The CIM consignment note is the contract document used for rail carriage subject to the CIM Uniform Rules annexed to the COTIF Convention; the SMGS consignment note is used for carriage subject to the SMGS Agreement within OSJD. On Europe–Asia routes the two regimes meet; at the transition point either a new consignment note is issued or the common CIM/SMGS consignment note is used.
Two separate bodies of rail law
There are two major legal regimes in international rail freight. The first is the COTIF Convention, administered by OTIF, the Bern-based Intergovernmental Organisation for International Carriage by Rail. The CIM Uniform Rules, forming Appendix B to COTIF, govern the contract for the carriage of goods; they go back to the CIM Convention adopted in 1890. OTIF has 51 members and 1 associate member; Türkiye and most European countries are in this regime. The second is the SMGS Agreement within OSJD, the Warsaw-based Organisation for Co-operation between Railways. Countries such as Russia, Kazakhstan and the other Central Asian countries, China and Mongolia belong to this regime. Some countries are party to both systems; which rules apply is determined by the route and the consignment note.
Comparison
| Feature | CIM | SMGS |
|---|---|---|
| Legal basis | COTIF Appendix B, CIM Uniform Rules | OSJD SMGS Agreement |
| Typical geography | Europe, Türkiye, North Africa and part of the Middle East | Former USSR countries, China, Mongolia and other OSJD members |
| Liability limit | For loss, a maximum of 17 units of account (SDR) per kilogram of gross weight short | According to the current text of the Agreement and the declared value |
| Consignment note | CIM consignment note | SMGS consignment note |
What is the consignment note used for?
The consignment note is evidence of the contract of carriage between the consignor and the carrier and travels with the cargo to the destination station. One copy stays with the consignor; with it the consignor proves that the cargo was handed over and, where necessary, exercises the right to give instructions during carriage. Like the CMR consignment note in road transport, the rail consignment note is non-negotiable and does not represent title; the cargo is delivered to the consignee named in the note.
The common CIM/SMGS consignment note
A shipment between Europe and Asia is subject to CIM law for part of the route and to SMGS law for the rest. In the past, a new consignment note had to be written for the cargo at the station where the regime changed; this meant time and a risk of transcription errors. The common CIM/SMGS consignment note ensures that the same form is accepted as the consignment note in both regimes. Each section nevertheless remains subject to its own law. The rules for the common consignment note are set out in the GLV-CIM/SMGS manual developed by CIT, the International Rail Transport Committee, together with OSJD. The manual has been applied since 2006 and is updated regularly; its purpose is to offer an alternative to rewriting the consignment note at the point where the regime changes.
Role in customs transit
The consignment note is not a customs document, but it is frequently used in customs. In the European Union and the common transit countries there may be simplifications for rail based on the transport document. In the Eurasian Economic Union, too, the transport document can replace the transit declaration under certain conditions. Because the scope of these arrangements varies by country and over time, whether a T1 transit declaration is required should be clarified with the customs broker before shipment.
Points to watch when filling in the consignment note
- Consignor, consignee and station names and station codes are entered in full.
- The description of the goods and the tariff heading match the commercial invoice.
- Wagon or container numbers and seal numbers are entered one by one.
- It is stated clearly who pays the carriage charges for which section.
- Attached documents (invoice, packing list, certificates) are listed on the note.
Common mistakes
- Not planning the regime transition station and the formalities to be carried out there
- Leaving the payment fields blank and ending up in a dispute about charges at destination
- Entering a different weight on the consignment note and in the customs declaration
- Shipping without determining whether the right to give instructions en route (right of disposal) lies with the consignor or the consignee
The rail process is described in the entry rail freight transport, and the road side of carriage under customs control on the bonded and transit transport page.