Used car dealers: manage CMR for import
As a used car dealer, importing used vehicles from abroad can be a complex process. One mandatory document that plays a significant role in this process is the CMR (Convention on the contract for the international carriage of goods by road). In this article, we'll explain what the CMR is, how it benefits used car dealers, and what you need to know when importing used vehicles by road.
What is the CMR?
The CMR is an international agreement that regulates the transport of goods, including used vehicles, by road between countries that have ratified it.
Adopted in 1956 by the International Road Transport Union (IRU), the CMR is currently in force in most European countries, as well as many other countries around the world. It is used as proof by tax authorities of the EU.
The CMR is used when the car is delivered to the client via an independent transport company. In case of transport by jockey or by a lorry belonging to your company, the CMR should not be used. In Arval Trading, the document used to follow this kind of transport is a Transport and Delivery Certificate (co called TDC, which is our internal document). It is also used for VAT exemption.
CMR: important proof for sales without VAT
The CMRs represent delivery proof which is recognized by the tax authorities of the European Union, that's why compliance of this document is so important in the intra-community deliveries both for you and for us.
Please note that all the cars sold to you with the 0% VAT rate have to be delivered only to your company’s official premises, only at address of your company confirmed by an official document. The vehicles have to be clearly identified on the CMR with their brands, models and plate or VIN numbers. Any correction of these elements on the CMR is strictly forbidden after delivery of the vehicles.
Please contact Sales Support services if you need additional information about how to fill-in correctly the CMR.
What does the CMR cover?
The convention aims to define the obligations and responsibilities of the various parties involved in the transport of used vehicles: the carrier, the sender, the owner of the goods and the recipient. This clarity is essential in ensuring that each party understands their role and responsibilities in the transport process.
Additionally, the CMR outlines the obligations of the carrier in terms of loading, transport, and unloading of used vehicles. This includes the carrier's responsibility to ensure that the used vehicles are properly secured and handled during transport, as well as their obligation to deliver the vehicles to the recipient in a timely and safe manner. It also sets out the conditions of liability of the carrier in case of damage to the vehicles or delays in delivery. This provides used car dealers with a clear understanding of their rights and remedies in the event of a dispute with the carrier.
Finally, the CMR establishes the rules of evidence in case of a dispute between used car dealers and other parties involved in the transport. This ensures that any disputes are resolved in a fair and efficient manner.
How can the CMR benefit you?
The CMR is particularly useful for used car dealers who regularly carry out international transport of used vehicles.
It provides a clear and precise legal framework for your relationship with the carrier and a certain level of protection in case of dispute. By filling in your CMR properly, you will also be able to create a claim, should you encounter any problem with the vehicle.
Our sales support team is available to help you with the issues you might encounter regarding the CMR document.
Key points to remember
- The CMR is an international agreement that regulates the transport of goods by road between countries that have ratified it.
- The CMR covers a range of important issues, including the definition of the various parties involved in transport and the obligations of the carrier.
- The CMR is particularly useful for companies that regularly carry out international transport of used vehicles, as it allows them to benefit from a clear and precise legal framework.
Conclusion
The CMR is a vital document for used car dealers who transport vehicles from abroad. By understanding the CMR and its implications, you can ensure a smooth and efficient import process, securing and simplifying the management of the risk of delays, damages, and disputes. The CMR provides a clear and precise legal framework that regulates the transport of used vehicles, protecting the rights of all the parties involved. As a used car dealer, it is essential to familiarize yourself with the CMR and its requirements to avoid any potential issues and ensure a successful import process. By doing so, you can mitigate risks, reduce costs, save time in case of issue and focus on growing your business in the competitive used vehicle market.
