THE RHENUS LANDBRIDGE SERVICE CUSTOMS FORMALITIES & REGULATIONS

CROSS-CONTINENTAL RAIL TRANSPORT: CIM / SMGS AIR & OCEAN

1 I. GENERAL PROVISIONS

A. ABBREVIATIONS

TIR CARNET International Road Transport

EU European Union

NCTS New Computerized Transit System

TAD Transit accompanying document

MRN Master reference number

LRN Local reference number

CIM Uniform rules concerning the Contract of International Carriage of Goods by Rail

TABLE OF CONTENTS CIT International Rail Transport Committee

OSJD Organization for Cooperation of Railways

I. GENERAL PROVISIONS 3 SMGS Agreement concerning International Freight Traffic by Rail

A. ABBREVIATIONS 3 OTIF Intergovernmental Organization for International Carriage by Rail

B. DEFINITIONS 3 COTIF Convention concerning International Carriage by Rail

II. INTRODUCTION 4 B. DEFINITIONS

TIR CARNET It is a treaty made to harmonize the administrative formalities of international road transport III. CROSS-CONTINENTAL RAIL FREIGHT TRANSPORT – REGULATIONS 5 NCTS  A tool to manage and control transit system. Based on the use of electronic data processing A. COTIF – CONVENTION CONCERNING INTERNATIONAL CARRIAGE BY RAIL 5 techniques, it replaces the paper-based system

B. OSJD – ORGANIZATION FOR COOPERATION OF RAILWAYS 6 TAD  Accompanies the cargo from the customs office of departure to the customs office of destination

C. COMMON CIM / SMGS TRANSIT PROCEDURE 6 MRN Unique registration number, given by the customs declaration system to the declaration to identify the movement D. REGULATIONS 8 LRN A unique customs temporary registration number assigned by customs for each transit declaration E. CIT MEMBERS AND SMGS PARTICIPANTS 9 before MRN is assigned

F. TRAFFIC AXES 10 RECONSIGNMENT POINT Interface between the CIM and SMGS regimes of carriage The reconsignment point is: G. RECONSIGNMENT POINTS 11 • For CIM SMGS traffic: both the destination point for the CIM contract and the forwarding station for the SMGS contract • For SMGS CIM traffic: both the destination station for the SMGS contract and the acceptance point for the CIM contract

AUTHORIZED CONSIGNOR A person authorized to carry out transit operations without presenting the goods or cargo at the customs office of departure

AUTHORIZED CONSIGNEE A person authorized to receive goods or cargo under transit procedure directly at own premises or other specified places without presenting them to the customs office of destination 2 3 III. CROSS-CONTINENTAL RAIL FREIGHT TRANSPORT – REGULATIONS

A. COTIF – CONVENTION CONCERNING INTERNATIONAL CARRIAGE BY RAIL

The COTIF Convention governs the running of the ‘Intergovernmental Organization for International Carriage by Rail’ (OTIF), its objectives, attributions, relations with respective OTIF Member states, and its activities in general. It comprises the Convention itself and seven appendices which they have together established the uniform railway law including the international carriage of persons (CIV), goods or cargo (CIM), dangerous goods (RID), the use of vehicles (CUV) and the use of infrastructure (CUI) as well as the standardization and approval of railway equipment (APTU / ATMF).

COTIF CONVENTION CONCERNING INTERNATIONAL CARRIAGE BY RAIL

APPENDIX A APPENDIX B APPENDIX C APPENDIX D APPENDIX E APPENDIX F APPENDIX G CIV CIM RID CUV CUI APTU ATMF II. INTRODUCTION

USE Because of the existence of two different legal regimes, rail freight traffic between Asia and Europe must cross an invisible legal border. PASSENGER FREIGHT USE OF OF INFRA- In Europe, the CIM Uniform Rules of the ‘Convention concerning International Carriage by Rail’ (COTIF 1999) mostly applies, meanwhile in TRAFFIC TRAFFIC WAGONS STRUCTURE Russia, China and further Asian countries the ‘Agreement on International Goods Transport by Rail’ (SMGS, 1951) is applicable. The following document specifically describes these two different customs procedures for cross-continental rail freight traffic between Asia and Europe.

The International Rail Transport Committee (CIT) ensures the transposition of international law of carriage by rail in a standardized way and in particular the implementation of Convention of COTIF.

