AGREEMENT
between the Government of the Republic of Latvia and the Government of the Republic of Serbia
on international transport by road

The Government of the Republic of Latvia and the Government of the Republic of Serbia (hereinafter called "the Contracting Parties"):

- anxious to contribute to the development of trade and economic relations between their countries;

- determined to promote collaboration in road transport within the framework of the market economics;

- recognizing the mutual interest and advantage of an agreement on road transport

have agreed as follows:

I GENERAL PROVISONS

Article 1
Scope

This Agreement applies to international road transport operations from or to the territory of a Contracting Party, in transit through the territory of a Contracting Party or between the territory of a Contracting Party and a third country on hire and reward or on own account, performed by the carrier with the place of establishment in the territory of the other Contracting Party by vehicles registered in that territory.

Article 2
Definitions

1. The term "country of establishment" means the territory of the Contracting Party within which the carrier is established and the vehicle registered.

2. The term "host country" means the territory of the Contracting Party on whose territory the carriage is performed by the carrier who is not established on the territory of that country and whose vehicle is not registered on the territory of that country.

3. The term "carrier" means a natural or legal person who is authorized in accordance with the respective national laws and regulations of the Contracting Parties to perform international transport of passengers or goods by road.

4. The term "vehicle" means:

a) in the carriage of passengers - any power driven road vehicle which is adapted for carriage of passengers, has more than nine seats, including the driver's seat and is registered in the territory of one of the Contracting Parties;

b) in the carriage of goods - any power driven road vehicle, which is registered in the territory of either Contracting Party and adapted for goods transport. For the purposes of this Agreement the term "vehicle" also applies to any trailer or semi-trailer, coupled to any motor vehicle disregarding the place of registration of a trailer or a semi-trailer as well as to the combination of road vehicles, in which case the motor vehicle is a determining factor in issuing the permit or exemption from the permit.

5. The term "authorization" means an authorization or a permit granted by the competent authorities of one of the Contracting Parties to enter and to exit or to go in transit through the territory of that Contracting Party or to/from a third country to the carrier of the other Contracting Party, as well as any authorization or permit provided by this Agreement.

6. The term "regular service" means passenger transport along specified routes and according to schedules and fares agreed in advance and whereby passengers may enter or exit the vehicle at predetermined stops.

7. The term "shuttle services" means transport of organized passenger groups for several journeys, from the same place of departure or the place up to 50 km from the place of departure to the same place of destination or the place up to 50 km from the place of destination. Each group, consisting of the passengers who made the outward journey, is carried back to the place of departure on a later journey and the first return journey and the last outward journey are made unladen. Shuttle service does not lose its characteristics if some passengers join any other group on its return journey.

8. The term "occasional service" means a service falling neither within the definition of a regular passengers service nor within the definition of a shuttle service whereby the frequency or number of services does not affect their classification as occasional service.

9. The term "cabotage" means the transport of passengers or goods between two points within the territory of one Contracting Party carried out by a carrier of the other Contracting Party.

Article 3
Joint Committee and Competent Authorities

1. For the application and implementation of the provisions of this Agreement and the consideration of all the issues deriving from the present Agreement, the Contracting Parties shall establish a Joint Committee, which is formed from the delegates of the competent authorities of the Contracting Parties.

2. This Joint Committee shall meet at the request of competent authorities of the either Contracting Party at meetings that will be held alternately in the territories of the Contracting Parties.

3. For the implementation of this Agreement, the competent authorities shall be:

- for the Republic of Latvia - Ministry of Transport;

- for the Republic of Serbia - Ministry of Infrastructure and Energy.

Contracting Parties shall inform each other of any changes regarding competent authorities.

Article 4
Compliance with National Legislation

Carriers and crew of the vehicle must comply with national laws and provisions in force in the territory of the Host country while performing road transport operations within the Host country's territory.

II PASSENGER TRANSPORT

Article 5
Regular and Shuttle Services

1. Regular and shuttle services operated between the territories of the Contracting Parties or in transit through them are subject to a system of permits issued by the competent authority of the Contracting Parties.

2. Carriers must address applications for authorizations for regular and shuttle services to the competent authority of their Country of establishment. If that competent authority approves the application, it forwards the said application to the competent authority of the Host country.

3. The Joint Committee set up under Article 3 shall propose to the competent authorities the form of the application for authorizations and attached documents.

