TIR Carnet
Carnet TIR (TIR carnet, international road transport) is a customs transit document that gives the right to transport goods across state borders in customs-sealed car bodies or containers with simplified customs procedures.
The document covers road and multimodal transport of goods (carried out in vans, trailers, semi-trailers and containers) between countries that have recognized the 1959 and 1975 Customs Convention on the International Carriage of Goods Using the International Road Carriage Book (TIR).
All motor vehicles must have appropriate permits from the competent authorities for their use. It is issued by a national guarantee association (association), authorized in turn by the competent authorities of the country.
CMR
CMR is an abbreviation of the French Convention on the Contract for the International Carriage of Goods by Road – KDPN.
CMR – international consignment note – is a self-copying form, the form of which is not unified and can differ significantly in different countries.
In international cargo transportation, CMR is the most important transport and commercial document.
A carrier moving CMR cargo between two countries is subject to the rules and regulations of the aforementioned Convention, which has the status of a UN convention.
The CMR consignment note is drawn up in at least three copies, which are certified by the sender and the carrier. The first copy of the invoice remains with the sender, the second and third copies accompany the cargo, after unloading, the second copy is signed by the recipient and given to the carrier, the third remains with the recipient.
The sender of the cargo, the forwarding office, the carrier can fill in the CMR, the person who puts a seal in column 22 is responsible for the completeness of the information.
A very important point is the coincidence of the data specified in all transport documents. It is necessary that the weights, ZED codes and prices coincide in all documents attached to the cargo.
T1 – Transit declaration or Nordic passport
T1 is a document that is a customs (financial) guarantee, used for goods crossing the territory of the EU in transit, or for guaranteeing the delivery of goods from the border of the European Union to a customs warehouse or internal customs.
T1 is a financial guarantee issued by a customs agent in favor of EU customs authorities, which provides a guarantee of payment to the EU budget of all duties and fees.
For example, if goods moving through the EU under the T1 procedure are not delivered from the border to the customs post, the agent issuing the T1 will have to pay all customs duties if the goods were cleared for use in the EU. In practice, T1 is used as an alternative system of Sarnet TIR (TIR) guarantees.
EX1 – Export declaration
EX1 is a document confirming the fact of export of goods outside the EU, certified by customs authorities.
What is important is not the fact of having an EX1, but important customs markings in the EX1, which confirms the export of the goods outside the EU.
It is the customs mark EX1 that entitles the seller of goods to the EU to refund/non-payment of intra-European VAT (VAT).
The EX1 declaration must accompany cargo of European origin, leaving the seller’s warehouse from the EU outside the EU countries. The EX1 declaration is drawn up by the supplier, the supplier’s agent or the carrier (forwarder) who have the appropriate authority. EX1 can be indicated not only goods produced in the EC, but also in other countries. Similarly, T1 can transport European goods.
Certificate EUR 1
The EUR 1 certificate is one of the most important documents when exporting from EU countries, confirming their origin. It is issued during the transportation of goods from EU countries to a country that has signed an agreement with the EU on granting mutual trade preferences, and is presented at the customs point.
Registration requirements
- The goods must meet the requirements of Protocol 1 to the Agreement (Rules of Origin).
- The language of the document is English or the language of any state in the agreement.
- Papers are filled out manually, in block letters, using ink.
- The certificate must contain a description of the product specified in a special column.
- If the column is incomplete, draw a horizontal border under the description and cross out the empty space below it with a Z-shaped sign.
- It is necessary to fill out the document for all batches of goods.
List of documents
To obtain a certificate, it is necessary to submit a list of documents to the authorized body of the exporting country:
- a statement including the exporter’s declaration;
- confirmation of the preferential origin of the products from the exporting country (if this type of supply is performed for the first time);
- the original of the certificate (if any) and an electronic copy (required).
Features of issuing a EUR 1 certificate
Issuance is carried out by the customs office of the exporting country. The authorized organization is obliged to take all possible measures to verify the origin of the goods, therefore it has the right to demand any information about the cargo that it considers necessary. The duty of the exporter is to provide all necessary data and documents.
In turn, the customs office guarantees promptness and correctness of registration. Issuing is free of charge. The deadline is up to 3 days from the registration of the application.
The validity period of the issued document is 4 months.
Usually, the EUR 1 certificate is issued before the export. However, retrospective registration is possible after the cargo has been transported to the territory of another country. But only after full verification of the information provided by the exporter.
When the certificate is not issued
- If the total value of the lot is less than 6,000 euros.
- If the goods are taxed at a zero tax rate of import duty of the Customs Tariff.
- If the exporter has authorized status.
You can find out more about whether a EUR 1 certificate is required in your case from our specialists.
Invoice
Invoice (English invoice ) — in international commercial practice, a document provided by the seller to the buyer and containing a list of goods, their quantity and the price at which they will be delivered to the buyer, formal features of the goods (color, weight, etc.), terms of delivery and information about sender and recipient. The statement of the invoice indicates that (except for cases where the delivery is made on prepayment), the buyer has the obligation to pay for the goods in accordance with the specified conditions. The invoice is a document used exclusively for the purpose of tax control and therefore cannot be considered an analogue of an invoice.
