Toll system will darn holes in state budget of the Slovak Government and it should fund overcharged building of Slovak roads

Hauliers will pay more in toll system for using of Slovak roads. This obligation was revised by ministerial regulation Nr. 343/2013 Z.z. that is publishing new legs of highways, motorways and 1^st class road with electronically toll collection and by this regulation is extended the network of paid roads for about 25 kilometers. 

Moreover Slovak Parliament pass a new bill about tall collect for using of leg roads, that will be valid from the 1^st January 2014. This act of parliament together with referring regulations and directions will prepare the ground for phase in payment for the next legs of the roads 1^st class, 2^nd class and 3^rd class by electronically tall collect system. Although there will be on the new legs “in the meantime” only zero tax for using of the leg of the road. After data evaluation and obtaining of information we can await new ministerial regulation that will extend the network of paid roads again. The most exposed legs of roads will be paid soon.

There is also the new obligation for hauliers that all the trucks over 3,5 tons of gross vehicle weight must be compulsorily equipped OBU unit for data recording of the moving of the trucks on the roads by satellite toll collect system also in that case that they are not using paid legs of roads. It means that everyone movement of the truck over 3.5 tons will be carefully monitored. This rule means in the praxis that haulier have to invest 50 EUR for leasing of OBU unit and another 50 EUR for minimum compulsory credit.

I hope that after this regulations  the Slovak Government will have enough money that they can fund overcharged building of Slovak roads by the companies sponsoring the ruling party.

Prolongation of using of Carnets TIR in Russia untill 1st July 2014

By the information from IRU: The Federal Customs Service of Russia (FCS RF) has officially notified the Russian TIR guaranteeing association ASMAP about the extension of its agreement until 1 July 2014.

In line with the TIR Convention, Russian customs authorities must therefore continue to accept TIR Carnets at the Russian borders including after 1 December 2013.

Federal Customs Service of the Russian Federation decided about finishing of the use of Carnet TIR in the Russian federation

Ministry of Foreign and European Affairs of the Slovak Republic published on the internet portal the information that Federal Customs Service of the Russian Federation (FCS RF) confirmed that they will finish process of abrogation of agreement about issuing and using of Carnet TIR between FCS RF and Association of the international road transpor carriers in Russia (ASMAP) up to date 1.12.2012. The reason of this is that the direction of FCS RF about acceptance actions for assurance customs transit of the goods and special insurance of transit goods on the territory of the Russian Federation issued at 14.10.2013 will come into force all over the territory of the Russian Federation.

Diplomatic mission in Moscow see as the best way for securing insurance of the goods in transit in the Russian Federation through the certified companies ( in so-called system custody, probably customs ticket something similar how it was in our country in the past) that are represented by certified companies.
These companies should secure customs services like this in full standard at the border checkpoint.

There are web pages of some companies.
http://www.payhd.ru/multiservisnaya-platejnaya-sistema/o-kompanii.htm,
http://www.customscard.ru/,
http://www.rosteck.ru/nashi_uslugi/transit/tarif/,
http://www.rostekbr.ru/14sept.php
http://www.rostekbr.ru/index.php

Electronic consignment note (e-CMR)

Delegate of CESMAD Slovakia Mgr. Juraj Kindl attended the meeting of juridical committee of IRU in Geneva by the information from magazine Kilometer. There were on the program also General conditions IRU for international road transport, the final document is visible in several languages on webpage IRU  http://www.iru.org.

There were also discussed multimodal transport and also mainly electronic consignment note. I would like to inform you about this:

Electronic consignment note (e-CMR) is used by the additional protocol to the Agreement CMR.

e-CMR is simplified – electronically agreed contract of carriage on the basis of electronic consignment note e-CMR that should be theoretically similar trustworthy as classical paper consignment note CMR.

e-CMR is used only in rare event up to now and there are many reasons why it is like this. The determining reason is that the additional protocol to the Agreement CMR was agreed and implemented to system of law only 7 countries: Netherlands, Switzerland, Spain, Bulgaria, Lithuania, Latvia and Czech Republic. e-CMR is most often used mainly in Benelux region. Company DSV normally use e-CMR in Denmark. Traditional critic is Germany by the way.

