In today’s world, business has stepped far beyond the borders of one state. More and more organizations in their work are tied to foreign partners. There is a need for international cargo transportation. Road transport has always been and remains the most mobile and optimal way to deliver goods.

International transportation of goods implies the possession of a large amount of information. In the process of their organization it is necessary to correctly draw up documents for customs clearance, take into account the nuances in the selection of transport, and much more. Let us consider the basic issues relating to the legal side of this activity.

Responsibilities in the organization of international cargo transportation

In contrast to the transportation within Ukraine, the movement of goods between countries occurs with the intersection of borders, with a visit to ports, airports, and registration at customs. Due to the large number of mandatory procedures there is a need for a variety of paperwork. All certificates, licenses, itinerary sheets, permits must be executed in strict accordance with the laws of countries, through which the goods move.

Errors in the documents may lead to delays in terms of delivery and demurrage. If we are talking about the transportation of perishable goods, the presence of inaccuracies in the paperwork is unacceptable.

One of the important issues in the organization of international cargo transportation is the safety of goods under different climatic conditions. It is important to provide vehicles with necessary climatic equipment. This factor is often overlooked when planning trips to distant countries, which subsequently leads to the deterioration of goods.

What companies can perform international cargo transportation

For the organization of any international cargo transportations it is necessary to issue a license. It is required for the transportation of ordinary goods as well as for hazardous goods. To pass the legalization, it is important to determine the characteristics of the goods and the direction of transportation. It does not matter whose goods need to be transported. It will be required for both your own and client’s goods.

License for international cargo transportation – what is important to know:

1. For its issuance it is necessary to apply to the State Service “Ukrtransbezopasnost” in Kiev.
2. The service accepts documents by mail.
3. The documents are filled out in accordance with the established form, fixed by the government decree.
4. The registration of the license takes 10 days.
5. The license is valid for an indefinite term.

If necessary, additional vehicles can be added to the license for international cargo transportation in Ukraine. It follows that one cannot have two transport licenses. Therefore, the owners of the existing license for cargo transportation need to apply for an extension of the existing one. In an attempt to obtain a second document the applicant will be denied. This situation is common among those who were previously engaged in passenger transportation and then decided to transport international cargo.

How to get a permit for international cargo transportation in Ukraine

The legislation of Ukraine has a procedure for carrying out road haulage. According to it, to carry out lawful activity requires a license.

Getting a permit to perform international cargo transportation is not always easy. Nevertheless, the document opens up new opportunities for the owners of vehicles. International flights are more profitable from an economic point of view and bring substantially more income.

The permit document is issued by a legally established body. The state service “Ukrtransbezopasnost” is located in Kiev and is the only authorized body in this field. Even if there are territorial departments of the service, none of them has a right to issue permits. It is worth to keep in mind this moment if a legal entity is located in another region of the country.

License for international cargo transportation

When may need a license? The development of international relations of Ukraine contributes to the turnover of goods. This requires a well-established work on the delivery of goods between countries. To carry out such activities a license is required. This is stipulated by Ukrainian legislation.

A license for international carriage of goods is required in cases where the movement of transport is carried out on the territory of more than two states. A license is not required for transportation of goods for personal use with a mass not exceeding 0.5 t. Compulsory licensing is required in the following cases:

• transportation services for the transportation of passengers
• transportation of dangerous goods by truck
• transportation of simple goods

The following set of documents must be prepared in order to apply:

• an extract from the register
• bank details of the servicing bank with e-mail and phone number
• copies of identification number and passport of the businessman or director of the legal entity
• Information about material and technical base, or a copy of the contract with the ATP
• copies of vehicle registration certificates
• technical passport of a vehicle
• copy of temporary registration card
• evidence of passed technical check-up
• confirmation of tachographs working properly
• copies of educational certificates of persons responsible for organization and safety of transport
• employment certificates of drivers
• medical check-ups for drivers
• international insurance policy

The list is approximate and could change slightly in each specific case.

