December 26, 2024
Carriage of Goods Agreement in Uzbekistan
3. Obligations and liabilities of the parties
4. Forwarding services and forwarding agents
Legislative framework
1. Civil Code of the Republic of Uzbekistan;
2. Air code;
3. Law of the Republic of Uzbekistan “On Transport” № 706 dated 09.08.2021;
4. Law “On Compulsory Civil Liability Insurance of Carriers” dated 26.05.2015 №-386;
5. Law of the Republic of Uzbekistan “On Automobile Transport” № 674-I dated 29.08.1998;
6. The resolution of Cabinet of Ministers of the Republic of Uzbekistan “On Improving the Regulation of Transport Forwarding Enterprises and Transport Forwarding Activities in the Republic of Uzbekistan” № 348 dated 09.09.2000;
7. Resolution of the Cabinet of Ministers of the Republic of Uzbekistan “On Approval of the Rules for the Carriage of Goods by Road in the Republic of Uzbekistan” № 213 dated 01.08.2014.
Transportation contracts are essential in the logistics and transportation sectors. The national legislation of Uzbekistan provides two main types of contracts in this field: carriage contracts and forwarding contracts. The main difference between these two contracts lies in the responsibility of the parties. Under a forwarding contract, the agent is responsible for organizing the entire cargo transportation process for the contractor, along with any other obligations specified in the contract. Transport service contracts share similar rules and conditions with standard service contracts. These contracts are drafted to regulate the key aspects of transportation services provided by one party, the Carrier, to another party, the Customer.
Additional documents, such as an estimate, a specification of works, or other supplementary materials may be attached to the contract for the provision of transport services. Acceptance and transfer of services under the contract are formalized through the signing of an act of acceptance of the work performed (or services rendered) and the issuance of an invoice.
The carriage of goods belonging to a legal entity or individual entrepreneur is considered a business agreement by virtue of Article 3 of the Law “On the contractual-legal basis of the activities of business entities” and is subject to its provisions. Both types of carriage contracts must be concluded in writing. A power of attorney shall be issued to freight forwarders if necessary.
When drafting a contract for the provision of transportation services, it is imperative to specify the following information and conditions: the date and location of the contract’s conclusion; details of the contractor and customer; the subject of the contract with a detailed description of the transportation terms; rights and obligations of both parties; the procedure for making payments between the parties; information on the liability of the parties and dispute resolution methods; and the terms and procedures for concluding and terminating the contract. The contract must also include the parties’ details, signatures, and seals (if applicable).
Only licensed individuals or entities may act as carriers in cargo transportation contracts. For example, Article 13 of the Law “On Motor Transport” and Article 96 of the Air Code require that transportation by car and air be conducted under a permit (license) in accordance with specific rules and procedures established by the Cabinet of Ministers.
The terms of a charter contract are regulated in Article 712 of the Civil Code and Article 99 of the Air Code. According to the Air Code, under a charter (aircraft charter) contract, one party (the lessor) agrees to provide the other party (the lessee) with one or more aircraft for one or more flights for the transportation of passengers, hand luggage, cargo, mail, or other purposes.
Sea transportation of goods is formalized through bills of lading and charter contracts. If the contract requires the carrier to transport goods but does not specify the amount of space provided on the vessel, such an obligation is formalized by a bill of lading. The bill of lading acts as a receipt and is considered legal evidence of the delivery of the goods. In addition, the bill of lading is, firstly, evidence of the conclusion of the contract; secondly, a receipt from the ship’s captain about the receipt of the goods; thirdly, a document granting the right to dispose of the goods; and fourthly, a document defining the relationship between the carrier and the customer. The bill of lading indicates the names of the carrier and the customer, the addresses of the goods’ origin and destination, and other relevant information.
A transport forwarding agreement must be concluded in writing and include a detailed list of transport forwarding services related to the organization of the transportation process by various modes of transport, including mixed types, both domestically and internationally. It must also specify the names and addresses of the parties, the locations of shipment and delivery, and other conditions. Upon receiving the cargo, the transport forwarding company must issue an appropriate transport document, such as a bill of lading, for the transportation and a transport forwarding service bill of lading.
