Loss of Good Reputation by a Carrier – Can a Decision by the Authority Be Appealed?

In the transport industry, a carrier’s good reputation is a key element of its operations. It is not only a measure of customer trust but also a necessary condition for maintaining a transport license. Losing a good reputation can have serious consequences, including a ban on conducting transport activities. Therefore, it is important for carriers to understand their rights and the appeal procedures available if a decision regarding the loss of good reputation is issued.

A carrier’s good reputation refers to their credibility, reliability, and ability to comply with legal regulations. Under Polish law, a carrier must meet the requirements of good reputation to operate legally. Loss of this reputation can result from committing specific legal violations, as outlined in the Act of September 6, 2001, on Road Transport (Journal of Laws 2001 No. 125, item 1371, as amended). This act stipulates that the authority initiates proceedings if an entrepreneur is convicted by a final court judgment for intentional offenses:

• Against road safety – such as violations of traffic rules or health and safety regulations.
• Against property.
• Against economic trade – particularly when a transport company evades taxes.
• Against document reliability – e.g., operating without proper licenses or failing to report changes to transport license details.
• Against environmental protection – e.g., using vehicles exceeding emission limits.
• Other transport-related offenses – such as violations regarding the transport of dangerous goods (ADR) or passenger transport regulations.

It is important to note that, in addition to the above violations, other legal provisions outside the Road Transport Act can also lead to the loss of good reputation.

2. Violation of EU Law

EU regulations also play a role. The list of EU violations that can lead to the loss of a carrier’s good reputation is detailed in Commission Regulation (EU) No. 403/2016 of March 18, 2016. It specifies:

• Serious infringements (SI) – moderate impact violations, such as minor technical or social breaches. Examples include tax or social law offenses, unsafe vehicle conditions, or failure to conduct technical inspections.
• Very serious infringements (VSI) – more significant violations, often aimed at circumventing the law or directly affecting transport safety. Examples include overloading vehicles, failing to secure cargo, or illegal cabotage operations.
• Most serious infringements (MSI) – those directly impacting road safety, public health, or the environment. Examples include tachograph tampering, driving/rest violations under Regulation (EC) No. 561/2006, and unsafe transport of dangerous goods (ADR).

3. Procedure for Loss of Good Reputation

Violation of any of the above requirements may trigger a procedure to revoke a carrier’s good reputation. This begins with the issuance of a relevant administrative decision by the authority responsible for transport licenses – either the Chief Road Transport Inspectorate (GITD) or the starosta for national licenses or forwarding licenses.

This decision can be appealed to a higher administrative authority. If the appeal is unsuccessful, the carrier can challenge the decision in an administrative court. Failure to use these appeal options can result in severe consequences, including the withdrawal of the transport license, a ban on transport operations, loss of clients, contracts, and significant financial losses. Both domestic and EU violations can trigger this procedure, making it essential for carriers to act quickly if such a decision is issued.

4. Available Appeals

Appeal to a Higher Administrative Authority
Under the Code of Administrative Procedure, an appeal must be filed within 14 days of receiving the decision. In the case of GITD, the superior authority is the Minister of Infrastructure, who may uphold or overturn the decision. A well-prepared justification is crucial, such as comparing the number of violations cited by the authority to the number of employed drivers, highlighting potential impacts on staff, and emphasizing the public interest.

Complaint to the Administrative Court
If the appeal is rejected, the carrier may file a complaint with the Voivodeship Administrative Court (WSA) within 30 days. The court can annul the decision if it finds a legal violation.

Restoration of Good Reputation

A carrier can take corrective actions to restore its reputation, such as training drivers, implementing quality management systems, and ensuring legal compliance. After completing these measures, the carrier may submit a request to the authority that issued the loss-of-reputation decision. If the authority deems the actions sufficient, it can issue a decision restoring the carrier’s good reputation, allowing operations to continue.

Summary

Loss of good reputation can have serious consequences for a carrier. However, Polish law provides mechanisms for appealing such decisions and restoring reputation once corrective measures are implemented. Carriers should be aware of their rights and appeal options to effectively protect their interests. Legal support from a transport law specialist can be invaluable in both the appeal process and in undertaking corrective actions to restore reputation.