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 stresses the importance of improving the quality of supervision and services provided by regulators. The aim of supervision is and remains to minimise societal risks but should not be unnecessarily burdensome. At the Supervision Summit on 2 October 2014, the Cabinet indicated that it would like to enter into discussions with the business community and State Inspectorates to review a number of sectors (including logistics) and make supervision better, smarter and more efficient. As announced in the Cabinet letter 'Working for Growth' of 16 September 2014, one of the goals is to work towards a single point of control 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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