THE BOARD OF THE CARTAGENA AGREEMENT,

HAVING SEEN: 

Chapter XI of the Cartagena Agreement, Commission Decision 257, and Board Proposal 293;

WHEREAS:

The international transportation of merchandise by road is an effective instrument for consolidating the subregional economic space and achieving the objectives of the Cartagena Agreement;

It is also a valuable integration instrument that provides decisive support for international trade, the competitive expansion of the productive base and the boosting of foreign trade;

As of the entry into effect of Decision 257, the international transportation of merchandise by road has become developed and specialized, undergoing changes in patterns of organization and operation that make it worthwhile to modernize its regulatory framework;

The increasingly demanding international market calls for legislation that will ensure the efficiency of the service by clearly and precisely determining the contract conditions and the responsibilities of both the carrier and the user and the addressee;

DECIDES:

CHAPTER I

DEFINITIONS

Article 1.- The following definitions shall be used for the implementation of this Decision and other Community provisions regulating the international transportation of merchandise by road between countries of the Cartagena Agreement:

Loading Customhouse is that where certain preliminary customs measures are adopted and under whose control the goods are loaded into appropriate vehicles or cargo units that are duly registered, in order to facilitate the beginning of an international transportation or customs traffic operation at a customhouse of departure.

Destination Customhouse is that which is involved in an international transportation operation by road, by assigning the merchandise to a particular customs regime at the request of the interested party, or where an international customs traffic operation concludes.

Customhouse of Departure is that which, in an international transportation operation by road, is involved in the inspection and clearance through customs of the merchandise, or where an international customs traffic operation begins. The customhouse of departure may, at the same time, be the loading customhouse.

Border Crossing Customhouse is that located at the border crossings authorized by the Member Countries, which, while neither the customhouse of departure nor that of destination, is involved in the inspection of the goods transported, the authorized vehicles and the cargo units included in an international transportation or customs traffic operation.

Sphere of Operation is the territory of the Member Countries through which the carrier has been authorized to carry out the international transportation of merchandise by road.

International Road Waybill (IRB) is the document certifying that the authorized carrier has taken custody of the merchandise and has bound itself to transport and deliver the goods in keeping with the conditions established in that document or in the pertinent contract.

National Border Service Center (CENAF) or Binational Border Service Center (CEBAF) located next to the authorized border crossings, is the facilities with their necessary installations and equipment that house the national authorities involved in controlling the transportation, traffic, customs, immigration, health and other operations relating to the access of persons, vehicles and merchandise when they enter or leave the territory of a Member Country and where complementary facilitation services for those operations and user services are also offered.

Certificate of Approval is the document that certifies that a truck or tractor truck is approved to provide the service of international transportation of merchandise by road.

Qualification Certificate is the document that certifies that a carrier has been authorized by the competent national authority of its country of origin to provide the service of international transportation of merchandise by road once it has obtained the corresponding service permit.

Consignee is the individual or company that is empowered to receive the merchandise and that is designated as such on the international road waybill or in an order subsequent to the issue of that waybill. The consignee may also be the addressee.

Container is the transportation element or equipment (portable crate, movable tank or other similar element, together with its accessories, including refrigeration equipment, tarpaulins, etc.) that has the following characteristics:

- It is fully or partially closed and is intended to contain merchandise;

- It is built of durable and resistant material that permits its repeated use;

- It is designed to facilitate the transportation of merchandise by one or several modes of transportation, without any need for manipulation during the transfer process;

- It possesses devices that facilitate its handling and permit its safe transportation, particularly during the loading, transfer and unloading operations;

- It is manufactured in such a way that it can be easily filled and emptied;

- Its interior may be easily accessed for purposes of customs inspections and it has no compartments where merchandise may be concealed;

- It is equipped with doors or other openings outfitted with safety devices that guarantee its inviolability during transportation or storage, and that allow for the placement of stamps, customs seals, inspection seals or other elements of customs security;

- It is identifiable by means of engraved marks or numbers that cannot be easily changed or altered and which are painted for easy recognition;

- It possesses an interior capacity of at least one cubic meter (1 m3).

Contract for the International Transportation of Merchandise by Road, hereinafter the "transportation contract", is the legal act or transaction whereby the authorized carrier makes a commitment to the shipper, upon payment of a freight charge, to transport merchandise by road, from a place where it picks up or receives the goods, to another of destination indicated for their delivery, located in different Member Countries.

Border Crossing is the crossing over their common borders authorized by the Member Countries for the movement of persons, merchandise and vehicles.

Declarant is the person who, pursuant to the national legislation of each Member Country, signs an international customs traffic declaration and, accordingly, assumes responsibility before the customhouse for the information it contains and for the correct execution of the international customs traffic operation.

Addressee is the individual or company in whose name the merchandise is declared or to which it is sent and which is designated as such in the international road waybill or in the transportation contract, or to which the goods correspond as the result of an order subsequent to the issuing of those documents, or by endorsement.

Equipment is the spare parts, tools, replacements, implements and accessories needed for the normal operation of the approved vehicles and cargo units in the international transportation of merchandise by road.

Fleet is the group of approved and duly registered vehicles and cargo units available to the authorized carrier for providing the service of international transportation of merchandise by road.

Approval is the administrative act through which the competent national authority rates a truck or tractor truck as being fit to provide the service of international transportation of merchandise by road.

Land Crew Card is the document issued by the national immigration authority of the Member Country of which the crew member is a national or which granted him/her a resident�s visa. It is issued in the name of an individual at the request of an authorized carrier and permits its holder to enter, pass through, stay in and leave the territory of the Member Countries as part of the crew of an approved vehicle in an operation of international transportation of merchandise by road.

International Cargo Manifest (ICM) is the customs inspection document that covers the merchandise being transported internationally by road from the place where the goods are loaded onto an authorized vehicle or cargo unit, to the place where they are unloaded for delivery to the addressee.

Operation of International Transportation of Merchandise by Road, hereinafter "Transportation Operation", is the series of services performed by the authorized carrier in order to transport the merchandise, from the moment it receives the goods until their delivery to the addressee.

Competent National Authority is the authority responsible for road transportation in each of the Member Countries, as well as for the comprehensive implementation of this Decision and its complementary provisions. The competent national authority in the different Member Countries is as follows:
 

The national customs and immigration authorities are:

CHAPTER II

BASIC PRINCIPLES

Article 2.- This Decision establishes the conditions for providing the service of international transportation of merchandise by road among the Member Countries of the Cartagena Agreement, in order to liberalize the offer of that service.

Article 3.- The offer and provision of the international transportation service is grounded in the following basic principles: freedom of operation; access to the market; national treatment; transparency; non-discrimination; equality of legal treatment; free competition and most-favored-nation.

Article 4.- The Member Countries agree to homologize the authorizations and transportation documents and to eliminate all restrictive measures that affect or that may affect international transportation operations.

CHAPTER III

ON THE SCOPE OF APPLICATION

Article 5.- The international transportation of merchandise by road that is carried out between Member Countries of the Cartagena Agreement or in passage through their territory, shall be governed by this Decision and its complementary provisions.

This legislation is also applicable if the approved vehicle and the cargo unit must be transported over a given segment and without unloading the merchandise, through another mode of transportation, whose use is necessary in order to be able to continue the international transportation, whether such be by sea, river, lake or land.

Article 6.- The provisions of this Decision, as well as the complementary regulations, are also applicable when the crew, with the approved vehicles and cargo units, containers and tanks, travel without merchandise from one Member Country to another in order to start or to continue an international transportation operation, or to return to their country of origin after having concluded such.

Article 7.- The established trips for international transportation of merchandise by road are the following:

a) Between two bordering Member Countries;

b) Between two Member Countries, with passage through one or more Member Countries;

c) From a Member Country to a third country, with passage through one or more Member Countries other than the country where the transportation started;

d) From a third country to a Member Country, with passage through one or more Member Countries other than the country where the transportation will conclude; and

e) To and from third countries, with passage through two or more Member Countries.

For the trips indicated in items c), d) and e), the provisions of this Decision and its complementary regulations shall be applicable only during the journey through the Member Countries.

Article 8.- The international transportation provided by carriers from third countries through the territory of one or more Member Countries, shall be regulated by the national legislation of each of the Member Countries through which they pass or by the provisions of international agreements in force.

Article 9.- The international transportation shall be provided along the routes that make up the Andean Road System and over the authorized border crossings, as well along such other routes and over such crossings as the Member Countries may authorize.