What is the algorithm of obtaining the license

First of all, the owner of the vehicle must apply to the authorized body. A certain package of documents must be attached to the application.

Then there is a meeting of the licensing commission, which considers the application. According to the results of the meeting the decision about the satisfaction of the request, about the delivery of the missing documents or about the refusal is made. A positive decision means that the license is granted. In case of refusal, the commission publishes a notice on its official web resource. After the publication of the notification about the issuance of the permit for international cargo transportation in Ukraine the applicant must pay a sum of money equivalent to the amount of the subsistence minimum.

In the requirements Ukrtranssbeksopasnosti points out that the data on the location of the legal entity or entrepreneur with the information that is specified in the Unified State Register of Legal Entities. The same requirement applies to the type of economic activity.

In addition to all of the above, the presence of its own material and technical base is required:

• A staff of specialists in the maintenance of vehicles
• parking lot
• Regular vehicle repair or contract for the provision of repair services with a third party organization

For those who do not have their own resources for the maintenance of vehicles and uses the services of transport companies, it is important to properly draw up a contract. The main problems in obtaining a license relate to those cases where the contract with the ATP is not properly executed.

The contract should be part of the mandatory package of documents for obtaining a license. It is not required only if the parking and repair service is registered in the name of the applicant.

The main mistakes of applicants for a trucking license

The main errors include the following violations:

• There are no attachments to the contracts to which they are referring
• The term of the contract has expired or is not defined
• the contract lacks information about places for parking, repair and maintenance of vehicles
• contracts with validity over 3 years were not notarized
• Data on ATU or lessor does not match the information in the USR

Each contract must contain information on the ATP’s obligations for:

• storage of vehicles
• pre- and post-ride inspection of technical condition of vehicles
• technical maintenance and repair of motor vehicles
• Organization of medical examination of drivers going to a trip.

In addition, for the technicians themselves there are also strict requirements, as they have the responsibility to monitor the technical condition of the vehicles. Their duties include inspecting, maintaining and repairing vehicles. Applicants for the technician position must have a vocational or higher education in the fields related to the maintenance and repair of vehicles.

When applying for a license to carry out international cargo transportation, it is mandatory to specify information about the employment of specialists and their specialized education. This information is mandatory. However, if there is a contract with the ATP, information about the technical staff is not specified.

Pay attention that a license for the international transportation of dangerous goods and waste can be issued only if you have at least 3 years of experience of transportation of such goods on domestic routes. For other activities experience is not required.

What may be the reasons for refusal of a license for international cargo transportation? As a rule, the application is not considered in the following cases:

• The information provided is erroneous or false
• The applying organization is in liquidation or bankruptcy proceedings
• The drivers entered in the application are deprived of the right to drive a vehicle
• There are law violations or unpaid debts

In order to avoid mistakes in the paperwork when applying for a license, it is important to consider the nuances described. It is recommended to contact a professional if possible. This will help save time and avoid rejection.

Is a license required for the transportation of non-standard cargo

Carriers often have uncertainty whether a license is required for the international carriage of non-standard goods in Ukraine?

1. Oil products

In addition to various industrial goods, petroleum products are transported internationally. Are gas cylinders and flammable liquids among the licensed cargoes? Special vehicles are used to transport any petroleum products. Vehicles are designed for safe transportation.

If we consider what materials are hazardous, they are harmful to human health and the environment. That is why compulsory activity licensing applies when cargoes are hazardous and flammable substances:

• petroleum products, including diesel and gasoline
• motor fuel mixtures
• liquefied gas for automobiles

Based on this, we can conclude: to transport petroleum products requires a carriage permit.

2. Foodstuffs

The legislation is clear that all international transport is subject to licensing. However, there is no direct instruction concerning the transport of foodstuffs. Yet it is worth paying attention to the nature of the transport itself:

• If the transportation of food is in the form of a transport service for a third party, the carrier is required to have a license
• No special permit is required for transporting foodstuffs in one’s own vehicle for personal use

To avoid confusion, it is recommended not to indicate the cost of delivery service in a separate column in the accompanying documents.

