Bilateral transport is a type of international carriage of goods between the carrier's country of establishment and another country. Find out what rules apply to bilateral transport operations after the Mobility Package, when permits are required and whether the driver is subject to posting rules.
Key takeaways
Looking for information about bilateral transport? In this article, you will learn:
- What bilateral transport is;
- What bilateral operations look like in practice;
- How bilateral transport differs from cross-trade and cabotage;
- How the Mobility Package affects bilateral operations;
- How bilateral transport affects drivers' pay.
What is bilateral transport?
Bilateral transport is a type of international carriage of goods or passengers between the carrier's country of establishment and another country. It is one of the most common types of international transport. Within the EU, bilateral transport operations are carried out under a Community licence (Regulation (EC) No 1072/2009). For countries outside the EU, the basis is bilateral agreements, which set the rules for carrying out transport and the conditions of market access for transport companies.
Bilateral transport: definition and practical examples
Bilateral agreements and the legal basis for bilateral transport
Bilateral agreements with non-EU countries work on the principle of reciprocity. Each party undertakes to give carriers from the partner country comparable conditions for carrying out transport on its territory. These agreements govern the carriage of passengers and goods between the two countries, in transit through their territories and between one of the contracting countries and a third country.
International vs. bilateral transport: geographical scope
Bilateral transport can take place both within the EU and with third countries that have signed the relevant agreements. For Poland, as an EU Member State, international transport of goods within the EU is governed mainly by EU law, while international transport to non-EU countries relies on bilateral agreements.
Poland's bilateral agreements with third countries
Poland has concluded bilateral international road transport agreements with the following third countries:
- Albania
- Armenia
- Belarus
- Yugoslavia
- Iraq
- Iran
- Jordan
- Kazakhstan
- Kyrgyzstan
- North Macedonia
- Moldova
- Russia
- Syria
- Tunisia
- Turkey
- Ukraine
- Uzbekistan
Transport to and from Russia and Belarus is currently subject to EU sanctions, so check the current restrictions before planning such a transport.
In many cases, international transport to these countries requires bilateral permits. The types of bilateral permits and the rules for issuing them are set out in the relevant international agreements.
See also: How to hire a driver from outside the EU?
Rules for bilateral transport: when is the operation legal?
Within the EU, a bilateral transport operation is legal if the carrier holds a Community licence and, for non-EU drivers, a driver attestation. For transport to third countries, the basis is bilateral agreements, which set out market access and the scope of carriers' activities, often with a permit requirement.
In practice, bilateral transport covers the carriage of goods that starts in the carrier's country of establishment and ends in another country, or the other way round. An example is a Polish transport company carrying goods from Poland to Germany or from Germany to Poland. The full texts of Poland's bilateral agreements are published in the Polish official journal Monitor Polski and are available in the treaty database of the Polish Ministry of Foreign Affairs.
Bilateral transport: practical examples
Understanding bilateral transport in theory is one thing, but applying it in day-to-day operations requires knowing specific scenarios. Bilateral operations are carried out every day by companies in international transport, so it is worth knowing the most common examples.
Bilateral carriage with one loading and one unloading
The basic scenario is a Polish carrier transporting goods from Poland to Germany, where the goods are unloaded and the driver returns home without any additional load. Although not always the most cost-effective, this is a classic bilateral operation and the simplest example of two-way transport.
Much more often, the carrier transports goods in both directions. For example, a Polish transport company may carry an export load to Italy and then import production materials from France to Poland. In this case, the driver carries goods on both the outbound and the return leg, and both operations remain bilateral.
Bilateral operations with additional loading and unloading
The Mobility Package introduced new rules on bilateral transport and on additional activities during carriage. Under these rules, the driver may carry out one additional loading or unloading activity in a transit country without losing the bilateral status of the operation. In practice, on a route from Poland to France, the driver might load goods in Czechia, unload them in Germany and then continue with the original load to France.
