over 32,000 vehicles apply for border entry permits [3] Therefore, this study was conducted to assess the current situation and improve the process of issuing border entry permits for transportation to our southern neighbor, which has become Mongolia’s main export partner. The objective of the study is to analyze the current procedures for issuing Type “C” permits for regular cross-border freight transport and to identify opportunities and approaches for improving the system [2].

1. THEORETICAL LITERATURE REVIEW

In Mongolia, research related to logistics management, coal transportation, and the management and organization of the road transport sector is relatively common. However, during the course of this study, it was observed that research and publicly accessible studies specifically addressing the issuance of border entry permits remain limited. Therefore, this study is based on the theoretical framework of supply chain management.

A supply chain is a network used by businesses to produce and deliver goods and services. It encompasses the entire process from raw material procurement to the final delivery of products and services to end consumers [1]. The supply chain includes suppliers, manufacturers, freight forwarders, warehouses, distributors, and retailers, all of which contribute to the efficient flow of information and resources across global networks. In recent years, global events such as the COVID-19 pandemic and the Russia-Ukraine war have posed significant challenges to supply chains. According to researchers, the key factors for successful supply chain management include digitization, technological advancement, and system integration.

Within the scope of this study, key questions were raised regarding whether optimizing the permit issuance process for regular international freight transport could increase the export of mining products, and whether it could enable the fair and equitable distribution of permits among transport operators.

• RESEARCH SECTION

According to the “Agreement on International Road Transport Relations” between the Government of Mongolia and the Government of the People’s Republic of China, international freight and passenger transportation is defined as the service of transporting goods, passengers, and their cargo by specialized vehicles across the territories of two or more countries. The authorized bodies responsible for issuing Type “C” border crossing permits are, on the Mongolian side, the National Road Transport Center, a state-owned enterprise, and on the Chinese side, the Chambers of Roads, Communications, and Transport of the Inner Mongolia Autonomous Region and Xinjiang Uygur Autonomous Region [2]. According to Article 17 of the protocol, the two countries hold annual meetings to mutually determine and exchange an equal number of regular and special permits on a reciprocal basis.

A transport permit is an official document issued by an authorized body of one contracting party that allows vehicles registered in the territory of the other contracting party to operate international road transport activities within its own national territory [3]. The permits are issued either by the authorized body of the contracting party or an organization authorized by it, to carriers registered in that country.

The permits are categorized into two types: “International Transport Vehicle Travel Permits” (hereinafter referred to as “travel permits”) and “Special Permits for International Transport Vehicles” (hereinafter referred to as “special permits”), both valid for the calendar year. Travel permits are further classified into seven categories: A, A-C, B, C, D, G, and H; while special permits are divided into two categories: E and F [4].

• Type A travel permit is used for vehicles engaged in regular passenger transport and is valid for multiple border crossings within a calendar year.
• Type A-C travel permit is used for vehicles transporting passenger cargo on regular routes and is valid for multiple border crossings within a calendar year.
• Type B travel permit is used for vehicles engaged in irregular passenger transport and is valid for a single border crossing within 30 days from the date of issuance.
• Type C travel permit is used for vehicles engaged in regular freight transport and is valid for multiple border crossings within 120 days from the date of issuance.
• Type D travel permit is used for vehicles engaged in temporary freight transport and is valid for a single border crossing within 30 days from the date of issuance.
• Type G travel permit (inbound and outbound) is used for vehicles transporting goods from or to a third country and is valid for a single inbound and outbound crossing within 60 days from the date of issuance.
• Type H travel permit is used for vehicles engaged in transit freight transport and is valid for a single inbound and outbound crossing within 30 days from the date of issuance.
• Type E special permit is issued for vehicles whose dimensions, gross weight, or axle load exceed the transport limits specified in the technical standards of the contracting party, or for vehicles transporting non-divisible cargo exceeding these standards. This permit is valid for a single border crossing only.
• Type F special permit is issued for vehicles transporting hazardous cargo and is valid for a single border crossing only.

Over the past three years, from 2022 to 2025, the issuance of Type “C” travel permits for coal transportation has increased by 31.3% [3]. This indicates a sharp rise in the number of individuals and businesses holding Type “C” permits, as well as a continuous and heavy workload in the permit issuance process.

