Features of organizing international transportation by rail

Transportation of various goods is a mandatory and important part of many areas of activity. However, due to the fact that air, sea or road transport is not accessible to everyone, the popularity of railway transport has increased significantly. Passenger transportation by rail is also in demand. International transportation by rail is in most cases the most relevant, which means it should be understandable and accessible.

Basic information

The railway is one of the most developed modes of transport not only in Russia, but throughout the world. The relevance of transporting goods and passengers by rail does not decrease over time, despite the development of technology. For example, vehicles cannot reach you everywhere, and when processing documents, hitches and difficulties often arise, especially when crossing the borders of different states.

Therefore, only rail transport can compare in speed and accessibility with road transport. Currently in the Russian Federation there are many organizations - carriers that carry out international transportation of goods by rail.

Cooperation on the issue of international railway transportation is carried out within the framework of the Berne Conventions.

However, there are entities that are not members of the Customs Union, but do not cause problems when crossing the border. Such subjects are: Abkhazia, Estonia, Lithuania, Poland, Kazakhstan and some other states.

Rules for the transportation of dangerous goods

How do logistics companies transport dangerous goods by air? They adhere to the rules established by the International Civil Aviation Organization's Technical Instructions for the Safe Transport of Hazardous Substances by Air. In addition, the International Air Transport Association IATA has its own version of the document called “Rules for the Transport of Dangerous Goods”.

• Transportation of dangerous goods by air is the fastest, but also the most expensive type of cargo transportation. It requires special transportation conditions, including delivery to those regions where regular air service is not established.
• Dangerous goods must be specifically and carefully packaged. Dangerous goods are prohibited from being packed in the same container with other goods. If liquids, gases, or bulk materials are transported, then the container must withstand the excess pressure that occurs at altitude, low temperatures and prevent leakage, spilling, and scattering of the contents.
• Dangerous goods, which include explosives, gases, flammable liquids, solids, self-reactive substances, toxic, oxidizing substances, radioactive materials, etc., can be transported only with accompanying documentation. Loads are grouped in such a way that in case of fire they can be easily extinguished.

Regulatory documents

Freight turnover using railway transport is carried out in accordance with the approved conditions and requirements. Regulations for this type of transportation are carried out by:

• Charter of railway transport of the Russian Federation (UZhT RF) as amended on January 10, 2003.
• MGK. This is the first Berne Convention, published in 1890 to control railway cargo transportation.
• COTIF. Second Berne Convention. This agreement was concluded among the countries of Europe, Asia and North Africa. There are 39 such states in total. The Russian Federation joined this group relatively recently (in 2009).
• SMGS. In 1923, MGK and IPC merged and formed SMGS - an international freight agreement. Legal regulation of cargo turnover in the Russian Federation is carried out in accordance with SMGS.

The COTIF Agreement is the main one among all regulatory documents, but includes two sections. Section A regulates passenger transport and is known as the IPC Uniform Rules. The second section implements regulations for cargo transportation and is called the “Unified Rules of the International Civil Code”. Due to the adoption of several conventions by some countries, it is often necessary to re-issue documentation to avoid misunderstandings.

Cargo transportation

Cargo transportation by rail requires compliance with certain established norms and rules, as well as painstaking completion of various documentation.

For overseas transportation, documents are very important; correct and accurate completion is especially important.

Documentation

According to the Unified Rules of the International Railways, any cargo presented must be accepted for transportation by rail if there are accompanying documents. To carry out railway transportation of goods between states, you will need to draw up a single package of documents:

• Contract, also known as a transportation agreement. It must indicate all accompanying documentation, as well as relevant and reliable information for passing customs control. Comes into force at the moment the cargo reaches the departure station.
• Consignment note. It consists of an original and a duplicate, a road manifest, sheets for issuing and receiving cargo. The consignment note contains basic publicly available information about the cargo being transported. It is issued in triplicate in the language of the sending country, duplicated in Chinese or Russian - one of the generally accepted working languages. One set accompanies the cargo throughout the entire journey, the second remains with the sender, and the third is given to the consignee.
• Payment documents. The contract can specify in detail what the recipient of the cargo will pay, and what the sender himself will pay.
• Carnet ATA. This document is used for international transportation of goods or objects not intended for sale (exhibition, competition). A correctly completed Carnet ATA replaces a customs declaration, eliminates the need for additional financial expenses and does not require translation into the language of the recipient country. This document is valid for one year.
• CMR is an international waybill. This document contains basic information about the sender, carrier company, and consignee. Information on the quantity and time of cargo delivery is also indicated in the CMR. CMR is also performed in triplicate.
• Quality certificates for transported cargo.