The Mobility Package also allows more complex scenarios. If the driver does not carry out an additional activity on the way to the destination country, they may carry out up to two additional loading or unloading activities on the way back to Poland. In practice, after delivering goods to Germany, the driver may load German goods bound for Poland, then pick up an additional load in Austria and unload it in Czechia, while keeping the bilateral status of the operation.
Bilateral transport vs. cross-trade: when does an operation remain bilateral?
An additional activity carried out as part of a bilateral operation can take the form of a cross-trade activity, meaning loading in one country and unloading in another, as long as the driver does not load and unload goods in the same country. Since August 21, 2023, only drivers of vehicles equipped with a second-generation smart tachograph (G2V2) can benefit from the exemption for additional activities. Example: the driver carries goods from Poland to France and, on the way, loads goods in Czechia that are unloaded in Germany. By contrast, separate operations between third countries, for example from Berlin to Paris and then from France to Slovakia, are cross-trade subject to posting rules.
Note that cross-trade activities do not always mean losing the bilateral status. If the additional activities stay within the limits set by the Mobility Package, the carrier still benefits from the rules for bilateral transport.
Cabotage vs. bilateral transport: the key differences
After completing a bilateral operation, the driver may also carry out cabotage. Cabotage is the carriage of goods between points in a country where the carrier is not established. Under current rules, cabotage can be carried out a maximum of three times within 7 days of unloading the international carriage.
Cabotage vs. bilateral transport - Example
After delivering goods from Poland to Germany, the driver may carry goods between Munich and Dresden and then return to Poland with a new load. More complex operations involving further countries are also possible. After unloading in Italy, the driver may carry out cabotage on the Rome to Milan route, then drive to Austria for another domestic operation, and later continue road transport in Germany. These examples show how flexible route planning in international road transport can be. Remember that a maximum of three cabotage operations in total can be carried out within 7 days of unloading the international carriage. In another country, only one cabotage operation is allowed, and only within 3 days of entering that country unladen. After cabotage ends, a 4-day cooling-off period applies in that country.
Bilateral transport and the Mobility Package
The Mobility Package introduced fundamental changes to bilateral transport and international carriage from February 2, 2022. The new rules mainly cover the posting of drivers, the pay of drivers carrying out road transport and the organization of drivers' work. The biggest changes affected cabotage and cross-trade, while bilateral transport was given specific exemptions. As a result, the Mobility Package treats bilateral operations differently from most other transport operations.
Bilateral transport and the Mobility Package: key exemptions
How did the Mobility Package change international transport?
One of the most important changes introduced by the Mobility Package was a new approach to the status of drivers carrying out international transport. Since February 2022, drivers performing international carriage are no longer treated as employees on a business trip under Polish law. In practice, this means that drivers performing cabotage and cross-trade operations must be paid in line with the rates applicable in the country where the transport takes place. Settling such operations requires tracking the rates in every country on the route, and if you prefer to leave it to specialists, see our foreign payroll service for drivers.
The Mobility Package did not change the rules on night work. It did, however, change the rules on rest periods: the regular weekly rest may not be taken in the vehicle cab, and the driver must be able to return to the country of the employer's establishment or to their place of residence every 3 or 4 weeks. The new rules have a significant impact on route planning and international carriage.
Posting of drivers and bilateral transport
The Mobility Package precisely defines the operations that are not subject to the rules on the posting of drivers. Bilateral transport between the carrier's country of establishment and another country is not subject to posting. This applies both to the outbound carriage to the destination country and to the return trip.
The exemption also covers transit through the territory of another country if the driver does not load or unload goods there. Importantly, a driver carrying out a bilateral operation may additionally carry out one loading or unloading activity in a transit country without losing the bilateral status of the operation. This makes international transport more efficient while keeping the benefits of the posting exemption.
IMI declarations: do they cover bilateral transport?
The IMI system (Internal Market Information System) is the EU platform for submitting posting declarations for drivers carrying out certain types of international transport. The registration obligation applies mainly to cabotage and cross-trade operations.
