17 March 2025

International Road Freight Transport Agreements: Legal Guide

March 17, 2025

BRACE Law Firm ©

International road freight transport offers numerous advantages, such as maneuverability and speed of delivery, leading to its growing prominence in foreign trade. Meanwhile, organizing international road transport requires more rigorous and responsible preparation than domestic shipping.

International freight transport is carried out by motor vehicles based on an agreement between parties located in different states. This article examines the legal regulation of international road transport, the procedure for concluding a carriage contract, carrier liability, and dispute resolution procedures.

International Legal Regulation of Road Freight Transport

At the international level, road freight transport is regulated by the Convention on the Contract for the International Carriage of Goods by Road (the "CMR"), adopted on May 19, 1956, in Geneva. The CMR entered into force on July 2, 1961, and holds the status of a UN Convention designed to regulate relations arising during the road transport of international commercial goods. There are 58 member states to the convention, including Russia (formerly the USSR) since September 2, 1983.

The CMR applies to every contract for the carriage of goods by road for reward via vehicles when the place of taking over the goods and the place designated for delivery, as specified in the contract, are situated in two different countries, of which at least one is a contracting country. The application of the CMR does not depend on the residence or nationality of the contracting parties. The term "vehicle" refers to motor vehicles, articulated vehicles, trailers, and semi-trailers.

In addition to the CMR, the Customs Convention on the International Transport of Goods Under Cover of TIR Carnets (the "TIR Convention"), concluded in Geneva on November 14, 1975, applies to international road transport. This convention entered into force for the USSR on December 8, 1982. Currently, 78 states are parties to the TIR Convention.

The TIR Convention concerns the transport of goods carried out without intermediate reloading, in road vehicles, combinations of vehicles, or containers, crossing one or more borders from a Customs office of departure of one contracting party to a Customs office of destination of another contracting party (or the same party), provided that some portion of the TIR operation between its beginning and end is made by road. A TIR operation means the transport of goods from a Customs office of departure to a Customs office of destination under the "TIR procedure."

To ensure the seamless movement of goods with minimal delays while maintaining maximum customs security, the TIR regime contains five main elements:

Goods must be carried in secure (from a customs perspective) vehicles or containers;
The payment of customs duties and taxes at risk must be covered by an international guarantee;
Goods must be accompanied by a customs document (TIR Carnet) recognized by all contracting states, accepted in the country of departure, and serving as a control document in the countries of departure, transit, and destination;
Customs control measures taken in the country of departure must be recognized by all countries of transit and destination;
Access to the TIR procedure for national associations (authorization to issue TIR Carnets) and for physical and legal persons (authorization to use TIR Carnets) must be controlled by authorized national bodies.[1]

To ensure transport security, the TIR Convention establishes that goods must be carried in containers or load compartments of vehicles constructed in a way that prevents access to the contents of the sealed part of the vehicle or container without leaving visible traces of tampering or damaging the customs seals. [2]

National Legal Regulation of Road Freight Transport

General rules regulating the carriage of goods are contained in Chapter 40 (Carriage) of the Civil Code of the Russian Federation. However, the contract of transport expedition, covered in Chapter 41 (Transport Expedition) of the Civil Code, is of the greatest importance. Domestic road freight transport is also regulated by Federal Law No. 259-FZ dated November 8, 2007, the Charter of Road Transport and Urban Surface Electric Transport (the "Charter of Road Transport").

Relations between parties arising during international road transport within Russian territory are regulated by Federal Law of the Russian Federation No. 127-FZ dated July 24, 1998, On State Control over International Road Transport and Liability for Violation of the Procedure for Their Performance (the "Federal Law No. 127-FZ"). If an international treaty establishes rules other than those contained in the Law, the rules of the international treaty apply.

Federal Law No. 127-FZ defines international road transport as the carriage of goods or passengers by a vehicle across the territories of two or more states, as well as the transit of an unladen vehicle across the territories of two or more states.

In accordance with Federal Law No. 127-FZ, the conditions for admitting a Russian carrier to perform international road transport are:

The Russian carrier must possess vehicles held under ownership or another legal basis;
The Russian carrier’s employee, or the carrier itself (if an individual entrepreneur), must hold a certificate of professional competence for international road transport, confirming their professional competence as the official responsible for organizing international road transport;
The Russian carrier must maintain a proper financial position, defined by owning property worth at least 300,000 rubles when using one vehicle for international road transport, and at least 170,000 rubles for each additional vehicle, confirmed by the balance sheet and the financial results report for the last reporting period; [3]
The Russian carrier must maintain mandatory civil liability insurance for motor vehicle owners.

