International Road Freight Permits Policy Scoping Document

Transcription

1 International Road Freight Permits Policy Scoping Document February 2018

2 Contents 1. Road haulage 3 The current regulatory regime 3 Preparing for a new regulatory regime 4 2. What we seek to achieve 5 Creating a permits regime 5 The application process 5 Fees 7 3. Preparing regulations 8 Regulatory framework 8 Consultation 8 Devolution 8 Annex A: the haulage industry licensing regime 10 2

3 1. Road haulage 1.1 Government recognises that the commercial haulage industry is at the heart of the 110 billion of trade that takes place between the UK and EU every year, directly contributing 13.1bn GVA to UK economy. An estimated 195,400 people are employed in the road freight sector in Great Britain, and the industry estimates that the logistics sector employs 1.7m people directly and an additional 2.5m in occupations related to it. 1 The current regulatory regime 1.2 The international carriage of goods by road for hire or reward within the EU is currently carried out under EU rules, which enable hauliers established in a Member state to carry goods internationally within the EU providing the haulier has a community licence in accordance with Regulation (EC) 1072/ A brief description of the current regulatory regime, and how it is administered in the UK, is given in Annex A. 1.3 Goods vehicles operating commercially in the UK are required to carry a licence under the Goods Vehicles (Licensing of Operators) Act 1995 ( the 1995 Act ) in Great Britain, or the Goods Vehicles (Licensing of Operators) Act 2010 ( the 2010 Act ) in Northern Ireland. Where an operator in Great Britain wishes to carry goods internationally, that operator must obtain a standard international operator s licence under section 3 of the 1995 Act in Great Britain, which is issued by a traffic commissioner, and also constitutes an authorisation to engage in the occupation of road transport operator under Regulation (EC) 1071/2009. Goods vehicles used for international carriage by a haulier established in a Member State other than the UK are exempt, as are goods vehicles used for international carriage by a haulier established in Northern Ireland and any vehicle specified in regulations In order to obtain a community licence for the international carriage of goods within the EU, the haulier must meet the requirements for a road transport operator set out in Regulation (EC) 1071/2009. It is an offence to use a goods vehicle for the international carriage of goods without a community licence. 4 A community licence is issued to any person who has been granted a Standard International Operator s licence on application. 1.5 Where a UK haulier wishes to undertake a journey to or through a country outside the EU, the position depends on the international agreement in place. The EU has 1 Freight Transport Association (2017), Logistics Report 2017, p9, available at pdf 2 Although Regulation (EC) 1072/2009 has direct application in Member States, practical arrangements for its use in Great Britain are set out in the Goods Vehicles (Licensing of Operators) Regulations 1995 (SI 1995/2869). 3 Exemptions from the requirement to hold an operator licence are set out in the Goods Vehicles (Licensing of Operators) (Temporary Use in Great Britain) Regulations 1996 ( the 1996 Regulations ), and the Goods Vehicles (Licensing of Operators) (Exemption) Regulations (Northern Ireland) 2012 ( the 2012 Regulations ). 4 In Great Britain under regulation 4 of the Goods Vehicle (Community Licences) Regulations 2011 ( the 2011 Regulations ) and in Northern Ireland under regulation 3 of the Goods Vehicles (Community Licence) Regulations (Northern Ireland)

