Cabinet brings down logistics regulatory burden

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Editorial
28 January 2015
3 min

The cabinet wants logistics companies to face less regulatory pressure within two years. This is what Minister Schultz van Haegen of Infrastructure and the Environment writes in the following letter to the House of Representatives.

Logistics sector scan

In July 2012, the Minister of Economic Affairs and I asked Actal to advise on the possibilities of reducing the regulatory burden in the logistics sector. In its advice, Actal identified three main bottlenecks:

1. The means of transport - and not the good to be transported - is central to the specific regulations for the logistics sector. This limits the flexible use of transport modes and the logistics services associated with them.

'I strongly support maximum flexibility to use different modalities. This can lead to better utilisation of infrastructure and means of transport with positive effects on accessibility and (environmental) costs.

According to Actal, the current legal frameworks hinder the optimal use of different modalities (so-called synchromodal transport). I point out that Dutch laws and regulations for the logistics sector are mostly based on international treaties or European regulations. The Actal advice to harmonise the legislative frameworks for road transport, inland navigation and rail transport therefore requires the adaptation of international treaties/regulations. I am looking at whether I can promote adaptation of international regulations, together with other countries.'

2. The quality of supervision for the logistics sector is insufficient due to fragmented interpretation and often limited services.

‘Actal emphasises the importance of improving the quality of supervision and the services provided by the supervisory authorities. The aim of supervision is, and remains, to minimise societal risks as much as possible, but it must not be unnecessarily burdensome. At the Regulatory Oversight Summit on 2 October 2014, the Government indicated its willingness to engage in dialogue with the business community and government inspectorates to review a number of sectors (including logistics) and to make regulatory oversight better, smarter and more efficient. As announced in the Cabinet letter ‘Working towards growth’ of 16 September 2014, efforts are being made, amongst other things, to move towards a single inspection point in order to increase the efficiency of the logistics chain.’

3. The complexity of sector-specific regulations has increased significantly. In some cases, they are no longer understandable to entrepreneurs and therefore not compliant.

‘Actal focuses primarily on the complexity of customs legislation and regulations. Following years of discussions, the new European Customs Code was adopted by regulation on 9 October 2013 as a compromise between the positions of the 28 EU Member States. This Code will come into force in 2016. The Netherlands put forward many proposals during the negotiations to accommodate the Dutch business community. The Code takes into account the common interests of all Member States. Actal argues that the further elaboration (in European delegated and implementing acts and national legislation and regulations) offers an opportunity to “amend the basic principles or render many exceptions superfluous”. If such scope exists, the Netherlands will certainly make use of it, but it is clear from the outset that this scope is limited. The guiding principles and the bulk of the detailed provisions are already laid down in the basic regulation.’

Reaction from industry organisations
Shippers’ organisation EVO, export association Fenedex, Transport and Logistics Netherlands (TLN), freight forwarders’ association FENEX, Air Cargo Netherlands (ACN) and the Royal Association of Dutch Shipowners (KVNR) have responded positively to Shultz van Haegen’s plans. ‘Differences of opinion between the government and the business community have, following constructive consultation, led to confidence that the regulatory burden on businesses can be significantly reduced,’ they write. ‘The parties are working together on solutions for no fewer than 22 bottlenecks in the logistics sector. For example, they are developing proposals to improve information provision on complex regulations, harmonise inspection fees across Europe and reduce local regulatory burdens.’ The organisations expect concrete results soon.

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