The Federal Service for Supervision in the Sphere of Transport admits Russian carriers to international road transport in accordance with Russian Government Decree No. 845 dated June 1, 2021. Admission is confirmed by entering relevant records into the register of Russian carriers authorized to perform international road transport. A Russian carrier may not perform international road transport using vehicles whose details are not included in the register for that carrier.

The period for which a Russian carrier is admitted to perform international road transport is:

1 year – for a Russian carrier whose details are included in the register for the first time or re-entered after more than one year has passed since exclusion;
5 years – for all other Russian carriers.

The criteria and procedure for determining the type of international road freight transport are defined by Order of the Ministry of Transport of Russia No. 258 dated July 28, 2020, On Approval of the Criteria and Procedure for Determining the Type of Performed International Road Freight Transport. The type of transport (bilateral, transit, or transport from/to the territory of a third state) is determined based on the data contained in the international consignment note.

Note that in accordance with Article 1210 of the Civil Code, parties to a contract may, upon conclusion or subsequently, choose by agreement the law applicable to their rights and obligations under the contract.

In the absence of an agreement on the applicable law, the law of the country where the party performing the service of decisive importance for the contract's content has its residence or principal place of business at the time of conclusion shall apply. For a carriage contract, this party is the carrier (Article 1211 of the Civil Code).

However, according to Clause 9 of Article 1211, if it clearly follows from the law, the terms or essence of the contract, or the circumstances of the case that the contract is more closely connected with the law of another country than the one specified in Article 1211, the law of the country with which the contract is more closely connected shall apply.

As previously noted, the provisions of the CMR apply to any contract for the carriage of goods by road via vehicles when the place of taking over the goods and the place designated for delivery are situated in two different countries, of which at least one is a contracting party.

In case No. A40-18915/2016, involving a claim by an Italian company against a Russian company for the recovery of payment for goods (where delivery was confirmed by consignment notes (CMR) signed by the sender and carriers), the courts established that "the dispute is subject to consideration under the laws of the Russian Federation based on Clause 9 of Article 1211 of the Civil Code. If conflict-of-law rules for determining the applicable law are provided for by an international treaty of the Russian Federation, the arbitration court shall be guided by the norms of the international treaty." Both Russia and Italy are parties to the CMR, which is applicable to the disputed relations in accordance with Article 1 of the CMR. [4]

In case No. A40-32137/2015 regarding the recovery of damages under a carriage contract, the courts indicated that the relations between the plaintiff and the defendant are regulated by a contract for the international carriage of goods. Taking into account that the place of loading (Germany) and the place of delivery (Russia) are located in two different countries, and that the parties chose the CMR as the applicable law, the transport was international in nature, and the CMR norms apply to the parties' relations. [5]

Sanctions Against Russia Regarding International Road Transport

Since April 8, 2022, Russian transport companies have been prohibited from transporting goods by road across the territory of the European Union, with the exception of postal services and transit goods between Russia and the Kaliningrad region, humanitarian and medical supplies, food, fertilizers, and energy resources.

In June 2023, as part of the 11th anti-Russian sanctions package, the European Union expanded restrictions on road freight transport with Russia, completely banning the passage of trucks with Russian trailers and semi-trailers across its territory.[6]

In June 2024, the European Union implemented the 14th sanctions package against Russia affecting the transport sector. A ban was introduced on the transport of goods across EU territory, including transit, by road transport belonging to transport companies in which 25% or more is owned by a Russian individual or legal person. This also applies to companies from other countries performing transport within the European Union. [7]

It should be noted that Russia has adopted counter-sanctions and introduced retaliatory measures.

Counter-Sanction Measures Regarding International Road Transport

Presidential Decree No. 681 dated September 29, 2022, On Certain Issues of Performing International Road Freight Transport, granted the Government of Russia the authority to establish a ban on international road freight transport across Russian territory by cargo vehicles belonging to foreign carriers registered in unfriendly countries.

To implement this decree, the Government adopted Decree No. 1728 dated September 30, 2022 (the "Decree No. 1728"), which defined the types of international road freight transport subject to the ban, the list of foreign states in response to whose actions the restrictive measures are introduced, and the conditions for performing transport under which the ban does not apply.

The ban applies to the following types of international road freight transport:

Bilateral transport;
Transit transport;
Transport from or to the territory of a third state.

