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Logistics FAQ

Your most frequently asked questions, our clearest answers. To always have everything under control before, during and after making a shipment with Logistics4You.

WHAT IS THE "CMR CONVENTION"?

The CMR Convention (Convention on the Contract for the International Carriage of Goods by Road) refers to the transportation of goods by road, when the place of loading and delivery are in two different States. It is a transport contract prepared by the sender and countersigned by the courier, as proof of the agreement between the parties regarding the goods to be moved and the terms and conditions of the shipment, which must comply with the CMR International Convention.

WHAT IS A "T1"?

The External Transit (T1) is the external Union transit procedure: it applies to the movement of non-EU goods. It suspends import duties and other charges until the goods reach their destination in the Union. All T1 declarations must be made electronically using the New Computerised Transit System (NCTS). Each T1 document gets a Master reference number (MRN), a unique registration nr, given by the system to the declaration to identify the movement. The T1 is recognizable from the writing “T1” on box 1 of the Single Administrative Document (SAD).

WHAT IS A "T2"?

The Internal Transit (T2) is the internal EU transit procedure: it applies to EU goods where they are moved within the customs territory of the EU, and pass through a Country or territory outside EU, without any change in their customs status. This procedure is not used when the goods are carried entirely by sea or by air. All T2 declarations must be made electronically, using the New Computerised Transit System (NCTS). Each T2 document gets a Master reference number (MRN), a unique registration nr.

WHAT IS THE "ALL RISKS" INSURANCE?

Unless otherwise agreed, shipments by road are carried out following the CMR convention, which provides for a refund for damages of approximately €18/kg. To increase the value of the refund, an All-Risks policy can be activated and it can cover the entire value of the goods. The cost is normally calculated by multiplying the value of the goods by a 0.2 / 0.3 of the value To activate an All Risks policy, you always need: invoice or proforma invoice, photos of the packaged goods and a description of how goods were packaged.

WHAT IS AN "EORI" NUMBER?

EORI means Economic Operators Registration and Identification number. For international shipments over €150, companies and people within EU must have it. It is unique and it gets assigned by the customs authorities of their EU country. It is used in all customs procedures when exchanging information with Customs administrations ans it is useful also for security. If operating in several EU countries, it is requested an EORI number for each Country.

WHAT IS THE DECLARATION OF FREE EXPORT?

For shipments outside the EU, you need to compile customs documents. The Customs requires a photocopy of the ID card of the sender, the proforma invoice and also the declaration of free export. In the Declaration of Free Export you need to enter name and surname of the sender, the full address, the place, date and sign in the end. The document needs to be made before the transit of goods by national customs. It is possible to send it electronically, directly from the company that has to export the goods.

WHICH DOCUMENTS ARE NEEDED TO SHIP TO NON-EU COUNTRIES IN EUROPE?

When you have to ship within Europe, but to a Country that is not part of the European Community (e.g. Switzerland or Norway), you need:
- an invoice or a proforma invoice with an EORI number and the value of the goods
- a declaration of free export
- the CMR contract
Remember also to get the list of articles that are prohibited (or restricted) from shipment to the Country.

WHAT IS A "DGN"

A Dangerous Goods Note (DGN) is a shipping document which must be created by the firm or freight forwarder when sending dangerous goods overseas. The UN Model Regulations classifies goods as hazardous or dangerous under the Dangerous Goods Emergency Action Code List (EAC). The DGN gives port authorities clear instructions on how to handle goods and - based on their risk class - they need to authorize the load and decide on it positioning.

WHAT ARE THE EXCISE DUTIES?

Excise duties are indirect taxes on the sale or use of specific products. They are applied by each Member State of the European Union and all revenue from excise duties goes entirely to the Member State. Excise duties apply both to raw materials / products within the EU and to those imported from outside the EU. Excise duties on imported goods from non-European Union Countries are considered customs duties and therefore need to be handled within the customs operations.

WHAT IS THE CUSTOM WAREHOUSING?

'Customs warehousing' means that non-Union goods may be stored in any premises authorised by the customs authorities ('customs warehouses'). The storage may be for unlimited periods, unless the nature of the goods means that they could pose a threat to health or to the environment if stored for a long term. While in warehouses, the goods will be under customs supervision and will not be subject to import duties or other charges related to the import of goods or to commercial policy measures (such as import licenses).

WHAT IS A “EUR1” CERTIFICATE?

An EUR1 certificate is used to prove the origin of goods moving into EU. The certificate allows traders to import goods from certain Countries at a reduced rate or without paying any duty. It only applies to Countries where such trade agreements had been formalised with EU (eg: Egypt, Tunisia, Israel). It should be completed before shipment. Exceptionally, the customs authorities may issue it retrospectively. In the event of theft, loss or destruction, they can issue it for a “duplicate”, made out on the basis of the export documents.

WHAT IS THE "ECS"?

ECS (Export Control System) is the system to control exports throughout EU. It is designed to standardize communications between Countries and ensure that all processes are performed, from export declarations to exit confirmations. In this way, all exports from EU are proven and the export bills validated for VAT purposes. This allows the registration of the invoice without applying the tax. The electronic export system has been automated and it is now called AES (Automated Export System).

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