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What is the TIR System?

‘TIR’ stands for Transports Internationaux Routiers (International Road Transport) and is an international Customs transit system. TIR is the only universal transit system that allows the goods to transit from a country of origin to a country of destination in sealed load compartments with Customs control recognition along the supply chain. This minimises administrative and financial burdens and Customs duties and taxes that may become due are covered by an international guarantee.

What is the IRU and the IRU's mission?

The IRU is the international organisation which upholds the interests of the road transport industry worldwide. Via its network of national Member Associations, it represents the operators of buses, coaches, taxis and trucks, from large fleets to individual owner-operators.
The IRU’s mission is to facilitate road transport worldwide and through the IRU Academy it uses training to promote profess

There are cases when, during the third bilateral journey involving the country of registration, at border crossing points of an ECMT member country other than the country of registration, controlling Authorities give a warning/penalty for misuse of an ECMT licence on the ground of interpretation of the term "recurring transport operations only".

In the "Guide for Government Officials and Carriers on the Use of the ECMT Multilateral Quota", there is no straightforward ban for recurrent transport operations, particularly between two ECMT member countries when the vehicle is registered in one of these member countries.   At the same time, article 6.6 of the Chapter 6 "Validity and Withdrawal" of the Guide says that:

6.6 

Licences must be withdrawn by the issuing Authorities, in the event of serious or repeated infringements of the usage of ECMT licences or social or traffic rules, and in cases of insufficient use or use for recurring transport operations only.

It is therefore acknowledged that it is the responsibility of the competent Authorities of the country of registration to define whether the licences are being used insufficiently, or for recurring transport operations only.   Taking into account above-mentioned, as well as article 3.19 of the Guide, it is also their responsibility to take a decision on the withdrawal or re-allocation of the licence to another haulier according to their national criteria on the distribution of the ECMT licences.

 

Is it necessary for a (semi-) trailer to correspond to the same or to a higher ecological category as the tractor itself, as there are cases when, for instance, by some controlling Authorities, for a EURO IV certificate for the (semi-) trailer is required?

As stated in the "Guide for Government Officials and Carriers on the Use of the ECMT Multilateral Quota", Chapter 10 - The "greener and safe" lorry scheme (page 39), Chapter 11 - The "EURO III safe" lorry scheme (page 45) and, Chapter 12 - The "EURO IV safe" lorry scheme (page 51):

 

... minimum safety requirements are required for both the vehicle itself and the trailer.   Therefore, a specific certificate should be filled-in for trailers when they are registered and checked for roadworthiness test (cf. Annexes 8 and 9).

These certificates concern safety requirements only and are equally applicable in case of all the three above-mentioned categories.   Therefore the requirement for the trailer or semi-trailer to match (correspond) the emission standards (EURO standards) of the tractor is not appropriate and not foreseen by the Guide.

 

Sometimes control authorities of ECMT member countries require that a vehicle that entered the territory of the given country with an ECMT licence must carry the same licence on board when leaving the country either loaded or empty.   There have been several occasions when drivers have been fined when leaving the country empty without an ECMT licence?

As stated in the "Guide for Government Officials and Carriers on the Use of the ECMT Multilateral Quota", Chapter 4 - Use of ECMT licences:

4.1 

A licence may be used by only one vehicle at a time.   It has to be carried on board the vehicle between the points of loading (as soon this vehicle is loaded) and unloading (as soon as this vehicle is unloaded) for a laden journey or for the complete unladen journey, which precedes or follows a laden journey.

and Chapter 3 - Issuing and Limits of ECMT Licences:

3.6 

ECMT licences and logbooks are delivered to a road transport undertaking by the competent authority of the country in which they are established, member of ECMT, according to the provisions and criteria set out by this country.