Article 10.- When two or more Member Countries agree to authorize new routes or border crossings for the international transportation among them, those routes or border crossings shall be utilized by the authorized carriers of the other Member Countries.

Article 11.- The qualification certificate and the service permit, as well as the certificate of approval, do not give the authorized carrier the right to provide local transportation of merchandise by road in the Member Countries.

Article 12.- The provisions of this Decision are not applicable to border transportation, which shall be governed by such regulations as the bordering Member Countries may agree upon.

Article 13.- The Member Countries, in their respective territory, shall grant the authorized carriers to which they have issued service permits, the right to offer and provide international transportation service, as well as to open offices and branches.

Article 14.- The Member Countries, in their respective territory, shall grant approved vehicles and cargo units that are duly registered, freedom of passage for purposes of international transportation.

Article 15.- An authorized carrier having obtained a service permit shall enjoy, in the Member Country that issued that permit, treatment that is no less favorable than that which is given to authorized carriers from that country.

Article 16.- The Member Countries shall give authorized carriers to which they have issued service permits, treatment that is no less favorable than that which, in similar circumstances, they grant to carriers from a third country.

Without prejudice to the stipulation of the previous paragraph, bordering Member Countries may grant each other�s carriers special conditions in order to facilitate passage and transportation operations locally, so long as these are limited to the demarcated contiguous border zone.

Article 17.- Any Member Country that adopts a measure affecting international transportation in terms of the circulation of approved vehicles and cargo units, as well as of their crews, shall immediately report it to the other Member Countries and to the Board of the Cartagena Agreement.

This same procedure shall be followed for the signing, adherence to or ratification, as well as the denunciation, of bilateral or multilateral agreements or conventions with regard to international transportation of merchandise by road, signed with another Member Country or third countries.

CHAPTER IV

ON THE CONDITIONS FOR THE TRANSPORTATION

Article 18.- Only a carrier that possesses the authorizations established in this Decision may carry out international transportation of merchandise by road.

Furthermore, that carrier, in providing the service, may not receive treatment that differs according to its form of business organization.

Article 19.- A carrier interested in providing international transportation must obtain a qualification certificate and a service permit.

It must also secure a certificate of approval for each of the trucks or tractor trucks belonging to its fleet, and register them, together with the cargo units to be used.

The international transportation service shall be provided only upon fulfillment of the requirements set out in this chapter.

Article 20.- In order to be able to apply for a qualification certificate and a service permit, the carrier must be legally established in any of the Member Countries of the Cartagena Agreement as a business enterprise.

The organization of the business enterprise shall be governed by the legislation of the Member Country where it was founded and by the Community provisions for Andean multinational enterprises.

The establishment of offices or branches shall be regulated by the legislation of the Member Country where they are set up.

Article 21.- The international transportation of merchandise by road will be carried out under the following modes of operation:

a) Directly, without any change in truck or tractor truck and trailer or semitrailer; or

b) Directly, with a change in the tractor truck, but without any transfer of merchandise.

Merchandise shall be transferred only when expressly agreed upon by the authorized carrier and the shipper and this fact shall be recorded in the IRW.

Article 22.- Any merchandise that is transported internationally by road shall be covered by an IRW and an ICM. Those documents shall be presented for their respective processing, to the customs authorities involved in controlling the operation, a formality that may be accomplished before the arrival of the approved vehicle carrying the merchandise.

Merchandise subject to the international customs traffic regime should be covered by an international customs traffic declaration (ICTD).

Article 23.- The documents cited in the previous article shall be issued by the authorized carrier only for the international transportation operations it carries out.

A carrier holding only a qualification certificate may not issue those documents until it has obtained a service permit allowing it to provide transportation and has fulfilled the other conditions stipulated in this Decision.

Article 24.- The international transportation shall be considered finished when the authorized carrier delivers the merchandise to the consignee or addressee at the place designated for that purpose according to the terms of the IRW, as established in the transportation contract or as provided for in this Decision.

In no case may that transportation be considered interrupted by the fact that merchandise subject to the international customs traffic regime is cleared through customs for consumption in the customhouse of the country of destination authorized for this regime, located in a place other than that indicated in the ICTD.

Article 25.- Drivers� licenses issued by a Member Country and used by the drivers in the international transportation shall be recognized as valid in the other Member Countries through which they pass.

The license category shall correspond to the classification of the approved vehicle being driven.

Article 26.- Licenses belonging to the drivers of approved vehicles, when these persons are providing international transportation service, may not be retained in the case of traffic violations that are punishable only by a fine.

Article 27.- The authorized carrier and its legal representative in each of the Member Countries within its sphere of operation are jointly and severally liable for the payment of any fines imposed on the drivers of the enterprise�s approved vehicles for traffic violations committed during the international transportation service.

Article 28.- The circulation of approved vehicles and cargo units shall be regulated by the automotive vehicle traffic rules in effect in the Member Country where they circulate.

Article 29.- The identification used by a Member Country for vehicles registered in that country (license plates or other specific means of identification), which is employed on the approved vehicles and on the cargo units, shall be recognized as valid in the other Member Countries through which those vehicles pass.

The Member Countries shall not demand that the approved vehicles and cargo units that pass through their territory while providing international transportation service or as a result of it, use special or additional identification to that indicated in the previous paragraph.

Article 30.- The insurance policy referred to in articles 39d) and 40d) of this Decision shall be submitted to the respective competent national authorities before the service may be started.

The authorized carrier may not provide international transportation service if its civil liability insurance policy has expired.

Article 31.- The international transportation service may be suspended by:

a) Court order;

b) Order of the competent national authority as a result of an administrative proceeding; or

c) Decision of the authorized carrier.

Article 33.- The national authority of each country that is responsible for road transportation is the competent entity for issuing to the carriers the qualification certificate, the service permit and the certificate of approval for the vehicles comprising their fleets.

Article 34.- The qualification certificate and the service permit shall be granted by administrative resolution of the competent national authority, and shall be issued in keeping with the legal procedures and provisions of the respective Member Country.

Article 35.- The qualification certificate shall be granted by the competent national authority of the carrier�s country of origin.

The service permit shall be issued by the competent national authority of each of the Member Countries within the carrier�s sphere of operation where it intends to operate.

Article 36.- The qualification certificate and service permit shall each have two annexes containing information about the approved vehicles and cargo units that are registered and the sphere of operation.

Article 37.- The qualification certificate shall be accepted by the Member Countries where the service permits are requested, as proof that the carrier is qualified to provide the international transportation service.

Article 38.- The qualification certificate and the service permit are nontransferable. As a result, the international transportation service may not be provided by a person other than that cited in those permits.

Article 39.- The carrier shall submit a written application for the qualification certificate, attaching the following documents and information:

a) Copy of the enterprise�s incorporation papers and amended by-laws if they exist, with the respective record of their registration; in their absence, the incorporation certificate issued by the competent authority, stating the corporate purpose, reforms, owner�s equity, and duration;

b) Copy of the appointment of the enterprise�s legal representative or, in its absence, a certificate of that appointment issued by the competent authority;

c) City and street address of the enterprise�s headquarters;

d) Letter of commitment to take out the Andean Civil Liability Insurance Policy for the International Road Carrier and Additional Crew Injury policy. If the crew carries another kind of insurance that covers personal injury, the carrier is not obliged to take out an additional policy, provided that the risk coverage and insured sums are equal to or larger than those established by the Andean Policy;

e) Sphere of operation, with an indication of the Member Countries in whose territory it intends to operate, including its country of origin;

f) List and identification of the vehicles whose approval and registration it requests. It shall indicate which vehicles belong to the enterprise and which have been leased. The documents and information requested in article 63 shall be attached thereto.

g) List and identification of the cargo units whose registration it requests. It shall indicate which have been leased. The documents and information requested in article 69 shall be attached thereto.

Article 40.- The carrier shall submit a written application for the service permit, to which it shall attach the following documents and information:

a) Copy of the qualification certificate and its annexes;

b) Copy of the notarial power of attorney indicating the appointment of the legal representative, with full power to represent the enterprise in all administrative, commercial and legal acts in which it shall be involved in the Member Country where it is applying for the permit;

c) City and street address of the enterprise�s legal representative in that Member Country;

d) Letter of commitment to take out the Andean Civil Liability Insurance Policy for the International Road Carrier and Additional Crew Injury policy;

e) List and identification of the approved vehicles and cargo units with which it shall operate in that Member Country and for whose registration it is applying. It shall indicate which belong to the enterprise and which have been leased.