Since the 1st of July 2011, the EU is a contracting party of the COTIF Convention, implying that COTIF is applicable in over 50 States in Europe1, North Africa and the Near East. Concerning customs clearance regulations, in addition to COTIF, the Union Customs Code (UCC) applies in the member states of the European Union.

1 Including 26 EU Member States (all except Cyprus and Malta)

4 5 B. OSJD – ORGANIZATION FOR COOPERATION OF RAILWAYS

The contracting parties of SMGS (The Agreement on International Goods Traffic by Rail) on the other hand, are most of the Asian countries Common CIM / SMGS transit procedure represents an alternative to the classic system of consignment with re-transcription of a SMGS and Russia. consignment note to a CIM consignment note and vice versa.

The counterpart of the CIT, in this regard, is the ‘Organization for Cooperation of Railways’ OSJD. In order to overcome legal insecurity and transport delays caused by the existing dual legal regime, the CIT and OSJD started to work together with the aim to make a common consignment note available. This common consignment note applies as evidence of the cargo’s transport contract and is valid throughout the full length of the transport. It is sufficient for modern requirements of customs.

C. COMMON CIM / SMGS TRANSIT PROCEDURE

Because of the dual legal regime, all rail freight consignments between Europe and Asia have to be reconsigned as they pass from the CIM to the SMGS or vice versa. Consequently, the consignment notes have to be re-written from a CIM consignment note to a SMGS consignment note and vice versa.

GEOGRAPHICAL SCOPE OF CIM AND SMGS LEGAL FRAMEWORKS IN INTERNATIONAL RAIL FREIGHT TRAFFIC

COTIF

EU LAW

CIM / SMGS TRAFFIC

SMGS

SMGS CIM + SMGS Associate Member The applicable customs procedures concerning the common CIM / SMGS consignment note2 aligns with the regulations of the “paper- based transit procedure”. However, some specifications and limitations have to be considered when applying the common CIM / SMGS CIM Membership suspended consignment note3.

2 Example of a CIM consignment note can be found http:www.XXXXXXX.com 3 CIM Article 6 § 8 and SMGS Article 13 form the legal basis for the CIM / SMGS consignment note

6 7 D. REGULATIONS E. CIT MEMBERS AND SMGS PARTICIPANTS

The common CIM / SMGS procedure is only applicable to consignments which: The CIM / SMGS consignment note can only be used by members of the CIT and carriers that apply the CIM Uniform Rules and by the participants of the SMGS: • are initially subject to the CIM Uniform Rules and then subsequently to the SMGS, or vice versa • are presented for carriage with a CIM / SMGS consignment note • are carried by the CIM and SMGS carriers • remain under the supervision of a CIM or SMGS carrier at the reconsignment point 1. CIT MEMBERS 2. SMGS PARTICIPANTS