The states whose vehicles are prohibited from performing transport across the territory of the Russian Federation are:

Member states of the European Union;
The United Kingdom of Great Britain and Northern Ireland;
The Kingdom of Norway;

The ban applies to trucks. Regarding travel across Russian territory for personal purposes in passenger cars, no bans have been established.

International road freight transport not subject to the ban must involve the following goods:

Postal items;
Diplomatic mail and consular valises;
Humanitarian aid;
Goods imported through the section of the Russian state border with the Republic of Belarus;
Goods in trailers or semi-trailers registered in foreign states, towed by self-propelled vehicles registered in the Russian Federation or in EAEU member states;
Goods exported from the territory of the Russian Federation to ensure the activities of Russian organizations on the Spitsbergen archipelago;
Finished medicinal products, including bulk, raw materials, pharmaceutical substances, standard samples, and reagents for the production and quality control of medicinal products, medical devices, spare parts and components for them, and raw materials for the production of medical devices;
Goods classified under groups 30 (Pharmaceutical Products) and 90 (Optical, Photographic, Cinematographic, Measuring, Checking, Precision, Medical or Surgical Instruments and Apparatus; parts and accessories thereof) of the Unified Commodity Nomenclature of Foreign Economic Activity of the Eurasian Economic Union;
Human blood, organs, and tissues;
Property of individuals moving to the Russian Federation, provided such individuals hold the status of a participant (or family member of a participant) in the State Program for Assisting the Voluntary Resettlement of Compatriots Living Abroad, a forced migrant, a refugee, or a person granted temporary asylum.

Furthermore, international road transport is permitted for goods included in the list in Appendix No. 1728. Such goods include, for example, dairy products, meat, and ceramic products. This permission does not apply to transport performed by self-propelled vehicles registered in the Republic of Poland.

Permission for international road freight transport is granted when such transport is performed from foreign territories to the Kaliningrad region or from the Kaliningrad region to foreign territories.

Additionally, the transshipment of goods into cargo vehicles belonging to carriers included in the register of Russian carriers (authorized for international transport and holding a foreign permit from any state through whose territory the transport was conducted) or into vehicles belonging to carriers registered in EAEU member states (holding a one-time permit for international road transport as provided by Russian law) is permitted.

Finally, when cargo vehicles belonging to foreign carriers exit Russia under these allowed exceptions, the volume of fuel in the tanks (technologically and structurally connected to the engine fuel system and installed by the manufacturer) must not exceed 200 liters.

The CMR Consignment Note under the Convention

The contract of carriage is established by a consignment note (CMR – an abbreviation of the French title Convention relative au contrat de transport international de marchandises par route). The absence, irregularity, or loss of the consignment note shall not affect the existence or the validity of the contract of carriage (Article 4 of the CMR).

The consignment note shall be made out in three original copies signed by the sender and by the carrier. These signatures may be printed or replaced by the stamps of the sender and the carrier if the law of the country in which the consignment note has been made out so permits. The first copy shall be handed to the sender, the second shall accompany the goods, and the third shall be retained by the carrier. In the event of goods being carried in different vehicles, or being of different kinds or in different lots, the sender or the carrier shall have the right to require a separate consignment note to be made out for each vehicle used, or for each kind or lot of goods (Article 5 of the CMR).

Article 6 of the CMR defines the particulars that the consignment note (CMR) must contain:

The date of the consignment note and the place at which it is made out;
The name and address of the sender;
The name and address of the carrier;
The place and the date of taking over the goods and the place designated for delivery;
The name and address of the consignee;
The description in common use of the nature of the goods and the method of packing, and, in the case of dangerous goods, their generally recognized description;
The number of packages and their special marks and numbers;
The gross weight of the goods or their quantity otherwise expressed;
Charges relating to the carriage (carriage charges, supplementary charges, customs duties and other charges incurred from the making of the contract to the time of delivery);
The requisite instructions for Customs and other formalities;
A statement that the carriage is subject, notwithstanding any clause to the contrary, to the provisions of the CMR.

Where applicable, the consignment note shall also contain the following particulars:

A statement that transshipment is not allowed;
The charges which the sender undertakes to pay;
The amount of "cash on delivery" charges;
A declaration of the value of the goods and the amount representing special interest in delivery;
The sender's instructions to the carrier regarding insurance of the goods;
The agreed time-limit within which the carriage is to be carried out;
A list of the documents handed to the carrier.

