The international CMR waybill and its role in the e-commerce industry

What Is the CMR?

The term “CMR” refers both to the international waybill widely used in the transport industry and the CMR Convention, which forms the basis for this document.

What does the acronym CMR stand for?

CMR is an abbreviation of the French phrase Convention relative au contrat de transport international de Marchandise par Route, meaning the Convention on the Contract for the International Carriage of Goods by Road.

The CMR Convention

Signed in Geneva in 1956, the CMR Convention addresses many issues related to international transport. Importantly, the convention is the foundation for the CMR waybill, which has been in use since 1958. This document is mandatory and legally binding in most European countries as well as some nations in Asia and North Africa.

What Is the CMR used for?

The CMR document serves as proof of a national or international freight contract for profit-making purposes. Additionally, it identifies who is responsible for potential loss or damage to a shipment.

Notably, the CMR applies to all international profit-based transport except for:

1. Transportation of household goods.
2. Transport of human remains.
3. Shipments under international postal conventions.

Who issues the CMR?

The responsibility for issuing a CMR typically falls on the carrier or the sender once a transport order is placed. However, the exact issuing party is not defined in transportation law and is usually specified in the agreement between the parties.

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How many copies of the CMR are issued?

CMR waybills are usually issued in three or four copies. It is common practice for each copy to have a different color, corresponding to a specific recipient:

1. Red (Copy 1): For the sender.
2. Blue (Copy 2): For the recipient.
3. Green (Copy 3): For the carrier.
4. Black (Copy 4): For administrative purposes (optional).

CMR Template

While there is no single, unified CMR template, the convention specifies the mandatory information that the CMR must contain.

What information does the CMR include?

The CMR Convention specifies the following details that must be included:

• Information about the sender, carrier, and recipient: name and address.
• Places of issuance, receipt of goods, and delivery.
• Dates of issuance and receipt of goods.
• Type and method of packaging.
• Quantity, numbering, and identifying marks of transported goods.
• Gross weight of the transported goods.
• Freight charges.
• Customs instructions.
• Insurance instructions.
• Details about the goods and ADR labeling for dangerous goods.
• A statement that the transport is subject to the CMR Convention.

Additional information may include:

• Prohibition of transshipment.
• Costs borne by the buyer.
• Advance payment amounts and deadlines.
• Delivery timeframes declared by the carrier.
• A list of documents received by the carrier.
• Value of the goods.

CMR documents and 0% VAT rates

The CMR is often used for tax purposes, particularly in cases of international sales. For sales to taxpayers in other EU countries, tax regulations require sellers to have proof that goods were exported from Poland. If such documentation is lacking, the seller must apply the domestic VAT rate (e.g., 23%). Possessing a CMR allows the seller to apply a 0% VAT rate for intra-community supply of goods (ICS).

Proof of goods leaving Poland is also required for sales to private individuals under the VAT OSS procedure. Archiving CMR documents is crucial for potential disputes with tax authorities.

CMR and eCMR – The electronic CMR waybill

The eCMR, or electronic waybill, contains the same information and serves the same purpose as the paper version—facilitating international and domestic transport at various stages of the supply chain. It must be authenticated with a qualified electronic signature and can only be issued by authorized entities.

Introduced on June 5, 2011, the eCMR is now used in 36 countries, including Austria, Belgium, Bulgaria, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Poland (since 2019), Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland, and the United Kingdom.

Advantages of the electronic CMR waybill

The eCMR offers benefits such as:

• Tracking the shipment’s route and estimating delivery time.
• Faster and cheaper processes due to the digitalization of waybill issuance and processing.

Other types of waybills

Besides the CMR, several other waybills are used in the transport industry, including:

• CIM and SMGS: For rail transport.
• B/L (Bill of Lading): For sea transport.
• Air Waybill: For air transport.
• HAWB (House Air Waybill): For consolidated shipments, issued by carriers to exporters.
• MAWB (Master Air Waybill): For bulk shipments destined for the same location, issued by freight forwarders.

How Taxology can help your e-commerce business

In e-commerce, dealing with the CMR is just one of many responsibilities. When shipping goods to foreign warehouses or selling to international customers, you also need to consider VAT-related aspects, including tax filings, which vary across EU countries and the UK.

If VAT compliance poses challenges, we can help. Schedule a consultation, outline your issues, and our VAT Compliance specialists will handle the rest.

Conclusion: The CMR’s Role in E-Commerce

The CMR waybill is an indispensable element of international road transport, ensuring clarity and security in relations between senders, carriers, and recipients. Its role in e-commerce, particularly in global shipments, is critical for organizing efficient deliveries and safeguarding the interests of all parties involved.

As digitalization progresses, the eCMR accelerates logistics processes, making them more transparent and efficient, benefiting both businesses and consumers. Additionally, the CMR plays a vital role in applying 0% VAT rates or the VAT rate of the recipient country.

For international transactions or goods transfers, VAT compliance is essential. If you need support with VAT settlements or filings, we’re here to help. Schedule a consultation and let our specialists take care of the rest!