Within their country, the recipient and the sender can make changes to the transportation route: indicate a different departure/arrival station, change the recipient of the cargo. To make adjustments, you must submit an application within the country.

Rules

According to the case of wagon shipment, railway employees are obliged to accept the presented cargo for transportation. It is worthwhile to dwell in more detail on the rules and requirements for the international transportation of goods by railcars.

First of all, you need to pay attention to the packaging and containers, if required, of course. Each unit of goods presented for transportation must be packaged in accordance with its material characteristics. This will ensure the integrity and safety of the transported goods.

If the cargo needs packaging, but the sender ignored this point, the road has the right to refuse access to transportation. A note about this incident in the accompanying documentation is required.

Freight turnover by rail is carried out at different speeds. Unless otherwise specified in the supply contract, delivery times are determined based on established standards:

• when moving at high speed, the train must cover at least 400 km per day;
• at low rolling stock speed - 300 km per day.

After calculating the arrival time, freight charges are most often negotiated. The distribution of financial expenses between the sender and the recipient of the cargo is subject to specific discussion. Thus, when driving on internal roads of the country of departure or destination, freight payments are made at the internal tariff of the state. When carrying out railway transportation in transit directions, payment is made at the transit tariff. It is worth paying special attention to goods with declared value - freight charges for the traffic of such goods are much higher.

Services for the international transportation of goods by road, rail, air and water transport are subject to VAT at a rate of 0% (subclause 2.1, clause 1, article 164 of the Tax Code of the Russian Federation). In this case, the point of departure or destination must be outside of Russia.

When concluding a standard cargo transportation contract, freight charges are collected from the sender at the departure station, and from the recipient upon arrival of the cargo at the destination. The receiving party can receive the cargo and documents for it only after making all duties and payments specified in the contract.

Responsibility of the parties

When carrying out transportation of any type, the carrier company is responsible for the safety and integrity of the cargo to a greater extent than the sender or recipient. The onset of liability begins from the moment the cargo is accepted for transportation and ends after delivery of the transported goods to the recipient.

In case of delivery of cargo not in the original volume, its loss, damage or violation of the agreed terms of the contract, a commercial act is provided for drawing up immediately at the time the defect is discovered. A prerequisite in this situation is that the act must be drawn up before the cargo is delivered to the receiving party.

According to the provisions of the SGMS, the transport company is liable if:

• violation of delivery deadlines, shortage or loss of cargo occurred due to the fault of the carrier’s intent. Damage is fully compensated;
• the hidden intent of the carrier has been proven. The amount of damage may increase significantly;
• fraud with documents was detected. The cost of the cargo is recovered only if the carrier’s guilt is proven.

It is possible to prove the guilt of the transport organization through a claim procedure. Claims and lawsuits can only be filed by those organizations specified in the service agreement. Based on Article No. 32 of the Convention on the International Carriage of Goods (CMR), a claim can be filed within a year, and if malicious intent is proven, within three years. The deadlines for filing claims and statements of claim are similar.

Release of the carrier company from liability is possible only in cases where it is proven that circumstances beyond the control of the carrier are insurmountable.

Legal regulation of cargo transportation and freight forwarding activities

Home — Information — Legal regulation of cargo transportation and freight forwarding activities

In this section we provide links to regulations that contain rules and regulations related to logistics, cargo transportation, freight forwarding services, and commercial work with containers. When compiling the list, we adhere to the “tree” principle - from the most general norms to the special ones, and at the same time group documents thematically. Information is constantly updated.