In the case of item e), the carrier is not obliged to present the documents or provide the information stipulated in articles 63 and 69.

Article 41.- The application referred to in articles 39 and 40 shall be signed by the enterprise�s legal representative in the Member Country where the certificate or permit is being requested.

Article 42.- The competent national authority of the respective Member Country shall evaluate the carrier�s work record and capacity before granting the qualification certificate.

Article 43.- The competent national authority shall have a period of thirty calendar days, in each case, in which to issue and deliver the qualification certificate or the service permit to the carrier.

The period indicated in the previous paragraph shall run as of the date of presentation of the application, together with all of the documents and information required in articles 39 and 40, as applicable.

If the documents and information presented are incomplete or faulty, the company shall be asked to complete or rectify them; in that case, the period shall begin on the day the requirements are fulfilled.

Article 44.- The carrier, within ninety calendar days after the date of issue of the qualification certificate, shall request the service permit or permits that will enable it to start the international transportation operations; if it fails to do so, the competent national authority that granted that certificate shall annul it.

Article 45.- The qualification certificate is valid for five years. The period of validity of the service permit is subject to that of the qualification certificate.

The validity of both authorizations shall be extended automatically for like periods of time upon expiration, provided that there is no final Resolution by the competent national authority that granted them, suspending or annulling them.

Article 46.- The extension of the validity of the qualification certificate and of the service permit shall be stated on the back of those documents.

Article 47.- The authorized carrier may, at any moment, request a change in its sphere of operation from the competent national authority of its country of origin.

Article 48.- If any amendments are made in the enterprise�s partnership contract or by-laws that alter the text of the qualification certificate or service permit, the authorized carrier shall request that those authorizations be modified accordingly.

Article 49.- The qualification certificate and the service permit may be suspended or annulled by the competent national authority that granted them. The suspension or annulment shall be accomplished through an administrative resolution, which shall be issued in accordance with the national legal procedures and provisions of the respective Member Country.

The resolution shall state the causes for the action to be taken and the authorized carrier shall be notified thereof.

CHAPTER VI

ON THE CREW

Article 50.- In each approved vehicle used for the international transportation, the authorized carrier shall employ a main driver and such auxiliary drivers as it deems necessary to ensure adequate service.

The drivers shall have their drivers� licenses with them at all times and these must be valid.

Article 51.- The main driver is responsible for the correct performance of the international transportation, the care and good use of the transportation documents in his keeping, and the custody and conservation of the merchandise being shipped. He also represents the authorized carrier before the controlling authorities along the route and before the consignee or addressee in the delivery of the goods.

Article 52.- The drivers of the approved vehicles shall comply with the land transportation provisions in effect in the Member Countries through whose territory they circulate.

Article 53.- The crews of the approved vehicles may not perform any paid activity other than the transportation in which they are engaged, in any Member Country other than that of which they are citizens or residents.

Violation of this provision shall be punished according to the law of the Member Country where it occurs.

Article 54.- The drivers must be trained in land traffic and transportation, road safety, and other matters that are essential for the provision of efficient and safe service.

The authorized carriers shall prepare and carry out ongoing training programs for the crew.

Article 55.- The Member Countries shall adopt mechanisms for monitoring and evaluating the training programs.

Article 56.- An authorized carrier shall cover the expense of returning the crews of its approved vehicles when they must leave a country after having completed the transportation service. It shall also cover such expenses if a crew member is unable to continue the trip because of a failure to comply with national legislation.

CHAPTER VII

ON THE APPROVAL AND REGISTRATION

OF THE VEHICLES AND CARGO UNITS

Article 57.- The international transportation shall be carried out in approved vehicles (truck or tractor truck) and in cargo units (trailers or semitrailers), which shall be registered with the national transportation and customs authorities of the Member Countries in whose territory they will provide the service.

Article 58.- Trucks or tractor trucks and cargo units owned by the carrier or belonging to third parties, and which are registered in the carrier�s country of origin or in another Member Country, may be approved in the former case and registered in the latter.

Likewise, trucks or tractor trucks and cargo units that are leased may be approved in the former case and registered in the latter. The leasing contract may be signed in a Member Country or in a third country.

Article 59.- At the carrier�s request, a certificate of approval shall be issued for each approved vehicle by the competent national authority of the Member Country that granted the qualification certificate.

Article 60.- Leased vehicles and cargo units from a third country that are to be used for the international transportation shall be admitted into the country under a temporary importation regime for the period of time stipulated in the respective contract.

Article 61.- Vehicles and cargo units that have been approved and registered by the carrier�s country of origin shall be recognized by the other Member Countries as suitable for providing international transportation.

Article 62.- The approval and registration of the trucks and tractor trucks, as well as the registration of the cargo units, shall be applied for at the same time as the qualification certificate.

The authorized carrier may also, at any time, request the approval and registration of new vehicles and the registration of new cargo units, as well as the modification of the characteristics indicated in article 63b).

Article 63.- In applying for the approval of trucks or tractor trucks, the carrier shall append the following documents and information to its request:

a) Copy of the vehicle registration or of the vehicle ownership registration for each vehicle; and

b) Characteristics of each vehicle: license plate number, make, kind of vehicle, number of axles, vehicle weight or tare, external dimensions, maximum haulage or cargo capacity, year of manufacture, and chassis number or series.

A copy of the respective association contract shall also be attached when applying for the approval of a truck or tractor truck belonging to a third party. Likewise, in the case of leased vehicles, a copy of the respective contract shall be presented.

Article 64.- In order to obtain approval for trucks and tractor trucks and to register trailers and semitrailers, they must meet the standards contained in the Technical Regulations on the Limitations in Weight, Type and Dimensions of Vehicles for International Road Transportation and their corresponding annexes.

Article 65.- The certificate of approval shall be valid for two years. If the association or leasing contract expires in less than two years� time, the validity of the certificate of approval shall be subject to that period.

Article 66.- The competent national authority shall issue and deliver the certificates of approval of the trucks or tractor trucks, together with the qualification certificate.

The approval of new vehicles shall be accomplished in a period of eight calendar days as of the date of presentation of the application, accompanied by the respective documents and information.

Article 67.- Vehicles shall carry their respective certificates of approval during the international transportation.

Article 68.- Neither trucks or tractor trucks, nor cargo units, that belong to the fleet of another authorized carrier, shall be approved in the former case, or registered in the latter.

Article 69.- In applying for the registration of the cargo units in the carrier�s country of origin, the latter shall append the following documents and information to its request:

a) Copy of the vehicle registration or of the vehicle ownership registration for each trailer or semitrailer; and

b) Characteristics of each cargo unit: license plate number, make, type of vehicle, number of axles, weight or tare, external dimensions, maximum cargo capacity, year of manufacture, and chassis number or series.

The stipulation of the last paragraph of article 63 shall be applicable when applying for the registration of cargo units belonging to a third party or leased.

Article 70.- In order to apply for registration of the approved vehicles and of the cargo units in Member Countries other than the carrier�s country of origin, a copy of the qualification certificate with its respective annex shall be attached.

Article 71.- The competent national authority that registers the approved vehicles and the cargo units shall communicate this fact to the customs authority of its country, requesting their registration also.

Article 72.- The national transportation and customs authorities shall have periods of two and four working days, respectively, in which to register the approved vehicles and cargo units.

Article 73.- The authorized carrier shall report to the competent national authority of the Member Country that granted it the qualification certificate, concerning the withdrawal or disassociation of any approved vehicles and of the cargo units from its fleet, so that note may be taken in the respective annex and the pertinent certificate of approval and registration may be annulled.

Article 74.- The competent national authorities shall permit the use of a vehicle that has not been given approval, which belongs to the carrier, a third party or another authorized carrier, in order to continue an international transportation operation that for reasons of force majeure or an act of God cannot proceed in the original vehicle. The service shall continue to be provided under the responsibility of the authorized carrier that issued the IRW and the ICM.

CHAPTER VIII

ON THE TRANSPORTATION CONTRACT

Article 75.- The international transportation of merchandise by road shall be covered by an IRW, to be signed by the shipper and the authorized carrier or its representatives or agents.

The IRW accredits the existence of a transportation contract, may be executed, and is negotiable.

Article 76.- The IRW proves that the authorized carrier has received the merchandise into its custody and has committed itself, upon payment of a freight charge, to transport it, within a preestablished period of time, from a given place to another designated for its delivery.