The parties may enter in the consignment note (CMR) any other particulars which they may deem useful.

On taking over the goods, the carrier shall check the external condition of the goods and their packaging and the accuracy of the statements in the consignment note as to the number of packages and their marks and numbers. If the carrier has no reasonable means of checking the accuracy of these statements, he shall enter his reservations in the consignment note together with the grounds on which they are based. He shall likewise specify the grounds for any reservations he makes with regard to the external condition of the goods and their packaging. These reservations shall not bind the sender unless he has expressly agreed to be bound by them in the consignment note. The sender shall be entitled to require the carrier to check the gross weight of the goods or their quantity otherwise expressed. He may also require the contents of the packages to be checked. The carrier shall be entitled to claim the cost of such checking. The results of the checks shall be entered in the consignment note (Article 8 of the CMR).

According to Article 9 of the CMR, the consignment note (CMR) shall be prima facie evidence of the making of the contract of carriage, the conditions of the contract, and the receipt of the goods by the carrier. If the consignment note contains no specific reservations by the carrier, it shall be presumed, unless the contrary is proved, that the goods and their packaging appeared to be in good condition when the carrier took them over and that the number of packages, their marks, and numbers corresponded with the statements in the consignment note.

For the purposes of the Customs or other formalities which have to be completed before delivery of the goods, the sender shall attach the necessary documents to the consignment note (CMR) or place them at the disposal of the carrier and shall furnish him with all the information which he requires. The carrier shall not be under any duty to inquire into either the accuracy or the adequacy of such documents and information. The sender shall be liable to the carrier for any damage caused by the absence, inadequacy, or irregularity of such documents and information, except in the case of some wrongful act or neglect on the part of the carrier (Article 11 of the CMR).

According to Article 12 of the CMR, the sender has the right to dispose of the goods, in particular by asking the carrier to stop the goods in transit, to change the place at which delivery is to take place, or to deliver the goods to a consignee other than the consignee indicated in the consignment note.

The sender shall cease to have this right when the second copy of the consignment note (CMR) is handed to the consignee; from that moment, the carrier shall obey the orders of the consignee. After arrival of the goods at the place designated for delivery, the consignee shall be entitled to require the carrier to deliver to him, against a receipt, the second copy of the consignment note and the goods. If the loss of the goods is established or if the goods have not arrived after the expiry of the agreed time-limit, the consignee shall be entitled to enforce in his own name against the carrier any rights arising from the contract of carriage.

The right of disposal shall belong to the consignee from the moment when the consignment note is drawn up if the sender makes an entry to that effect in the consignment note.

If for any reason it is or becomes impossible to carry out the contract in accordance with the terms laid down in the consignment note before the goods reach the place designated for delivery, the carrier shall ask for instructions from the person entitled to dispose of the goods. If, however, circumstances are such as to allow the carriage to be carried out under conditions differing from those laid down in the consignment note and if the carrier has been unable to obtain instructions in reasonable time from the person entitled to dispose of the goods, he shall take such steps as seem to him to be in the best interests of the person entitled to dispose of the goods (Article 14 of the CMR).

If, after arrival of the goods at their destination, circumstances arise which prevent delivery, the carrier shall ask the sender for his instructions. If the consignee refuses the goods, the sender shall be entitled to dispose of them without being obliged to produce the first copy of the consignment note. Even if he has refused the goods, the consignee may nevertheless require delivery so long as the carrier has not received instructions to the contrary from the sender (Article 15 of the CMR).

The carrier shall be entitled to recover the cost of his request for instructions and any expenses entailed in carrying out such instructions, provided that such expenses were not caused by his own wrongful act or neglect.

In the circumstances mentioned above, the carrier may immediately unload the goods for account of the person entitled to dispose of them; upon such unloading, the carriage shall be deemed to be at an end. The carrier shall then hold the goods on behalf of the person so entitled. He may, however, entrust them to a third party, and in that case, he shall not be under any liability except for the exercise of reasonable care in the choice of such third party. The goods shall remain chargeable with all relevant expenses under the consignment note and all other expenses.

The carrier may sell the goods without waiting for instructions from the person entitled to dispose of them if the goods are perishable or their condition warrants such a course, or when the storage expenses would be out of proportion to the value of the goods. In other cases, he may also proceed to sell the goods if after the expiry of a reasonable period he has not received from the person entitled to dispose of the goods instructions to the contrary which he may reasonably be required to carry out.

