A corruption takes place in transport sector under the guise of adjustment in accordance with the EU legislation

Association ‘Ukrainian Agribusiness Club’ and Ukrainian Agrarian Association applied to the Committee of Verkhovna Rada of Ukraine on Agrarian Policy and Land Relations with a proposal to clarify the term ‘transportation of dangerous goods".

 ‘In the national legislation there is systematic substitution of the terms ‘transportation’ and ‘handling’ with dangerous goods that definitely causes harm to all market participants and leads to the development of corruption in transport sector, and at the same time is presented as ‘adjustment in accordance with the EU legislation in the field of dangerous goods transportation’, says a joint statement of the associations.

On February 8, 2017 the Committee of Verkhovna Rada of Ukraine on Transport rejected the proposal of V.M. Ostapchuk and O.I. Kulinich, People's Deputies, to amend the draft law No.4644 ‘On Amendments to Certain Legislative Acts Regarding Their Adjustment in Accordance With the EU Legislation in the Field of Transportation of Dangerous Goods’.

The specified amendment concerned the correct wording of the term ‘transportation of dangerous goods’, in particular it was proposed to clarify that it is an operation involving only activities that can be performed by the carrier including acceptance of dangerous goods for transportation, implementation of such transportation and transfer of goods to the recipient.

Wording of the term ‘transportation of dangerous goods’ supported by the Committee is not in line with international practice and in case of adoption of the bill would lead to the conflict of laws. In particular, transportation of dangerous goods will stipulate not only actions of the carrier but also the consignor and consignee that are not directly involved in this transportation, but according to the definition supported by the Committee perform activities constituting a part of the process of dangerous goods transportation.

Taking into consideration that in accordance with the requirements of paragraph 24, part I, Article 7 of the Law of Ukraine ‘On Licensing of Economic Activities’ transportation of dangerous goods shall be subject to licensing, the aforementioned collision will lead to the situation when both the consignor and the consignee will have to receive such license as persons that are directly involved in transportation.

Current definition of ‘transportation of dangerous goods’ does not comply with international practice that is already resulting in corruption abuses by representatives of some authorities ‘strongly recommending’, in particular agricultural producers, to obtain licenses for transportation of dangerous goods, e.g. to receive meal, agrochemicals, fuel, etc. after completion of their transportation.

Consignors and consignees of dangerous goods priori cannot fulfill conditions for obtaining such license since they do not carry dangerous goods as well as possess necessary transport and personnel, and, consequently, strange companies ‘appear’ which are ‘ready’ for the appropriate fee (more than UAH 100 thousand)  to ‘solve’ this problem.

In order to avoid negative impact on the Ukrainian economy and agriculture in particular, definition ‘transportation of dangerous goods’ shall be clarified stipulating that it is an operation involving only activities to be performed by the carrier during change of the goods location, including acceptance of dangerous goods for transportation and their transfer to the consignee (not the shipping and receiving of goods as actions that obviously can be performed not only by the carrier) – as it was insisted by Viktor Mykolaiovych Ostapchuk and Oleh Ivanovych Kulinich, People’s Deputies.

Such logic of presentation will completely comply with international and European law envisaging that transportation of dangerous goods is the carrier’s moving of goods provided by the consignor which may include other operations to be performed during such movement until the goods are handed over to the consignee.