Article 77.- The IRW shall contain the following information:

a) Company name and address of the authorized carrier;

b) Shipper�s name and address;

c) Addressee�s name and address;

d) Consignee�s name and address;

e) Place, country and date on which the carrier receives the merchandise;

f) Place and date of shipment of the merchandise;

g) Place, country and planned date of delivery of the merchandise;

h) Number and kind of bundles, with an indication of their identifying marks and numbers;

i) General description of the nature of the goods. If there are any dangerous products, this fact shall be noted;

j) Gross weight in kilograms or volume in cubic meters and, when pertinent, the amount involved expressed in another unit of measurement;

k) Price of the merchandise;

l) Value of the freight and other supplementary expenses, stated separately; and

m) Signatures of the shipper and the authorized carrier or of their respective representatives or agents.

On the back of the IRW, or on a separate sheet, the authorized carrier may establish general clauses regarding the hiring of the transportation service.

Article 78.- The information included in the IRW should be written or printed in legible characters. No corrections or erasures shall be permitted, unless duly listed at the end of the document and signed again by the shipper. If the mistakes affect the amounts involved, the correct figures must also be listed in numbers and spelled out.

Article 79.- The IRW shall be issued in one original and two equally valid copies, bearing a name, to the order of, or to the bearer. The original copy, which the shipper shall keep, may be either endorsable or non endorsable; the first copy shall accompany the merchandise during the transportation and the second shall remain in the keeping of the authorized carrier.

The stipulation of the previous paragraph shall not impede the issue of as many copies as may be needed to fulfill the legal provisions or administrative formalities of the Member Countries of origin, passage and destination.

The copies shall be stamped to the effect that they are "non negotiable".

Article 80.- The shipper may not negotiate the IRW if the addressee has the right to the possession of the merchandise.

Article 81.- The IRW may also be issued by any mechanical or electronic means that sets down the basic conditions and requirements established in this Decision and its complementary provisions, provided that the shipper has given its consent. In that case, the IRW would be issued in the name of a particular person and would not be negotiable.

Article 82.- The signatures on the IRW may be autographed or hand written, printed by facsimile, perforated, stamped, in symbols, or recorded by any other mechanical or electronic means, if legally acceptable by the Member Country where it is issued and in that where the merchandise is delivered.

Article 83.- The lack or loss of an IRW, as well as any mistake in the information it contains, shall not affect the existence or the validity of the transportation contract if the relationship is proven by other legally acceptable means.

Furthermore, the omission of an item or of some of the information stipulated in article 77 does not affect the juridical validity of the IRW.

Article 84.- Any stipulation contained in the IRW, in the transportation contract or in the general contract clauses, which deviates directly or indirectly from the provisions established in Chapters VIII and IX, especially if stipulated to the detriment of the authorized carrier, shipper, consignee or addressee, shall be null and without any effect whatsoever as of the moment of its issue. The foregoing shall not affect the other stipulations contained in the IRW or in the transportation contract.

Article 85.- The international transportation service shall be provided under conditions of free competition, freedom to contract, and contractual freedom.

Article 86.- The freight charge for the international transportation shall be paid at the signing of the IRW or of the transportation contract, unless the parties agree upon another form of payment.

Article 87.- The shipper and the addressee of the cargo are jointly and severally liable for the payment of the freight and the supplementary charges when the latter receives the merchandise transported.

Article 88.- In the event of the undue receipt of money or of an error in calculating the amount of the freight charge, the authorized carrier shall refund said excess amount or be paid any sum that may be lacking.

Either the shipper or the addressee, according to the terms of the IRW or of the transportation contract, shall be responsible for paying the authorized carrier any amount lacking in the freight charge.

Article 89.- The stipulations of this Decision and its complementary provisions, and the national legislation of the respective Member Country in all matters not covered by the former shall be applicable to the transportation contract.

Article 90.- The provisions of Chapters VIII and IX of this Decision are also applicable to any claims filed against the authorized carrier with regard to the performance of the transportation contract.

Claims relating to the contract performance that are filed against any employee or agent of the authorized carrier, or against any other person of whose services it avails itself for its performance, are also applicable.

CHAPTER IX

ON THE RIGHTS AND OBLIGATIONS AND ON THE RESPONSIBILITY


First Section

On the authorized carrier

Article 91.- The authorized carrier shall be responsible for the performance of the transportation contract, even if during the operation it uses the services of third parties.

Article 92.- The responsibility of the authorized carrier starts at the very moment it receives the merchandise from the shipper or from a third party acting on the shipper�s behalf, or even from an authority in whose custody or under whose control the merchandise is located, and ends when it delivers the goods or makes them available to the addressee.

The authorized carrier�s responsibility also concludes when it delivers the merchandise to an authority or to a third party to which it should make that delivery under the applicable laws and regulations of the place of delivery.

Article 93.- The authorized carrier shall be considered to have delivered the merchandise when the goods have been received by the consignee or the addressee at the agreed upon site or, if not received directly by the latter, when the goods have been delivered into their possession, in keeping with the terms of the IRW, the transportation contract, the laws of the country in question, or the commercial practices of the place of delivery.

Article 94.- Upon receiving custody of the merchandise, the authorized carrier is obliged to check:

a) The correctness of the data given for inclusion in the IRW about the number and kind of bundles, as well as their identifying marks and numbers.

b) The apparent condition of the merchandise and its packing.

Article 95.- If the authorized carrier does not have adequate means for checking the accuracy of the number or kind of bundles, as well as their identifying marks and numbers, or the apparent condition of the merchandise and its packing, it shall record that fact on the IRW or in an attached document, stating the reasons for its reservation. That reservation shall not commit the shipper if the latter has not accepted it expressly.

In the absence of such a reservation, the presumption shall exist that the merchandise and its packing were apparently in good condition when the carrier took them into its custody, and that the number and kind of bundles, together with their identifying marks and numbers, are those indicated and reported in the IRW, unless proven to the contrary.

The proof to the contrary referred to in the previous paragraph shall not be admissible if the IRW has been endorsed to a third bona fide holder.

Article 96.- The authorized carrier shall be responsible for loading and unloading the merchandise onto and from the approved vehicles or cargo units, unless it is decided by common agreement that the shipper or the consignee or addressee, as the case may be, shall do so, in which case this fact shall be recorded on the IRW.

Article 97.- If the shipper performs the loading operation, it shall be liable for any expenses incurred and for making good any damage or loss to the authorized carrier caused by a faulty loading operation. The burden of proof shall rest with the authorized carrier. The authorized carrier shall cover any damages to third parties, unless there is an agreement to the contrary.

Article 98.- The authorized carrier shall advise the addressee or the consignee, as the case may be, about the arrival of the merchandise and that the goods are at its disposal, as stipulated in the IRW, the transportation contract or a later instruction.

Article 99.- The authorized carrier shall deliver the merchandise at the time and to the place agreed upon. It shall, furthermore, during the transportation take care of the goods by all prudent means, even going so far as to pay on behalf of the addressee, if necessary, any special expenses it may have to incur for that purpose.

Article 100.- The authorized carrier shall be responsible for any loss or damages resulting from the loss or deterioration of the merchandise, as well as for the failure to deliver it or any delay in its delivery, if the event that caused the loss, deterioration, failure to deliver, or delay occurred when the goods were in its custody, unless it is able to prove that it had taken all of the measures that could reasonably have been demanded to avoid the event and its consequences.

Article 101.- The responsibility for any deterioration of the merchandise during the time it is in the custody of the authorized carrier shall be attributed to the latter, unless it is the result of an error or negligence on the part of the shipper; inadequate packing; physical defects of the products transported; a case of force majeure or an act of God; the handling, loading, or unloading of the merchandise by the shipper or the addressee; strikes or any other obstacle to the transportation that is not the result of an action or omission by the authorized carrier, its employees, hired personnel, or agents, or the actions of third parties. The burden of proof rests on the authorized carrier.

Article 102.- The authorized carrier, without assuming responsibility, may refuse to receive merchandise with poor packaging that is not sound enough to protect the goods during their transportation, or that fails to comply with the specifications for the type of cargo declared. Notwithstanding the foregoing, the merchandise may be shipped on the account and at the risk of the shipper, in which case this fact shall be recorded in the IRW.

Article 103.- There is a delay when the merchandise is not delivered within the period expressly agreed upon; and, in the event that no period has been set, within that which it would be reasonable to demand, considering the circumstances involved.

