Article 3
1.The carrying out of cabotage operations shall be subject to the laws, regulations and administrative provisions in force in the host Member State in the following fields, subject to the application of Community rules:
(a)rates and conditions governing transport contracts, and chartering and operating procedures;
(b)technical specifications for vessels.
The technical specifications which must be met by vessels used for carrying out cabotage operations shall be those imposed on vessels authorized to carry out international transport operations;
(c)navigation and police regulations;
(d)navigation time and rest periods;
(e)VAT (value added tax) on transport services.
2.The provisions referred to in paragraph 1 must be applied to non-resident carriers under the same conditions as those which that Member State imposes on its own nationals, in order to effectively prevent any discrimination on grounds of nationality or place of establishment.
3.If it is established that, taking practice into account, it is necessary to adapt the list of fields covered by the provisions of the host Member State as referred to in paragraph 1, the Council shall amend that list acting by a qualified majority on a Commission proposal.