3.7

ECMT licences are issued, depending on national criteria, to road transport undertakings duly authorised to operate by the competent authority of the country in which they are established.   Licences do not indicate the vehicle's registration number.

i.e. A licence should remain on board of the vehicle during the complete journey, loaded trip considered as a separate full journey, as well as an empty trip.   Performing one loaded journey under the cover of ECMT licence does not imply that the consecutive or preceding empty trip has been performed under the cover of ECMT licence as well.  At the same time, road transport undertaking is entitled to transfer an ECMT licence from one vehicle, belonging to the same undertaking.

At the same time it should be noted that an empty (or loaded) trip, performed without the ECMT licence between the two ECMT member countries should be governed by the provisions of bilateral (or any other, i.e. regional) agreement between the two States concerned and are not subject to provisions of the ECMT quota system.

ional competence in the sector.

 

Waybills in different means of transport

Road transport – CMR CMR is an international road waybill determined on the basis of the CMR Convention. Specifies the relationship between a sender, carrier and recipient. CMR performs functions of information, instruction sheet, possess and evidence. Based on the CMR Convention, international road waybill should be issued in three original copies. Each party of the transport process should be in possession of one original copy

Maritime transport – B/L (Bill of Lading) Bill of lading is a confirmation of loading charge on board as well as commitment to release a load to authorized recipient at the port of destination. Specifies the legal relationship between a liner agent and recipient. Bill of lading is also an evidence of carriage contract.

Air transport – AWB (Air Waybill) AWB indicates which air liner agent will transport a charge. AWB can be issued as the MAWB (Manifest Air Waybill) or as the HAWB (House Air Waybill). In case of a few orders to the same place, forwarder can issue MAWB and indicate themselve as a shipper and his parter at the port of destination as a recipient. MAWB goes together with a HAWBs, which are a waybills with the customer as a shipper and the final recipient of the goods. HAWB receive directly the partner at the port of destination and inform the final recipients about a delivery of the good.

What size is a euro-pallet?

"EURO-PALLET"

Size of pallet is 1200mm x 800mm. Height of pallet itself is approximately 185mm.

 

What is a CMR and how do I have to complete it?

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CMR (Consignment Note)– the Document prepared by a consignor and countersigned by the carrier as a proof of receipt of consignment for delivery at the destination.

The CMR shall be made out in three original copies, one of which (evidence of receipt) is destined to the sender, the second one of which (evidence of delivery) is destined to the carrier, and the third one of which is destined to the consignee.

According with the Article 5 and Article 6 of the Convention on the Contract for the International Carriage of Goods by Road (CMR) (Geneva, 19 May 1956), as supplemented by the 1978 Protocol the CMR shall contain the following particulars

- Position N° 1: The name and address of the sender
- Position N°2: The name and address of the consignee (according with the invoice): the company name of the buyer
- Position N°4: The place/address from where the goods are picked up, the date (the - stamp of the parking place
is preferred)
- Position N°6: Make, model, chassis number and the license plate of the car
- Position N°16: The name and address of the carrier
- Position N° 21: This field is dedicated to the transport company (the date)
- Position N°23: The stamp of the transport company, the license plate of the truck and signature of the driver
- Position N° 24: The date, the stamp and signature of the consignee

On taking over the cars, the carrier shall check the accuracy of the statements in the CMR and apparent condition of the cars. The result of the checks shall be entered in the CMR.

 

Road forwarding – the most important definition

Forwarder – person who is working for a fee, on his own behalf but on behalf of the client or on behalf of the client, to send or receive goods, organizing the whole or part of the goods translocation process and other activities related to attendance and displacement
CMR – road waybill
TIR Carnet - warranty document which allows transport of customs goods used in international road transport in the transit procedure
ATA Carnet - warranty document which allows transport and report the goods to the time customs clearance. This is mainly used for the transportation of goods for fairs, exhibitions, etc.
ATP Contract – international transport of perishable foodstuffs (ATP) contract signed in Geneva in 1970. Main target of this contract is improvement of transport quality.
AETR Contract – contract concerned to international transport trucker teams, signed in Geneva in 1970. Main target of AETR contract is road safety improvement by regulations in the road drivers employment terms

What is CMR?

