Partial flagging out is illegal—or is it?
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• by Melanie Hammond The European Commission has confirmed that hauliers who partially flag out are breaking an EC Directive—so the French have the right to fine them.
Dirk van Vreckham, EC Head of Inland Transport, agrees that hauliers operating Dutchplated vehicles on British Operator's Licences are contravening the EC cross-border hiring agreement: this confirms the view expressed by Stephen Kirkbright of Ford & Warren in last week's Commercial Motor.
Even if a company shares the same name and directors, a Dutch-owned vehicle running on a UK Operator's Licence is effectively under hire out of its country of origin, van Vreckham explains.
Ile adds that the only way
for UK operators to legally qualify for cheaper road taxes in another member state is to set up a fully fledged company which conforms to the 0licence rules of the country in which it is based.
This will not come as good news for UK hauliers who have partially flagged out and are having vehicles detained at French borders.
However, van Vreckham's view is not universally shared. Ralph Turner of solicitors Milton Firman maintains that partial flagging out can still be legal.
He says that about half of his 25 clients have partially flagged out to Holland, and although some have had trucks stopped in France no one has been fined and all the vehicles were allowed to proceed. "I don't see why there should be any problems," says Turner: "I make sure my clients set their companies up under the same name, and that their drivers are carrying the right paperwork"
However, Turner adds that he usually advises his clients to "go the whole hog" by flagging out fully.
Roger Smith, the head of the International Branch at the Department of Transport, refuses to be drawn on this issue. 'It is up to the courts to rule on it [the legality of flagging out]," he says, "and it is for the Vehicle Inspectorate to take action where it feels appropriate."