1. The CMR Convention Kabul, 24 August 2015 Nazife Bulut, Legal adviser - Insurance

2. 2 Convention on the Contract for the International Carriage of Goods by Road (CMR), 1956  1956 CMR Convention  1978 Protocol (SDR)  Additional “e-CMR” Protocol in 2008 (entered into force in 2011)

3. 3 To facilitate trade and road transport:  Harmonised contractual conditions and documents CMR  Harmonised Customs procedures TIR Harmonisation and mutual recognition

4. 4 Convention on the Contract for the International Carriage of Goods by Road (CMR), 1956 Objective: Standardize the conditions governing the contract for the international carriage of goods by road, particularly with respect to: Documents used for such carriage Carrier's liability

5. 5 Contracting Parties to the CMR

6. 6 CMR Convention: 8 ECO countries: - Azerbaijan - Iran (Islamic Republic of) -Kazakhstan -Kyrgyzstan -Tajikistan -Turkey -Turkmenistan -Uzbekistan ECO Contracting Parties to the CMR

7. 7 Why CMR is key? Without harmonised contractual conditions for international road transport: o How and when the contract is concluded? o What is the form and the nature of the contract? o Which law will govern the contract? o Which are the parties’ respective obligations? o What procedures to follow in case of delay, or damage, or non-delivery? o Which level of indemnity should apply? o What is the content of transport documents?

8. 8 Why CMR is key? Without harmonised contractual conditions for international road transport: o Road transport operators, shippers and consignees would not be in a position to measure their commercial / financial exposure UNPREDICTABILITY o Difficulty for insurers to assess risk and provide coverage o Open door to « à la carte » contracts and legal uncertainty o Unclear rules for establishing transport documents

9. 9 Key Objectives - Benefits of the CMR BENEFITS FOR FACILITATION Harmonisation of contractual and liability conditions Facilitation and harmonisation of claims and recovery procedures Harmonisation of competitive conditions Rationalisation of transport costs and harmonisation of insurance conditions Standardisation of transport documents: CMR note

10. 10 Key Objectives - Benefits of the CMR BENEFITS FOR SECURITY CMR Consignment Note facilitates commercial transparency Identification of Parties to the transport contract and main transport conditions Facilitation of controls by the contractual partners and by the Authorities

11. 11 1.CMR generalities 2.Obligations of the parties under the CMR 3.Delivery under the CMR 4.Conditions and limits of liability under the CMR 5.Handling of claims under the CMR 6.Insurance and CMR TABLE OF CONTENT

12. 12 1. CMR generalities: The scope of the CMR Contract between the sender and the carrier for the international carriage of goods by road for reward covers successive movements addresses multimodality: applies to carriage by ferries and using combined transport for door to door movements excludes all contradictory clauses

13. 13 3 original copies (article 5): one for the consignee one for the shipper one for the carrier Signature = proof of acceptance of the CMR conditions * Other models can be used Model CMR consignment note developed by the IRU*

14. 14 + the international consignment note + incidents en route + claims and compensation for delay, damage and loss + the international consignment note + incidents en route + claims and compensation for delay, damage and loss 1. CMR generalities: The scope of the CMR Taking the goods overDelivery TransportTransport National legislation General c onditions General c onditions National legislation General c onditions General c onditions Loading/ unloading/ charges ? ?

15. 15 1. CMR generalities: Application of the CMR  Application CMR applies to every contract for the international carriage of goods by road in vehicles for reward between two different countries of which at least one is a Contracting country and also when carriage is carried out by States or by governmental institutions or organizations (Article 1 of the CMR Convention)  Exemption CMR shall not apply : X To carriage performed under the terms of any international postal convention; X To funeral consignments; X To furniture removal (Article 1.4 of the CMR Convention)

16. 16 1. CMR generalities: How the CMR fits into the general legal environment CMR National legislation Contractual area General environment customs transport social new technologies

17. 17  Defines contract conditions Documentary requirements, responsibilities and liability of the carrier and the sender, burden of proof, delay in delivery, compensation and its limits, interests, claims and actions.  Defines the indemnity limits in SDR (Special Drawing Rights) and defines the conversion rules from SDR to local currency *The SDR is an international reserve asset, created by the International Monetary Fund (IMF) in 1969 to supplement its member countries’ official reserves. Its value is based on a basket of four key international currencies, and SDRs can be exchanged for freely usable currencies 1. CMR generalities: Key Provisions

18. 18 2. Obligations of the parties under the CMR  Before taking over the goods  Sender packaging information documents dangerous goods (Article 22.1 of the CMR Convention)  Carrier: Checks tally number, markings and numbers on packages apparent condition and packaging the gross weight of the goods and the contents of the packages if requested by the sender but at his expense (Article 8.3 of the CMR Convention)  Making out the CMR consignment note Liable for all loss and damage sustained by reason of the inaccuracy or inadequacy of certain particulars or documents (Articles 7 and 11 of the CMR Convention) Presumption of good condition (Article 8.2)

