The CMR Convention

Kabul, 24 August 2015

Nazife Bulut, Legal adviser - Insurance

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)

Harmonisation and mutual recognition

To facilitate trade and road transport:

Harmonised contractual conditions and documents
CMR

Harmonised Customs procedures

TIR

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

Contracting Parties to the CMR

ECO Contracting Parties to the CMR

CMR Convention:
8 ECO countries:
- Azerbaijan
- Iran (Islamic
Republic of)
- Kazakhstan
- Kyrgyzstan
- Tajikistan
- Turkey
- Turkmenistan
- Uzbekistan

Why CMR is key?

Without harmonised contractual conditions for international
road transport:
o
o
o
o
o

How and when the contract is concluded?

What is the form and the nature of the contract?
Which law will govern the contract?
Which are the parties respective obligations?
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?

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 la carte contracts and legal uncertainty
o Unclear rules for establishing transport documents

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

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

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TABLE OF CONTENT

1.
2.
3.
4.

CMR generalities
Obligations of the parties under the CMR
Delivery under the CMR
Conditions and limits of liability under the
CMR
5. Handling of claims under the CMR
6. Insurance and CMR

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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

12

Model CMR consignment note developed by the

IRU*

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

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1. CMR generalities: The scope of the CMR

Taking the goods over

Delivery

Transport
++ the
the international
international consignment
consignment note
note
++ incidents
incidents en
en route
route
++ claims
claims and
and compensation
compensation for
for
delay,
delay, damage
damage and
and loss
loss

National
National legislation
legislation
General
General cconditions
onditions

14

Loading/
Loading/
unloading/
unloading/
charges
charges
?

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)

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1. CMR generalities:
How the CMR fits into the general legal environment

CMR
National legislation

Contractual area

General environment
customs
transport
social
new technologies

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1. CMR generalities: Key Provisions

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

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2. Obligations of the parties under the CMR

Before taking over the goods
Sender
packaging
information
documents

Liable
Liable for
for all
all loss
loss and
and damage
damage sustained
sustained by
by reason
reason of
of
the
the inaccuracy
inaccuracy or
or inadequacy
inadequacy of
of certain
certain particulars
particulars or
or
documents
documents (Articles
(Articles 77 and
and 11
11 of
of the
the CMR
CMR Convention)
Convention)

dangerous goods (Article 22.1 of the CMR Convention)

Carrier: Checks
tally number, markings and
numbers on packages
apparent condition and packaging

Presumption
Presumption of
of good
good
condition
condition (Article
(Article 8.2)
8.2)

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

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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

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(Article 14 of the CMR Convention)

3. Delivery under the CMR

No
No definition
definition of
of delivery in the CMR

national
national law
law applicable
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)

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4. Conditions and limits of liability under the CMR

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)

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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)

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4. Conditions and limits of liability under the CMR

Carriers 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)

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4. Conditions and limits of liability under the CMR

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)

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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)
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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)

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5. Handling of claims under the CMR

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)

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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)
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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)

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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

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