If the goods have been sold, the proceeds of sale, after deduction of the expenses chargeable against the goods, shall be placed at the disposal of the person entitled to dispose of them. If these proceeds are less than the expenses chargeable against the goods, the carrier shall be entitled to the difference. The procedure in the case of sale shall be determined by the law or custom of the place where the goods are situated (Article 16 of the CMR).

Under Russian law, in accordance with Article 785 of the Civil Code, the conclusion of a contract for the carriage of goods is confirmed by the drawing up and delivery to the sender of a transport consignment note (a bill of lading or another document for the goods provided for by the relevant transport charter or code).

A similar provision is contained in Article 8 of the Charter of Road Transport: the conclusion of a contract for the carriage of goods is confirmed by a transport consignment note. Unless otherwise provided by the contract, the transport consignment note is drawn up by the shipper. The transport consignment note is prepared on paper or formed as an electronic transport consignment note. The form and procedure for the transport consignment note are established by the rules for the carriage of goods.[8] Goods for which a transport consignment note has not been issued shall not be accepted by the carrier for transport.

Carrier Liability in International Road Freight Transport

According to Article 17 of the CMR, the carrier shall be liable for the total or partial loss of the goods and for damage thereto occurring between the time when he takes over the goods and the time of delivery, as well as for any delay in delivery.

The carrier shall be relieved of liability if the loss, damage, or delay was caused by the wrongful act or neglect of the claimant, by the instructions of the claimant given otherwise than as the result of a wrongful act or neglect on the part of the carrier, by inherent vice of the goods, or through circumstances which the carrier could not avoid and the consequences of which he was unable to prevent.

The carrier shall not be entitled to avail himself for the purpose of exonerating himself from liability of the defects of the vehicle used by him in order to perform the carriage, or of the wrongful act or neglect of the person from whom he may have hired the vehicle or of the agents or servants of the latter.

The carrier shall be relieved of liability when the loss or damage arises from the special risks inherent in one or more of the following circumstances:

Use of open unsheeted vehicles, when their use has been expressly agreed and specified in the consignment note;
The lack of, or defective condition of packing in the case of goods which, by their nature, are liable to wastage or to be damaged when not packed or when not properly packed;
Handling, loading, stowage, or unloading of the goods by the sender, the consignee, or persons acting on behalf of the sender or the consignee;
The nature of certain kinds of goods which particularly exposes them to total or partial loss or to damage, especially through breakage, rust, decay, desiccation, leakage, normal wastage, or the action of moth or vermin;
Insufficiency or inadequacy of marks or numbers on the packages;
The carriage of livestock.

The burden of proving that loss, damage, or delay was due to one of the causes specified above shall rest upon the carrier. When the carrier establishes that in the circumstances of the case, the loss or damage could be attributed to one or more of the special risks, it shall be presumed that it was so caused. The claimant shall, however, be entitled to prove that the loss or damage was not, in fact, attributable either wholly or partly to one of these risks.

If the carriage is performed in vehicles specially equipped to protect the goods from the effects of heat, cold, variations in temperature, or the humidity of the air, the carrier shall not be entitled to claim the benefit of the inherent nature of the goods unless he proves that all steps incumbent on him in the circumstances with respect to the choice, maintenance, and use of such equipment were taken and that he complied with any special instructions issued to him.

Delay in delivery shall be said to occur when the goods have not been delivered within the agreed time-limit or, when there is no agreed time-limit, the actual duration of the carriage having regard to the circumstances of the case, and in particular, in the case of partial loads, the time required for making up a complete load in the normal way, exceeds the time it would be reasonable to allow a diligent carrier (Article 19 of the CMR).

The person entitled to make a claim may, without furnishing further proof, treat the goods as lost when they have not been delivered within thirty days following the expiry of the agreed time-limit, or, where there is no agreed time-limit, within sixty days from the time when the goods were taken over by the carrier (Article 20 of the CMR).

When considering case No. M-175/2021 at the ICAC at the RF CCI regarding the recovery of the value of goods lost during transport, the panel of arbitrators established that the case materials lacked evidence exonerating the defendant wholly or partially from liability for the loss of goods under the Contract. The total amount of damage in the form of the value of the goods was confirmed by invoices. The panel concluded that "the plaintiff's claim for recovery of the value of the lost goods from the defendant is justified and subject to satisfaction."[9]

In case No. A17-9549/2019 regarding the recovery of damages caused by the loss of goods accepted for carriage, it was established that the goods accepted by the defendant's driver were not delivered to the consignee due to the suspension of transport and placement of the goods in a temporary storage warehouse. The courts concluded that "the fact that the goods are in temporary storage confirms their loss within the meaning of Article 20 of the CMR." The courts arrived at the justified conclusion that there were sufficient grounds to recover the value of the lost goods from the defendant.[10]

The person entitled to claim compensation may, on receipt of compensation for the missing goods, request in writing that he shall be notified immediately should the goods be recovered in the course of the year following the payment of compensation. He shall be given a written acknowledgment of such request (Clause 2 of Article 20 of the CMR).