4. Regular services shall be established on reciprocity basis.

5. Each competent authority shall issue the permits for the period up to 5 (five) years for the section of the itinerary operated on its territory.

Article 6
Occasional Services

1. Occasional services operated between the territories of the Contracting Parties or in transit through their territories are subject to a system of permits issued by the competent authority of the Contracting Parties.

2. As an exemption to paragraph 1 of this Article the following occasional services shall not require any transport permit:

a) round trip closed door services, which begin and terminate in the territory of the Country of establishment, whereby the same vehicle is used to transport the same group of passengers throughout the journey;

b) transport of passengers from a place of departure which is located in the Country of establishment to a place of destination and the return journey is unladen;

c) services which make the outward journey unladen and the return journey laden, provided that passengers:

i. constitute a group formed under a contract of carriage concluded before their arrival in the territory of the Host country where they are picked up and carried to the territory of the Country of establishment;

ii. have been previously brought by the same carrier into the territory of the Host country where they are picked up again and carried into the territory of the Country of establishment;

iii. have been invited to the territory of the Country of establishment, the cost of transport being born by the natural or legal person issuing the invitation.

d) transit transport performed in services defined in indent a), b) or c) of this Paragraph;

e) runs by bus or coach sent to replace a bus which has broken down.

Article 7
Common Provisions on Passenger Transport

1. Permits mentioned within paragraph 1 of Article 5 and paragraph 1 of Article 6 of the present Agreement are personal and are not transferable to other carrier, and must be kept in the vehicle and produced upon request of competent control authorities of the Contracting Parties.

2. The Joint Committee set up under Article 3 may enlarge the list of services within paragraph 2 of Article 6 which are excluded from the system of permits.

3. When performing an occasional service a passenger waybill, completed by the carrier before starting the journey, must be kept in the vehicle throughout the journey and produced on the request of any authorized control officials. The form of the passenger waybill shall be adopted by the Joint Committee set up under Article 3 of this Agreement.

III GOODS TRANSPORT

Article 8
Regime of Permits

1. Carriers shall perform goods transport between the territories of the Contracting Parties, as well as to/from third countries, on the basis of permits granted by the competent authorities of the Contracting Parties. The transit transport of goods through the territory of a Contracting Party shall be carried out without permits. The Joint Committee may agree on another regime of transport performance.

2. The permit mentioned in paragraph 1 of the present Article must be used only by the carrier to whom it is issued and is not transferable.

3. The permit must be kept in the vehicle and must be produced at the request of any authorized control officials.

4. The competent authorities shall annually exchange a jointly approved number of permits valid for the period of 13 months from the beginning of each calendar year. The Joint Committee shall agree on type and number of permits as well as on conditions of usage of permits under this Article.

Article 9
Exemption from Permit Requirements

1. The following categories of transport shall be exempted from permit requirements:

a) The transport of goods by motor vehicles whose Total Permissible Laden Weight (TPLW), including trailers, does not exceed 6 tonnes, or when the permitted payload, including trailers, does not exceed 3.5 tonnes;

b) The transport of goods on an occasional basis, to or from airports, in cases where services are diverted;

c) The transport of vehicles, which are damaged or have broken down and the movement of breakdown repair vehicles;

d) Unladen runs by a goods vehicle sent to replace a vehicle, which has broken down in another country, and also the return run, after repair, of the vehicle that had broken down;

e) Transport of livestock in vehicles purpose-built or permanently converted for the transport of livestock and recognised as such by the competent authorities of the Contracting Parties;

f) Transport of spare parts and provisions for ocean-going ships and aircraft;

g) Transport of medical supplies and equipment needed for emergencies, more particularly in response to natural disasters and humanitarian needs;

h) Transport for non-commercial purposes of works and objects of art for fairs and exhibitions;

i) Transport for non-commercial purposes of properties, accessories and animals to or from theatrical, musical, film, sports or circus performances, fairs or fetes, and those intended for radio recordings, or for film or television production;

j) The transport of goods on own account;

k) Funeral transport;

l) Postal transport carried out as a public service;

m) Transfer of newly acquired vehicles without cargo to the place of their final destination.

2. The Joint Committee set up under Article 3 of this Agreement may amend the list of transport categories exempted from the permit requirements set out in paragraph 1 of this Article.

3. With regard to the transport referred to in paragraph 1 of this Article, in the vehicle must be kept all the documentation that clearly indicate that one of the above kinds of transport is in case.