Article 104.- Noncompliance exists when the authorized carriers fails to deliver the merchandise within the new period expressly arranged with the shipper, after that stipulated in the IRW, according to the nature of the goods, unless there is an agreement to the contrary. If no agreement between the parties exists, the new period may not be any longer than that which was initially set for the delivery.

Article 105.- The merchandise shall be considered lost if not delivered within thirty calendar days after the date stipulated in the IRW for the delivery, or ten calendar days after the expiration of the new period expressly agreed upon by the parties.

Article 106.- The authorized carrier is responsible for the loss and for the proper use of the documents delivered for the international transportation.

Article 107.- Any authorized carrier that maliciously recorded incorrect information in the IRW about the merchandise given to it for transportation, shall be responsible for any loss or damages caused for that reason to the shipper, consignee, addressee, or a third party, and may not in this case seek protection in the provisions that limit its liability.

Article 108.- The authorized carrier shall be responsible for the actions or omissions of its agents, employees, and dependents, as well as those of third parties whose services it employs for the performance of the transportation.

Article 109.- The right of the authorized carrier, as established in article 123 of this Decision, shall not limit in any way its responsibility with regard to any person other than the shipper.

Article 110.- If for any reason the transportation is unable to be carried out under the conditions stipulated in the IRW or in the transportation contract, the authorized carrier must, before the arrival of the merchandise at the designated place of delivery, request instructions from the person with the right to their possession, as provided for in articles 130 and 131.

Article 111.- If circumstances allow for the transportation to be carried out under conditions different from those stipulated in the IRW or in the transportation contract, provided that the authorized carrier has not received the instructions referred to in the previous article, it shall take the measures it deems advisable in the interest of the person that is entitled to the possession of the merchandise.

Article 112.- If, upon arrival of the merchandise at its destination, problems arise with regard to its delivery, the authorized carrier shall request instructions from the shipper or the person with the right to the possession of the goods.

Article 113.- If the addressee refuses to receive the merchandise, the shipper shall have the right to their possession without any need to record that situation in the original copy of the IRW.

However, in the event that the addressee, after having refused to receive the merchandise, decides to accept its delivery, this shall be possible only if the carrier has not yet received instructions to the contrary from the shipper.

Article 114.- The authorized carrier has a right to demand payment of the expenses involved in sending a request for instructions or in carrying out those received, unless those expenses were a result of its negligence.

Article 115.- In the event that the shipper has the merchandise in its possession, requests that the transportation be discontinued, alters the place of delivery or changes the addressee, or that problems arise at the destination regarding the delivery of the goods, the authorized carrier may unload the merchandise on behalf of the person with the right to the possession of the goods, goods, unless it receives other instructions. The transportation shall be considered concluded with their unloading.

Without prejudice to the foregoing, the authorized carrier shall entrust a third party with the merchandise and in this case is responsible for the prudent selection of that party, despite which the goods shall remain subject to the obligations stemming from the IRW and the transportation contract.

Article 116.- The authorized carrier may sell the merchandise on instructions from the person entitled to their possession, if justified by the perishable nature or the state of the goods, or if the expense for their safekeeping or conservation is excessively high in relation to their value.

If the delivery becomes impossible due to the negligence of the person entitled to the possession of the merchandise, the goods shall be considered to have been delivered at the place where they are to be found. In that case, the authorized carrier shall be freed from all liability in regard to the contract performance.

If an unpaid freight charge remains or if expenses remain unpaid that were incurred as a result of the impossibility of making the delivery, the authorized carrier may sell the merchandise fifteen days after the goods have been delivered to the customhouse or on the day they are considered to have been delivered to the addressee.

The provision of this article shall prevail unless the parties decide otherwise.

In any case, the disposal of the merchandise pursuant to this Decision does imply relief from customs obligations.

Article 117.- If the merchandise was sold as provided for in the previous article, the proceeds of the sale shall be made available to the person with the right to the possession of those goods, after deducting any applicable duties. If those expenses are larger than the proceeds from the sale, the authorized carrier shall be entitled to collect the difference.

Article 118.- In all of the cases, the sale of the merchandise shall be governed by national law or the practices of the place where the sale is made.

Article 119.- Such authorized carrier as may have paid compensatory damages for the total or partial loss or for the deterioration of the merchandise pursuant to the provisions of this Decision and its complementary legislation, shall have the right to bring an action for improper payment against such third parties as may be responsible. The goods shall belong to the person who pays those compensatory damages.

Article 120.- If, in keeping with applicable Community or national legislation, the authority of a Member Country decides that a transportation operation should be suspended, or that certain merchandise remittances or lots should be excluded from the operation or admitted conditionally, the authorized carrier shall immediately report that suspension or restriction to the shipper or to the addressee, whichever is entitled to the ownership of the goods.

Article 121.- If the hypothetical situations indicated in articles 115 or 120 of this Decision exist and this involves a change in the destination customhouse, the authorized carrier should communicate this fact to the closest customs authority to the place where the merchandise is located and to the border crossing of entry to the originally designated country of destination, placing this fact on record in the IRW or the ICM.

Second Section

On the shipper

Article 122.- The shipper is obliged to provide the authorized carrier with the necessary information for recording in the IRW.

It shall also give the authorized carrier, for attachment to the IRW, any documents that may be needed for the transportation and for compliance with customs and other formalities during the departure, passage in transit and arrival at the destination of the merchandise, as well as any that are essential for its delivery to the consignee or addressee.

The authorized carrier is not obliged to examine the documents and information given to it to determine whether they are reliable and sufficient.

Article 123.- The shipper is responsible to the authorized carrier for the lack, insufficiency, or irregularity of the documents and information required, unless that lack, insufficiency, or irregularity is attributable to the carrier.

Article 124.- Except in the case of bulk cargoes that are transported without packing of any kind, the shipper shall identify each one of the bundles given to the authorized carrier by using marks or numbers. The labels shall be clearly printed in a visible place and shall also contain the addressee�s name and city of residence.

Resistant material shall be used for the labeling in order to avoid its disappearance or destruction during the trip. Any mark, number, or name from a prior transportation operation shall be removed.

Article 125.- The shipper may require the authorized carrier to check the gross weight or other unit used to measure the merchandise, as well as the contents of the bundles; in that case, the carrier may demand payment for the cost of verification. The result of the verification shall be recorded in the IRW or annexed document.

Article 126.- The shipper is obliged to properly identify any dangerous merchandise by using marks or stamps that refer to that condition or special nature, and to inform the authorized carrier thereof and provide the latter with the necessary information for its handling during the transportation operation. The shipper�s failure to comply, or deficient compliance, with the above-cited obligations shall make it liable for any loss or damages this may cause.

The stipulation of the previous paragraph shall be applied without prejudice to the fulfillment of the obligations acquired by the Member Countries under other international agreements on the subject.

Article 127.- The shipper shall pack the merchandise properly in accordance with its characteristics, in order to guarantee its protection during the necessary handling in the course of the transportation operation.

Article 128.- The shipper is responsible for any loss or damages to persons, the merchandise itself, or others, caused by defective packing, as well as for such expenses as may be incurred for this reason, unless those defects were reported to or were already known by the authorized carrier at the time it took custody of the goods without having expressed any timely reservation.

Article 129.- In the event of any certain or alleged loss or deterioration of the merchandise, the authorized carrier and the addressee or consignee shall grant each other all reasonable facilities for inspecting and confirming the goods.

Article 130.- The shipper may, at any moment, take possession of the merchandise, request the authorized carrier to discontinue the transportation operation, change the planned place of delivery, or have the merchandise delivered to an addressee different from that indicated in the IRW on the transportation contract.

This right terminates when the merchandise has been cleared through customs or has reached the preestablished delivery site and the addressee has been notified that the goods are available to it. As of that moment, the authorized carrier�s right shall be subordinated to that of the addressee.

Article 131.- Notwithstanding the contents of the previous article, the addressee has the right to possession of the merchandise as of the moment the IRW is signed, if the shipper so stipulates in that document; in that case, if the addressee orders the delivery of the goods to another person, the latter may not designate a new addressee without the authorized carrier�s consent.

Article 132.- In order to exercise the right to possession of the merchandise, the shipper or the addressee, as the case may be, shall fulfill the following conditions:

a) Record in the original copy of the IRW or in a separate document signed by the addressee when the latter gives the instructions, the instructions given to the authorized carrier;

b) Compensate the authorized carrier for any expenses incurred in carrying out the instructions;

c) Implementation of the instructions must be possible at the time they are communicated to the authorized carrier and must not obstruct the company�s normal activities or cause damage to other shippers or addresses; and

d) Implementation of the instructions does not result in dividing up the merchandise being transported.

