KEYWORDS: provision of seaport services, financing of seaport infrastructures, taxation of seaports, EU law and case-law on seaports, Croatian legal framework on seaports

SUMMARY:

In the Croatian Academy of Sciences and Arts – Adriatic Institute a scientific research project has been implemented. The project implementation period is from January 2020 to December 2021. The project team is composed of four members including principal researcher. They are:

Associate Professor, Elena Orrù, Department of Legal Studies of the University of Bologna – Alma Mater Studiorum, Ph.D., Associate Professor, Željka Primorac, Ph.D., University of Split, Assistant Professor, Marija Pijaca, Ph.D., University of Zadar and Božena Bulum, Ph.D., Croatian Academy of Sciences and Arts, (principal researcher).

The research project consists of examination of existing legal regime for public ports (ports open for public transport) in Croatia with special focus on competition law issues, such as access to the market of port services, financing of port infrastructure and tax exemptions for seaports. The research also includes the analysis of European Union law, case-law of the Court of Justice of the European Union and administrative practice of the European Commission. In addition, comparative analysis of the respective legislation and judicial practice in other European countries (e.g., Netherlands, Italy, Spain, Belgium and France) will be made. In that context it should be pointed out that a sector-specific rule that regulates access to the port services market, financing of ports and pricing policy in ports has started to apply from March 2019 in the European Union Member States. It is Regulation (EU) 2017/352 of the European Parliament and of the Council of 15 February 2017 establishing a framework for the provision of port services and common rules on the financial transparency of ports.

The research team of the project will explore influence of the Regulation 2017/352 on the existing models for the provisions of port services in the EU Member States. Also, disputable issue of self-supply (self-handling) of port services by carriers providing maritime cabotage in Croatia will be analysed. The issue of self-handling is not regulated by Regulation 2017/352, but jurisprudence of the Court of Justice of the European Union should be applied.

 In recent years European Commission brought several decisions on corporate tax exemptions and reductions applicable to ports in the several EU Member States.  Some of these decisions are confirmed by the General Court. The research team of the project will analyse the influence of the EU institutions’ decisions on the corporate tax exemption on the domestic law. Regulations in force in Croatia, Article 48/3 of the Maritime Domain and Seaports Act (MDSA) define port authorities as non-profit legal persons. In addition to that, pursuant to Article 66/1 of the MDSA port services in ports open for public transport may be provided only by private operators on an economic basis. Private operators use port land, infrastructure and superstructure to provide port services, in accordance with the concession agreement.

Therefore, Croatia has chosen the landlord port management model for its ports, as defined in the World Bank Port Reform Toolkit. It means that port authorities do not provide port services. They have the role of a landlord, responsible for managing the real estate within the port area which includes long-term development of the land and maintenance of basic port infrastructure. These rules are not in accordance with the current business practice of ports open for public traffic in Croatia, in which port authorities provide port services and make profits.

These profits are not subject to taxation in accordance with the legal rules applicable in Croatia. Currently there is no legal literature published in Croatia dealing with the research topic.

The project is aimed at increasing the level of knowledge on the subject among the academics, practitioners and port industry.