Explanatory Memorandum to COM(2001)540 - Conclusion of the Interbus Agreement on the international occasional carriage of passengers by coach and bus

Please note

This page contains a limited version of this dossier in the EU Monitor.

1. General background

1. On 7 December 1995, the Council authorised the Commission to negotiate a Community Agreement on the international occasional carriage of passengers by coach and bus with third countries in Central and Eastern Europe which are members of the European Conference of Ministers of Transport. Negotiations have been opened with 14 countries, namely: Bosnia-Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Moldova, Poland, Romania, Slovakia, Slovenia, Turkey.

2. The main aim was to obtain the same degree of liberalisation as that achieved by the Agreement on the carriage of passengers by road by means of occasional coach and bus services (ASOR) signed in Dublin on 26 May 1982  i for certain occasional services, other occasional services remaining subject to authorisation. The need to make a new agreement arose from the fact hat the ASOR Agreement had been signed with countries which have since become members of the European Union and only Norway, Turkey and Switzerland were still covered by the ASOR Agreement, which did not provide for future accession.

3. This Interbus Agreement therefore includes most of the liberalisation measures of the ASOR Agreement but adds social, fiscal and technical measures based on the principle of non-discrimination between the Contracting Parties. The Agreement will govern not only traffic between the Community and the third countries concerned but also traffic between the third countries themselves, thereby creating a certain degree of harmonisation of fiscal, social and technical requirements in addition to the rules on market access. Similarly, the Interbus Agreement, unlike the ASOR Agreement, provides for accession after to its entry into force for any member of the CEMT as well as for the Republic of San Marino, the Principality of Monaco and the Principality of Andorra. The Interbus Agreement replaces the bilateral agreements concluded between the Contracting Parties.

4. Six negotiating sessions have been held with the Contracting Parties, in consultation with a Committee designated by the Council, during which the various chapters of the Agreement have been discussed. Turkey never replied to the invitations to take part in the negotiations. The Member States were on each occasion invited to take part as observers. Meetings of experts were also held with the Member States for certain technical aspects of the Agreement. The Commission sent the successive drafts of the Agreement to both the Member States and the partner countries. Before being signed, the draft agreement was presented to the Council Working Party on Transport Questions.

5. A closing negotiating session was held on 13 April 2000 during which the partner countries present expressed their agreement with the text. Twelve countries were present, six of them initialled the Agreement (Bulgaria, Czech Republic, Moldova, Poland, Romania, Latvia) and six others expressed their intention to sign the Agreement (Estonia, Lithuania, Slovakia, Slovenia, Croatia, Bosnia-Herzegovina). Hungary and Turkey did not take part in the initialling ceremony.

6. The period for signing the agreement was scheduled from 14 April 2000 until 31 December 2000 and was subsequently extended until 30 June 2001.

7. By 30 June 2001, the agreement had been signed by the European Community and by the following thirteen countries: Bosnia Herzegovina, Bulgaria, Croatia, Czech Republic, Hungary, Latvia, Lithuania, Moldova, Poland, Romania, Slovak Republic, Slovenia and Turkey.

2. Contents of the Agreement

8. The principle of non-discrimination.

The Agreement provides in a general manner that the Contracting Parties are required to ensure that the principle of non-discrimination on the grounds of the nationality or the place of establishment of the transport operator and of the origin or destination of the bus or coach is applied.

9. Access to the market.

The Agreement provides that the following are exempt from authorisation: closed-door tours, services which make the outward journey laden and the return journey unladen, services on which the outward journey is made unladen and all the passengers are taken up in the same place, transit operators, buses and coaches to be used exclusively for the replacement of a bus or coach which is damaged. These services are performed under the cover of control documents issued by the competent authorities, the models of which are established by the Agreement.

Other occasional services are subject to authorisation. The detailed rules and authorisation procedures are established in the Agreement.

10. Harmonisation of laws

With regard to the requirements applicable to transport operators, the Agreement provides that the Contracting Parties must apply provisions equivalent to those laid down by the Community Directive on admission to the occupation (Annex 1 to the Agreement).

Similarly, a timetable is provided for the adaptation of the technical standards applicable to the vehicles to various Community directives (Annex 2 to the Agreement) to ensure that, by 2010 at the latest, only buses and coaches equivalent to EURO 1 standard are on the road.

In addition, the Agreement provides that the Contracting Parties which have not yet done so must accede to the European Agreement concerning the work of crews of vehicles engaged in international road transport (AETR).


11. Fiscal provisions

In order to avoid double taxation and to maintain the principle of non-discrimination, the Agreement provides that no tax will levied on the circulation or possession of vehicles and no special tax on transport operations in the territory of the other Contracting Parties. The Joint Committee will be instructed to draw up a list of the taxes which may only be levied on the Contracting Party of registration of the vehicle. However, taxes and charges on motor fuel, Value Added Tax, road tolls and other charges for the use of infrastructure will apply in a non-discriminatory manner. Nonetheless, this obligation does not mean that there may not be differences, depending on the place of establishment of the transport operator, as regards the application of certain fiscal procedures and requirements (e.g. the requirement to appoint a tax representative) and as regards the application of the 13th VAT Directive.

An exemption from import duty is provided for a limited quantity of fuel contained in vehicles and of lubricants. Similarly, spare parts may be imported free of import duties.

12. Controls

The Contracting Parties are responsible for the control of transport operations in their territory. It is their responsibility to check that the control documents are properly completed and used in accordance with the services carried out. The Contracting Parties must also lay down a system of penalties for breaching the terms of the Agreement, which may include temporary exclusion from their territory.

13. Management of the Agreement

A Joint Committee made up of representatives of the Contracting Parties is provided for in the Agreement. Its task includes ensuring the proper implementation of the Agreement; providing information for the Contracting Parties; adapting the control documents to any new measures adopted within the Community; seeking to resolve any dispute which may arise over the implementation of the Agreement.

14. New accessions

The Interbus Agreement provides that CEMT member countries may accede to the Agreement after its entry into force.

15. Entry into force

- The agreement shall enter into force for the contracting parties which have approved or ratified it, when four contracting parties including the Community have approved or ratified it, on the first day of the third month following the date on which the fourth instrument of approval or ratification is deposited, or on the first day of the sixth month on condition, in the latter case, that a declaration to this effect is made at the time of the ratification of the agreement.

- The agreement shall enter into force, for each contracting party which approves or ratifies it after the entry into force provided for in paragraph 1, on the first day of the third month following the date on which the contracting party concerned deposits its instrument of approval or ratification.

16. Duration

The agreement shall be concluded for a period of five years, dating from its entry into force.

3. Conclusion

17. The Commission considers that, after the signature of the agreement, it is necessary to initiate the procedure with a view to its conclusion. Consequently, the Commission is hereby submitting to the Council this proposal for a decision on the conclusion of the INTERBUS Agreement on the international occasional carriage of passengers by coach and bus.