Chief Examiner s Report

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1 Chief Examiner s Report Certificate of Professional Competence - Managing International Road Haulage Transport Operations - Unit 6 (05610) December 2010 General report and review of the paper. The paper was well-balanced and covered a high proportion of the required syllabus. Questions were split between some quite easy and others slightly more difficult. Candidates performance On this occasion, concern must be expressed about the candidates ability to write a driver s schedule and their knowledge of customs requirements, cabotage rules and VAT implications. I hope to identify these problems more in the report. I offer views on each question; please note the wording may not be exactly as it is on the script but the questioned area will be clear. I think many candidates will be unhappy with their result. The following should clearly explain where they went wrong. Question number: 1 A vehicle arrives at Hull at 2000 hrs. At that time the driver is ready to begin his/her full nonreduced daily rest. The ferry departs at 2100 and takes 10 hours to complete the crossing to Rotterdam. It will then take driver 30minutes to embark the ferry in Hull and a further 30 minutes to disembark in Rotterdam. The load is to be delivered in a small town call Leiden one hour s drive away from Rotterdam Apply EU and AETR rules Many candidates had the driver embarking at 2100 and/or disembarking at 0630, at both times whilst the ferry was at sea. Many candidates used a reduced daily rest which is not permissible during a split sea journey. The most serious error made was the time of departure for Rotterdam. In future, candidates will need to know how vehicles are loaded onto and off ferries and the process used to calculate the correct driver s hours requirements. These are very similar comments to those I made 12 months ago. Oxford Cambridge and RSA Examinations February 11

2 Question number: 2 A haulier is involved in the international movement of machine tools for a particular customer. The customer asks the haulier for clarification on the provisions in the CMR Convention concerning time limits and method for a claim to be made for goods damaged during transport. Briefly describe the key points the haulier should incorporate into his reply to the customer CMR Notices of Damage Loss or Delay Many candidates did not realise that the question was about damage and gave an answer for lost or delayed goods. Very few candidates understood the answer required was that the claim must be made immediately if noted on receipt of goods, or within seven days if not. This question was very poorly answered. Question number: 3 Below is an itinerary showing the round trip of a UK-based international haulier: Collect load from a VAT registered UK customer in Birmingham, delivers to Oslo in Norway. Collect load from a VAT registered customer in Stockholm, Sweden and delivers to Minsk Belarus. Collect a machine to be repaired under warranty from a private non-vat registered customer in Warsaw, Poland and deliver to Birmingham. How should the haulier invoice each legs of the journey to ensure that VAT is charged correctly? 4.1, 4.2 and 4.3 Identify the requirements to charge VAT the implications and Circumstances. Geography and knowledge of countries outside the EU was very evident. The most common answer was to charge VAT at the UK Rate for the first part of the journey, then charge the Swedish Rate for the second and for the third register in Poland and charge Polish Rate. Candidates giving this type of answer gained less than 30 percent of the available marks. The question required a candidate to be aware of the need to determine the place of supply and understand the rules regarding non EU countries. On this occasion we still allowed the answer for registering in Poland however this was technically incorrect unless the place of supply had been determined. More is required from candidates regarding their understanding of the basic VAT rules. 2

3 Question number: 4 Name the electronic tolling systems used in Austria and Switzerland Identify the counties who charge for their infrastructures and the equipment used. Most candidates were aware of the Go box for Austria, but a myriad of answers were given for Switzerland, ranging from the European vignette to the lgv system, or HFG system or Light goods vehicle system, and not excluding LHR, LVR, HVS, HGF. I have mentioned in previous series that abbreviated answers at level three will rarely receive a mark. The answer we were looking for was the heavy vehicle fee, mentioning that it was based on the distance travelled, the standard of the vehicle, etc. Question number: 5 Explain the incoterms DDP Deliver Duty paid This is one of the most common incoterms used in road haulage, yet fewer than 10% of candidates were able to explain any of it, including that it stood for Deliver Duty Paid. This does not mean the seller paid the duty before the goods were sold, or (the next most common answer) that the goods are in free circulation. A handful of candidates new what DDP stood for, but very few knew what it meant. Question number: 6 You currently supply a customer with a tractor unit and driver to carry out multiple delivery and collection journeys in Europe. Suggest FOUR advantages of undertaking the work this way rather than sending the trailers unaccompanied and using traction from European-based operators Knowledge of Tunnel, Ship and Ferry Services Many candidates gave the answer it would be cheaper to do it accompanied. I would very much disagree with this, as ferry costs are much higher for accompanied vehicles. Most candidates did show competence in this part of the syllabus but few could give four good advantages. What we were looking for was: better control; driver available to help with problems; more secure; more control of timings, etc. 3

4 Question number: 7 A UK Operator is successful in an application for a standard International O licence. In addition to the O Licence document itself, identify THREE other types of documents which will be issued to the operator at the same time procedures regarding Community Authorisations Many candidates need to be aware that you do not get green cards or European accident forms from the Traffic Commissioner s office (the two most common wrong answers). The correct answers are Original Community Authorisation with certified copies for each authorised vehicle and the international O licence disc (a very rarely-given answer). Most candidates gained a mark but the common answer certified copies for vehicles and European permit did not attract marks. Question number: 8 If the value of 1 is 94p, and the cost of diesel in Netherlands is 1.58 per litre. What is the cost of Netherlands diesel in sterling? Show your calculations to the nearest 1p. 6.2 Be able to identify and calculate the consequences of currency exchange rates. The best-answered question of the whole examination by almost all candidates. Question number: 9 Explain THREE rules that constrain the use of an ECMT permit Knowledge of Multilateral permits. Unfortunately many candidates did not know the meaning of constraints, as a very common answer they gave was it allows for tramping operations. Although this is correct, it is not a constraint. Correct answers were cabotage is forbidden, only use with one vehicle at a time and must be returned within 15days of expiry etc. Question number: 10 Operators wishing to move goods from the UK Under the TIR convention must ensure that the goods are correctly declared and documented. Describe the steps that must be taken to meet the New Computerised Transit System requirements relating to TIR journeys In-depth knowledge of the TIR convention Only a handful of candidates even got close to a correct answer. Correct answers, rarely in evidence, include electronic notification of the load, receipt of 10 digit authorisation number and the need for a TAD document. Most just gave a generic answer of how to use the TIR carnet. 4

5 Question number: 11 A UK haulier is considering carrying out cabotage journeys in the Netherlands. Explain the maximum number of journeys and within what time constraints they will apply dependant on the vehicles loading Knowledge of Cabotage Operations Virtually no candidate gave a correct answer, and even fewer knew the rules regarding an unloaded vehicle entering a country to carry out cabotage. 5

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