The next reason of limited use is nearly not existing suitable infrastructure of equipment for use of e-CMR (not only in business sector but also in state authority and organization), and it is mainly from financial point of view. This is typical also for Slovak Republic as was presented. There is no space for creation of other costs at the transport market of the most of all countries.

The next reason of limited use of e-CMR is impossibility of change of its content for example in case that there is some reservation from the driver. More over there is insufficient and at anytime possible access to the content of the e-CMR and also the process of electronic signature in the international point of view

It is supposed in the future that the use of e-CMR in practice will be more initiated or demanded by the biggest logistic companies and also by the biggest consignees of the goods (supermarkets) in spite of the fact that the additional protocol to the Agreement CMR will not be validated by the government of most of the countries. This assumption of the preferable use of by these subjects results of this that the administration processes are more and more in electronic form without the paper.

This tendency and the firs swallow from the use of e-CMR in our country confirm information from the portal eulogy.sk:

METRO Cash & Carry SR Is the first company in Slovakia that is using for stock receipts from the suppliers e-CMR in EDI format completed with the identification of the palettes through SSCC codes. They put this in the practice in pilot project in the communication with the company Henkel that was also the first supplier in Czech republic that use this communication. The professional guarantee of realization of this project became EDI provider and consolidator CCV CCV Informačné systémy

IRU wants to help with the creating of uniform infrastructure for e-CMR however meantime only on the basis of internet interface. They offer this possibility through application TIR-EPD and SafeTIR that are used for customs purpose TIR. These applications include also the data shown in consignment note and form the potential through the extension of these applications for possible though phased and voluntary universal use of e-CMR

CONVENTION ON THE CONTRACT FOR THE INTERNATIONAL CARRIAGE OF GOODS BY ROAD (known as Convention CMR or CMR agreement)

Today I would like to tell you something about the most important agreement that is valid in international road transport about CONVENTION ON THE CONTRACT FOR THE INTERNATIONAL CARRIAGE OF GOODS BY ROAD (known as Convention CMR or CMR agreement)

This Convention was negotiated in Geneva in 1956. It was accepted by our country as a part of our former country Czechoslovak Socialistic Republic at the end of the year 1974 and it was published in ministerial regulation nr. 11/1975.

The Protocol of Convention CMR was signed in Geneva in 1978 which modify article 23 describing compensation of damage. Our national council ratified this Protocol at the end of the year 2007. It was published in Collection of Laws by the Declaration nr. 163/2008

The Convention CMR was added by Additive Protocol in 2008. This supplement to the agreement was concerned about electronic consignment note. This additive protocol was not ratified in our country yet.

That is all from history up to the present time about the Convention CMR.  Come with me to look at the Convention CMR and find out what about it is?

Basic purpose of this Convention (similar like in the most of the multilateral Conventions) is to unify rules in international road transport of the goods and to support development of international trading. The Convention has very important meaning for the carriers and shippers from the practical point of view. Everything in international transport had to be controlled by national laws in case of non existence of this multilateral Convention. Frankly speaking, the man has enough if he has to read laws, regulations and directives in his own mother tongue let alone in foreign language. And one Convention replace tenths others documents.

I would like to underline at this place that cabotage transports are not controlled by international Conventions and rules. Everyone carriers that is providing cabotage transports should know national laws and regulations of the country for doing of the transports at their territory. (Cabotage transpors = national transports done by carrier from the other country. For example: If carrier from Slovakia is doing national/domestic transport in Germany, alternatively said: if the loading place and unloading place are in Germany)

The transport is treated as international transport only in case that the loading place and unloading place are in different countries. The Convention CMR can be applied in international transport only in case if one of the loading or unloading places is in country that is signatory of the Convention CMR.

There are three exceptions when the transport can not be realized by the Convention CMR even if it is international transport.

1. Postal matter transport – transports that are controlled by international postal Convention
2. Mortal remains transport – transport of dead peoples
3. Removal personal effects transport – transport of furniture, home equipment, clothes and home accessories in case of moving people internationally.