Dangerous goods

It is worth to understand which of them are classified as dangerous. According to the Ukrainian legislation these are:

• Products and materials, which in the process of transportation can provoke a fire, explosion, can cause harm to human health and lead to his death, damage to the environment
• Liquid, solid and gaseous explosive and flammable substances containing acids and oxidizing agents, etc.

Among the licensed types of cargo transportation includes road transport of dangerous goods. Thus, the transportation requires a mandatory authorization document.

Documents for the international carriage of goods

When preparing to carry out transportation activities, you need to study what documents are required for this. What papers must the shipper and consignee prepare? The driver of the transportation company is also required to prepare a certain list of documents.

First of all, consider the documents of the carrier. They must be with the driver:

1. CMR set with the seal of the carrier and the shipper.
2. Technical passport. It specifies the data on the vehicle in which the international carriage will be carried out.
3. Driving license – indicates the right of the driver to move in this rolling stock in accordance with the category.
4. TIR Carnet (TIR carnet), if the journey takes place under TIR.
5. Permits. Can be bilateral or trilateral, depending on the route of the transport.
6. CEMT or EKMT – multilateral permit issued for transportation in the territories of EKMT member states or for transit through one of them.
7. Certificate of sealing. It confirms the right of the vehicle for the carriage of goods under customs control.
8. ADR permit. Issued in case of transportation of hazardous substances.
9. CMR insurance. With this insurance, the driver is required to have the documents of this policy.

This is the list of documents that must be provided by the driver, representing the interests of the transport company. Consider the documents for the international carriage of goods, which must be issued by the sender to the driver after he has made and leaves for the trip.

1. Invoice. It specifies the amount of the transaction between the sender and recipient, and the main nomenclature of goods.
2. The packing list. It is painted all the nomenclature of goods, the quantity.
3. Certificate of origin. It specifies where the goods were produced, what company produced, if any supporting documents (licenses).
4. CMR, filled by the sender. The driver represented by the transport company provides a blank CMR form, and the sender fills in all necessary boxes.
5. TIR Carnet. If it is available, it is drawn up by the consignor.

List of documents that may be required for transportation from/to EU countries:

Transit declaration T-1, works in the EU.

1. Declaration EX-1 is an export declaration, which is issued at the border crossing.
2. The above lists of documents will be needed for international shipments.

What is CEMT and EKMT

EKMT is the abbreviation for the European Conference of Ministers of Transport. The abbreviation CEMT means the same organization, the only difference is the translation of its name from French. The organization is engaged in the creation of interstate transport system. Its main priorities are:

• high economic efficiency indicators
• road safety
• compliance with environmental protection standards.

The EKMT permit can be issued for a period of 30 days or 1 year. There is no limit on the number of journeys made during its validity period. However, the permit may be revoked if less than 26 trips have been made or no trips have been made during the three-month period.

You can obtain an ECMT permit after the vehicle has undergone a special technical inspection. The report must state that the vehicle is in good condition and does not exceed the EU standards for noise and air emissions. Before applying for a permit it is necessary to have a valid license for international haulage.

Certain conditions must be met in order to carry out transport activities. The EKMT permit must always be available. In case the dates of the trip overlap the old permit and the next one, you must have both papers with you.

The flight must start from the territory of the country where the transport company or vehicle was registered. A minimum number of loaded trips are allowed without registering in the country. However, travel through the country of registration is not considered a return. This should be taken into account. In case of non-compliance with the rules, the permit is withdrawn. The procedure of withdrawal is carried out by the authorities that make the registration.

Insurance in the field of trucking

Performing international shipments is a risky business, as goods can be lost or damaged. Unwanted events are associated with unplanned financial expenses for non-fulfillment of contractual obligations. To protect against such situations there is a freight insurance policy.

Cargo insurance implies that the object is cargo or luggage, which is transferred to the carrier for transportation or temporary storage. Special attention is paid to hazardous cargo insurance. Insurance rates for them are considerably higher than for ordinary luggage. Insurance contract starts at the moment of vehicle departure and lasts till the moment of arrival to the destination place.