If the sender hands over dangerous goods to the carrier, he shall inform the carrier of the exact nature of the danger and indicate, if necessary, the precautions to be taken. If this information has not been entered in the consignment note, the burden of proving, by some other means, that the carrier knew the exact nature of the danger constituted by the carriage of the said goods shall rest upon the sender or the consignee. Dangerous goods which the carrier did not know were dangerous may, at any time or place, be unloaded, destroyed, or rendered harmless by the carrier without compensation; the sender shall, in addition, be liable for all expenses and damage arising out of their handing over for carriage or of their carriage (Article 22 of the CMR).

When, under the provisions of the CMR, a carrier is liable for compensation in respect of total or partial loss of goods, such compensation shall be calculated by reference to the value of the goods at the place and time at which they were accepted for carriage. The value of the goods shall be fixed according to the commodity exchange price or, if there is no such price, according to the current market price or, if there is no commodity exchange price or current market price, by reference to the normal value of goods of the same kind and quality (Article 23 of the CMR).

In case No. A40-151520/2021, the courts established that the amount of the plaintiff's damages was confirmed by the case materials, and considering that in the disputed case, "the defendant bears contractual liability for damage to the goods during transport, regardless of who was at fault for the traffic accident leading to the damage, concluded that the claim should be satisfied in full."[11]

However, compensation shall not exceed 8.33 units of account per kilogram of gross weight short. The "unit of account" is the Special Drawing Right (SDR) as defined by the International Monetary Fund. The amount of compensation is converted into the national currency of the state of the court seized of the case on the basis of the value of such currency on the date of judgment or the date agreed upon by the parties. The value of the national currency of a state which is a member of the IMF, expressed in SDRs, is calculated in accordance with the method of valuation applied by the IMF. For a state that is not a member of the IMF, the value is calculated by a method determined by that state (Article 23 of the CMR as amended by the Protocol of July 5, 1978).

In addition, the following shall be refunded:

The carriage charges;
Customs duties and other charges;
Other charges incurred in respect of the carriage of the goods (in full in case of total loss and in proportion to the loss in case of partial loss);
No further damages shall be payable.

In the case of delay, if the claimant proves that damage has resulted therefrom, the carrier shall pay compensation for such damage not exceeding the carriage charges.

Higher compensation may only be claimed from the carrier where the value of the goods or a special interest in delivery has been declared (Clauses 4–6 of Article 23 of the CMR).

In accordance with Article 25 of the CMR, in the case of damage, the carrier shall be liable for the amount by which the goods have diminished in value, calculated by reference to the value of the goods. The compensation may not, however, exceed:

If the whole consignment has been damaged, the amount payable in the case of total loss;
If part only of the consignment has been damaged, the amount payable in the case of loss of the part affected.

The claimant shall be entitled to claim interest on compensation payable. Such interest, calculated at five percent per annum, shall accrue from the date on which the claim was sent in writing to the carrier or, if no such claim has been made, from the date on which legal proceedings were instituted. When the amounts on which the calculation of the compensation is based are not expressed in the currency of the country in which payment is claimed, conversion shall be at the rate of exchange applicable on the day and at the place of payment of compensation (Article 27 of the CMR).

In cases where, under the law of the court seized of the case, an extra-contractual claim arises from loss, damage, or delay occurring during carriage subject to the CMR, the carrier may avail himself of the provisions of this Convention which exclude his liability or which fix or limit the compensation payable (Article 28 of the CMR).

The liability of the carrier under Russian law is established by Chapter 6 of the Charter of Road Transport.

According to Article 34, the carrier is liable for the safety of the goods from the moment of acceptance for carriage until the moment of delivery to the consignee or an authorized person, unless he proves that the loss, shortage, or damage (spoilage) of the goods occurred due to circumstances that the carrier could not prevent or eliminate for reasons beyond his control.