When the authorized carrier, pursuant to the contents of c), is unable to carry out the instructions received, it shall immediately notify in writing the person that gave it those instructions.

Article 133.- If the authorized carrier fails to carry out the instructions given to it by the person entitled to the possession of the merchandise, as stipulated in articles 130 and 131, or carries them out without having demanded their recording in the original copy of the IRW or in writing when given by the addressee, it shall be answerable to the person entitled to compensation for any ensuing loss or damages.

Article 134.- The shipper shall pay the authorized carrier in advance for any expenses incurred for the maintenance or conservation of merchandise requiring special handling.

Third Section

On the addressee

Article 135.- The addressee is obliged to receive the merchandise within twenty-four hours after having been notified that the goods are available to it.

Article 136.- The addressee and the authorized carrier may arrange a procedure for cases of storage or conveyance of merchandise not withdrawn or whose freight charges have not been paid, in order to protect the authorized carrier�s liability and guarantee the collection of the freight charges and other expenses involved in the transportation of the goods.

Article 137.- In the event of a delay in the delivery of the merchandise or of its failure to be delivered, as well as of any loss or deterioration of the goods, the addressee or any other person with a right to that merchandise, as provided for in this Decision, may assert before the authorized carrier any rights resulting from the transportation contract.

Article 138.- The addressee that makes use of the right stipulated in the previous article must comply with the obligations stemming from the IRW. In the case of a doubt, the authorized carrier is not obliged to hand over the merchandise, unless the addressee provides a large enough guaranty.

Article 139.- The addressee has the right to demand the verification of the merchandise and shall cover any expenses involved in the process.

Fourth Section

On the limits of the liability

Article 140.- If the authorized carrier, pursuant to this Decision, must pay compensation for the total or partial loss or deterioration of the merchandise, the amount shall be set in accordance with the price of those goods as recorded in the IRW or in the transportation contract.

Article 141.- If the price of the merchandise has not been set, and no transportation document exists from which to determine it, the amount shall be established according to the price of the goods in the place and at the time of delivery to the consignee or in the place and at the time when, in accordance with the transportation contract, it should have been delivered.

The amount, in that case, shall be determined in accordance with the international price in effect or, if that price is not available, according to the normal value of merchandise of a like or similar nature or quality in the place and at the moment when it should have been delivered, according to the transportation contract.

Article 142.- In the event that the price is unable to be determined as stipulated in the previous article, the value of the merchandise may not exceed a limit of US$ 3.00 (three United States dollars) per kilogram of gross weight transported.

Article 143.- The limit of the authorized carrier�s liability for any loss or damages resulting from a delay in delivery may not exceed the freight charge for the merchandise transported, unless the parties expressly established a higher liability limit by common agreement.

Article 144.- There shall be no cause for payment of compensation for a delay in delivery unless the consignee or addressee notifies the authorized carrier in writing within thirty days after the merchandise was delivered to it.

If the merchandise was delivered by an assistant or an agent of the authorized carrier, notifications made to the former pursuant to this article shall be considered as if they had been made to the authorized carrier.

Article 145.- If compensation is to be paid for the loss or the total or partial deterioration of the merchandise, the authorized carrier shall have no right to deduct from its liability that proportion determined by the diminution of the goods.

Article 146.- It is to be presumed that the merchandise was received in good condition, unless the consignee or addressee notified the multimodal transportation in writing at the time the goods were delivered to it, of any loss or deterioration, whether manifest or apparent, specifying its general nature. In all other cases, the stipulations of the respective national legislation of the Member Countries shall be applicable.

If at the time of delivery to the addressee, the merchandise was examined or inspected by it together with the authorized carrier, or by third parties on its behalf, and a written record was left of that procedure, no notification of the confirmed loss or deterioration shall be required.

Article 147.- The total or accrued liability of the authorized carrier, including that of its employees or agents or other persons hired by it to provide the service, may not exceed the liability limit established for the total loss of the merchandise, unless otherwise agreed.

Article 148.- Notwithstanding the stipulations of the previous articles, the authorized carrier shall not be liable for the total or partial loss, the deterioration, or the delay in delivery, or failure to deliver the merchandise transported, if it proves that the event causing said loss, deterioration, failure to deliver, or delay in delivery occurred during the transportation due to:

a) An act or omission of the shipper, consignee or its representative or agent;

b) Insufficient or defective packing of, or identifying marks or numbers on, the merchandise;

c) The handling, loading, unloading, stowage and removal of merchandise by the shipper, the consignee, or by their representatives or agents;

d) A characteristic or hidden flaw of the merchandise;

e) A case of force majeure or an act of God;

f) A strike, shutdown, work stoppage, or obstacles imposed totally or partially in the work and other duly proven acts outside the authorized carrier�s control;

g) Circumstances that make it necessary to unload, destroy, or render harmless, at any time and in any place, merchandise whose danger was not declared by the shipper;

h) The transportation of live animals, provided that the carrier proves that it carried out all of the specific instructions given to it by the shipper; and

i) Normal diminution caused by the handling or the very nature of the merchandise.

Article 149.- When grounds for an exemption established in the previous article combine with an act or omission of the authorized carrier to produce the loss, deterioration, failure to deliver, or delay in delivery, the carrier shall be liable only for the loss, deterioration, failure to deliver, or delay in delivery that may be attributed to its act or omission.

In such event, the authorized carrier shall be responsible for substantiating the amount involved in the loss, deterioration, failure to deliver, or delay in delivery, as well as the act or omission proving that the amount in question is not attributable to it.

Article 150.- The authorized carrier may not avail itself of any limitation on its liability or exemption if it is proven that the loss, damage, or delay in delivery were the result of an action or omission attributable to it, committed with the intention of causing that loss, damage, or delay, or rashly, knowing that it would probably lead to the loss, damage or delay.

Article 151.- The provisions of this Chapter shall be applicable without prejudice to any criminal liability or administrative responsibility that may exist.

CHAPTER X

ON THE JURISDICTION AND COMPETENCY

Article 152.- Any conflict or difference stemming from the application or performance of an international transportation contract that does not involve provisions of public order contained in this Decision, shall be regulated by the law envisaged in the contract. In the event of a failure to reach an agreement, the provisions of this Decision and its complementary legislation shall be applicable, and in all matters not covered by the former, the pertinent national legislation shall apply.

Article 153.- Any legal actions emanating from the transportation contract shall be brought before the judge or court designated in that contract.

In the event that no designation is made or that that stipulated in the contract is legally inapplicable, those lawsuits may, indistinctly and at the choice of the plaintiff, be brought before any competent judge or court of the jurisdiction of the:

a) Residence of the defendant;

b) Place where the event occurred;

c) Place where the authorized carrier took custody of the merchandise; or

d) Designated place of delivery of the merchandise.

Article 154.- If the parties agree that any differences that may arise as a result of the enforcement or breach of the transportation contract shall be submitted to the jurisdiction and decision of an arbitrator or of a board of arbitration, the contract shall be performed in keeping with the procedure and other stipulations they may decide upon.

In the case of single arbitrator, he shall be appointed by common agreement between the parties and if no agreement is reached, he shall be designated by the nominating authority they may appoint. If three arbitrators are to be appointed, each of the parties shall appoint one and the two arbitrators thus designated shall chose the third arbitrator, who shall act as Chairman of the Board.

Article 155.- The executed judgments or final judgments from which no appeal may be taken, or the awards, handed down by a judge, court, arbitrator, or board of arbitration of a Member Country pursuant to this Decision, may be enforced in the territory of another Member Country, without need for homologizing or exequatur.

If an arbitral award or a sentence is to be executed outside the national territory of the judge, court, arbitrator or board of arbitration that issued it, the legally mandated formalities of the Member Country where its execution is requested must be fulfilled.

Article 156.- Any legal actions emanating from the transportation contract shall lapse within a period of one calendar year after the event or breach that motivated the action to be brought.

If fraud exists, and its existence is to be determined by a judge or a criminal court under the laws of the Member Country where the offense was committed, the cited one year period would begin to run on the day after the sentence is declared enforceable by the judge or criminal court.

CHAPTER XI

ON THE CUSTOMS ASPECTS

First Section

On the registration and on the guaranty

Article 157.- The national customs authorities shall keep a registry of authorized carriers and of approved vehicles.

Authorized carriers, as well as approved vehicles and cargo units, shall be registered with the national customs authority of each of the Member Countries where they provide the service.