Incoterms 2010: Official Rules of Interpretation of International Trade Terms
ncoterms or International Commercial Terms are a series of predefined commercial terms published by the International Chamber of Commerce (ICC) that relate to international commercial law. They are widely used in international commercial agreements or procurement processes, as their use in international sales is encouraged by trade councils, courts and international lawyers. Incoterms are a series of three-letter trade terms associated with common contractual sales practices, and are primarily intended to clearly define the tasks, costs, and risks associated with the transportation and delivery of goods. Incoterms inform the contract of sale, defining the relevant obligations, costs and risks associated with the delivery of goods from the seller to the buyer. However, it is not a contract or a law. In addition, it does not determine where titles are transferred and does not touch price, currency or credit positions.
The purpose of Incoterms is to provide a set of international rules for the interpretation of the most widely used trade terms in the field of foreign trade. In this way, the uncertainty of the different interpretation of such terms in different countries can be avoided or at least greatly reduced.
The first work published by the ICC on international trade terms was published in 1923, and the first edition, known as Incoterms, was published in 1936. The Incoterms rules were amended in 1953, 1967, 1976, 1980, 1990 and 2000, and the eighth version – Incoterms 2010 – was published on January 1, 2011. The ICC has started consultations on the new edition of Incoterms 2020, which will be called “Incoterms 2020” and is a registered trademark of the ICC.
Rules for sea and inland water transport:
FAS – Free Aboard Vessel – risk passes to the buyer, including transport costs and insurance of cargo delivered to the vessel (ie designated port terminal) by the seller. The seller is responsible for the registration of the cargo.
FOB – Free on Board – the risk passes to the buyer, including payment of all transport costs and insurance of the cargo delivered on board the vessel by the seller. The next stage after Frank is along the Ship’s Side.
CFR – Cost and Freight – seller delivers the cargo, risk passes to the buyer when the cargo is delivered on board the vessel. The seller bears the freight costs at the port of destination. The next stage after Franko Bort Sudn.
CIF – Cost, Insurance and Freight – the risk passes to the buyer after the cargo is delivered on board the vessel. The seller bears the costs of freight and insurance at the port of destination. Insurance is included as opposed to Cost and Freight.
Regulation of transportation by all modes of transport:
EXW – Ex-factory – the seller delivers (without loading) the goods to the disposal of the buyer and the premises of the seller. This term has been used for quite a long time, because the seller bears the minimum amount of responsibility in this case. The buyer’s obligation is limited to providing export information to the seller.
FCA – Free Carrier – the seller delivers goods to the carrier and may be responsible for the registration of goods for export (filling in basic data). This approach is more practical than Franko-Zavod, as it takes into account the load when lifting the cargo on board the ship, while the seller is more concerned about violations during the export of the goods.
CPT – Carriage Paid to – the seller delivers the goods to the carrier at the agreed place, the risk passes to the buyer and the seller must pay the costs of transporting the goods to the destination.
CIP – Carriage and Insurance Paid Before – the seller delivers the goods to the carrier at the agreed place, the risk passes to the buyer, and the seller pays the costs of transportation and insurance at the destination.
DAT – Delivery at the Terminal – the seller bears the costs, risk and responsibility until the goods are unloaded (delivered) at the wharf, warehouse, station or terminal. The costs of demurrage or simple can be borne by the seller. The seller processes the goods for export, not import. Delivery at the terminal replaces “Delivery from the wharf” and “delivery from the ship”.
DAP – Delivery at Destination – the seller bears the cost, risk and responsibility of the goods until they reach the buyer at the destination. The seller processes goods for export, not import. Delivery at destination replaces “Delivery to the border” and “Delivery without payment of duty”.
DDP – Delivery with Duty Paid – the seller bears the cost, risk and responsibility for the clearance of the goods in the possession of the buyer at the destination. The buyer is responsible for unloading the goods. The seller is responsible for the registration of goods for import, payment of duties and taxes, thus, the buyer is not a “responsible importer”. Incoterms 2010…
- Determining the right of ownership or the transfer of ownership of the goods does not belong to the terms of payment.
- Relates to contracts for the provision of services, and does not define contractual rights or obligations (except for delivery) or breach of contractual rights.
- Protecting the parties against their own risk or loss, and does not cover the value of the goods before or after delivery.
- Determination of conditions of transfer, transportation and supply of goods. Container loading does NOT include packaging and must be specified in the sales contract.
- Remember, the Incoterms rules are not law, and the Incoterms rules do not stipulate the obligations of the parties
Packing list
A commodity document in the form of a description, which displays the characteristics of the goods. A packing list is required when the same package contains goods of different assortments. The packing list contains such data as: quantity of each article (number of pieces in the package); package number.
A packing list is used in addition to an invoice when a large number of items are being shipped where the quantity, weight or content of each individual item is different.
Certificate of Origin is a document used in international trade. It indicates the country of origin of the goods, but the “origin” in the certificate means the country from where the goods are delivered, the certificate confirms where these goods are made.
The importing country may require a certificate, which must be confirmed by the official authorities of the exporting country. Before concluding the agreement, both the importer and the exporter must clarify the need to obtain a certificate of origin.