The carrier compensates for damage caused during transport in the amount of:

The value of the lost or missing goods;
The amount by which the value of the goods decreased in case of damage (spoilage) or the value of the goods if restoration is impossible;
The portion of the declared value corresponding to the missing or damaged part for goods shipped with a declared value;
The declared value in case of loss or impossibility of restoration for goods shipped with a declared value.

The value of the goods is determined based on the price indicated in the seller's invoice or the carriage contract, or, in the absence thereof, based on the price usually charged for similar goods under comparable circumstances. Along with damages, the carrier returns the carriage charges received for the lost, missing, or damaged goods if such charges are not included in the value of the goods.

The carrier pays the consignee a fine for delay in delivery in the amount of nine percent of the carriage charges for each day of delay, unless otherwise provided by the contract. The total fine for delay may not exceed the carriage charges. Delay is calculated from 24:00 on the day the goods should have been delivered. The basis for the fine is the entry in the transport consignment note regarding the time of arrival at the unloading point.

Article 36 defines the grounds for exonerating the carrier, charterer, shipper, and consignee from liability. Thus, the carrier, shipper, and consignee are relieved of liability if non-performance was caused by:

Force majeure;
Temporary restrictions or bans on vehicle movement on roads introduced in the manner prescribed by Russian law for reasons beyond their control;
Other reasons beyond their control.

Dispute Resolution Procedure in International Road Freight Transport

If the consignee takes delivery of the goods without duly checking their condition with the carrier or without sending reservations to the carrier giving a general description of the loss or damage (at the time of delivery for apparent loss or damage, or within seven days of delivery, excluding Sundays and public holidays, for loss or damage which is not apparent), the fact of his taking delivery shall be prima facie evidence that he has received the goods in the condition described in the consignment note. In the case of loss or damage which is not apparent, the reservations referred to must be made in writing. When the condition of the goods has been duly checked by the consignee and the carrier, evidence contradicting the result of this check shall only be admissible in the case of loss or damage which is not apparent and provided that the consignee has duly sent reservations in writing to the carrier within seven days, excluding Sundays and public holidays, from the date of check (Clauses 1–2 of Article 30 of the CMR).

No compensation shall be payable for delay in delivery unless a reservation has been sent in writing to the carrier within twenty-one days from the time that the goods were placed at the disposal of the consignee.

In calculating the time-limits, the date of delivery, the date of check, or the date of placing the goods at the disposal of the consignee, as the case may be, shall not be included.

The carrier and the consignee shall give each other every reasonable facility for making the requisite investigations and checks (Clauses 3–5 of Article 30 of the CMR).

According to Article 31 of the CMR, in legal proceedings arising out of carriage under this Convention, the plaintiff may bring an action in any court or tribunal of a contracting country designated by agreement between the parties and, in addition, in the courts or tribunals of a country within whose territory:

The defendant is ordinarily resident, or has his principal place of business, or the branch or agency through which the contract of carriage was made;
The place where the goods were taken over by the carrier or the place designated for delivery is situated, and in no other courts or tribunals.

Where in respect of a claim an action is pending before a court or tribunal competent under this article, or where in respect of such a claim a judgment has been entered by such a court or tribunal, no new action shall be started between the same parties on the same grounds unless the judgment of the court or tribunal before which the first action was brought is not enforceable in the country in which the fresh action is brought.

Where a judgment entered by a court or tribunal of a contracting country in any such action as is referred to above has become enforceable in that country, it shall also become enforceable in each of the other contracting countries, as soon as the formalities required in the country concerned have been complied with. These formalities shall not permit the merits of the case to be re-opened.

These provisions apply to judgments after trial, judgments by default, and settlements confirmed by an order of the court, but do not apply to interim judgments or to awards of damages, in addition to costs against a plaintiff who wholly or partly fails in his action.

Security for costs shall not be required in proceedings arising out of carriage under this Convention from nationals of contracting countries resident or having their place of business in one of those countries.

According to Article 32 of the CMR, the period of limitation for an action arising out of carriage under this Convention shall be one year. Nevertheless, in the case of willful misconduct, or such default as is considered equivalent to willful misconduct, the period of limitation shall be three years. The period of limitation shall begin to run:

In the case of partial loss, damage, or delay in delivery – from the date of delivery;
In the case of total loss – from the thirtieth day after the expiry of the agreed time-limit or, where there is no agreed time-limit, from the sixtieth day from the date on which the goods were taken over by the carrier;
In all other cases – on the expiry of a period of three months after the making of the contract of carriage.

