Haulage Permits and Trailer Registration Act 2018

Commentary on provisions of Act

Part 1: Haulage

Policy Background

11. The EU legal framework in relation to the international carriage of goods within the EU by way of road haulage is based on qualitative requirements which hauliers must meet in order to obtain a Community Licence. Assuming these are met, a Community Licence enables hauliers established in a Member State to carry goods internationally within the EU. Road haulage to or through non-EU countries operates, for the most part, under bilateral arrangements.

• Currently, a Community Licence for the international carriage of goods within the EU is issued by a traffic commissioner in Great Britain to any person who has been granted a Standard International Operator’s Licence on application, or by the Department for the Environment in Northern Ireland.
• The provisions in the Act provide for the Secretary of State to make regulations prohibiting the use of goods vehicle registered in the United Kingdom on an international journey specified in the regulations without an international road transport permit, providing that an international agreement to which the UK is a party provides for a permit to be carried on the specified international journey. Where the outcome of negotiations with the EU mean that existing Community Licence arrangements will no longer apply after the UK’s exit from the EU, the Act provides the Secretary of State with the powers to set up and enforce any alternative arrangements that may be agreed internationally, enabling the continued movement of goods to and from the EU by UK hauliers.

12. The Act enables the Secretary of State to make regulations setting out the administrative procedure in respect of the grant of permits for specified international journeys, including the number of permits available, the application process, the criteria to be taken into account, and the procedures for varying, renewing or cancelling permits. The Act also enables the Secretary of State to put in place an appeals process in relation to the variation or cancellation of permits, and to charge fees for the application for, issue of, and variation of, a permit.
13. The Act includes provisions for enforcement, allowing an examiner to inspect and copy a permit, in order to determine whether a vehicle is being used in keeping with the regulations made under section 1(1) or the permit requirements, and to detain a vehicle for that purpose. It also enables an examiner to prohibit the removal of a vehicle from the UK if it is breaching the regulations made under section 1(1) or the relevant permit requirements, and creates criminal offences to aid in the enforcement of those regulations.

Section 1: International road transport permits

14. Section 1 provides for the Secretary of State to make regulations to prohibit the use of a goods vehicle registered in the UK on international journeys unless an international road transport permit is carried on the vehicle and all the conditions of that permit are complied with.
15. Subsection (2) allows for a permit to take various forms, as the Secretary of State considers appropriate.
16. Subsection (3) specifies that this prohibition can apply to specific journeys or vehicles.
17. Subsection (4) defines "relevant international agreement" as an agreement relating to a country outside the UK, other than Ireland, to which the UK is a party and which relates to the transport of goods by road to, in or through a country outside the UK. In relation to Ireland, a relevant international agreement is an agreement to which the UK is a party, which relates to the transport of goods by road to, in or through Ireland and which the Secretary of State has certified as an agreement to which the Government of Ireland consents. The decision in relation to whether or not to certify that the Government of Ireland consents is for the Secretary of State. If the Secretary of State certifies that an international agreement is one to which the Government of Ireland consents in circumstances where there has been no such consent, he will be acting ultra vires. The Act caters for scenarios arising as a result of international agreements which are bilateral, such as agreements between the UK and Ireland, and multi-lateral, such as UK-EU agreements.

Section 2: Number and allocation of permits etc.

18. Section 2 provides that the Secretary of State may set out in regulations:

• how the number of permits for specific international journeys is determined in accordance with international agreements (subsection (1)(a)) and how the number of those permits available for classes of applicants will be determined by the Secretary of State (subsection (1)(b));
• the criteria or methods to be applied by the Secretary of State deciding whether to grant a permit (subsection (1)(c)). These methods may include random selection, when used with other criteria or methods, or first come, first served;
• for the Secretary of State to make a number of permits available for granting in circumstances in which the methods in subsection (1)(c) are not appropriate (subsection (1)(d)), for example, for allocation in an emergency or for some other special need;
• that the Secretary of State may grant a permit subject to conditions and set out the consequences of failing to comply with those conditions (subsections (2)(a) and (b));
• provisions dealing with the duration, variation, renewal or cancellation of permits (subsection (2)(c)); and
• the procedures in relation to applications, including provision specifying when an application must be made or that the time may be determined by the Secretary of State and the information to be provided with such applications (subsection (2)(d)).

