Accounting and consulting firm Elan Consulting is here to help you with all aspects related to the issuance of a license for international carriage of goods and passengers in the European Union. In this article, we will examine in detail the procedures and necessary documents for obtaining this type of license, as well as answer frequently asked questions from our clients. The topic is particularly relevant for companies and individuals involved in international freight and passenger transport and want to make sure they comply with all EU and national legislation requirements.
What are the main steps for issuing a license for the carriage of goods?
The process of issuing a license for international carriage of goods begins with the preparation of the necessary documents and the submission of an application to the competent authority. We are often asked: “What are the necessary documents for a license for international carriage of goods?” and “What are the conditions and terms for issuing this license?”. In the following paragraphs we will consider these issues in detail.
What documents are needed to prove financial stability?
One of the key requirements for issuing a license is the demonstration of the financial stability of the carrier. The questions “What documents are needed to prove financial stability?” and “How are the minimum financial requirements calculated?” are frequent topics of consultations that we offer.
How to check the validity of the license for the carriage of goods?
Checking the validity of the license is an important step for any carrier. We often answer questions such as: “How do I check if a company has a valid license for international cargo transportation?” and “How do I check a transport license in Bulgaria?”. We offer practical information and guidance for carrying out these checks.
What are the requirements for a license to transport cargo up to 3.5 tons?
Carriers operating light commercial vehicles are often interested in the specific requirements for them. The question “What are the requirements for a license for the carriage of goods up to 3.5 tons?” is among the most frequently asked, and we will consider it in detail.
What are the requirements for a license for the carriage of goods on own account?
Many companies that do not carry out commercial transportation, but transport goods for their own needs, are interested in the question “What are the requirements for a license for the carriage of goods at their own expense?”. In this article, we will clarify these requirements and help you navigate the procedures.
How long is the freight license valid for?
Another important aspect is the validity period of the license. Questions such as “How long is the license for international carriage of goods valid?” and “How is the license renewed?” will be considered in detail.
What are the fees for issuing a license for the carriage of goods?
Last but not least, the financial aspects are also important. Customers often ask: “What are the fees for issuing a license for the carriage of goods?” and “Are there any additional fees and costs associated with license maintenance?”. In this article we will also give answers to these questions.
With this article, Elan Consulting aims to provide comprehensive information on all issues related to obtaining and maintaining a license for international carriage of goods and passengers in the EU. Our experts are ready to assist you at every step of the process, ensuring that you meet all legal requirements and obtain the necessary license in the shortest possible time.
How is a license for international cargo transportation issued?
Are you planning to transport goods within the EU? If this is the case and your vehicle, together with any trailer, has a gross weight of more than 3.5 tonnes, you must hold a Community Freight Licence as laid down in Regulation (EC) No 1072/2009.
Accounting firm “Elan Consulting” can assist you in the entire procedure for obtaining a Community license for international carriage of goods. Let us first consider the administrative aspects of this regulatory requirement.
Some key points to keep in mind:
- The license is the property of the carrier company and cannot be relinquished.
- The original must be kept with the carrier, while a certified copy of it is mandatory to be on board the vehicle.
- The licence applies to a combination of vehicles, regardless of whether the additional parts (e.g. the trailer) are not registered in the name of the holder or are registered in another EU Member State.
- According to Article 8 (2) of EU Regulation 1072/2009, the licence entitles the carrier to carry outup to three cabotage operations within seven days in an EU Member Stateafter the initial load.
Cabotage operations are transport activities carried out by a company from one EU Member State (or another region where this term applies) in the territory of another Member State without the need for additional authorisations or licences. In the context of the European Union, cabotage allows carriers to carry out temporary transport services in another Member State after they have completed an international carriage from or to that country.
The purpose of authorising cabotage transport is to increase the efficiency of the transport system in the EU by reducing the number of empty journeys and enabling carriers to optimise their operations. This contributes to reducing greenhouse gas emissions, reducing road traffic and increasing economic efficiency.
What are the main steps for issuing a license for the carriage of goods?
The main steps for issuing a license for the carriage of goods in Bulgaria include several key stages that must be completed according to the regulatory requirements. The first step is the preparation of the necessary documents. The Law on Road Transport and the relevant regulatory legal acts determine a list of documents that must be submitted for the issuance of a license. This includes evidence of financial stability of the company, professional competence and good name of the carrier.
The application for issuing a license is submitted to the Executive Agency “Automobile Administration” (IAAA). The application must be accompanied by documents certifying the availability of the necessary financial resources. According to Article 4 (2) of Regulation (EC) No 1071/2009, the carrier must prove that it has capital and reserves of at least EUR 9 000 for the first vehicle and EUR 5 000 for each subsequent vehicle.
After submitting the application and the necessary documents, the competent authorities carry out a verification of the information. This includes checking the financial stability of the company, the availability of suitable means of transport and the competence of the company's managers. Pursuant to Article 6 (1) of Regulation (EC) No 1071/2009, the competent authorities shall verify that the applicant for a licence meets the requirements of professional competence, good repute and financial stability.
If all the requirements are met, the agency issues a license for the carriage of goods. The license is valid for a certain period of time and can be renewed when it expires. Pursuant to Article 4 (2) of Regulation (EC) No 1072/2009, a Community licence shall be issued for a period of up to ten years and may be renewed.
After the license is issued, the carrier must provide certified copies of the license for each vehicle that it will use to carry out transportation. Certified copies must be kept in each vehicle and presented at the request of the controlling authorities.
The fees for issuing a license are set out in the Tariff for fees collected by the Executive Agency “Automobile Administration”. The amount of fees may vary depending on the number of vehicles and the term of validity of the license.
What documents are needed to prove financial stability?
In order to prove financial stability, carriers applying for a license to transport goods in Bulgaria must submit a certain set of documents in accordance with the regulatory requirements. The main purpose of these documents is to show that the company has sufficient financial resources to carry out its activities in accordance with the regulations and legislation of the European Union and Bulgaria.
The first and most important document is the financial statement of the company, which includes a balance sheet, a statement of income and expenses, and a statement of equity. This report must be prepared in accordance with national accounting standards or international financial reporting standards (IFRS). It is important that the financial statement be audited by a licensed auditor when required by law.
In addition, the company must provide a bank guarantee or insurance policy that covers the minimum financial requirements set out in Article 7, paragraph 1 of Regulation (EC) No 1071/2009. This guarantee or policy must certify that the company has capital and reserves of at least €9,000 for the first vehicle and €5,000 for each subsequent one.
Another important document is a certificate from a bank, which indicates the presence of liquid funds in the company's accounts. This certificate must be issued by a reliable and licensed financial institution and show that the company has sufficient funds to cover its current obligations and expenses related to the cargo transportation activity.
In addition to the above documents, the company must also submit tax returns, which certify that all tax obligations have been paid in a timely manner. These declarations must be certified by the competent tax authorities and cover the most recent financial periods.
If the company is newly established and does not have historical financial data, a business plan may be required, which details the expected income and expenses for the first few years of activity. The business plan should also include cash flow forecasts to show that the firm will be able to cover its expenses and obligations.
In order to prove financial stability, it may also be necessary to present contracts with clients that guarantee future income. These contracts must be valid and show long-term commitments on the part of customers to the firm.
In conclusion, proving financial stability requires the collection and presentation of various financial documents, including financial statements, bank guarantees, certificates from banks, tax returns and, if necessary, business plans and contracts with clients. These documents must be accurate, up to date and comply with the requirements of the regulatory authorities to ensure the successful receipt of a license for the carriage of goods.
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