19. 19 2. Obligations of the parties under the CMR  During carriage  Sender has a right to dispose of the goods (Article 12 of the CMR Convention)  Carrier keeps, delivers or returns the documents provided by the sender (Article 11 of the CMR Convention) notifies, in the event of an incident in particular accepts instructions safeguards the goods particular case of dangerous goods (Article 14 of the CMR Convention)

20. 20 3. Delivery under the CMR No definition of delivery in the CMR  national law applicable No definition of delivery in the CMR  national law applicable  If delivery is prevented  the Carrier notifies and asks for instructions (Article 15 of the CMR Convention)  If no instruction is given, the Carrier may: immediate unload (Article 16.2 of the CMR Convention) sell the goods (Articles 16.3, 4 and 5 of the CMR Convention)

21. 21  Fundamental principles of the CMR:  Presumption of liability of the Carrier - strict liability (obligation of result) (Articles 3, 17.1, 11.3 and 12.7 of the CMR Convention)  Liability for his agents and servants (Articles 29.1 and 29.2 of the CMR Convention)  Limited compensation (Article 23.1 of the CMR Convention) 4. Conditions and limits of liability under the CMR

22. 22 4. Conditions and limits of liability under the CMR  Liability of the carrier for partial or total loss damage delay  which arises between the taking over and delivery of the goods  But relief of his liability if proof that loss, damage or delay caused in certain circumstances (Article 17 of the CMR Convention: loss, damage and delay)

23. 23 4. Conditions and limits of liability under the CMR  Carrier’s liability relieved in certain cases if proof that loss or damage attributed to a special risk: use of open vehicles and vehicles not sheeted in accordance with the CMR handling by the sender or the consignee the nature of certain kinds of goods which exposes them to the risk of rust, breakage or decay insufficiency or inadequacy of marks or numbers on the packages, etc.  But the claimant may prove the contrary: reversal of the burden of proof (Article 18 of the CMR Convention: loss and damage)

24. 24  Delays when: o exceeding the time-limit agreed or o exceeding the time it would be reasonable to allow a diligent carrier (Article 19 of the CMR Convention) o 30 days after the expiry of the time-limit agreed or o 60 days from the time when the carrier took over the goods (Article 20 of the CMR Convention) 4. Conditions and limits of liability under the CMR

25. 25 4. Conditions and limits of liability under the CMR  Loss and damage  Compensated loss: loss and damage to property  Amount: 8.33 SDR per kg of goods lost or damaged o unless a higher value has been declared o reference value: value of the goods at the place and time at which they were accepted for carriage + - carriage charges - customs duties - other charges  in full or in proportion (Articles 23 and 24 of the CMR Convention)  Delay  Proof that the delay has caused a loss by the Claimant  Compensation limited to the carriage charges (Article 23.5 of the CMR Convention)

26. 26 4. Conditions and limits of liability under the CMR  Loss, damage and delay  Higher compensation if a special interest in delivery declared (Article 26 of the CMR Convention)  No limit or no exclusion of liability if wilful misconduct by the carrier or default equivalent to wilful misconduct (Article 29 of the CMR Convention)

27. 27  Protection of rights  Loss and damage joint examination at the time of delivery for loss or damage which is apparent: if no reservation or report on the loss or damage, presumption that delivery in line with the consignment note BUT CLAIMS ARE NOT BARRED for loss or damage which is not apparent: written notification within 7 days of delivery  Delay written reservations within 21 days from the time that the goods were placed at the disposal of the consignee. OTHERWISE BARRED (Article 30 of the CMR Convention) 5. Handling of claims under the CMR

28. 28 5. Handling of claims under the CMR  Period of limitation 1 year or 3 years if wilful misconduct or default equivalent to it  Starting from date of delivery (partial loss, damage or delay) 30 days after the expiry of the time-limit agreed (total loss) or 60 days after goods taken over by the carrier other cases: three months after the conclusion of the contract  Suspension written claim by the claimant  Recommencement of the period of limitation written rejection of the claim by the carrier and the return of the documents (Article 32 of the CMR Convention)

29. 29 5. Handling of claims under the CMR  Competent courts  Arbitration Tribunal if existence of a clause providing application of the CMR by the Tribunal  In the absence of specific clause on competent courts: courts of the country in which the defendant is resident or courts of the country in which the goods were taken over or were to be delivered (Articles 31 and 33 of the CMR Convention)

30. 30 6. Insurance and CMR Facilitation of insurance coverage through harmonisation of contractual conditions with CMR Measurement of risks simplified for Insurers as not exposed to unknown conditions of transport Insurers benefit from harmonised claims procedures and liability limits and premiums  Better insurance conditions and premiums