Freight Revenue Confiscation in Germany: When a Transport Company May End Up Paying Much More Than the Fine

Transport companies engaged in international road transport through Germany are generally familiar with the fines imposed for violations of driving and rest time regulations or for the improper use of transport permits. However, it is far less known that, in certain cases, German authorities may apply a measure that represents a significantly greater financial risk for carriers than the administrative fine itself – the confiscation of the revenue generated by the transport operation during which the infringement was detected.

This means that the amount claimed by the authorities may exceed the actual fine several times over, making it essential for transport companies to understand how such proceedings work and how they can protect their interests.

What is the confiscation of unlawfully obtained gains?

German law allows competent authorities to request the confiscation of the financial benefit obtained through an infringement instead of imposing a monetary fine. This means that the authority may assess that the revenue generated during the transport operation was obtained in breach of the regulations and may request its confiscation.

Such proceedings most commonly occur in cases of:

· vehicle overloading
· exceeding the permitted vehicle dimensions
· carrying out transport during driving bans on weekends and public holidays
 · serious violations of driving and rest time regulations
 · other infringements where the authority considers that the transport company obtained an economic benefit through unlawful conduct.

When does freight revenue confiscation become a greater risk than the fine itself?

Standard administrative fines for certain transport infringements often amount to several hundred euros and represent a relatively manageable financial risk for carriers.

In proceedings involving the confiscation of unlawfully obtained gains, the situation is far more serious. Instead of a standard on-the-spot or administrative fine, German authorities may request the confiscation of the revenue generated by the transport operation during which the infringement was detected. In our practice so far, we have often encountered situations where the gross amount charged for the transport service is used as the basis. If the carrier does not respond in time or fails to provide appropriate information on the specific freight charge, German authorities may estimate the value of the transport service themselves, based on calculation tables for road freight transport or even on their own assessment.

It is particularly important to emphasize that such a measure should, as a rule, relate only to the part of the transport carried out on German territory. However, enforcement authorities often assess the amount much more broadly, based on the planned transport route or the total value of the transport service. As a result, the amount claimed may be several times higher than the actual benefit obtained on the German section of the transport.

If a transport company misses the deadline for submitting a statement, fails to provide data on the freight charge actually agreed and paid, or during the inspection carelessly and without consultation provides information that may be detrimental to its position, the final amount may be significantly higher than it would have been with a timely and properly prepared response.

How high can claims by German authorities be?

Based on the experience of transport companies we work with, confiscation orders issued against carriers from the region have most often ranged from approximately €1,450 to €2,700. However, there are also known cases in which German authorities claimed significantly higher amounts. Professional literature cites the example of a transport company where, due to multiple violations of driving and rest time regulations, the confiscation of gains was initially set at €21,893.40. Only after proceedings in the second instance was the amount significantly reduced.

This is precisely why timely and professional communication with German authorities is of crucial importance.

Digital controls increase the risk

In recent years, German authorities have significantly improved the system of control over international transport. Data from digital tachographs, records of border crossings, cabotage data, driver posting declarations, and information exchanged between control authorities of EU Member States enable much more detailed supervision than before.

For this reason, transport companies today must treat administrative compliance as an integral part of regulatory risk management.

EXPO – your permanent representative for contact with German authorities

One of the biggest challenges faced by transport companies is the fact that many proceedings before German authorities are conducted in writing and are subject to very short deadlines for response. It often happens that a transport company does not understand the significance of the document received, receives it with delay, or is not even aware that proceedings have been initiated against it. In the federal states of Bavaria and Baden-Württemberg, decisions are served by publication on a digital notice board, and only after the expiry of deadlines are they sent by regular post to foreign carriers. In such situations, there is a risk that the German authority will issue a decision without taking into account facts that may be in the carrier’s interest.

During an inspection, the driver may immediately refer the competent authority to the authorized representative, thereby reducing the risk of missed deadlines, incomplete statements, and the submission of information that may be detrimental to the transport company.

A timely response and proper document management can often be decisive for protecting the interests of a transport company. EXPO provides its clients with the service of a permanent representative in Germany, professional communication with German authorities, and support throughout the entire procedure, with the aim of protecting the interests of the transport company and reducing regulatory risks in international transport.

Over the past 10 years, our team has handled more than 100 freight revenue confiscation proceedings, and in all cases the initial amount was significantly reduced. If you would like to check whether your transport company is adequately protected in the event of an inspection or proceedings before German authorities, contact the EXPO team.