"CMR"

Conventional relative au contrat transport international des Marchandises per Route'-International convention on carriage of Goods by Road. Signed at Geneva in 1956 this convention governs the carriage of goods by road and has been adopted by most European nations. It applies to contracts for the international carriage of goods by road in vehicles over the territories of two different countries of which one at least is a contracting party to CMR. (Traffic between Ireland and the UK is the exception.) Therefore it only applies to RO/Ro or Channel Tunnel movements where goods remain on vehicles throughout. The carrier is entitled to limit his liability, under the convention, to SDR 8.33 per kilo. The carrier is also liable for delay if the goods have not been delivered within the agreed time limit or if there is no such agreement, within a reasonable time.

What is CMR Condition?

CMR conditions make the carrier responsible for loss and/or damage of the goods from the time he takes possession of them until they are delivered.

 

What is customs clearance?

Customs clearance – steps leading to a change in customs status of goods, usually associated with the payment of customs duty, excise duty or VAT. Report goods to customs clearance or give the appropriate destination customs can only representative employee (with the customs authority) of the Customs Agency, forwardimg Company or Carrier under the authority from the customer or interested person who is directly egaged in international trade. Declaration as a direct representative of the customer, can only be done by a person referred to in art. 4, paragraph 1 of the Community Customs Code - if it is a customs agent, or if on behalf of the customer represent a authorized employee of the company who is written in the customs agents list.

Logistics

It is a set of actions like: planning, implementing and controlling the flow and storage of goods, services and related information from the place of manufacture to the point of consumption in order to meet customer requirements. Most of the forwarding concerns “general cargo”, but logistics regulates also restrictions in transport due to the nature of the goods, e.g. the dual-use goods, dangerous goods (DGR called for air and ADR for road transport), live animals, dead body, perishable goods which requires special treatment.

What does ADR mean?

"ADR"

Accord European relatif au transport international des merchandises dangereuses par route'sets out classifications and regulations regarding the transport of dangerous goods by road. It is based in Geneva. Switzerland.

 

What is chargeable weight?

"CHARGEABLE WEIGHT"

In airfreight the chargeable weight is the actual gross weight or volume weight whichever is higher apart from certain exceptions.

 

What is CFR?

"CFR"

Cost and freight...(named port of destination) means that the seller must pay the costs and freight charges necessary to bring the goods to the named port of destination. However it is important to note that the risk of loss or damage to the goods as well as any additional costs occurring after the time the goods have been delivered on board the vessel is transferred to the buyer when the goods pass the ships rail in the port of shipment.

 

What is CIF?

"CIF"

Cost, Insurance and Freight...(named port of destination) means that the seller must pay the costs and freight charges necessary to bring the goods to the named port of destination but with the addition that he has to procure marine insurance against the buyer's risk of loss or damage to the goods during the carriage. The buyer should note that the seller is only required to obtain insurance on minimum coverage.

 

What is CIP?

"CIP"

Carriage and Insurance paid to...(named place) means that the seller pays the freight to the named destination but with the addition that he has to procure cargo insurance against the buyer's risk of loss or damage to the goods during the carriage. The buyer should note that the seller is only required to obtain insurance on minimum coverage.

 

 

 

What does COD mean?

"COD"

(Cash On Delivery) is a method of payment where you can buy products/services and then make payment at the time of delivery. COD payments are to be made in cash to the delivery person.

 

When is combined transport used?

"COMBINED TRANSPORT"

Combined transport is the term used to describe the utilisation of different modes of carriage. It normally embraces Intermodal, Multi-modal, Bi-modal and 'road-on-rail' methods of transportation. Carriage by more than one mode of transport against one contract of carriage. A true combined transport movement starts at the Shipper's premises and ends at the Consignee's premises i.e. House-to-House or Door-to-Door. Combined Transport services are operated by a CTO (Combined Transport Operator).