The Convention CMR adjusts the rules, discretions, duties and responsibilities of carrier and shipper. It adjusts close-up and realization of transport contracts and also the procedures of claiming damages. It describes what must be written in goods accompanying transport documents. It describes the most important document in international road transport and that is undoubtedly the Consignment note (known also as CMR note). CMR note is official document that has standard form and is usually written in two languages. One of the languages is English or German language and second one is in language of the country where carrier firm domicile is. CMR note has its identification number and the carrier has usually his own CMR notes. CMR note form is possible to buy at the shops where selling forms for business are. Some carriers, logistic and forwarding companies have printed their own CMR notes with the logo of their company.

Every CMR note set has usually 5 and some times 7 self-transcriptase sheets

-         The first RED sheet is given to the sender as a proof that the goods were taken from the sender by carrier.

-         Te second BLUE sheet is given to the consignee that he knows how many of goods he should receive from the carrier.

-         The third GREEN sheet is for the carrier it is the proof that the goods were delivered to the cnee

-         The fourth and the fifth BLACK sheet are for invoicing purposes.

-         The sixth and the seventh BLACK sheet are for customs clearance purposes (mainly in the past) 

The CMR note shall contain the following particulars:

(a) The date of the consignment note and the place at which it is made out (column 21);

(b) The name and address of the sender (1);

(c) The name and address of the carrier (16);

(d) The place and the date of taking over of the goods and the place designated for delivery (4 and 3);

(e) The name and address of the consignee (2);

(f) The description in common use of the nature of the goods and the method of packing, and, in the case of dangerous goods, their generally recognized description (6-9);

(g) The number of packages and their special marks and numbers (6-9);

(h) The gross weight of the goods or their quantity otherwise expressed (11, 12);

(i) Charges relating to the carriage (carriage charges, supplementary charges, customs duties and other charges incurred from the making of the contract to the time of delivery) (19);

(j) The requisite instructions for Customs and other formalities (13);

(k) A statement that the carriage is subject, notwithstanding any clause to the contrary, to the provisions of this Convention.

Where applicable, the consignment note shall also contain the following particulars:

(a) A statement that trans-shipment is not allowed (20);

(b) Then charges which the sender undertakes to pay (15);

(c) The amount of "cash on delivery" charges (14);

(d) A declaration of the value of the goods and the amount representing special interest in delivery (20);

(e) The sender's instructions to the carrier regarding insurance of the goods (20);

(f) The agreed time limit within which the carriage is to be carried out (20);

(g) A list of the documents handed to the carrier (5 or 30). 

(h) The carriers reservations during the loading (18 in English version column 14)

Now I will speak about liability of the Carrier.

The carrier shall be liable for the total or partial loss of the goods and for damage thereto occurring between the time when he takes over the goods and the time of delivery, as well as for any delay in delivery.

The carrier shall, however, be relieved of liability if the loss, damage or delay was caused by the wrongful act or neglect of the claimant, by the instructions of the claimant given otherwise than as the result of a wrongful act or neglect on the part of the carrier, by inherent vice of the goods or through circumstances which the carrier could not avoid and the consequences of which he was unable to prevent.

The carrier shall not be relieved of liability by reason of the defective condition of the vehicle used by him in order to perform the carriage, or by reason of the wrongful act or neglect of the person from whom he may have hired the vehicle or of the agents or servants of the latter.

Subject to article 18, paragraphs 2 to 5, the carrier shall be relieved of liability when the loss or damage arises from the special risks inherent in one more of the following circumstances:

(a) Use of open uncovered vehicles, when their use has been expressly agreed and specified in the consignment note;

(b) The lack of, or defective condition of packing in the case of goods which, by their nature, are liable to wastage or to be damaged when not packed or when not properly packed;

(c) Handling, loading, stowage or unloading of the goods by the sender, the consignee or person acting on behalf of the sender or the consignee;

(d) The nature of certain kinds of goods which particularly exposes them to total or partial loss or to damage, especially through breakage, rust, decay, desiccation, leakage, normal wastage, or the action of moth or vermin;

(f) Insufficiency or inadequacy of marks or numbers on the packages;

(g) The carriage of livestock.