The number of permits mutually exchanged between Mongolia and the People’s Republic of China [3]

Table 1

Number of Permits Mutually Exchanged

The main export products of Mongolia are mineral resources from the mining sector. According to the above data, since the COVID-19 pandemic, the export of Mongolian hard coal has sharply increased, reaching a historic high with 69 million tons transported by road in 2023 and 80 million tons in 2024 [2].

One of the main factors affecting export transportation can be attributed to a 31.3% increase in the number of Type “C” cross-border travel permits issued. [4].

Figure  2: Main Export Partner Countries of Mongolia  [5]

Table 2 shows the number of businesses, vehicles, and qualified drivers engaged in regular freight transportation at Mongolia’s road border crossings.

Table 2

Qualified Drivers, Vehicles, Number of Business Entities

As the export of hard coal, which constitutes the majority of our country’s budget revenue, increases, it is natural that transportation will grow accordingly. While the rise in export revenue is a positive and welcome development, this situation also leads to a sharp increase in the number of transport vehicles, creating a risk of traffic congestion. As a result, there is a possibility that export transportation may decrease, causing financial pressure on citizens and businesses, and creating a risk of dependency on a single buyer. Therefore, it is necessary to study and closely examine how the issuance of the “C” type permits is managed, and what requirements are imposed on individuals and enterprises when granting these permits [4].

  The National Road Transport Center, a state-owned enterprise authorized to issue permits on behalf of Mongolia, previously received the necessary documents for issuing the “C” type border crossing permits in paper form. However, currently, a total of 10 types of documents are required from individuals and businesses, and the permit issuance process has been computerized and is now conducted through an electronic system for receiving information [4].

Requirements for Issuance of Border Crossing Permits, When issuing a border crossing permit, the applicant must meet the following criteria. Provide personal identification information, Be registered in the national registry as an entity engaged in cargo transportation by motor vehicle, Submit information about the owner or possessor of the transportation vehicle, Have a valid transportation contract with a mining product extractor or purchaser, Have no outstanding tax liabilities, Ensure the transportation vehicle has passed a technical inspection, Obtain a favorable conclusion from the State Road Transport Inspectorate,The driver of the transportation vehicle must hold a valid driving license of category C or E and be professionally certified in international cargo transportation,The enterprise must employ full-time contracted staff, including automotive mechanics, engineers, technicians, occupational safety and health officers, and transport coordinators, Have no outstanding social insurance liabilities. [6]

Border crossing permits are issued to individuals and business entities that meet these requirements. When permit applications were accepted and processed in paper form, applicants experienced significant time delays and heavy workloads. Furthermore, in cases where documentation was incomplete, incorrect, or did not meet the requirements, the processing time was extended due to the need to resubmit materials. This issue has been clearly noted in the relevant reports and documents.
Currently, permits are received and processed electronically, which has reduced difficulties and delays for both the authorized issuing agency and the applicants. This has enabled the decision-making process to be completed within a shorter timeframe.

However, during the course of the study, it was observed that the majority of the documents required by the authorized agency focus primarily on the technical condition of the vehicle, while the requirements related to the driver’s health, life, and safety are relatively weak.

Therefore, it is recommended to include additional requirements related to the driver’s responsibility, health, conduct, and safety when issuing the permits in the future. Furthermore, it is essential to extend the validity period of the permits. For example, in order to further increase export transportation and strengthen economic capacity in a more substantial and sustainable manner, extending the duration of the issued permits is advisable.

Classification and Requirements for Freight Transport Services — MNS 5346:2017

Table 3

Classification and Requirements of Freight Transport Services

Transport companies that meet the above standard requirements are legally authorized to receive cross-border permits [7].

• CONCLUSION

Within the framework of the international road transport agreement between Mongolia and the People’s Republic of China, the number of cross-border «Type C» transit permits has significantly increased in recent years, which has positively impacted the export of Mongolia’s mineral products, particularly coal. Although the issuance process of these permits has been digitalized and the documentation requirements have been precisely defined—thereby establishing a transparent and accountable system—there remains a need to enhance the requirements related to driver responsibility, health, and safety.

Therefore, it is necessary to further refine transport regulations by enhancing oversight of vehicle and driver qualifications, technical standards, and insurance requirements. Furthermore, improving the coordination between the number of cross-border permits and border checkpoint capacities, along with optimizing transport management, will enable sustainable growth in exports, as indicated by the findings of this study.