Cabotage is the haulage of goods between two points in the same country by a vehicle registered in another country. Journeys where a haulier picks up a load and deposits it entirely within another country are generally prohibited under bilateral agreements.

However, UK hauliers are permitted to undertake the permitted number of cabotage journeys in most European Union (EU) member states.

EU rules on cabotage restrict the number of permitted cabotage jobs to three in seven days, subsequent to a loaded international journey. The onus is on hauliers to prove that they are operating within the rules. Caboteurs who breach safety rules can have their right to undertake cabotage removed either temporarily or permanently.

Where cabotage applies

UK hauliers who hold a Community Authorisation can engage in cabotage in the following EU member states:

<img src=http://www.bearing.com.cn/direc/myimg/201110209.jpg>    

Hauliers from these countries are allowed to carry out the permitted number of cabotage in the UK.

Where cabotage is not permitted

Cabotage operations are now permitted in the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland and Slovakia. Cabotage journeys in Bulgaria and Romania are restricted until January 2012.

VAT on cabotage operations

Operators may be liable to pay VAT on cabotage operations in the member state in which the journey is made, and will therefore need to register in that country for VAT.

 

( linda )20 Oct,2011

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