The reservations of the carrier must be written on CMR note in column 18 (on the first RED original sheet of CMR note). It could be quite exactly expressed by using of code consist of number and letter (for example code 3 means that the packaging was damaged before or during the loading, next example code 5c means that the inspection of the number of peaces is not possible because of too many pieces, code 8 means that the goods were loaded soggy. The carrier should contact shipper in case of reservations at the loading place and request the instructions for realization of this transport. My recommendation is that the driver should take the pictures of damaged goods where should be clearly shown the reason of reservations. If the carrier will not record the reservation it is assumed that the goods were loaded without any damage and with the number of pieces that is written in CMR note. 

CMR note from the transport that is already finished should be signed and stamped by sender, carrier and consignee. There can be also notices from the consignee regarding damaged or missing goods. Consignee usually makes also a protocol and photo documentation if this situation occur. This is important also for insurance company for proving of responsibility in case of law-suit.

There are described in other chapters of Convention CMR duties, responsibilities and discretions of the carrier and shipper

Responsibility of the carrier starts from the moment of loading of the goods up to the moment of unloading of the goods by consignee. Carrier is responsible for damage or loss of the goods during the transport or delay. 

The carrier has to check next points during the collection of the goods:

(a) The accuracy of the statements in the consignment note as to the number of packages and their marks and numbers, and

 (b) The apparent condition of the goods and their packaging.

When the sender hands dangerous goods to the carrier, he shall inform the carrier about the exact nature of the danger and also inform him if necessary, what precautions should be taken. If this information has not been entered in the CMR note, the obligation of proving by some other means is on the sender or consignee, that the carrier knew the exact nature of the danger of the transported goods. It is important that this obligation is valid also for the transport of dangerous goods with under limit quantity, when the special ADR equipment and special training of the crew is not needed. 

Hauler can unload, destroy or render harmless the goods of a dangerous nature which, in the circumstance referred above, the he did not know were dangerous, at any time or place without compensation. Further, the sender shall be liable for all expenses, loss or damage arising out of their handing over for carriage or of their carriage.

CMR agreement describes also claiming process and lodge during the execution of contract. There are two main reasons for claims against the haulers: Claims according to the damage or loss of the goods and claims according to the delay in delivery. No compensation shall be payable for delay in delivery unless a reservation has been sent in writing to the carrier, within twenty-one days from the time that the goods were placed at the disposal of the consignee.

If the consignee takes delivery of the goods without duly checking their condition with the carrier or without sending him reservations giving a general indication of the loss or damage, not later than the time of delivery in the case of apparent loss or damage and within seven days of delivery, Sundays and public holidays excepted, in the case of loss or damage which is not apparent, the fact of this taking delivery shall be prima facie, evidence that he has received the goods in the condition described in the consignment note. In the case of loss or damage which is not apparent the reservations referred to shall be made in writing.

When the condition of the goods has been duly checked by the consignee and the carrier, evidence contradicting the result of this checking shall only be admissible in the case of loss or damage which is not apparent and provided that the consignee has duly sent reservations in writing to the carrier within seven days, Sundays and public holidays excepted, from the date of checking. I have never met with claim in the case of loss or damage which was not apparent and was claimed additionally after some time during my longtime experience in transport.

I think that proofs of the haulers responsibility for damage or loss of the goods is doubtable in that case, because the damage or loss of the goods could be caused even before the transport or during the manipulation in warehouse of sender or consignee

A few times I have met with misconception of the shipper that the hauler is responsible for the damage or loss of the goods up to full trade-in value that is not absolutely correct. I would like to recommend insurance of the transported goods in the most cases. By the CMR agreement and his protocol there is defined that the compensation shall not, however, exceed 8.33 XDR (approximately 10 EUR) per kilogram of gross weight short (before it was 25 Golden Francs). This amount is covered by Insurance of responsibility of the hauler also called CMR insurance. In addition, the carriage charges, Customs duties and other charges incurred in respect of the carriage of the goods shall be refunded in full in case of total loss and in proportion to the loss sustained in case of partial loss, but no further damage shall be payable. Higher compensation may only be claimed where the value of the goods or a special interest in delivery has been agreed and declared. Hauler is responsible for full value of the goods in this case. It is highly recommended to hauler to make insurance for full value of the goods in this case. Very important it is for light-weight and very expensive goods.