IV COMMON PROVISIONS

Article 10
Cabotage

Cabotage is prohibited, unless a special permit of the competent authority of the Host Country has been granted.

Article 11
Infringements

1. If a carrier or the staff on board of a vehicle registered in one Contracting Party violate the legal acts in force on the territory of the other Contracting Party, or the provisions of this Agreement or the conditions mentioned in a permit, the competent authority of the country, where the vehicle is registered, should, at the demand of the competent authority of other Contracting Party, take the following measures:

a) to issue a warning to the carrier who has committed the infringement;

b) to cancel or withdraw temporarily the permits allowing the carrier to perform transport in the territory of the Contracting Party where the infringement was committed.

2. The provisions of paragraph 1 of the present Article shall not exclude the lawful sanctions which may be applied by the courts or other competent authorities of the Host country.

3. The competent authorities shall notify each other about taken measures.

Article 12
Taxation

1. The vehicles which are registered in the territory of one Contracting Party and are temporarily imported, during transport of passengers or goods under the present Agreement, into the territory of the other Contracting Party in accordance with the customs and fiscal legislation in force in that territory on temporary basis shall be exempted from all the duties regarding vehicle ownership.

2. Lubricants and fuel contained in the standard tanks of the vehicles, as well as spare parts intended for the repair service of a damaged vehicle performing international transport, shall be exempted from all the import duties in the territory of Host country. Non-used spare parts as well as replaced old parts shall be exported or treated in accordance with customs regulations of the Host country.

3. When performing transport operations under this Agreement, the crew members are allowed to import temporarily duty-free and without requiring import license the reasonable quantity of personal effects, depending on the duration of their stay in the territory of the Host country.

When performing transport operations under this Agreement vehicles registered in the territory of one Contracting Party, shall be exempted, according to the reciprocity principle, from the taxes and charges levied on the circulation or possession of vehicles and from taxes and charges levied on transport operations carried out in the territory of the Host country. However, this exemption shall not apply to the payment of road tolls, road user charges or other similar charges which are not other or more burdensome than road tolls, road user charges or other similar charges and connected requirements to which the carriers of the Host country may be subjected.

Article 13
Carriage of Dangerous or Perishable Goods

Vehicles carrying dangerous or perishable goods must be fitted out and equipped in accordance with the requirements of the European Agreement Concerning the International Carriage of Dangerous Goods by Road (ADR) and Agreement on the International Carriage of Perishable Foodstuffs and on the Special Equipment to Be Used for Such Carriage (ATP).

Article 14
Weights and Dimensions

1. With respect to the weights and dimensions of vehicles, each Contracting Party undertakes not to impose on vehicles registered in the territory of the other Contracting Party conditions which are more restricted than those imposed on vehicles registered within its own country.

2. If weights and dimensions of the vehicle with or without load used in transport operations exceed the maximum permissible limits being in force in the territory of the Host country, a special permit issued by the competent authority of that country is needed. The carrier should fully comply with the requirements specified in such permit.

Article 15
International Obligations

The provisions of this Agreement shall not affect the rights or obligations of the Contracting Parties contained in international conventions, agreements and regulations which apply to them.

V FINAL PROVISIONS

Article 16
Entry into Force and Period of Validity of the Agreement

1. The Agreement shall come into force on the thirtieth day from the date of the receipt of the last notification through diplomatic channels by which the Contracting Parties notify each other that the conditions required by their respective national legislation for entry into force of the Agreement have been fulfilled.

2. This Agreement may be amended on the basis of mutual agreement between the Contracting Parties. Such amendment shall enter into force in accordance with the procedures stipulated in paragraph 1 of this Article.

3. In case any dispute arises between the Contracting Parties relating to the interpretation or application of this Agreement, the Contracting Parties shall endeavour to settle it by negotiation.

4. This Agreement shall remain in force for an undefined period of time unless it is denounced through diplomatic channels by one of the Contracting Parties. In that case the Agreement shall be terminated six months after the other Contracting Party has received the notification about it.

In witness whereof, the undersigned being duly authorised thereto by their respective Governments, have signed the present Agreement.

Done in two originals at Riga, on the 2^nd of March, 2012, each in the Latvian, Serbian and English languages, each text being equally authentic. In case of divergence of interpretation, the English text shall prevail.

For the Government of the Republic of Latvia Minister of Foreign Affairs Edgars Rinkēvičs

For the Government the Republic of Serbia Minister of Foreign Affairs Vuk Jeremić