4 concluded agreements with countries like Switzerland and Norway under which community authorisations are recognised, so no additional permits are required. Where the EU has yet to conclude an agreement with a third state, the position is determined by any agreement concluded by the UK. The exemptions in such agreements vary widely, and may include restrictions on the goods carried, the vehicle type, or the documentation to be carried. Preparing for a new regulatory regime 1.6 The Haulage Permits and Trailer Registration Bill is intended to support the Government s aim of continuing the liberal access for commercial transport to the EU. The importance of keeping essential trade flowing is recognised by the EU and is strongly in the mutual interests for both sides. We are therefore confident that a deal will be secured that ensures that essential trade flows will continue without any restrictions on access. 1.7 It is the Government's intention to minimise any additional administrative or process burdens by streamlining procedures and building on existing systems. We also recognise the need for a system which ensures a smooth withdrawal process. 1.8 It is possible that the future deal with the EU could require a form of permitting system and the government will need to have legal frameworks in place to introduce a new administrative system if required. 1.9 Amongst other provisions, the Bill therefore enables the Secretary of State to establish a system of permits for UK hauliers to use when travelling to or through other countries. This would help maintain UK hauliers' freedom of movement when working internationally, if any permit scheme is required. The Bill was introduced into the House of Lords on 7 February 2018, and completed its Lords stages on 24 April It was introduced into the House of Commons on 25 April The Bill is part of a suite of legislation that will ensure that the United Kingdom successfully prepares for all Brexit contingency scenarios. It allows the Government to put in place an allocation system of haulage permits for UK hauliers to use when operating internationally, and a system for the registration of trailers, to fulfil our obligations in becoming a contracting party to the 1968 Vienna Convention on Road Traffic On leaving the EU, the current intention is that the European Union (Withdrawal) Bill - subject to the Bill's passage through Parliament - will save Regulations (EC) 1071/2009 and 1072/2009, which will form part of EU retained law. Whether community licences issued by the UK will continue to be recognised within the EU on exit and vice versa or whether a new arrangement is needed depends on the outcome of the negotiations of the future trade agreement. The Bill prepares for a range of possible agreements by providing powers that will support British hauliers to continue operating internationally after the UK leaves the EU; and by giving the Government the necessary framework to introduce new administrative systems after exit. 4

5 2. What we seek to achieve 2.1 The Regulations, if exercised, would prohibit the use of a UK registered goods vehicle for transporting goods on a journey to, in or through a country outside the United Kingdom without an international road haulage permit ( a permit ) valid for each country on that journey. UK goods vehicles will only be prohibited from travelling to another country without a permit, where that country requires a permit to be carried. The requirement to carry a permit will be set out the international agreement concluded between that country and the UK, and the regulations will only apply to those countries with which the UK has agreed that permits must be carried on international journeys. The Regulations will also set out the procedures for applying for, determining the allocation and grant of permits, and include provisions on appeals and fees. Creating a permits regime 2.2 Clause 1 of the Bill provides that a UK-based haulage operator may be prohibited from using a goods vehicle to transport goods on an international journey to a relevant country, unless a permit valid for each relevant country on that journey is carried on the vehicle. 2.3 The UK already has agreements with a number of countries (outside the EU) obviating the need for permits. 5 In many cases, there are restrictions on the classes of goods which may be carried without a permit, and these restrictions will be set out in the Regulations. If agreement is reached with the European Union or some or all of its Member States, this list would be extended. The application process 2.4 Permits will be obtained by application to the DVSA. An applicant must hold a standard international operator s licence, issued by the traffic commissioners. This will make the permits regime easier to enforce, and if a licence is revoked, the Secretary of State can readily cancel the permit. 2.5 Clause 2 of the Bill provides for how permits should be allocated in circumstances where there are more applications than permits of a certain kind, or relating to a particular country. The Secretary of State will develop a clear set of criteria on which he will award a permit. 2.6 The key principles that will underpin any allocation of permits, particularly in any situation where the demand exceeds the supply of permits, are that the allocation: maximises the economic and trade benefits to the wider UK economy; 5 Belarus, Georgia, Kazakhstan, Morocco, the Russian Federation, Tunisia and Ukraine. These exemptions are currently set out in the Goods Vehicles (Licensing of Operators) (Temporary Use in Great Britain) Regulations 1996, and the Goods Vehicles (Licensing of Operators) (Exemption) Regulations (Northern Ireland)

