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
2

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
3
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
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Contracting Parties to the CMR
5
ECO Contracting Parties to the CMR
CMR Convention:
8 ECO countries:
- Azerbaijan
- Iran (Islamic
Republic of)
-Kazakhstan
-Kyrgyzstan
-Tajikistan
-Turkey
-Turkmenistan
-Uzbekistan
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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?
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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
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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
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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. 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
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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
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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 international consignment note
+ incidents en route
+ claims and compensation for
delay, damage and loss
National legislation
General conditions
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Loading/
unloading/
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
Liable for all loss and damage sustained by reason of
packaging
the inaccuracy or inadequacy of certain particulars or
 information
documents (Articles 7 and 11 of the CMR Convention)
documents
dangerous goods (Article 22.1 of the CMR Convention)
 Carrier: Checks
tally number, markings and
Presumption of good
condition (Article 8.2)
 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
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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
(Article 14 of the CMR Convention)
particular case of dangerous goods
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3. Delivery under the CMR
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)
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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
 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)
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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
contractual conditions with CMR
through harmonisation of
 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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