Following our previous newsletters introducing the RO e-Transport monitoring system, we are now taking a look at the latest legislative amendments as brought by Government Emergency Ordinance no 43/2024, which, while in principle, aims to simplify the reporting procedures by exempting certain categories of transport, in practice may generate even more confusion for Romanian companies.

Legislative background 

The RO e-Transport monitoring system emerged in the second half of 2022, when Romania implemented it through Government Emergency Ordinance No. 41/2022 (“GEO no. 41/2022”) as a system initially designed to combat tax evasion by monitoring the transport of goods with high fiscal risk (RO e-Transport).

 New amendments concerning transport categories

The new ordinance amending the provisions of Ordinance 41/2022 – the E-transport system framework – was meant to simplify administrative formalities by partially introducing two new categories of transportation exempted from reporting obligations through the E-transport system, namely the:

  • transport of excise goods being moved under a duty exemption regime or with excise duty paid in the Member State of dispatch, according to Title VIII “Excise duties and other special taxes” of Law No 227/2015 (i.e., the Romanian Fiscal Code) and
  • transport of goods carried by postal service providers in postal packages weighing up to 31.5 kg, as defined in specific legislation (i.e., Article 2 point 16 of GEO No 13/2013).

Pros

 As regards the transport of excise goods being moved under a duty exemption regime, the new amendment stipulating derogation from the reporting obligation is welcomed, as such movement was already subject to monitoring under the Excise Movement Control System (EMCS), a similar computerized system implemented to monitor the movement of excise goods between Member States.

Thus, exempting such transport of excise goods from reporting obligations towards RO e-Transport simplifies the administrative burden for the businesses concerned, which were facing double reporting obligations for the same movement of goods.

Cons

As for the exemption of the transport of goods carried by postal service providers in postal packages weighing up to 31.5 kg, the new amendments may generate confusion within a business sector already struggling to adapt to the frequent legislative changes in e-Transport regulation, as:

  • This exemption was already regulated in E-transport legislation through the provisions of Art. 1 para. 4 of Order no. 2545/6316/2022 issued by the President of ANAF and the President of the Romanian Customs Authority for the approval of the procedure for the use and operation of the RO e-Transport system, which established the threshold weight limit of over 500 kg for loading vehicles used for the transport of goods.
  • There is a risk for reporting entities to consider that all goods carried by postal service providers in postal packages weighing up to 31.5 kg are exempted from reporting obligations, regardless of their packages’ aggregate weight belonging to a single consignment of goods that may exceed the threshold limit of 500 kg.
  • The Romanian Fiscal Authorities previously stated “for the consignments of goods which fulfil the conditions laid down in Article 1 para. 4) of Order No. 2545/6316/2022, regardless of the number of packages, the obligation to register in the RO e-Transport System still applies.”

Thus, regulating the new exempted transport category for goods carried by postal service providers in postal packages, seems to have an undetectable effect in terms of reporting obligations, since the weight limit set is lower than the 500 kg limit already regulated in the current legislation.

Moreover, despite the regulatory authorities’ initial purpose of simplifying the reporting procedures, there is a potential risk of confusion for Romanian companies, if the new provisions are not corelated with the applicability conditions of Order no. 2545/6316/2022.

 Conclusions

 Thus, in order to avoid misreporting and correlative penalties, it is expected from the authorities to clarify expressly whether the exemption from reporting obligations applies to all transport of goods carried by postal packages with a maximum weight of 31.5 kg, irrespective of the number of postal packages, even when the fractionated packages belong to the same consignment of goods (e.g., 16 packages of 31.5 kg each), or whether the new provisions will only apply subject to the limit of 500 kg for each consignment as provided for in Order No 2545/6316/2022.

As the RO e-Transport system still presents multiple challenges when it comes to recording all of the relevant data, PETERKA & PARTNERS Romania remains at your disposal to provide more information and/or related legal assistance connected to this topic.

 

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No information contained in this article should be considered or interpreted in any manner as legal advice and/or the provision of legal services. This article has been prepared for the purposes of general information only. PETERKA & PARTNERS does not accept any responsibility for any omission and/or action undertaken by you and/or by any third party on the basis of the information contained herein.

 

 

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