When transporting by road you should follow the terms and conditions of the insurance contract. According to the documents risk coverage may occur in the following cases:

• the vehicle performing the transportation gets into an accident
• Natural disaster, explosion, flooding, fire, etc.
• cargo damage

The cargo insurance agreement specifies the object to be insured and its rates, insured risks and cases of their occurrence. The terms of agreement and procedure of payments in case of insured event occurrence must be paid attention to.

How tariffs are formed for cargo insurance

Cargo insurance is made taking into consideration the analysis of potential risk factors. On their basis, the amount of insurance coverage and insurance premium are determined. The following data is taken into account to determine the cost of policy:

• specification of the goods, their size, weight, material, cost, shelf life, etc.
• Type of packaging (the probability of the insured event depends on it)
• Value of the cargo (taken into account when assessing risk of theft).
• type of transport used (the risk degree may be taken into consideration)
• the duration of the trip (risk level may vary depending on that)
• weather and seasonal effects
• technical condition of the vehicle, its age and other peculiarities.

After the assessment of possible risks the sum of insurance coverage is determined. Insurance sum is determined on the basis of rates and coefficients, as well as the value of insured property.

Insurance of cargo by marine and railway transport has its own peculiarities.

Actual losses are indemnified

• in case of damage or destruction of the cargo protection is provided
• even if transportation is combined, insurance coverage is provided for the entire transit route.

If a company organizes regular transportations, it is worth arranging an insurance policy with a validity period of 1 year.

Settlement of losses in transport insurance

In the course of transportation, property losses may occur. What kind of help do insurance companies provide for their compensation?

• timely inspection of the accident place
• early case evaluation
• drawing up of relevant documents
• expert analysis
• payment of insurance compensation

To determine the amount of compensation, the following work is carried out:

• ensuring prompt arrival of emergency services
• Determination of risk type of the event
• negotiations with the police at the site of the accident
• loss assessment
• collection of documents for compensation
• negotiating bills with repair shops

Going through customs control

Customs inspection is a necessary step in order to make sure that the goods transported correspond to the information in the documents. Sometimes the inspection may be carried out in order to detect violations of the law. Only authorized persons may carry out the inspection.

The driver is informed in advance of the impending inspection. Notification of the inspection may come from the carrier itself, from the declarant or the forwarding agent. The time of inspection must be known to the driver in order for him to be able to attend in person. However, attendance may be voluntary unless the customs authority does not require it on a mandatory basis. As a rule, he takes this step if he suspects any irregularities.

When the presence of a responsible person is not necessary:

• Transmission by international mail service
• The declarant or his representative does not arrive on time
• There is a violation of the customs clearance procedure
• security risk
• the shipment may cause damage to the environment and to human beings
• preservation of objects of cultural value is in doubt

In all of the aforementioned cases, customs officials have the right to conduct an inspection without the presence of the person responsible. However, the presence of official witnesses is required. They replace the declarant.

Upon completion of the customs control, an act on the performed inspection shall be issued. The data of the persons present shall be written in the document. The document is drawn up in two copies. The first copy is kept by the customs, the second is given to the declarant or to a responsible person.

Types of Customs inspections

A customs inspection, whether it is an inspection of goods or a vehicle, is an examination by authorized officials of the goods being transported or of the vehicle itself. In the course of an inspection, seals, stamps or other identification options may be removed. Inspection is carried out by opening packages and containers, containers, boxes, cargo compartment of the vehicle, as well as other places where goods can be transported.

As a general rule, inspection may take place only after the submission of a declaration of transported goods. But there are some exceptions:

– The inspection is carried out selectively

– Prior to the lodgement of the declaration, in order to verify the conformity of the goods

– To check reports on violations of customs legislation of Ukraine.

The main types of inspections are described below.

Depending on the type of inspection, the goods can be counted, reweighed, partially or fully opened. It is also possible to take a sample for analysis. After the end of the inspection, special marks are put on the goods to protect them from tampering.