General standards related to cargo transportation, cargo delivery and freight forwarding activities

Civil Code of the Russian Federation, part 2, chapter 41-42 (transportation and transport expedition)

Federal Law “On transport and forwarding activities” dated June 30, 2003 N 87-FZ

Decree of the Government of the Russian Federation dated September 8, 2006 N 554 “On approval of the Rules for transport and forwarding activities”

Regulations governing the carriage of goods by rail

Federal Law “Charter of Railway Transport of the Russian Federation” dated January 10, 2003 N 18-FZ

Order of the Ministry of Transport of Russia dated December 7, 2016 N 374 “On approval of the Rules for the acceptance of cargo and empty freight cars for transportation by rail”

Order of the Ministry of Transport of the Russian Federation dated December 18, 2021 N 405 “On approval of the Rules for the transportation of goods in containers and empty containers by rail”

INSTRUCTION DCH-1835 for the transportation of oversized and heavy cargo on the railways of the CIS member states, the Republic of Latvia, the Republic of Lithuania, the Republic of Estonia

Order of the Ministry of Railways of the Russian Federation dated March 29, 1999 N 10C (as amended on October 3, 2011) “On approval of the Rules for the transportation of goods along dispatch routes by rail

Order of the Ministry of Transport of Russia dated August 15, 2019 N 267 “On approval of the Rules for the transportation of goods with declared value by rail”

Order of the Ministry of Transport of Russia dated March 4, 2019 N 70 “On approval of the Rules for the carriage of escorted cargo by rail and the List of cargo requiring mandatory escort along the route”

Order of the Ministry of Transport of the Russian Federation dated January 14, 2020 N 10 “On approval of the Rules for the transportation by rail of goods subject to federal state veterinary supervision”

Standards governing the carriage of goods by road

Federal Law “Charter of Automobile Transport and Urban Ground Electric Transport” dated November 8, 2007 N 259-FZ
Decree of the Government of the Russian Federation dated December 21, 2020 No. 2200 “On approval of the Rules for the transportation of goods by road transport”

Standards governing the carriage of goods by water

Code of Inland Water Transport of the Russian Federation dated March 7, 2001 N 24-FZ

Merchant Shipping Code of the Russian Federation dated April 30, 1999 N 81-FZ

Rules for transportation by inland water transport from 01/01/1979

Standards

GOST 26653-2015 PREPARATION OF GENERAL CARGO FOR TRANSPORTATION General requirements
GOST R 52202-2004 (ISO 830-99) CARGO CONTAINERS Terms and definitions

Transportation of passengers

In addition to the international transportation of goods, the railway also carries passengers and related luggage. Regulatory regulation of passenger transportation is regulated mainly by the Uniform Rules of the IPC (Appendix A to COTIF). There are approved standards for the carriage of baggage, animals and passengers themselves. A little more about this.

Documentation

Among countries that are not members of COTIF, an “Agreement on International Passenger Transport” (SMPS) was concluded. The SMPS are subordinated not only in the Russian Federation, but also in the CIS countries, Latvia, Poland, North Korea, China, etc. The full list is available in the IPS Agreement as amended in 1999.

An agreement for the provision of international railway transportation services between the carrier organization and the passenger is concluded by purchasing a ticket in person or via the Internet. The following transportation documents confirm the contract:

• ticket;
• baggage payment receipt;
• reserved seat (a document indicating the seat).

Transportation documents for international transportation are stapled into a coupon book and handed over to the passenger. The basic information that must be indicated for travel is approved and reflected in the SMPS.

Transportation rules

For the successful implementation of transportation activities, it is necessary to differentiate the rules and freedoms of passengers and carriers. Thus, after concluding a contract for travel and baggage transportation, the passenger has the right to occupy the sleeping place specified by the ticket.

The passenger has the right to take easily portable items with him - hand luggage, as well as small animals in special bags or containers for transportation. Animals and accompanying luggage must not cause inconvenience during the trip (do not interfere with the movement of passengers around the carriage, do not emit unpleasant odors, etc.).

