Regulations, Liability, and Legal Aspects

Discover the most important international regulations and legal considerations in the world of transportation.

If a shipment passes through several countries, who is liable for the transport? Liability laws vary from country to country. International agreements are in place to harmonize these differences. The rules that apply depend largely on:

  • Which countries are involved?
  • What mode of transport is used?

Key conventions and regulations:

Convention on the Contract for the in the International Carriage of Goods by Road.

* "CMR" is the French abbreviation for “Convention relative au Contrat de transport international des marchandises par route”

Uniform rules concerning the Contract of International Carriage of Goods by Rail.

* "CIM"is the French abbreviation for „Convention International concernant le transport des Merchandises par chemin de fer”

  • Convention for the Unification of certain rules relating to international carriage by air (Warsaw Convention).
  • Convention for the Unification of Certain Rules concerning international carriage by air (Montreal Convention).

International convention on the uniform determination of individual rules for bills of lading (Hague Visby Rules or Hamburg Rules).

SDR (special drawing right) is an artificial currency unit of the International Monetary Fund (IMF).

The exchange rate of an SDR is subject to minor fluctuations. On a long-term average it amounts to 1.19017 euros.

Ordinary liability for damage to or loss of goods in accordance with the above-mentioned international conventions:

  • CMR: SDR* 8.33 per kg
  • CIM: SDR* 17 per kg
  • Warsaw Convention: 250 gold francs per kg (= in AT: SDR* 16.67 per kg)
  • Montreal Convention: SDR* 22 per kg
  • Hague Visby rules: SDR* 2 per kg or SDR* 666.67 per unit
  • Hamburg rules: SDR* 2.5 per kg or SDR* 835 per unit

International conventions do not cover all legal aspects - some countries have not yet incorporated these international rules into their national laws. Others may have adopted them with modifications or added specific national provisions. It is therefore essential to consider the legal framework of each country involved. The same is true when a shipment remains within a single country - in such cases, the national laws of that country usually apply.

Transport insurance

Due to liability limits and restrictions, the value of goods is often not fully covered in the event of damage. Transportation insurance allows goods to be insured against damage regardless of liability rules or limits.

It is a type of property insurance that protects against typical risks encountered during transportation. With proper coverage, it compensates for the actual value of the damaged goods, regardless of whether the carrier is legally liable for the loss.

What are INTRASTAT declarations?

All goods transported from one EU member state to another must first be registered in the INTRASTAT system.

INTRASTAT stands for “Intra-community trading statistics between the member states of the European Union”.

The following entities are required to report:

  • all natural persons and legal entities

The following are exempt from the obligation to report:

  • all private individuals
  • companies whose consignments to/receipts in other EU member states did not exceed the value of 750,000 euros in the previous year

If this limit is only exceeded in the current calendar year, then the obligation to report begins with the month in which the threshold was crossed.
 

 

For the trade statistical declaration, you have to enter the following data:

  • Name and address of the person required to report
  • VAT number
  • Reporting period
  • Description of the goods
  • Number of the goods directory (customs tariff number)
  • Quantity of goods
  • Country of origin, dispatch, trade or destination
  • Statistical value of the goods
  • Statistical methods
  • Terms of delivery
  • Type of business
  • Mode of transport
  • In certain cases, country of origin and terms of delivery
  • Invoice amount

Incoterms

Incoterms are standardized commercial terms for international trade in goods.
They are developed and published by the International Chamber of Commerce (ICC).

Incoterms define the essential obligations of the parties (seller and buyer) involved in the delivery of goods under sales contracts.

  • They provide a binding framework for both seller and buyer to govern the transfer of risk, allocation of costs, and other contractual obligations.
  • In addition to specifying who bears risk and cost, Incoterms® also determine, for example, which party is responsible for organizing transportation (e.g., appointing the carrier), loading and unloading, and arranging transportation insurance.
  • Incoterms are regularly updated to reflect evolving trade and transportation needs.

Sellers and buyers should clearly state in their sales contracts which version of Incoterms® applies to their agreement (e.g., Incoterms® 2010 or Incoterms® 2020).

It is important to ensure that a named place is specified for each Incoterm and that it is defined as precisely as possible.

For more details on Incoterms, click here.

Incoterms 2020 at a glance