PROTOCOL of the Turkish-Hungarian Joint Committee Meeting on Road Transport between the Republic of Turkey and the Republic of Government of Hungary Izmir, 04-05 March 2014 The Turkish- Hungarian Joint Committee Meeting on Road Transport was held in Izmir on 04-05 March 2014 in accordance with the Agreement on International Road Transport signed between the Government of the Republic of Turkey and the Government of the Republic of Hungary on 14 September 1968. The members of both sides are listed in the appendix. Items of the agenda are as follows: 1. 2. 3. 4. Exchange of statistical data Goods transport Passenger Transport Other issues 1.Exchange of Statistical Information The sides exchanged statistical information regarding the foreign trade and international road transport in terms of volume and value between the two countries. The sides noted the relevant development in trade and road transport activities and agreed upon the aim of bilateral trade to reach 5 billion dollars. The sides expressed their good will for improving trade between the two countries and stated the importance of transport regarding to volume of the trade between Hungary and Turkey. 2. Goods Transport The sides exchanged information on the share of the transport market among Turkish and Hungarian haulers and 3rd country hauliers. Hungarian side requested used taxable permits for 2014 in order to offer making 25% reduction on the passage fees of taxable permit. Turkish side stated that they will take it into consideration. Referring to GATT Agreement Article V and Decision No1/95 of the EC-Turkey Association Council, Turkish side offered that primarily transit operations can be liberalized completely. Otherwise, Turkish side requested an increase for the quota of bilateral/transit non-taxable permits at least 5.000 pieces. Hungarian side does not agree wıth the reference to the GATT Agreement that Turkish side indicated. Turkish side also expressed that according to the protocol which was signed in 1992 passage fee is not applied to vehicles environmentally sensitive. Hungarian side replied that Hungary is now a country of EU and Hungary has to adapt EU rules. Both side, in principal, accepted separation of bilateral and transit permit from each other for the 2015 quotas. After long discussions, the sides agreed on the final quotas for 2014 as follows: For the Turkish side: 20.000 bilateral/transit non-taxable permits for Euro3 vehicles and higher. 5.500 bilateral/transit non-taxable permits for Euro4 vehicles and higher 2.000 non-taxable permits for third country transport 16.400 taxable permits For the Hungarian side: 13.000 bilateral/transit non-taxable permits (permits for Euro2, Euro3 vehicles) 6.250 non-taxable permits for third country transport 16.400 taxable permits In addition to that Hungarian side accepted to provide 1000 pieces additional transit permit valid for the year of 2014 for Euro4 vehicles and higher. After long discussions, the sides agreed on the preliminary quotas for 2015 decided by the protocol signed on 26th September 2013 as: For the Hungarian side: 13.000 bilateral/transit non-taxable permits (permits for Euro2, Euro3 vehicles) 6.250 non-taxable permits for third country transport 16.400 taxable permits For the Turkish side: 20.000 bilateral/transit non-taxable permits for Euro3 vehicles and higher. 5.500 bilateral/transit non-taxable permits for Euro4 vehicles and higher 2.000 non-taxable permits for third country transport 16.400 taxable permits Hungarian side stated that railway transport will facilitate road transport significantly and asked to Turkish side for its support. Turkish side agreed with the Hungarian side and stated its pleasure of the cooperation with Hungary on railway transport. Hungarian side stated that they may strive for a Ro-La line to make it serve again and requested Turkish side for promoting its hauliers to use this line and if the same number of operator uses the Ro-La line, bonus system will be reconsidered again. Turkish side expressed that option of transport mode namely whether they use Ro-La line or not is up to the costs which must be competitive with road transport. Turkish side expressed that any transport operator cannot be forced to use any mode or line. Hungarian side expressed their opinions about VAT return issue. Turkish side informed the Hungarian side about the notion of the Turkish Ministry of Finance. Hungarian side noted that Turkish 550 liters of fuel limitation rule applied by Turkish authority does not comply with the current Agreement. Turkish side explained the situation saying that this rule is applied both to foreign and Turkish hauliers in order to prevent fuel smuggling. Hungarian side asked from the Turkish side to make a visa exemption regulation for the professional drivers. Turkish side informed the Hungarian side stating that after having discussion with The Ministry of Foreign Affairs; the result will be delivered to the Hungarian side. Both sides agree with the necessity of the amendment of the current bilateral agreement. Turkish side transmitted its opinion on the amendment offer of the bilateral agreement previously received from the Hungarian side. After the long discussions, Turkish side proposed to send the draft of a new bilateral agreement that contains measures that are going to ease transportation. The sides agreed that the duration of all permits shall be valid until 31st January of the following year. 3.Passenger Transport The sides noted that there are currently three international regular (scheduled) bus services line between Turkey and Hungary. Both sides were agreed, that the number of the bus services will be increased, if required. The sides agreed that the permit quota for passenger transport services, which was 200, will remain the same. 4.Miscellaneous Hungarian side informed Turkish side about infractions of rules by Turkish hauliers regarding using of CEMT permits, using of tachograph, misuse of permits, exceeding permissible weight in Hungary. Hungarian side stated that these infractions of rules are increasing day by day. The Hungarian company responsible for the electronic toll system would like to contact its Turkish partner Hungarian side invited Turkish side to Hungary for the next Joint Committee Meeting on Road Transport. Exact date and venue will be agreed through diplomatic channels. Done on 5th March 2014 in Izmir in English in two original copies. For the Turkish Side For the Hungarian Side Hüseyin YILMAZ Andras SZEKELY