The day on which the period of limitation begins to run shall not be included in the period.

In case No. M-177/2017, the arbitrator established that the limitation period for the claim for damages had expired. Thus, the court refused to satisfy the statement of claim regarding the recovery of funds from the defendant as compensation for damage. [12]

A written claim shall suspend the period of limitation until such date as the carrier rejects the claim by notification in writing and returns the documents attached thereto. If a part of the claim is admitted, the period of limitation shall start to run again only in respect of that part of the claim still in dispute. The burden of proof of the receipt of the claim, or of the reply and of the return of the documents, shall rest with the party relying upon these facts. Further claims on the same ground shall not suspend the running of the period of limitation.

A right of action which has become barred by lapse of time may not be exercised by way of counter-claim or set-off.

The contract of carriage may contain a clause conferring competence on an arbitration tribunal if the clause confers that the tribunal shall apply the provisions of the CMR.

In accordance with Article 38 of the Charter of Road Transport, circumstances serving as grounds for the liability of carriers, shippers, and consignees shall be certified by acts or entries in the transport consignment notes, waybills, and accompanying lists.

Before bringing actions against carriers arising from carriage contracts, claims must be mandatorily submitted to such persons (Article 39 of the Charter of Road Transport).

Carriers are obliged to consider the claims submitted to them and notify the claimants of the results of their consideration in writing within 30 days from the date of receipt of the relevant claim. In the event of partial satisfaction or rejection of the claim, the notification must state the grounds for such a decision. In this case, the documents submitted with the claim are returned to the claimant (Article 40 of the Charter of Road Transport).

Actions may be brought in cases of full or partial refusal to satisfy the claims or in cases of failure to receive answers from the carriers within 30 days of receipt (Article 41 of the Charter of Road Transport).

According to Article 42 of the Charter of Road Transport, the limitation period is 1 year. This period is calculated from the date of the event serving as the basis for the claim or action, including:

Compensation for damage caused by shortage or damage (spoilage), from the date of delivery;
Compensation for damage caused by loss, from the date the goods are recognized as lost;
Delay in delivery, from the date of delivery.

The expiration of the limitation period may serve as a basis for refusing to satisfy the stated claims. [13]

Road transport is capable of effectively meeting the needs of foreign trade participants. Meanwhile, such transport requires increased attention when resolving organizational and management issues due to regulatory oversight at the national level. Furthermore, international road freight transport faces sanctions pressure, which leads to increased costs for transport and logistics services.

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References

[1] TIR Handbook: Customs Convention on the International Transport of Goods Under Cover of TIR Carnets (TIR Convention, 1975). UN iLibrary website.

[2] Ibid.

[3] Russian Government Decree No. 845 dated June 1, 2021, On Approval of the Rules for Admitting Russian Carriers to Perform International Road Transport, Repeal of Russian Government Decree No. 1588 dated October 1, 2020, and Amendments to Certain Acts of the Government of the Russian Federation.

[4] Resolution of the Arbitration Court of the Moscow District dated June 20, 2018, in case No. A40-18915/2016.

[5] Resolution of the Arbitration Court of the Moscow District dated December 26, 2016, in case No. A40-32137/2015.

[6] The new EU sanctions package includes a ban on the passage of trucks with trailers and semi-trailers from the Russian Federation. June 23, 2023. Interfax website.

[7] As part of the new sanctions package, the European Commission introduced restrictions on transport companies with Russian capital. June 24, 2024. TRANS.RU website.

[8] Russian Government Decree No. 2200 dated December 21, 2020, On Approval of the Rules for the Carriage of Goods by Road and Amendments to Clause 2.1.1 of the Traffic Rules of the Russian Federation.

[9] Decision of the panel of arbitrators of the ICAC at the RF CCI dated August 5, 2022, in case No. M-175/2021.

[10] Resolution of the Arbitration Court of the Volga-Vyatka District dated March 24, 2021, in case No. A17-9549/2019.

[11] Resolution of the Arbitration Court of the Moscow District dated November 3, 2022, in case No. A40-151520/2021.

[12] Decision of the sole arbitrator at the RF CCI dated March 1, 2018, in case No. M-177/2017.

[13] Resolution of the Arbitration Court of the Ural District dated March 3, 2025, in case No. A60-70552/2023; Resolution of the Arbitration Court of the North-Western District dated February 27, 2025, in case No. A56-10086/2024; Resolution of the Arbitration Court of the Moscow District dated January 24, 2025, in case No. A40-25829/2024.