If damage to the goods is detected after the inspection, the involvement of Customs representatives has to be established. If the legality of their actions is confirmed, no compensation will be paid.

Attention should be paid to the demands of customs representatives. Illegal crossing of the customs zone and non-compliance with the requirements of the officers will entail penalties in accordance with the legislation of Ukraine.

How customs clearance procedure takes place

The legislation in the field of customs regulates the activities of the transport system. The norms for passing goods across the border must be adhered to. Customs clearance is an obligatory formality. For this purpose goods imported or exported from Ukraine should be declared and the aim of their transportation should be stated.

According to the Article 247 of the Customs Code the goods are cleared

• round-the-clock at the state customs checkpoint
• During working hours at authorized subdivisions

Two versions of the filled in declaration are accepted: written and electronic. The following documents may also be required for customs clearance:

• Information on the registration of the company/legal entity with the state customs office
• Contract for carrying out foreign economic activity
• The goods code (UGT VED) must be checked against the UGT VED (Classification of Foreign Economic Activity) code.

In addition, depending on the type of cargo it may be subject to additional control: veterinary, phytosanitary and others. Thus, certain groups of goods are subject to control according to the UCG FEA code.

It is recommended to have an employee knowledgeable in customs matters in order to pass the control competently. If there is no such possibility, you can use the services of professional brokers. Competently drawn up documents for international transport of goods greatly facilitate customs control. Specialized companies provide such services. Specialists with years of experience deal with issues related to foreign economic activity responsibly and professionally.

Import customs clearance

Foreign goods imported into the territory of Ukraine are processed as import. Incoming goods are intended for free circulation and may be sold on the domestic market. In order to legally import goods into the territory of the country the following must be done:

• Submit a confirmation to the customs authority for the importation of products
• Pay customs duties and charges
• Provide an import license

The import clearance procedure is as follows:

1. The economic feasibility of importing into the territory of the country is determined, the amount of duty and a list of necessary documents is specified. At this stage it may turn out that importing goods is not economically viable.
2. Hire a customs broker.
3. Carry out the company/legal entity accreditation procedure at Customs.
4. Determine the appropriate customs regime (leasing, temporary import, commission, etc.).
5. Sign foreign trade contract.
6. Draw up contract for forwarding services.
7. Calculate the cost of imported cargo, taking into account taxes, duties and other fees.
8. Make payment to the customs authorities.
9. Draw up a preliminary declaration, using the services of a customs broker. This will avoid unnecessary delays and downtime during the border crossing.
10. Draw up the goods and import them into Ukraine.

Depending on the characteristics of the imported goods, additional documentation may be required:

• Sanitary and epidemiological service report
• ecologo-radiological examination
• phytosanitary certificate

Attention should be paid to the rules of importation into the country and compliance with the legislation. You can entrust this task to customs brokers, who know the intricacies and documents for the international carriage of goods. In order to avoid difficulties in the design of declarations and other documents, it is worth seeking qualified assistance from professionals.

Customs broker – a luxury or a necessity

The transport of goods requires the preparation of a number of compulsory documents. Often it requires a lot of effort and time and knowledge. For this purpose, it is recommended to use the services of professionals.

A customs broker is a person who acts as an intermediary between Customs and the importer/exporter. The broker represents the legitimate interests of the employer and may act on his or her behalf. The main functions of a broker are:

• Providing information and documents necessary for clearance at customs
• Declaration of goods and transport
• payment of duties and fees
• Registration of permits at government offices
• Organization of storage and shipping

We can say that a customs broker takes on the functions of control over the proper clearance of imports and exports of goods. Broker services are in demand due to the increasing flow of imported goods and the complexity of the paperwork.

If you try to go through all the procedures yourself, it can take a disproportionately long time. At the same time there is no guarantee that without lack of knowledge in the field of customs legislation will be able to pass clearance the first time. Any delays related to the movement of goods directly affect the further commodity chain and entail financial losses.