The passenger enters into an agreement with the transport organization for the carriage of baggage. Within the country, such transportation is regulated by the general rules of railway transportation. International baggage traffic is regulated by the Agreement (SMPS). To avoid unpleasant situations when crossing borders, the following are not allowed in transit:

• perishable products;
• harmful and foul substances;
• animals and birds (except indoors);
• cash;
• precious stones and metals;
• bladed weapons and firearms;
• works of art;
• hazardous substances.

Baggage is accepted for transportation no later than 30 minutes before the train departs. Passenger responsibilities include:

• packing luggage in containers: suitcase, box, box, fabric bag;
• ensure maximum tight packing inside the container to minimize damage or breakage of the contents;
• attach a tag to the baggage item indicating the owner, points of departure and arrival;
• presence during border inspection of baggage;
• payment for baggage before delivery to the carrier.

The total weight of a piece of luggage has certain restrictions. For example, according to SMPS, the maximum weight should not exceed 100 kg.

The passenger has the right to declare the value of checked baggage or refuse it by making a corresponding note in the baggage receipt. Also, the passenger can be present when drawing up the report in case of damage or partial loss of luggage.

In turn, the transport organization bears obligations to the passenger for luggage. The execution of the contract of carriage begins from the moment the baggage is checked into the vehicle. The carrier is obliged to accept baggage for transportation if it is paid for, packaged and does not contain prohibited substances. Also, the responsibilities of the carrier organization regarding luggage include:

• carriage of baggage in transport of the same type in which the passenger is traveling;
• control of the safety of luggage until the moment of delivery;
• baggage claim upon presentation of payment receipt;
• compliance with delivery deadlines - most often the deadlines coincide with the train schedule;
• draw up a commercial report in case of detection of damage or partial loss of luggage;
• reimburse the passenger for the cost of luggage in case of total loss.

Despite the wide range of obligations, the carrier company has the right to inspect the luggage if the passenger violates the conditions for the carriage of prohibited items.

If the passenger does not pick up the luggage within the prescribed period, the carrier has the right to sell it. When determining the location of the passenger, the transport organization warns him about the possible sale of baggage, and subsequently pays the proceeds.

Responsibility

In case of failure to fulfill obligations under an international railway transportation agreement, liability is provided, most often in the form of a monetary penalty. Moreover, the responsibility of the passenger is several times less than that of the carrier company. The amounts of penalties, deadlines for filing and consideration of claims and statements of claim from the parties specified in the baggage carriage agreement are regulated by the Agreement on International Passenger Traffic.

The passenger is responsible for paying the cost of baggage transportation, and he is also obliged to make all carriage payments on time so that there are no delays by the time the baggage is released by the carrier. If damage or partial loss of luggage is detected, the passenger has the right to file a claim, which will be considered within the prescribed period of 180 days.

It is worth paying attention to the value of lost, damaged or delayed luggage. If the value of one transport document is less than 1.5 Swiss francs, then the claim will be refused. This point is reflected in the SMPS.

The responsibility of the carrier company is aimed, first of all, at the safety and integrity of the luggage. Thus, if the agreed delivery time is violated, the carrier is obliged to pay late delivery in the amount of 5% of the freight charge. In this case, the maximum amount of the fine should not exceed 50% of the carriage charge.

In case of delay in delivery of luggage, the fine will be 1.5% of the freight charge for each day of delay. In this situation, the amount of collection should not exceed 30% of the freight charge.

Responsibility for loss or damage to luggage is removed from the carrier as a result of:

• occurrence of force majeure circumstances (natural phenomena);
• the passenger checking in prohibited items as luggage;
• incorrect information about checked baggage;
• insufficient packing of luggage.

In addition, in the event of a threat to the life of a passenger or causing harm to him, liability from the carrier is also removed. SMPS does not regulate such situations. If, nevertheless, harm was caused, then the resolution of the issue depends on the regulatory authorities of the country in which the incident occurred.

However, the countries participating in the Agreement have concluded an agreement among themselves on priority in considering such legal cases of international agreements. And, only in the absence of established international norms, the legal framework of the state considering the case is used to resolve a certain situation.