Section 3: Temporary exemptions

19. Section 3 provides for the Secretary of State to authorise in regulations temporary exemptions from the requirement to carry a permit for UK goods vehicles (under section 1(1)) in an emergency or to enable some other special need to be dealt with.
20. Subsection (2) provides that the regulations may allow for temporary exemptions to take effect by giving written notice to the operator of the goods vehicle or by publishing a notice specifying the description of goods vehicles to which the temporary exemption applies.
21. Subsection (3) states that the regulations must specify the vehicle or class of vehicles to which the exemption relates and the journeys which are covered by the exemption.

Section 4: Appeals

22. Section 4 provides for the Secretary of State to make regulations enabling appeals to be made to a court or tribunal against:

• a decision to cancel or vary a permit; or
• a decision as to the conditions under which a permit is granted.

Section 5: Fees

23. Section 5 provides for the Secretary of State to make regulations to set the fees payable for the application, variation or renewal of a permit and for the issuing of a permit if the application is successful.

Section 6: Production of permits and inspection of vehicles

24. Section 6 provides enforcement powers to examiners when it appears that a vehicle is being used on a relevant journey. These powers are:
    1. to require the driver to produce any international road transport permit carried on the vehicle for inspection and copying (subsection (2)(a));
    2. to inspect the vehicle to determine whether a permit is required and that a vehicle is being used in line with the conditions on the permit (subsection (2)(b); and
    3. to detain the vehicle to carry out these checks (subsection (3)).
25. Subsection (4) requires an examiner using the powers under this section to produce his or her authority to act as an examiner on request.
26. Subsection (5) defines "relevant journey" meaning that these powers are only exercisable if the vehicle is travelling abroad on a journey that requires a permit (under section 1(1)), or if the vehicle will conduct a journey requiring a permit while not in the UK (under subsection (1)(b)).

Section 7: Prohibition notices

27. Section 7 allows an examiner to prohibit, by notice, a vehicle on a relevant journey from leaving the UK if the relevant permits are not carried on the vehicle as required in regulations (and subsection (2) permits this in relation to journeys which technically begin outside of the UK).
28. Subsections (4) to (7) contain safeguards regulating the examiner’s power to prohibit a vehicle from leaving the UK. A notice prohibiting a vehicle from leaving the UK must be given to the driver (subsection (4)), setting out the country to which the prohibition relates (subsection (5)(a)), the circumstances in relation to which the prohibition is imposed (subsection (5)(b)), the purpose for which the prohibition applies or that it applies absolutely (subsection (5)(c)) and the period for which the prohibition is in place (subsection (5)(d)). The notice takes effect when it is given to the driver of the vehicle, and the examiner must remove the prohibition immediately if it becomes apparent either that a permit is not required for the international journey or that a permit was carried on the vehicle. The examiner must also give notice, as soon as practicable, to the operator of the vehicle if the driver is not the operator.

Section 8: Offences: breach of regulations etc.

29. Subsections (1) and (4) make it a summary offence for an operator to breach the prohibition imposed by regulations made under section 1(1); or to remove, or cause or permit the removal of, a goods vehicle from UK in breach of a prohibition notice imposed under section 7. The maximum penalty on summary conviction is a level 4 fine, currently up to £2,500.
30. Subsections (2) and (3) make it a summary offence for the driver of a goods vehicle to refuse, without reasonable excuse, to produce a permit when required by an examiner under section 6; or to willfully obstruct an examiner in carrying out functions under section 6. The maximum penalty on summary conviction is a level 3 fine, currently up to £1,000.

Section 9: Reporting on effects of EU-related provisions

31. Section 9 places an obligation on the Secretary of State to lay a report before Parliament in certain circumstances, assessing the effect on the UK haulage industry of any restrictions which apply to a permit scheme agreed with one or more EU Member States. These reports will be required where an international agreement requires the introduction of a permit scheme and the number of permits available to UK hauliers is limited and such restrictions are in place throughout a year.

Section 10: Interpretation

32. Section 10 defines some of the terms used throughout Part 1 of the Act. For the purpose of this Act, an examiner means an examiner under section 66A of the Road Traffic Act 1988 or under Article 74 of the Road Traffic (Northern Ireland) Order 1995.

Section 11: Licensing of operators in Great Britain

33. Section 11 inserts new section 3A into the Goods Vehicles (Licensing of Operators) Act 1995 (the "1995 Act") to allow the Secretary of State to grant a temporary exemption to an operator established outside the United Kingdom from the requirement to hold an operator’s licence in an emergency or to allow some other special need to be dealt with. In effect, this allows exemptions from permits for foreign vehicles in the same way as section 3 does for UK vehicles.
34. Subsections (2) to (3) of new section 3A enable a temporary exemption to be granted by a notice in writing to the operator or by publishing a notice specifying the class of operators to which the temporary exemption applies. The notice must specify the vehicle or class of vehicles and the transport operation to which the exemption applies.
35. Subsection (5) of section 11 amends section 4 of the 1995 Act in order to clarify that the power for the traffic commissioner to grant an exemption from carrying an operator’s licence may be granted by publishing a notice.
36. Subsection (7) updates the list of offences that must be notified to a traffic commissioner on application for an operator’s licence, replacing offences under the International Road Haulage Permits Act 1975 with offence in this Act.