Article 158.- The Member Countries shall permit the departure and temporary entry into their territory of approved vehicles and of cargo units that are duly registered, as well as of containers and tanks, without having to pay export or import duties when those vehicles, cargo units, containers and tanks are in the process of providing international transportation service or pass through the territories as a result of the latter.

The stipulation of the previous paragraph applies also to the necessary equipment for use in the approved vehicles and cargo units that they transport and that are included on a list prepared by the carrier, such as the auxiliary fuel tank that is part of the structure of the truck or tractor truck, provided that it does not alter its original design.

Article 159.- The Member Countries shall permit the temporary importation of spare parts and pieces to be used to repair approved vehicles and cargo units if they experience any malfunction in a Member Country other than that where the vehicles are registered.

Article 160.- The equipment and the spare parts and pieces referred to in articles 158 and 159 shall be brought in duty-free, provided that they originated or were cleared through customs in a Member Country.

The spare parts and pieces that have been replaced shall be reexported to the country from which they came or destroyed under customs control and the authorized carrier shall cover the cost involved.

Article 161.- Approved vehicles and the cargo units that are duly registered shall, by the mere fact of their registration, become by operation of law a demandable guaranty before customs authorities, of the payment of any export and import duties, taxes, surcharges, interest, and fines that may be applicable to the merchandise being transported internationally by the approved vehicles and cargo units, and the equipment they temporarily bring into a Member Country in the course of a transportation operation.

The vehicle�s guaranty may be replaced by another issued by a bank or an insurance company, that satisfies the customhouse. This guaranty may be global for several transportation operations or individual for a single one, and shall be issued in as many copies as there are countries through which it shall travel.

Article 162.- The customhouse shall not demand guaranties other than those stipulated in article 161, to ensure fulfillment of the customs regime and the payment of any duties, taxes, surcharges, and interest that may be demandable for the merchandise transported internationally by the approved vehicles and cargo units, whether or not under the international customs traffic regime, and for the containers, tanks, and equipment that temporarily leaves or enters the country.

Nor shall another guarantee be demanded if the approved vehicles and the cargo units have to travel without merchandise to a Member Country in order to start or continue an international transportation operation, or to return to their country of origin after having remained in a Member Country for reasons of force majeure or an act of God.

Article 163.- Approved vehicles or cargo units that are leased, as well as those that are associated, become a guaranty before the customhouse, for the purposes referred to in article 161, provided that there is an express written declaration to this effect signed by the lessor or owner of the vehicle or cargo unit.

The cited declaration may be contained in the respective contract or in an additional clause.

Article 164.- Approved vehicles and cargo units, as well as containers and tanks that temporarily enter the territory of a Member Country, may remain there for a period of thirty calendar days. That period may be extended by the customhouse upon receipt of a justified request.

If the approved vehicles or cargo units fail to leave the country within the period established in the previous paragraph, the authorized carrier shall be subject to the sanctions provided for by the respective national legislation.

Cases in which vehicles or cargo units fail to leave for duly proven reasons of force majeure or an act of God are excepted.

Article 165.- In cases where the customhouse must cash the guaranty of the approved vehicle or cargo unit, the provisions of articles 44 and 45 of Decision 327 shall be enforced. In all other cases, when another type of guaranty is to be cashed, the national law of the respective Member Country shall be applied.

Second Section

On the International Cargo Manifest

Article 166.- The ICM is the customs document that certifies that the stated merchandise has been cleared through a customhouse of departure for transportation to a destination customhouse located in a different Member Country.

That document shall be issued by the authorized carrier and signed by it and the responsible official of the customhouse of departure and shall be presented to the authorities of the customhouses established at the border crossings and of the destination customhouse.

The authorized vehicle shall carry the original copy of the ICM until the merchandise reaches its destination.

Article 167.- The ICM shall contain the following information:

a) Enterprise name and address of the authorized carrier;

b) Number of the qualification certificate and numbers of the service permits for the Member Countries where the transportation service will be provided;

c) Driver�(s�) name(s), nationality(ies), and identification document(s), and driver�s license and land crew card numbers;

d) Identification of the duly registered approved vehicle (truck or tractor truck) and cargo unit (trailer or semitrailer)

e) Place and country of loading and unloading;

f) Nature of the cargo, with an indication of whether it is dangerous, especially in the case of chemicals and precursors;

g) IRW numbers;

h) Description of the merchandise, number of bundles, their type, and identifying marks;

i) Identification numbers of the container and customs seals;

j) Gross weight in kilograms or volume in cubic meters and, when appropriate, merchandise amount stated in another measurement unit;

k) Price of the merchandise;

l) Customhouses of departure, border crossing and destination;

m) Issue date;

n) Signature of the authorized carrier or its representative; and

o) Signature and seal of the authority involved in the customhouse of departure.

Article 168.- When an approved vehicle has to travel without merchandise to a Member Country in order to start or to continue an international transportation operation, or to return to its country of origin after having concluded one, it shall not be compelled to present the ICM.

Article 174.- Once the merchandise has cleared customs and the customs duties, rates, and other import taxes, if any, have been paid, the approved vehicle and the cargo unit, as well as the container and the tank, shall continue to transport the merchandise to its place of delivery.

Article 175.- If the authorized carrier is found guilty of having committed a customs violation or crime, the customhouse shall so inform the competent national authority of that Member Country, which in turn shall inform the competent national authority of the carrier�s country of origin, so that the corresponding measures may be taken.

Article 176.- The national customs authorities shall control the departure and temporary entry, as well as the re-entry, of the approved vehicles, cargo units, containers, and tanks that are used in the international transportation, when they cross a border, in order to verify their compliance with the stipulations of this Decision.

Article 177.- In their verification and control activities, customs authorities shall use measures that are least likely to disrupt the smooth flow of international trade.

Article 178.- Merchandise that is transported internationally by road may clear customs at the destination or border crossing customhouse, as stipulated in the ICM or the ICTD.

If a customhouse is not convinced that the customs seals or stamps affixed by a previous customhouse are secure, it may attach new ones, recording that measure in the ICM or the ICTD.

Article 179.- Any approved vehicle or cargo unit that is engaged in providing international transportation service shall carry one or more ICMs. The pertinent ICM shall contain the IRW list.

In an international transportation operation, the authorized carrier may transport merchandise loaded at different customhouses of departure, which may be unloaded at different destination customhouses.

CHAPTER XII

ON THE IMMIGRATION ASPECTS

Article 180.- The crews of the approved vehicles need only to present their land crew cards and their national identification documents in order to enter, pass through, stay in, and depart from the Member Countries.

Article 181.- National immigration authorities shall issue land crew cards on being requested to do so by authorized carriers. These shall be issued only in the names of individuals, national or foreign, that hold residents� visas of the Member Countries where they are applying for that card.

They may also be issued by the Consuls of the Member Countries, who shall report that fact in writing to the immigration authorities of their countries, remitting the documentation submitted by the carrier.

Article 182.- Land crew cards shall be valid for a period of twelve months and may be renewed for like periods of time.

Article 183.- Holders of land crew cards, when engaged in international transportation and carrying that card, shall not require visas to enter the territory of the Member Countries in which they provide the service.

Article 184.- Land crew cards permit their holders, who are engaged in international land transportation in Member Countries other than those of which they are nationals or residents, to remain in those countries for a period of thirty days, which may be renewed.

CHAPTER XIII

ON THE COMPETENT

NATIONAL AUTHORITIES

Article 185.- The competent national authorities designated and accredited by the Member Countries shall be responsible implementing this Decision and its complementary provisions in their respective territories.

Article 186.- The competent national authorities shall, furthermore:

a) Coordinate with the other authorities of their country the implementation of the operative and procedural aspects established in the Decisions and the complementary provisions that regulate international transportation of merchandise by road;

b) Coordinate the execution of the operative aspects of the international transportation of merchandise by road with the competent national authorities of the other Member Countries;

c) Promote mechanisms for coordination with their countries� authorized carriers and users of the international transportation of merchandise by road;

d) Promote the establishment of Facilitation Commissions for International Land Traffic and Transportation; and

e) Give the Permanent Technical Secretariat and the Pro-Tempore Secretariat of the Committee the information they request about international transportation of merchandise by road, as stipulated in this Decision and its complementary provisions and the Agreements or Resolutions approved by the CAATT.

Article 187.- The competent national authorities shall keep national registries of the authorized carriers, as well as of the approved vehicles and cargo units that operate in their countries. They shall also keep track in those registries of any changes, suspensions, or annulments.