Azebaijan Railways CJSCo. (AZ) REPUBLIC OF AZERBAIJAN Baltic Port Rail Mukran GmbH (BPRM) REPUBLIC OF BELARUS Before cargo enters the EU, it is necessary to check that the customs security obligations and other customs obligations, which apply to that BDZ Cargo EOOD (BDZ TP) REPUBLIC OF BULGARIA territory, have been fulfilled. ĈD Cargo, a.s. (CDC) PEOPLE’S REPUBLIC OF CHINA Central Railways a.s. REPUBLIC OF It is the responsibility of the SMGS carrier for cargo entering the European Union, to ensure that the details of the contractual CIM carrier CER FERSPED S.A. GEORGIA and the details of “the holder of the paper-based union transit procedure” are visible on the consignment note when “the simplified transit CFL Cargo HUNGARY procedure for rail” applies. National Company for Transport by Rail “Marfă” Romania REPUBLIC OF KAZAKHSTAN (Societatea Natională de Transport Feroviar de Marfă “C.F.R. Marfă S.A. – CFR Marfă) KYRGYZ REPUBLIC This procedure must be fulfilled before the consignment physically enters the territory of the EU, or one of the contracting parties Constantin Group of the EU / EFTA Convention, and is only valid within the territory of the EU for a CTP of consignments originating from states that apply REPUBLIC OF the SMGS. DB Cargo AG REPUBLIC OF DB Cargo Polska S.A. REPUBLIC OF MOLDOVA To ensure this process, the CIM carrier at the reconsignment point has the responsibility to inform the contractual SMGS carrier of the AB DFDS Seaways Lithuania MONGOLIA details that apply in the consignment note. ERS Railways B.V. REPUBLIC OF POLAND Georgian Railways JSC SLOVAK REPUBLIC Grup Feroviar Romăn S.A. (GFR) UKRAINE GYSEF CARGO Zrt. / Raaberbahn Cargo GmbH ITL Eisenbahngesellschaft mbH Latvian Railways (LDZ) Lihuanian Railways plc (AB Lietuvos geležinkeliai – LG) Polish Railways (PKP AG) Rail Cargo Austria (RCA) Rail Cargo Carrier Rft. Rail Cargo Hungaria ZRT. (RCH) Railtrans International, s.r.o. Railways of the Islamic Republic of Iran (RAI) ROFERSPED S.A. (Schweizerische Bundesbahnen AG – SBB) Société Nationale des Chemins de fer Français (SNCF) Ltd. (Slovenske železnice, d.o.o. – SŽ) Société Nationale des Chemins de fer Belges (SNCB/NMBS) Closed Joint-Stock Company “” (CJSC “SCR”) Slovenská železničná dopravná spoločnost, a.s. (SZDS) Mercitalia Rail Srl. UNICOM TRANZIT (UTZ) Public Joint-Stock Company “Ukrainian Railway” (UZ) Slovak Rail Freight Company (Železničná Spoločnost Cargo Slovakia a.s. – ZSSK Cargo) Prvá Slovenská železničná, a.s. MMV Rail Romania Lineas Rail Cargo Carrier Bulgaria Ltd.

8 9 F. TRAFFIC AXES G. RECONSIGNMENT POINTS

Legal guidelines apply only to defined traffic axes: Legal guidelines apply only to defined reconsignment points:

• CIM carriers all traffic axes individually agreed between the customer and the carrier as well as between the carriers themselves • SMGS participants:

STATE TRAFFIC AXES STATE NAME OF RECONSIGNMENT POINT

AZERBAIJAN all lines BULGARIA Varna Paromnaja

BELARUS all lines HUNGARY Eperjeske-Atrako, Zahony

BULGARIA all transit movements via Varna Ferry Port IRAN Sarakhs

CHINA Container trains from China to Europe and in the reverse direction, routed through rail crossing LITHUANIA Draugyste, Sestokai points Alashankou, Manzhouli, Erlian, Suifenhe or Khorgos POLAND Braniewo, Kuznica Bialostocka, Skandawa, Siemianowka, Malaszewicze, Dorohusk, Werchrata, ESTONIA all lines Medyka, Hrubieszow

GEORGIA all lines RUSSIA Luzhskaya, Baltiysk

HUNGARY all lines ROMANIA Cristesti Jijia, Dornesti, Galati Larga, Halmeu

KAZAKHSTAN a) all transit traffic SLOVAKIA Cierna nad Tissou reglement, Mat’ovce reglement SRT b) for import UKRAINE Batjevo, Djakovo, Jagodin, Mostiska, Chop, Vadul-Siret, Paromnaja, Uzhgorod KYRGYZSTAN all lines

LATVIA all lines

LITHUANIA all transit routes

MOLDOVA a) transit traffic on specific routes b) traffic axes for export and import on sections between defined points

MONGOLIA all lines

POLAND PKP Cargo SA – all transit traffic PKP LHS GmbH – Hrubieszów LHS – Slawkow LHS Bartex GmbH – Line: Mamonowo - Chrusciel

RUSSIA all lines

SLOVAKIA for import and export: to and from all stations open for freight traffic all transit traffic to Cierna nad Tisou and Mat’ovce

UKRAINE a) all lines b) in rail-ferry traffic: Paromna (Ukraine) – Poti (Georgia); Paromna (Ukraine) – Batumi (Georgia); Paromna (Ukraine) – Varna Paromnaya (Republic of Bulgaria)

10 11 Rhenus Freight Logistics GmbH & Co. KG

Im Huelsenfeld 25 40721 Hilden Germany

Phone: +49 2103 919 0 Fax: +49 2103 919 616 Email: [email protected] Internet: www.rhenus.group