6 supports the interest of UK hauliers; is deliverable and as simple as possible for UK hauliers to obtain; has a process that is legally robust. The Bill already provides that the Secretary of State may use random allocation, or 'first come, first served' as a method. Other criteria could include elements such as the exhaust emissions level (for example, Euro 5, Euro 6 or other) of the vehicle (or vehicles) which the operator intends to use; the value of the goods intended for carriage; the expected intensity of use of the permit application; the possible trade implications; or whether all sectors should have some proportion of permits. The Government will consult on what criteria would provide an efficient, equitable and economically effective distribution of permits. 2.7 The detail on these powers will be set out in secondary legislation and guidance. This approach provides flexibility should we need to adjust any scheme to meet different arrangements which may be negotiated as part of future agreements with other countries outside the EU. 2.8 The Bill also provides powers for the Secretary of State directly to allocate permits for key national economic or security reasons. Temporary exemptions 2.9 Clause 3 of the Bill provides for the Secretary of State temporarily to exempt particular hauliers or classes of hauliers from the permit requirements. The Secretary of State would exercise this power to address needs arising from emergencies such as natural disasters. Cancelling permits 2.10 There will be circumstances in which the Secretary of State should be able to cancel a permit, where a haulier has acted improperly. For example if they have obtained the permit by providing false information, or where they have not complied with the conditions of a permit or paid the relevant fees. A permit could also be cancelled where the haulier s operator s licence is revoked, as they could not then use the permit. Appeals 2.11 The Bill does not provide powers to create an appeals process for the allocation decisions. The allocation of permits will be based on pre-set criteria which will be set out in regulations and guidance to industry, and will not involve any discretion or judgement. The allocation process will treat all hauliers in the same way, using objective information, and apply clear criteria to determine which hauliers most closely meet the criteria. Therefore it will not be appropriate to have an appeals process for the allocation of individual permits, as there would not be clear individual grounds to appeal a decision The Government does, though, recognise the importance of an appeal process where appropriate, and as such clause 4 of the Bill provides powers for a haulier to appeal against a decision of the Secretary of State to withdraw or cancel a permit. 6

7 2.13 We propose that appeals would be to a traffic commissioner in Great Britain and the Upper Tribunal in Northern Ireland. Fees 2.14 Clause 5 of the Bill allows the Secretary of State to charge a fee for considering an application for a permit; and issuing a permit Fee levels will be determined at the time the Regulations are to be made, but the Bill provides powers for the Government to set, and charge, an administration fee for considering an application for a permit, or for issuing or renewing a permit to recover the administrative cost of the scheme. We will consult on the detail of the fees later this year. In setting the fees, we will aim to minimise any additional burdens or costs for business arising from this scheme. The exact nature and costs of a permit made under this legislation will depend on the outcome of our negotiations with the EU, but any fees will be set on a cost-recovery basis Freight operators will continue to pay any appropriate fees for an operator's licence, holding of which is a prerequisite for applying for a permit. 6 A fee is charged for issue of a standard international licence, but no specific charge is currently made for the issue of a community licence. There will also continue to be costs associated with continuing to qualify for a licence (such as maintaining financial standing and continuing professional development), which are not directly payable to Government Legislation currently provides for fees to be charged for the issue of an ECMT permit or a journey permit between the UK and countries where an agreement has been concluded (Belarus, Morocco, USSR, Tunisia, Turkey, Ukraine and Georgia). 7 6 Section 45 of the 1995 Act and section 47 of the 2010 Act, for Great Britain and Northern Ireland respectively, enable the traffic commissioners in Great Britain and the Department of the Environment in Northern Ireland to charge fees prescribed. Current fee levels are set in Great Britain, by the Secretary of State in the Goods Vehicles (Licensing of Operators) (Fees) Regulations 1995, and in Northern Ireland, by the DoE in the Goods Vehicles (Licensing of Operators) (Fees) (Northern Ireland) 2012, 7 The fees are set out in the Goods Vehicles (Authorisation of International Journeys) (Fees) Regulations 2001, made under section 56(1) and (2) of the Finance Act