CHAPTER XIV

ON THE NATIONAL OR

BINATIONAL BORDER SERVICE CENTERS

Article 188.- The Member Countries shall adopt the necessary measures for establishing and organizing National Border Service Centers (CENAF) or Binational Border Service Centers (CEBAF) at each of the authorized border crossings for international road transportation.

Article 189.- The competent national authorities, together with the national authorities of the different Ministries that exercise the control and provide complementary services at the borders, shall adopt the necessary actions for their operation.

In order for the CENAFs or CEBAFs to provide the appropriate services, the competent national authorities, together with the other authorities referred to in the previous paragraph, shall adopt binational manuals of procedure that facilitate their operation.

CHAPTER XV

ON THE ANDEAN REGISTRY OF AUTHORIZED CARRIERS AND OF APPROVED VEHICLES

Article 190.- An Andean Registry of Authorized Carriers and one of Approved Vehicles and Cargo Units are hereby created, to be entrusted to the Board of the Cartagena Agreement, which shall take the necessary action for their organization and operation.

Article 191.- The competent national authorities shall, on a timely basis and regularly, furnish the Board of the Cartagena Agreement with the necessary information for the implementation of the Registries provided for in the previous article.

That information shall consist of: the name of the authorized carrier; name and address of the legal representative and address of the enterprise�s headquarters; qualification certificate and service permits; special permit of origin and complementary permit for international self-transportation, as well as their annulments, renewals, expiration dates, and any changes that may be made in them.

They shall also report to the Board about the approval of the vehicles and the registration of the cargo units that make up the fleets of the authorized carriers or of the enterprises that provide the service of international self-transportation by road, their withdrawal, and any changes in their characteristics.

The competent national authorities shall the information supplied to the Board of the Cartagena Agreement keep up to date.

CHAPTER XVI

GENERAL PROVISIONS

Article 192.- The Member Countries, in their respective territories, shall grant freedom to provide transportation service as international self-transportation, as well as free passage of approved vehicles and cargo units that are registered and that provide that service.

Article 193.- Only enterprises that are founded and established in one of the Member Countries of the Cartagena Agreement and whose commercial business is not the transportation of merchandise for payment, may carry out international self-transportation, provided that the goods to be transported belong to them or are for their own consumption or processing.

Article 194.- In order to carry out international self-transportation, the interested enterprise must also apply to the competent national authorities of the Member Countries of origin and of destination of the operations, respectively, for a special permit of origin for international self-transportation and a special complementary permit for international self-transportation.

Article 195.- The special permit of origin for international self-transportation shall be valid for two years and may be renewed for like periods of time at the enterprise�s request. The validity of the special complementary permit for international self-transportation is subject to that of the special permit of origin.

Regulations shall determine the way the permits shall be issued and renewed, as well as the procedure and requirements for their award, annulment, and other aspects relating to the service.

Article 196.-The enterprise shall use both vehicles it owns and ones it leases in its international self-transportation operations.

Article 197.- The competent national authorities shall annul the permits granted if it finds that the international self-transportation service is being carried out for payment.

Article 198.- The international road transportation of indivisible merchandise whose volume is in excess of the maximum permitted limits, as well as the use of unconventional vehicles, shall require specific authorization from the competent national authority of the Member Countries through which they pass.

The circulation of such merchandise, and of the oversized vehicles, shall be regulated by the national legislation of the Member Countries through which they pass.

Article 199.- Twice a year, authorized carriers shall submit to the competent national authority of their countries of origin, monthly statistical data about the merchandise transported and the trips made. The consolidated information shall be given to the Board of the Cartagena Agreement.

The Board of the Cartagena Agreement, after hearing the opinion of the Andean Committee of Land Transportation Authorities, shall establish the pertinent form for recording the information.

Article 200.- Each Member Country shall inform the competent national authorities of the other Member Countries, on a timely basis, about the conditions demanded for the circulation of approved vehicles and cargo units, which in no case may be stricter than those required for the movement of the vehicles registered in the country in question.

Article 201.- Authorized vehicles engaged in providing the international transportation service shall not be submitted to customs, immigration, police, and sanitary controls at places other than the border.

Inspections that must be carried out along the route for legally stipulated reasons national security or if evidence is found of the commission of customs violations are excepted from the provision of the previous paragraph.

Article 202.- The public offer of international transportation service to be provided along national segments is considered to be deceitful advertising that is subject to the legal sanctions of the respective Member Country.

Article 203.- Within a period of one hundred and eighty calendar days after this Decision enters into effect, the Member Countries shall bilaterally or multilaterally agree upon the schedules and any other operational or service procedure needed at the authorized border crossings, for the international transportation.

Those agreements shall be adopted jointly and in coordination by the transportation, customs, immigration, plant and animal health, police, and any other authorities that exercise that control.

The Member Countries shall adopt the necessary measures for providing continuing and uninterrupted service at the border crossings.

Article 204.- The Member Countries shall establish the necessary provisions so that the authorized carriers may provide their services under conditions of equal competition in the marketplace.

Article 205.- International transportation of merchandise by road is recognized by the Member Countries as an export service.

Article 206.- In implementing this Decision, the Member Countries shall make the necessary effort to find appropriate solutions for resolving the problems stemming from Bolivia�s geographic enclosure.

Article 207.- In the international transportation of merchandise by road, the authorized carriers may not provide the service of carrying postal packages, money orders, securities, and parcels.

Article 208.- In cases not envisaged in this Decision and its complementary provisions, the national legislation and regulations of the corresponding Member Countries shall be applicable.

Article 209.- Any change in the enterprise name or alteration in the designation of the competent national authority, as well as of the other national authorities involved in controlling international transportation operations, shall be communicated to the Board of the Cartagena Agreement and to the other Member Countries through the corresponding liaison bodies.

CHAPTER XVII

COMPLEMENTARY PROVISIONS

Article 210.- The Board of the Cartagena Agreement, after hearing the opinion of the Andean Committee of Land Transportation Authorities (CAATT), shall approve via a Resolution the regulations and forms for the transportation authorizations that may be necessary to comply with the stipulations of this Decision.

The forms and the information to be entered in them may also be modified.

Article 211.- The Board of the Cartagena Agreement, after hearing the opinion of the CAATT, when deemed necessary, shall establish via Resolution the risks to be covered and the amounts of coverage of the insurance policies to be used in the operations of international transportation of merchandise by road.

Article 212.- Also applicable to this Decision are the definitions contained in the Decision on International Customs traffic and those corresponding to limitations on the weight, dimensions, and other characteristics of the vehicles to be used in the international transportation, whose concepts are utilized in this provision.

Article 213.- For purposes of this Decision and, in particular, of matters concerning the approval, registration, authorization, liability, and guaranties, cooperatives shall be considered entrepreneurial units, independently of the legal status of each of their members considered individually and of the ownership of their vehicles.

CHAPTER XVIII

FINAL PROVISIONS

Article 214.- This Decision replaces Decision 257 of the Commission of the Cartagena Agreement.

Article 215.- This Decision shall enter into force on the date of its publication in the Official Gazette of the Cartagena Agreement.

TEMPORARY PROVISIONS

FIRST: The Member Countries, at the proposal of the Board and within a period of ninety calendar days after this Decision becomes effective, shall approve a Community provision that establishes the violations and the system of penalties for the authorized carriers.

SECOND: The Member Countries, at the proposal of the Board and within a period of one hundred and eighty calendar days after this Decision becomes effective, shall approve a Community provision for regulating the international transportation of dangerous merchandise by road.

THIRD: The qualification certificates and the service permits, together with their annexes and the certificates of approval of the vehicles, granted pursuant to Commission Decisions 257 and 358, shall remain valid until their expiration date. Authorized carriers shall request the competent national authorities to renew those documents sixty days before their expiration date and shall update only such information and documents as may be necessary.

FOURTH: The Board of the Cartagena Agreement, after hearing the opinion of the Andean Committee of Land Transportation Authorities shall, within a period not to exceed ninety calendar days after this Decision becomes effective, adopt via Resolution the criteria for rating the qualification of the authorized carrier, determining the minimum useful load capacity of the carrier�s own and its leased vehicles, and establishing the requirements for the association contract.

FIFTH: The provisions of Decision 358 that do not run counter to this Decision shall remain in force until the Board of the Cartagena Agreement adopts the regulations for the latter via a Resolution.

Signed in the city of Lima, Peru, on the seventeenth of January of nineteen ninety-seven.