 

What is completely knocked down?

"COMPLETELY KNOCKED DOWN"

Cargo shipped in pieces and cased to be assembled at destination-normally vehicles of all descriptions. The abbreviation c.k.d. Is a commonly used term.

 

What does the term CPT mean?

"CPT"

Carriage paid to?(named place of destination) means that the seller pays the freight for the carriage of the goods to the named destination. The buyer should note that all risks for loss or damage to the goods transfer to him/her when goods are handed over into the custody of the carrier.

 

 

What is a curtain sider?

"CURTAIN SIDER"

Swap body or trailer with a sliding curtain along the length of the unit, which allows free access from the sides with the curtains drawn back.

 

 

What does DAF mean?

"DAF"

Delivered at frontier?(named place) means that the seller fulfils his obligation to deliver when the goods have been made available, cleared for export, at the named point and place at the frontier, but before the customs border of the adjoining country. It is of vital importance that the frontier in question be defined precisely by always naming the point and place in the term.

 

What goods are classed as dangerous goods?

Dangerous Goods (also referred to as hazardous materials or restricted articles), are described as articles or substances that are capable of posing a significant risk to health, safety or property when transported by air.

The following are some examples of dangerous goods that must be declared at time of booking:

  • Oil-based paint and thinners (flammable liquids)
  • Industrial solvents
  • Insecticides, garden chemicals (fertilizers, poisons)
  • Lithium Batteries (not in cameras)
  • Magnetized materials
  • Machinery (chain saws, outboard engines containing fuel)
  • Fuel for camp stoves, lanterns, torches or heating elements
  • Automobile batteries
  • Infectious substances
  • Any compound, liquid or gas that has toxic characteristics
  • Bleach
  • Flammable adhesives
  • Perfume
  • Alcohol

 

What does the term DDP mean?

"DDP"

Delivered duty paid...(named place of destination) means that the seller fulfils his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the risks and costs including duties, taxes and other charges for delivering the goods to that point cleared for importation. If the seller is unable directly to obtain an import licence (if required) the term should not be used. Whilst the EXW term represents the minimum obligation for the seller DDP represents the maximum obligation.

 

What does the term DDU mean?

"DDU"

Delivered duty unpaid...(named place of destination) means that the seller fulfils his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the risks and costs of carrying out clearance through customs although the buyer has to pay any additional costs incurred by delays in clearance caused by him.

 

What is detention?

"DETENTION"

Charge raised for detaining container/trailer at Customer's premises for longer period than provided for in Tariff.

What is drawback?

"DRAWBACK"

Repayment of duty upon re-exportation of goods previously imported.

 

 

What does the term ETA mean?

"ETA"

Estimated time of arrival of vessel, flight, truck or train.

 

What does the term Ex-works mean?

"EX WORKS"

Ex works...(named place) means that the seller fulfils his obligation to deliver when he has made the goods available to the buyer at his premises. He is not responsible under this term for loading the goods on the vehicle provided by the buyer or for clearing the goods through customs for export, unless otherwise agreed.

 

How is FAK calculated?

"FAK"

System whereby freight is charged per container or unit, irrespective of the nature of the goods and not according to goods classification.

 

What does the term FCA mean?

"FCA"

Free Carrier...(named place) means that the seller fulfils his obligation to deliver when he has handed over the goods cleared for export in the charge of the carrier named by the buyer at the named place.

 

What is freight?

"FREIGHT"

The amount payable for the carriage of the goods. The word is also used to describe the goods themselves.

 

What is freight-ton?

"FREIGHT TON"

The tonnage on which freight is charged- e.g. it could be based on the greater weight or measurement of goods where a freight ton is either 1000kgs or 1 cubic metre. It might also have a conversion factor of 1000kgs = 3 cubic metres (see also W/M).

