Key law for international trade and transport

What is international shipping?

International transportation refers to the movement of passengers or goods between two countries. These countries can be connected by land, sea, or air borders. Transportation and distribution play a key role in boosting international trade. Companies must choose the right mode of transportation to ensure that their packages are transported efficiently and cost-effectively. Several factors influence a company’s choice of transportation method. These factors include business needs, final destination, and type of goods.

The four main methods for importing and exporting in international transportation are: Road, sea, rail and air transportation. As a first step, companies should thoroughly evaluate the aspects of their project and be aware of the details of the goods to be distributed, such as their size, weight and type. For example, in the transportation of food or fruit, speed is of the utmost importance and choosing the fastest and shortest route is essential. The shipping cost is also one of the fundamental factors that depends on the agreement between the parties to the transaction. In addition, factors such as the destination, the laws of the countries, the value of the goods and the risks of transportation must be taken into account.

Therefore, a person who intends to do business through international transportation must carefully consider criteria such as quality, cost, time, and conditions to choose the best option. Now it is necessary to analyze the processes and benefits of each of the international transportation methods.

Customs laws

These rules are the backbone of any national trading system and help regulate imports and exports. They include things like customs tariff rates, lists of prohibited goods, and inspection procedures. Customs rules may vary from country to country, but are often based on World Trade Organization (WTO) principles. These rules help facilitate trade, prevent smuggling, and protect domestic industries.

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Incoterms (International Trade Terms)

Incoterms help traders and shippers to make responsibilities, costs, and risks in international contracts clearer. For example, the term “FOB” (Free on Board) specifies that the seller delivers the goods to the ship’s deck and that the buyer is responsible for all costs thereafter. The 2020 edition of Incoterms includes 11 updated terms that are widely used in international trade.

International transportation

TIR Convention on International Road Transport

The TIR Convention is one of the oldest road transport systems, created in 1975 by the United Nations Economic Commission for Europe (UNECE). It allows goods to be transported between member countries without the need for full border checks. Containers and trucks under the TIR system are sealed and checked only at origin and destination, except in suspicious cases.

CMR Convention Convention on the Carriage of Goods by Road

The CMR Convention defines the commercial and legal relationships between the carrier, the consignor and the consignee of goods in road transport. This convention covers issues such as the rights and obligations of the parties, the limitation of the carrier’s liability, and the procedure for dealing with damages resulting from delay or loss. The main document of this convention is the CMR consignment note.

ADR Convention on the Transport of Dangerous Goods

This convention defines safety standards for the road transport of dangerous goods, including packaging, labeling, and safety training. Dangerous goods are divided into nine classes (e.g. explosives, gases, toxic substances), and each class has specific transport conditions.

ECO Trade Transit Agreement

This agreement allows ECO member countries (such as Iran, Turkey, Pakistan, and Afghanistan) to transport their commercial goods with minimal restrictions. The goal of the agreement is to develop regional trade and reduce transportation costs.

Harter's Law

The Harter Act, passed in the United States in 1893, was designed to protect cargo owners and combat shipping line abuses. It specifically requires ships to provide safe and seaworthy vessels.

The Hague Convention or Hague

This convention was created in 1924 to standardize the legal responsibilities of maritime carriers. Matters such as the carrier’s maximum liability for damages and the conditions of exemption are specified in this convention.

Visby Convention

This convention was adopted in 1968 as an amendment to the Hague Convention. Its changes mainly included increasing liability limits and improving conditions for containerized transport.

The Hague-Visby Convention

It is a combination of the Hague Convention and the Visby Amendments. It provides modern rules for the carriage of containers by sea and addresses issues such as liability for damage to containers.

Hamburg Convention

This convention was adopted in 1978 and amended the terms of the Hague-Visby Convention. Its main emphasis is on a greater balance between the rights of cargo owners and shipping lines.

York-Antwerp Convention

This convention is designed to manage joint losses. In an emergency, if the ship’s captain decides to dump some of the goods overboard to save the life of the ship and crew, the costs are divided among the owners in proportion to the value of the goods.

Chicago Convention

This convention, signed in 1944, defines the principles of states’ sovereignty over their airspace and provides a framework for international cooperation in aviation.

Warsaw Convention

This convention was adopted in 1929 and established air transport rules to standardize contracts and airline responsibilities.

Guatemala and Guadalajara Protocols

These protocols are amendments to the Warsaw Convention and address issues such as the carriage of goods by third parties (such as aircraft lessors).

Tokyo Convention

The convention covers unlawful conduct on aircraft, such as acts of violence or threats, and allows countries to address these cases.

The Hague Convention (Aviation)

This convention is dedicated to preventing the unlawful seizure of aircraft (hijacking) and provides solutions to combat it.

Montreal Convention

The convention was adopted in 1971 and focuses on preventing unlawful acts against aviation security, such as the deliberate destruction of aircraft or airports.

COM International Treaty

This treaty provides comprehensive rules for the carriage of goods by rail, including the terms of liability of railway companies and how contracts are structured.

CIV International Convention

This treaty establishes rules similar to the COM for the carriage of passengers and luggage by rail.

COTIF Treaty

This treaty is an updated version of the CIM and CIV, designed to better coordinate and facilitate rail transport in Europe and the rest of the world.

Zurich convention

This convention concerns the transport of dangerous goods, especially in the air sector. It sets out specific conditions for the packaging, marking and documentation of dangerous goods, which all member states are obliged to comply with.

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Frequently Asked Questions

Reputable international shipping companies provide customers with a wide range of services related to the movement of goods and cargo globally. These services may include the following:

  • Air transportation: Carrying out the movement of goods via aircraft, including processes such as loading, transfer, and unloading at the airports of origin and destination, monitoring and tracking of shipments, preparing packaging and labeling, customs clearance, and final delivery to the customer.

  • Maritime transportation: Management of the transfer of goods via ships and vessels, including container handling, transporting large and heavy cargo, organizing terminals and ports, loading and unloading operations, providing maritime-related insurance services, and customs clearance matters.

  • Land transportation: The movement of goods via land vehicles such as trucks and trains, including cross-border transportation, domestic transportation in destination countries, customs clearance, and logistics facilities.

  • Combined transport: The use of various methods, such as combining air and land transport, sea and land, etc., to effectively move goods from the point of origin to the destination.

  • Customs services: Handling customs matters, including carrying out clearance procedures, preparing customs documents, obtaining required licenses and certificates, providing advice on customs laws, and managing customs-related disputes.

  • Logistics services: Management of all stages of the supply chain, including warehousing, distribution, order management, packaging, route planning, and optimization of transportation processes.

  • Insurance services: Providing insurance coverage related to the movement of goods, such as transportation insurance and marine insurance to compensate for possible losses caused by accidents.

  • Consulting and Support: Providing guidance and support in the field of international transportation laws and regulations, designing transfer plans, optimizing costs and time, customs consulting, and other related services.

Leading international shipping companies usually provide these services using advanced technologies, extensive global networks, and the knowledge and experience of their specialists.

Devices such as airplanes, ships, trains, trucks, and the internet are used for international transportation.

International transportation is very important because it is essential for international trade, cultural exchange, economic growth, and cooperation between countries.

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