Section 12: Licensing of operators in Northern Ireland

37. Section 12 amends the legislation of Northern Ireland, in similar ways to the amendment to legislation for Great Britain in section 11. The section inserts a new section 2A into the Goods Vehicles (Licensing of Operators) Act (Northern Ireland) 2010 (the "2010 Act") to allow the Department for Infrastructure to grant a temporary exemption to an operator established outside the United Kingdom from the requirement to hold an operator’s licence in an emergency or to allow some other special need to be dealt with. In effect, this allows exemptions from permits for foreign vehicles in the same way as section 3 does for UK vehicles.
38. Subsections (2) to (4) of the inserted section 2A enable a temporary exemption to be granted by a notice in writing to the operator or by publishing a notice specifying the class of operators to which the temporary exemption applies. The notice must specify the vehicle or class of vehicles and the transport operation to which the exemption applies.
39. Subsection (5) of section 12 amends section 3 of the 2010 Act in order to clarify that the power for the Department to grant an exemption from carrying an operator’s licence may be granted by publishing a notice.

Part 2: Trailers

Policy Background

40. The UK’s ratification of the 1968 Convention will ensure that, after exit day, UK drivers will continue to be able to drive in all EU countries. A consequence of ratification is that unregistered trailers could be turned away at the borders of other countries who have ratified the 1968 Convention as these countries are not obliged to admit unregistered traffic. Therefore, for operational reasons, a trailer registration scheme needs to be implemented.
41. The Act enables the Secretary of State to introduce a trailer registration scheme. The powers under the Act will enable: the registration of trailers (including issuing documents and administering the scheme); the issuing of registration marks (more commonly known as registration numbers); fees to be charged for providing these services; and rules to be introduced regarding the carrying of registration documents and the formatting and placement of registration plates. Offences (summary only) may also be created by regulations.

Section 13: Trailer registration

42. Section 13 enables the Secretary of State to make the regulations that are necessary for operating a register of trailers. These regulations may provide for compulsory or voluntary registration and additional provisions that may be required or relevant to operating the register (under subsection (2)). In particular, regulations may be made in relation to the form and contents of the register, the registration process and the transfer, surrender or destruction of registration documents. Further relevant provisions may also be made.

Section 14: Inspections and information

43. This section enables regulations to be made relating to the inspection of trailers and registration documents. The regulations may make provision about any of the matters relating to inspections itemised in subsection (2), including notifications and certificates. Regulations may also require individuals to provide information or things to the Secretary of State in relation to any regulations made under section 13 (subsection (1)(b)).

Section 15: Registration marks and registration plates

44. Section 15 allows the Secretary of State to make provision for the assignment of registration marks (more commonly known as registration numbers) to trailers when registering a trailer. The regulations may allow for registration marks be reassigned or withdrawn (subsection (2)).
45. Regulations made under this section may prohibit a person from keeping or using a registered trailer unless a registration plate, bearing the trailer’s registration mark, is fixed to the trailer (subsection (3)). The regulations may set out the technical specifications of registration plates and marks (size, shape, etc.) (subsection (4)). The display of a registration mark on a trailer that the mark is not assigned to may also be prohibited (subsection (5)).

Section 16: Marking of trailers

46. Regulations made under this section would allow for the marking of the body of a trailer with an identifying number. The regulations may specify by whom such marks may be made, the form of a mark, the manner and position in which it may be made and may require information about such marks to be provided to the Secretary of State.

Section 17: Fees

47. Regulations under this section may authorise the Secretary of State to charge fees for services and documents relating to the registration of trailers. The regulations may provide that such services, etc., are not carried out until the specified fee is paid and subsection (2)(b) sets out that such fees may be repaid by the Secretary of State.