 

What is a house waybill?

"HOUSE WAYBILL"

The consolidator issues his own House Waybill (HWB) for each shipment and each customer receives a copy to identify his consignment. The House Waybills are forwarded with the consol, in a sealed envelope attached to the Master Waybill accompanied by a manifest itemising all the shipments by House waybill number for identification purposes at destination. Cargo identification labels will show both Air Waybill numbers.

 

 

How is a load meter calculated?

"LOADING METER"

This is the term used to describe the space taken by freight utilising one meter's length and the full internal width and height of a trailer.

 

What is a Shipper?

The person or company who is sending the shipment.

 

What size is a standard pallet?

"STANDARD PALLET" (metric pallet)

Size of standard pallet is 1200mm x 1000mm. Height is 185mm.

 

Who is the Third Party?

THIRD PARTY

When the person/company paying shipping and related charges is neither the shipper nor the consignee.

 

What is a timed delivery?

When a person/company requires delivery within a specified time.

 

What is a tilt trailer?

"TILT"

Fabric covered trailer or swap body. Essentially the tilt unit can be totally dismantled so as to allow access from all sides and the top if necessary.

 

What is Tir-Europe?

"TIR-EUROPE"

Transport international routier (lit. international road transport) - A system involving the issue of a Carnet (lit. log book) to road hauliers which allows loaded vehicles to cross national frontiers with minimum Customs formalities. On departure the trailer is sealed by Customs and as the TIR Carnet is completed and stamped by Customs the contents are thereby guaranteed, obviating #the requirement for checking by other Customs authorities at crossing points in transit to the country of final destination. The system is currently in force in all European countries and parts of the Middle East. The Customs Convention on the International Transport of Goods under cover of TIR Carnets was established in 1959 (new Convention in 1975) under the auspices of the Inland Transport Committee of the UN Economic Commission for Europe. The International Road Union (see IRU) became guarantor of the system and working through it's national association in each country, it issues more than 600 000 carnets each year all of which must be returned to the IRU in Geneva for processing.

 

 

 

What does the term warehouse-bonded mean?

"WAREHOUSE-BONDED"

Pending completion of customs formalities for Import or Export goods may be held in a bonded warehouse until such time as any relevant taxes or duties are paid. A bondholder gives the authorities the assurance that they will accept responsibility for the duty on any consignment lost while under their control. Similarly, certain goods are manufactured under government control and are kept in bond on the local market or export. Duties will be assessed on the goods before they can leave the bonded warehouse.

 

What is a Waybill?

"WAYBILL"

A document used in airfreight and surface freight for the transmission of all relevant shipment information along the transport chain. It contains all details regarding the consignment and charges connected with the transportation elements of the transaction. It is a receipt and evidence of a contract of carriage but it is not a document or title. In sea transport there are advantages to using the Waybill instead of a Bill of Lading by virtue of the fact that there is no need to send a document of title to destination to secure delivery and the possibility of a requirement for a Letter of Indemnity arising is nil. The costs of producing a Bill of Lading is avoided and the waybill can be a paper document or an electronic message thus helping the use of paperless trading (electronic commerce).

What is the forwarding?

Forwarding is a service of: dispatching or receiving a shipment, organizing the whole or part of transportation process, performing other actions related to operations on shipment (e.g transport consulting, additional assurance, transshipment/handling, storage, packaging, distribution, logistics service etc.). Forwarding services are based on forwarding contract.

 

What is a difference between freighter and forwarder?

The difference is the range of activities and responsibilities. Freighter’s main obligation is a cargo carriage by adapted transport mean on paericular route. Forwarder’s main obligation is to organize the whole or part of transport process. It shows, that forwarder are also obligated to perform other action related to transport process. Freighter is responsible for cargo on the way from place of loading to place of discharge; forwarder is responsible for careful selection of freighter and will take responsibility in case of any damage on the good.

 

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