Freight Transport & Customs Clearance in Serbia
Understanding custom clearance in Serbia is essential for smooth international freight transport. Defining responsibilities between shippers, consignees, carriers, and subcontractors can be challenging. The combination of INCOTERMS rules (FCA – Free Carrier) and the CMR Convention often creates confusion about who is responsible for customs documentation and clearance. In this article, we clarify the key responsibilities through a practical example.
INCOTERMS FCA Rules: Key Insights
INCOTERMS rules outline the point at which risk and responsibility for goods transfer between the buyer and seller. Under the FCA (Free Carrier) clause, the seller hands over responsibility for the goods to the buyer when the carrier takes possession. From that moment, the buyer assumes the risk of damage or loss.
In our example, the seller (a Russian company) delivered the goods to a carrier engaged by the buyer (a Serbian company). According to FCA rules, the seller no longer held responsibility after this handover. However, customs clearance issues complicated the situation.
The CMR Convention’s Role
The CMR Convention governs relationships between shippers, carriers, and subcontractors in international road transport. According to Article 7(1)(a), the shipper must ensure that information in the consignment note is accurate. If errors cause damages, the shipper is liable to the carrier for compensation.
In the case discussed, the Russian seller initially provided the consignment note. Later, the carrier requested changes, and the buyer approved them despite knowing the inaccuracies. This led to the seizure of goods at the border and legal issues for the subcontractor, who now seeks compensation.
Determining Responsibility
Responsibility depends on several factors:
- INCOTERMS Rules and Custom Clearance in Serbia:
Under FCA, the buyer (Serbian company) assumes responsibility after the goods are handed over to the carrier. However, these rules do not specifically address customs documentation or clearance. - CMR Convention’s Scope:
The seller is liable for incorrect information in the consignment note. However, the carrier and buyer also contributed by requesting and accepting inaccurate changes. Courts may determine shared responsibility, requiring each party to compensate based on their role. - Criminal Liability:
Customs authorities in Latvia handle criminal charges related to the seizure. This liability is separate from both INCOTERMS rules and the CMR Convention.
INCOTERMS vs. CMR: Which Applies?
Both INCOTERMS rules and the CMR Convention apply simultaneously but address different aspects:
- INCOTERMS rules focus on risk and responsibility between buyers and sellers.
- The CMR Convention governs liability during transportation.
In this scenario, customs clearance issues are more influenced by the CMR Convention.
Simplifying Custom Clearance in Serbia
International trade involves navigating complex regulations. To avoid disputes:
- Define responsibilities for customs clearance in your contracts.
- Ensure accurate documentation and clear communication with all parties.
- Consult legal professionals to minimize risks.
Conclusion
Clear agreements and legal guidance are essential for smooth custom clearance in Serbia. Understanding INCOTERMS rules and the CMR Convention helps businesses reduce risks and costs. By addressing responsibilities early, you can avoid complications and ensure successful international trade operations.
AK STATT provides expert legal support for businesses dealing with customs clearance in Serbia. Contact us today for tailored advice on INCOTERMS rules, the CMR Convention, and international trade compliance.