Section 18: Offences

48. Section 18 allows the Secretary of State through regulations to create a range of offences associated with the trailer registration scheme, including keeping or using an unregistered or incorrectly registered trailer on a road. The offences may also relate to the breach of a specified provision of any regulations made under sections 13-17, the improper display of registration marks, expired registration documents, the provision of false or misleading information and/or documents and the obstructing of inspections/pretending to be entitled to carry out an inspection. Any such offences would be non-imprisonable and punishable with a fine not exceeding level 3 (currently £1,000) on the standard scale.
49. Persons may be required, by regulations, to provide information about the identity of a person alleged to have committed an offence created under the specified paragraphs of subsection (1). Regulations may provide for it to be an offence to fail to do so (subsection (3)). The regulations may also allow for any admissions so provided to be admitted in court as evidence.

Section 19: Records

50. Regulations made under this section may allow for any records held by the Secretary of State in connection with functions exercised by the Secretary of State under sections 13-17 of this Act to be admissible in legal proceedings as evidence of the facts stated within them, subject to authentication and other conditions (for example, allowing documents to be admissible to the same extent as oral evidence) specified in regulations.

Section 20: Trailer safety: report

51. This section requires the Secretary of State to produce a report on the number and causes of road accidents in Great Britain which involve trailers and have caused injury or death to any person within the reporting period. The report must contain an assessment of whether trailers weighing more than 750kg should be subject to compulsory registration, under section 13, or periodic testing. If a recommendation was made in the report to introduce compulsory registration under section 13, this would be limited to Great Britain.
52. The report must be laid before Parliament within 12 months of this section coming into force. The reporting period must last a minimum of 12 months ending no earlier than 18 months before this section comes into force. The trailers to be included within the report are not limited by usage or weight.

Section 21: Trailer safety: testing regulations

53. Following the laying of the trailer safety report, as required by section 20, the Secretary of State may introduce periodic testing of trailers weighing more than 750kg in Great Britain through regulations. These Regulations may amend Part 2 of the Road Traffic Act 1988 (construction and use of vehicles and equipment) and regulations made under it, which govern the existing periodic testing regime, and such regulations in making consequential or other such provision may amend any Act whenever passed or made.

Section 22: Supplementary and interpretation

54. The application of regulations made under this Part to trailers may be limited, according to the trailer’s description, circumstances, the keeper and/or user, or in any other way.
55. Subsection (2) defines several of the key terms used throughout Part 2 of the Act.

Part 3: General

Section 23: Consultation

56. Section 23 requires that, prior to making regulations under Part 1 or Part 2 of the Act, the Secretary of State must consult such persons as the Secretary of State thinks fit. This consultation may take place wholly or partly prior to the passing of the Haulage Permits and Trailer Registration Act 2018.

Section 24: Consequential amendments

57. The consequential amendments are set out in the Schedule, which is explained below.

Section 25: Regulations

58. This section is self-explanatory.

Section 26: Extent

59. This section is self-explanatory.

Section 27: Commencement and transitional provision

60. This section is self-explanatory.

Section 28: Short Title

61. This section is self-explanatory.

Schedule

Amendments relating to Part 1

62. Paragraph 1 repeals the International Road Haulage Permits Act 1975.
63. Paragraphs 2 to 4 make consequential amendments to existing definitions of "international road haulage permits" in primary legislation to include permits issued under this Act.
64. Paragraphs 2 to 4 amend Article 174 of the Road Traffic (Northern Ireland) Order 1981 (paragraph 2), section 192(1) of the Road Traffic Act 1988 (paragraph 3) and section 58 of the Goods Vehicles (Licensing of Operators) Act (Northern Ireland) 2010 (paragraph 4).

Amendments relating to Part 2

65. Paragraph 5 amends the Road Traffic Offenders Act 1988. Section 90A of this Act allows for a requirement to pay a financial penalty deposit to be imposed on a person believed to have committed "an offence relating to a motor vehicle". To make clear that a requirement to pay a deposit can be imposed for a trailer registration offence, this is amended to "…an offence relating to a motor vehicle or trailer".
66. Paragraph 6 amends the Vehicle Excise and Registration Act 1994. Section 22(2) of this Act allows the Secretary of State to extend registration regulations to a limited category of trailers. This power is redundant as it is encompassed by the powers in this Act. As such, this power is repealed.
67. Paragraph 7 amends the Road Traffic Offenders (Northern Ireland) Order 1996. This amendment mirrors the amendment to the Road Traffic Offenders Act 1988 at paragraph 5 and has the same effect in Northern Ireland.
68. Paragraph 8 amends the Vehicles (Crime) Act 2001 to extend the regime for regulating the supply of vehicle registration plates to also regulate the supply of trailer registration plates. To effectively enforce this regime, existing offences in relation to the supply of vehicle registration plates will either be amended or replicated to take the supply of trailer registration plates into account.