8 3. Preparing regulations Regulatory framework 3.1 The power to make these regulations will be created when Part 1 of the Haulage Permits and Trailer Registration Bill becomes law. The Secretary of State intends to exercise these powers in respect of EU Member States only if the agreement after Exit requires them. 3.2 The Bill currently provides that the Regulations will be subject to the affirmative procedure in the first instance, and negative thereafter. This provides for stronger Parliamentary oversight that the approach taken in the International Road Haulage Permits Act 1975, which the Bill will replace. Consultation 3.3 We intend to consult prior to making the regulations, to ensure that the logistics industry identifies no obstacles to a streamlined process and to take into account their responses to help make the scheme as effective as possible. 3.4 In preparing this statement, early discussions have been held with a number of key stakeholders. The Government is working with a group of expert stakeholders to assist it in the detailed planning for the new regime. This will help ensure that the views of the sector are taken into account as detailed proposals are developed. Devolution 3.5 The Regulations will apply to the UK. The Bill provides for the Secretary of State to make regulations. 3.6 The Regulations will take their extent from the extent of the Bill, which extends to England and Wales, Scotland and Northern Ireland. They will not involve devolved matters in Scotland and Wales, but will in Northern Ireland. We will be working with all three Devolved Administrations to ensure that the regulations meet the needs of hauliers across the UK. 3.7 When the Northern Ireland Assembly is re-established, we will seek a Legislative Consent Motion. The Bill applies UK-wide so that Northern Ireland operators can obtain permits, if required, for travel to mainland Europe, and register any trailers that go to the continent. 3.8 The Bill does not create a permit regime or hard border on the island of Ireland. Half of all UK imports/exports by road are to or from Ireland, with 89% of this trade being between Northern Ireland and Ireland. The Government has pledged to uphold the commitments and safeguards set out in the Belfast Agreement regarding North- South Co-operation, of which transport is a priority area of the North South Ministerial 8

9 Council. These commitments were reiterated in the December UK-EU joint report, and by both the UK and Irish Governments, who have committed to no physical infrastructure or related checks and controls, and preserving North-South cooperation. 3.9 To make clear our commitment not to create a hard border on the island of Ireland, clause 1 explicitly provides that permit regulations may not apply to journeys on the island of Ireland, unless there is an agreement on the provision of permits to which the UK Government and Irish Government have agreed. 9

10 Annex A: the haulage industry licensing regime 1 Admission to, and work within, the road haulage and passenger transport industries are regulated within the European Union. In Great Britain, the Traffic Commissioners are the competent authority, and in Northern Ireland it is the Department for Infrastructure, responsible for the licensing and regulation of those who operate heavy goods vehicles, buses and coaches (and for the registration of local bus services). The Traffic Commissioners consider applications, award licences, check compliance of licence holders, and (where necessary) withdraw licences. 2 Regulation 1071/2009 provides a set of common rules for operator licensing, with a view to facilitating movement of goods, and completing an internal market in road transport. The regulation requires that those in the industry: have an effective and stable establishment in a Member State; be of good repute; have appropriate financial standing; and have the requisite professional competence. 3 Organisations, once established and licensed as transport operators, must operate a business and have vehicles available. Every undertaking is required to employ or engage one or more transport managers, of good repute and with requisite professional competence, to manage the operation s transport activities. 4 Member States determine what is to count as good repute, but must take into account serious infractions of relevant national law. The good repute of a transport manager will also have regard to infractions of Community rules on road safety. 5 Each operation must demonstrate that it has capital, reserves or bank guarantees totalling at least 9,000 plus 5,000 for each vehicle beyond the first. 6 There is a range of subjects in which transport managers must demonstrate competence (law; business and financial management; the road haulage market; technical standards; and road safety). These are tested by written examination (with an optional oral component). In Great Britain, the examination is administered by City & Guilds. Tuition is typically completed in eight days. 10