Those who have been burned more than once by doing the paperwork themselves prefer to go to professional brokers. Brokerage companies have all the necessary skill sets for successful activities.

Customs clearance involves a whole list of mandatory procedures:

• verification of supporting documentation
• payment calculation
• inspection
• adjustment of currency and customs value
• Passing customs control

Ukraine has a well functioning network of brokerage services. You can always choose a reliable partner to accompany the importation of goods.

Powers of a customs broker

Brokerage companies have competencies based on the authorization issued by the Ministry of Revenue and Duties of Ukraine. The relationship between the broker and the importer/exporter is fixed by a contract that spells out the terms of cooperation.

The customs broker independently determines the scheme of clearance, which takes place in strict compliance with the norms of legislation. The broker is authorized to represent his client, and bears liability of a material and criminal nature. In the case of an improperly executed written contract, the broker’s actions are illegal.

The broker has the rights to represent the client in customs authorities on the basis of the following documents:

• a permit registered in the State Register to perform brokerage activities
• a contract for the provision of customs clearance services

Services of the brokers registered in the State Register guarantee legal documentation and the reliable completion of official procedures. The broker is responsible for his actions, in case of violation he is liable to a fine. For a serious violation, the license to operate may be revoked. Then the broker enters into the so-called black list. It is worth carefully selecting a specialist.

Specialized agencies for brokerage services introduce special software, which allows electronic record keeping of documentation. This, in turn, minimizes errors and speeds up the processing of information. In general, this has a positive impact on the speed of processing documents at the checkpoints.

Benefits of Cooperation with Customs Brokers

Customs clearance is a complex and time-consuming procedure. Successful paperwork requires knowledge of specific legislation and its many nuances.

Cargo carriers get a number of advantages if they decide to seek help from specialists:

• working schemes for the clearance of goods
• qualified maintenance of documentation
• prompt notification when payments are due
• Several options are available for processing at appropriate times
• Professional contacts for non-standard solutions
• liability insurance
• financial guarantees
• guaranteed passing customs control

Types of international cargo transportation and their advantages

Transportation of goods from one country to another by any mode of transport is called an international cargo. For the implementation of the transit between countries uses different transport. Depending on the characteristics of the route sometimes a combination of several modes of transport is used. Each of them has its own advantages, which allow delivery under any conditions.

The right transport for transportation is the key to successful delivery. Therefore, it is worth carefully considering the advantages and disadvantages of each mode of transport in the countries through which the route runs.

In Europe there is a well-developed road network and conditions for road transport. For the delivery of goods from Asian countries or China it is advantageous to use sea or air delivery.

Outsourcing in the field of international cargo transportation

Outsourcing companies that provide services in the field of international transportation have become widespread in recent years. Carriers turn to companies for one-time assignments or continue to cooperate on an ongoing basis. The main benefit from cooperation with outsourcing companies is saving money.

Outsourcing in international trucking demonstrates the benefits:

1. Turning to the services of outsourcing companies saves not only money, but also valuable time. The benefits are obvious: paying for one-time services is more profitable than keeping a permanent employee on staff.
2. The professional competence of outsourcing companies reduces the risks when dealing with regulatory agencies.
3. Small trucking companies can gain access to the international market only through cooperation with outsourcing companies. Professional lawyers and logisticians have extensive experience in planning freight transportation schemes.
4. Turning to the services of outsourcing companies reduces unnecessary links in the transportation chain. Thus, working with one company provides a stable documentary support. Obviously, it is much easier to control a single performer than to interact with several organizations.

It should be understood that companies engaged in international outsourcing have a strong staff of lawyers. Their strengths are proficiency in foreign languages and understanding of international law.

In addition, the presence of professional logistic engineers helps to correctly allocate cargo, calculate the best route. In addition to this, companies provide accounting audit services.

To sum up, if a small haulier has insufficient funds to maintain a large staff of specialists, it is possible to use the services of outsourcing companies.

Людмила Логистик УКР

Эксперт в сфере транспорта и логистических процессов