CMR consignment note: what is on it, who is liable and what customs does with it

Key points

• The CMR applies automatically to international road transport, even where you never mention it in the contract.
• Three originals are made up: one for the sender, one that travels with the load and one for the carrier.
• Carrier liability is capped at 8.33 special drawing rights per kilogram of gross weight.
• Visible damage is noted on delivery, hidden damage within seven days and delay within twenty one days.
• The CMR is not a customs document, but customs uses it to tie the shipment to the declaration.

A pallet arrives with a crushed corner. The recipient signs for it, adds nothing, and reports the damage a week later. The carrier rejects the claim and has solid ground for it, because the document on which that damage should have been recorded was signed off without comment.

That document is the CMR consignment note. It gets treated as a tick sheet at the door, while it is the only piece of evidence about the condition in which the goods changed hands.

Below is what the CMR is, who fills it in, how liability works and why customs asks for it.

What is a CMR consignment note?

The transport document for international road carriage, named after the CMR convention concluded in Geneva in 1956. It records who the sender is, who the carrier is, which goods are being carried, where they were picked up and where they are going.

The convention works differently from the Incoterms: you do not have to agree it. It applies as soon as the place of taking over and the place of delivery lie in two different countries and at least one of those is a contracting party. Where the parties themselves are established does not come into it.

Outside the convention fall postal shipments under the international postal conventions, funeral consignments and furniture removals. Different rules apply to those three.

Three originals are drawn up, all signed by sender and carrier. The first is for the sender, the second travels with the load, the third stays with the carrier. Since the additional protocol of 2008 a digital version exists as well, the eCMR, accepted in a growing number of countries.

Which fields are on it and who fills them in?

The standard form has twenty four fields. The split matters more than the count: the sender fills in the first part and stands behind its accuracy, the carrier checks what he can see from the outside and signs.

The sender fills in among other things:

• name and address of sender, carrier and consignee
• place and date of taking over and the place of delivery
• number of packages, type of packing, nature of the goods and the gross weight
• the documents attached, such as the invoice and any transit document
• instructions for customs formalities and any special arrangements

The carrier can add reservations to that. If he sees a dented box, or could not count the packages, he writes it down. Without that reservation the goods are presumed to have been handed over in good condition and in the stated number, and the burden of proof sits with him.

Who is liable for damage or loss?

The carrier, from the moment he takes the goods over until delivery. That liability is capped, though, and the cap sits lower than most shippers expect.

Compensation is limited to 8.33 special drawing rights per kilogram of gross weight of the missing or damaged part. With light, expensive cargo that is the problem: an eighty kilo pallet of electronics yields a few hundred euro, whatever was in the boxes. On top of that the carriage charges, the customs duties and the other charges on that part are refunded. For delay, compensation never exceeds the carriage charges.

The windows for responding are short:

• visible damage or shortage: reservation on the consignment note at delivery itself
• damage that is not apparent: in writing within seven days of delivery, Sundays and public holidays excluded
• delay: in writing within twenty one days of delivery
• limitation of the claim itself: one year, and three years in case of wilful misconduct or equivalent default

To get above the per kilo cap you can have a higher value or a special interest in delivery declared on the consignment note. The carrier charges a surcharge for it. On high value cargo that is often cheaper than a claim where you are left carrying the difference.

How does it differ from a bill of lading?

The main difference is that the CMR is not a document of title. You cannot trade it and the goods are not released against surrender of it.

A bill of lading in sea freight can do that. It represents the cargo, it can be endorsed and it is used for payment under a letter of credit. Whoever holds the original is entitled to the goods.

The CMR only proves that a contract of carriage exists and on what terms the goods were handed over. For delivery it is not the paper that decides but who is named on it as consignee.

What does customs do with the CMR?

It is not a customs document, and that is the misunderstanding that causes the most delay. A CMR gives the cargo no customs status whatsoever.

What customs does use it for is tying the shipment to the declaration. Under customs supervision the T1 document travels alongside the consignment note, and its reference number belongs on the CMR. Which document goes with which status is set out in our overview of the transit documents.

The CMR also counts towards the customs value. The place of taking over and the place of delivery decide which part of the carriage falls inside the EU and which part before it, and that split decides what belongs in the value. How that build-up works is set out in our piece on customs clearance on EU imports.

Where does it go wrong in practice?

Five things, and each of them costs money at a different moment.

• It is signed without reservation while the load is visibly damaged.
• The gross weight is left blank or rounded, so the per kilo cap cannot be calculated.
• The description reads “general goods”, which customs can do nothing with on an inspection.
• The transit document number is missing, so the shipment is held.
• The signed copies are never filed, and a year later the claim is time barred with no evidence.

On sea freight a comparable mechanism sits on top: as soon as a container waits on paperwork, the free days start running. What that adds up to is set out in our article on demurrage and detention.

Frequently asked questions

Q: Is a CMR consignment note compulsory?

Ans: The convention applies even without a consignment note, so its absence does not invalidate the carriage. In practice it is indispensable, because without that paper you have no evidence of what was handed over and in what condition.

Q: How much can I recover on damage?

Ans: At most 8.33 special drawing rights per kilogram of gross weight of the damaged part, plus the freight and duty on that part. Work that out on your own cargo in advance, because on light and expensive goods it usually will not cover the loss.

Q: Who has to fill in the CMR?

Ans: The sender fills in the details about the goods and is liable for their accuracy. The carrier checks the apparent condition and the number of packages and signs, adding a reservation where needed.

Q: Does the CMR apply to domestic transport?

Ans: No, the convention covers cross border carriage. Domestic road transport falls under national law and usually under the carrier’s own terms and conditions, with different limits.

Q: Can an eCMR replace the paper version?

Ans: In countries that have ratified the protocol it can. Check per route that every country involved accepts it, because a number of destinations still ask for a signed paper copy.

Want to know if your consignment notes and your declarations line up, or is a shipment stuck on paperwork? We read it through and say what is missing. Get in contact and we will take a look with you. After that we take over the customs handling and record who declares for whom in the authorisation you sign once.