3. Obligations and liabilities of the parties
The carrier must provide the customer with a vehicle in a condition suitable for the carriage of the relevant cargo within the period specified in the contract of carriage of cargo. The customer, in turn, is obligated to deliver the cargo to the carrier within the specified period (Law on Automobile Transport). The carrier must ensure the readiness of the vehicle for the carriage; namely, the vehicle must be in good condition and suitable for transporting the cargo. Otherwise, the customer has the right to refuse such a vehicle.
Carriers assume liability for delays in passenger transportation and must pay fines and compensate passengers for damages caused by delays. If a passenger refuses to use the service due to a delay, the carrier must refund the fare and any other expenses incurred.
In cases of contractual non-performance or improper performance, the parties are held liable in accordance with the provisions of Chapter 24 of the Civil Code. Carriers are responsible for delays, damages, or loss of cargo during transportation. Compensation is based on the value of the damage incurred. If the carrier fails to satisfy a claim fully or partially or does not fulfill obligations within 30 days of notice, the customer or consignee may file a claim in court. Disputes between the carrier and the customer over contract breaches can be resolved through free-form agreements specifying liability measures.
Carriers are required to maintain insurance for their civil liability under the Law on “On Compulsory Insurance of Civil Liability of Carriers.” A compulsory civil liability insurance contract of a carrier can be concluded for one year, while carriers transporting passengers and baggage by road can opt for contracts ranging from three months to one year. The Cabinet of Ministers regulates the formation and terms of compulsory insurance contracts. The following state authorities in the transport sector of Uzbekistan monitor compliance with the insurance requirement:
- The Ministry of Transport of the Republic of Uzbekistan;
- The Civil Aviation Agency under the Ministry of Transport;
- The Inspectorate for Safety Control of Freight and Passenger Transportation on Railways under the Ministry of Transport.
Other state authorities with appropriate legal powers may also conduct such oversight in accordance with the law.
In cases where non-compliance with the contract stems from force majeure events, military operations, or restrictions on cargo transportation imposed by relevant charters and codes, both the carrier and the customer are exempt from liability. In such cases, contractual relations between carriers and customers may be suspended by a decision of the Cabinet of Ministers of the Republic of Uzbekistan or local government bodies (Law of the Republic of Uzbekistan “On Motor Transport”). At the same time, the time limits for claims arising from such cases are also suspended (Article 156 of the Civil Code).
Any agreement between a forwarding company and customers that seeks to limit the liability of the forwarding agent as established by law is invalid (Appellate Instance of the Judicial Collegium for Economic Affairs of the Supreme Court of the Republic of Uzbekistan, Ruling No. 4-1001-2217/32623, June 20, 2023, Tashkent).
4. Forwarding services and forwarding agent
Only commercial legal entities and citizens with a license to provide transport forwarding services may act as forwarders. Vehicles, terminals, and other objects involved in transport forwarding activities, as well as the services themselves, are subject to mandatory certification under the legislation of the Republic of Uzbekistan.
The main prerequisites for qualifying as a forwarding agent are outlined in the regulation on transport-forwarding enterprises and the provision of transport-forwarding services:
- Availability of a professional competence certificate
- Enterprise’s bank account number and the bank confirmation of insolvency
- Availability of an office
- Quality performance of transport-forwarding-related tasks
- Documentary evidence of actual performance of transport forwarding
Freight forwarders are subject to a comprehensive set of legal requirements when rendering transportation and logistics services. These requirements encompass addressing clients’ transportation requirements, selecting optimal routes, determining transport modes, delivery methods, agreed timelines, and cost reduction measures. Freight forwarders also assume responsibilities such as freight consolidation, storage, handling, packing, distribution, preparation and processing of accompanying documents, customs clearance, freight insurance, and other related services.
It is important to note that forwarding agents are prohibited from providing customs clearance services for imported products that are ordered for commercial purposes by individuals. In such cases, customs clearance must be carried out directly by individuals – the owners of the goods.
Contract of carriage and forwarding can be terminated unilaterally if one party notifies the other 10 days before termination. However, the party unilaterally terminating the contract must compensate for damages caused by the termination.