In the case of delay if the claimant proves that damage has resulted there from the carrier shall pay compensation for such damage not exceeding the carriage charges. Practically we can meet also with the request for compensation for shutdown of production mainly in the transports for automotive customers. Some insurance companies are offering insurance products that are cowering also these risks. By my opinion this is over the frame of CMR agreement.

There are other more or less important parts of CMR agreement but I have described the parts from my own experiences that I met up today.

https://plus.google.com/u/0/114571470209024209707/

My experiences in the international transport of the goods

I have decided to make also English version of my blog. There were some visitors from other countries on my blog and I am afraid that they can’t understand Slovak language. I would like to share my experiences also with the English speaking readers of my blog. I am working in international transport nearly 20 years and I gather that there is always something to learn. I realized that my experiences could help some other people.

How some wise man said: “The best way how to learn is to learn on the mistakes of somebody else” I can add only: that everybody can better remember the advice from his own mistakes although this advice is very expensive for him sometimes.  

I would like to save these yours wasted expenditure, so please watch this blog. I believe that some other people working in international transport will want to share their experiences on this blog too. We will build up step by step one valuable source of information that will be useful for every one person working in field of transport of the goods. It does not matter on that if he will be in the position of customer or in the position of haulier.

What should know everybody participating on the international transport of the goods?

 

First of all he should have overview of international and multilateral conventions and agreements valid in international transport of the goods. These conventions are important for the reason that they unify the rules in transport and are over the national law and standards valid in particular countries that are signatory of the conventions. I would like rivet your attention to these most important conventions and agreements valid in international road transport:

1. Convention CMR from French title of the convention, Convention relative au contrat de transport international de Marchandises par Route. Convention on the Contact for the International Carriage of Goods by Road
2. Agreement AETR from French words Accord européen sûr les transports routiers or from English words European Road Transport Agreement – Agreement ERTA this agreement is about operation of truck crew in international road transport
3. Agreement ADR from the French abbreviation Accord européen relatif au transport international des marchandises Dangereuses par Route, The European Agreement concerning the International Carriage of Dangerous Goods by Road
4. Agreement ATP –   L’Accord relatif aux Transports internationaux de denrées Périssables et aux engins spéciaux à The Agreement on the International Carriage of Perishable Foodstuffs and on the Special Equipment to be Used for such Carriage (ATP)
5.  Terms of delivery INCOTERMS 2010
6. Customs clearance processes in international carriage of the goods by road. There are included agreements:  Convention TIR - from the French abbreviation  Transports Internationaux Routiers , Convention ATA combination of French and English phrases "Admission Temporaire/Temporary Admission.", Convention on a common transit procedure
7.  International oversize and overweight transport by the road – unfortunately this field is not cowered by multinational agreement. It means that all the procedures are made by the national law and standards

If you know some important agreement or convention valid for international road transport, and it is not mentioned above, please tell me about it by notice on this Blog.

I will analyze the most important part of every convention of agreement mentioned above step by step at this place

I will bring some more information about airfreight and sea freight later on.

There are some practical things in realization of the transport.

8 questions you need to know the answer that you can responsibly  prepare realization of the transport:

1. Who is the customer, contact details and contact person?

2. Where to where should be goods transported from?

3. When will be the date of loading and requested date of unloading?

4. Where will be export and import customs clearance? (if it will be needed to transport the goods under customs control)

5. What kind of goods, what is the packaging and number of peaces?  (weight and dimensions of the goods , HS code)?

6. What kind of transport we should use for transportation (truck, train, vessel or airplane)?

7. What kind of truck will be needed (tilt, refrigerator, some special equipment, van..)?

8. What price, currency, maturity and payment conditions could be accepted by both sides?