Bilateral transport, like transit, does not require an IMI declaration. This means that a carrier performing bilateral transport does not have to submit a posting declaration for a driver carrying out a bilateral operation. For operations that are subject to posting, however, the driver should have a copy of the IMI declaration in paper or electronic form during a roadside check.
Pay of a driver carrying out bilateral transport
The rules on the pay of a driver carrying out bilateral transport are clear. Drivers performing bilateral operations do not have to be paid according to the rates applicable in the countries they drive through or deliver to. For bilateral transport, pay is governed by the rules of the country where the carrier is established.
A Polish driver carrying out bilateral operations is paid under Polish pay regulations. There is no obligation to apply the minimum wage of the country where the transport takes place, as is the case for certain operations subject to posting rules. This is one of the most important simplifications the Mobility Package provides for companies carrying out bilateral transport.
Driver pay in bilateral transport
Components of a driver's pay in bilateral transport
The pay of a driver carrying out only bilateral transport and transit includes the amount set out in the employment contract or an annex to it, as well as additional components related to the performance of work duties, including:
- Night hours worked;
- Work on public holidays and Sundays;
- Average weekly hours not covered by a flat-rate allowance.
When assessing whether pay complies with the rules, the total gross amount is analyzed. This means that the pay of drivers carrying out international transport is assessed as a whole, not component by component.
Changes to per diems and lump sums after the Mobility Package
The Mobility Package and the changes to Polish law in force since February 2, 2022 significantly changed the way drivers in international transport are paid. Since then, a driver in international transport is no longer on a business trip (Article 21b of the Polish Act on Drivers' Working Time), so per diems and overnight lump sums no longer work in their previous form.
Amounts paid to the driver are treated as pay, which is generally subject to social security contributions and tax. The rules do, however, provide relief: the social security (ZUS) contribution base can be reduced by the equivalent of a per diem for each day spent abroad (the so-called virtual per diem), and the part of income corresponding to 30% of the per diem for each day spent abroad is exempt from Polish personal income tax (PIT).
Current pay of drivers in international transport
The current pay of a driver carrying out international transport depends on experience, the type of operations and the employer's pay policy. For purely bilateral operations, Polish pay rules apply, while for operations subject to posting, the rates of the country where the transport takes place also apply.
When planning employment costs, it is worth considering the route structure: the larger the share of cabotage and cross-trade, the more important foreign minimum rates become.
Bilateral transport: summary
Bilateral transport remains one of the most important forms of international transport. Thanks to its exemption from some of the Mobility Package obligations, carriers can carry out bilateral operations under simpler rules than cabotage or cross-trade.
If you need help with drivers' working time settlements for bilateral operations and more, or with accounting for transport, the Evotax team is here to help! Contact us and we'll take care of the rest.
Bilateral international transport - Frequently asked questions
Below, we've gathered the most frequently asked questions about bilateral transport, together with our answers. If your question isn't here, contact us and our specialists will be happy to help!
Bilateral transport is the international carriage of goods or passengers between the carrier's country of establishment and another country. It can take place within the EU or with third countries that have concluded bilateral agreements governing such transport.
Drivers carrying out bilateral transport are paid under the rules of the carrier's country of establishment, without having to apply local rates in the countries they drive through. Since February 2022, a driver in international transport is not on a business trip, so they do not receive per diems and overnight lump sums under the previous rules. The employer can, however, apply the so-called virtual per diem, reducing the ZUS contribution base by the equivalent of a per diem for days spent abroad.
During a bilateral operation, the driver may carry out one additional loading or unloading activity in a transit country. If no additional activity is carried out on the way to the destination country, up to two loading or unloading activities may be carried out on the return trip, provided they do not take place in the same country.
Bilateral operations are exempt from the rules on the posting of workers. This means that drivers carrying out bilateral transport do not have to be declared in the IMI system and are not subject to the pay requirements of transit or destination countries.
Yes, one of the additional activities allowed in a bilateral operation can take the form of a cross-trade activity (loading in one country, unloading in another). Since August 21, 2023, only vehicles with a G2V2 tachograph can benefit from this exemption. Cross-trade operations beyond these limits are subject to posting rules.
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