US Embassy in London Denies Payment of $18.6 Million Congestion Charge Fees

The US embassy in London is currently not willing to pay over $18.6 million in fees for congestion charges, as reported by Transport for London (TfL), the organization responsible for managing the city's extensive transportation system.

The congestion charge was implemented in 2003 to reduce traffic and pollution in central London. Drivers who enter the congestion charge zone must pay a daily fee of $19 between 7 a.m. and 6 p.m. on weekdays, and from 12 p.m. to 6 p.m. on weekends.

TfL has stated that it will continue to pursue any outstanding fees. They have also mentioned that they are exploring the possibility of bringing the matter to the International Court of Justice.

On the other hand, the US embassy has refused to settle the fines, citing diplomatic immunity as their reason.

"Our stance is that the Congestion Charge is considered a tax, and therefore diplomatic missions are exempt from it," stated a spokesperson from the US embassy.

"This belief is also held by numerous other diplomatic missions in London," the spokesperson further explained.

TfL is firm in its stance that London's congestion charge is considered a service, not a tax, as per the UK government. Therefore, diplomats are required to pay the charge. Additionally, there is a small group of embassies that have not been paying the congestion charge, despite diplomatic efforts to address the issue. TfL has published a detailed list of these non-compliant embassies.

As of December 31, 2023, a total of 161 embassies, high commissions and consulates collectively owed over $182 million in unpaid congestion charge fees, based on data from TfL.

According to TfL’s data, the Japanese embassy has the second highest outstanding amount in unpaid congestion charge fees, totaling approximately $12.8 million.

This is not the first time there has been a disagreement about whether the US embassy should pay the charge. Back in July 2005, the embassy sent a diplomatic note stating that the charge "is a tax that cannot be lawfully imposed on the U.S. Government, its diplomatic and consular personnel, or its military force."

An Ultra Low Emission Zone (ULEZ) sign is seen at the entrance to the zone in London, England. The ULEZ scheme, led by London Mayor Sadiq Khan, is set to expand and be operational by the end of August 2023. However, there is legal opposition from outer London boroughs, with a Judicial Review expected to determine the outcome by the end of July.

LONDON, ENGLAND - JULY 14: An Ultra Low Emission Zone (ULEZ) sign is displayed at the entrance to the zone on July 14, 2023 in London, England. The expansion of London Mayor Sadiq Khan's Ultra Low Emission Zone (ULEZ) scheme, due to be in operation by the end of August 2023, is facing legal opposition from outer London boroughs with the results of a Judicial Review due by the end of July. (Photo by Carl Court/Getty Images)

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London is on the verge of becoming a costly city for cars that pollute the environment. The embassy used to cover the charge, but they decided to stop on July 12, 2005. They claimed that the fee conflicted with their obligations to foreign missions and diplomats.

In 2020, the UK Foreign Secretary Dominic Raab mentioned that British officials had discussions with various diplomatic missions and international organizations to push for the payment of outstanding fines and debts. This included unpaid congestion charge fees.

According to the Japanese embassy, the Government of Japan believes that the congestion charge does not fall under the category of 'dues and taxes' or 'charges for specific services rendered' as outlined in international conventions. Therefore, they argue that the embassy, its diplomatic agents, and their family members should be exempt from paying the charge.

The UK Foreign Office said that diplomats are expected to pay the charge, adding that they believe there are no legal grounds for diplomatic exemptions.

Editor's P/S:

The ongoing dispute between the US embassy and Transport for London over unpaid congestion charges highlights the complex interplay between diplomatic immunity and urban regulations. While the US embassy maintains that the charge is a tax from which it is exempt, TfL insists that it is a service that diplomats are obligated to pay. This legal impasse has resulted in a substantial debt of over $18.6 million, raising questions about the accountability of diplomatic missions and the fairness of the congestion charge system.

The embassy's argument that the charge is a tax that violates diplomatic immunity is based on the Vienna Convention on Diplomatic Relations, which grants diplomats immunity from local laws and regulations. However, TfL maintains that the congestion charge is not a tax but a service fee that diplomats are not exempt from. The UK government's position that diplomats are expected to pay the charge further complicates the matter, suggesting that diplomatic immunity may not extend to all local regulations. This dispute could set a precedent for other cities with congestion charges and diplomatic missions, highlighting the need for clear guidelines on the applicability of diplomatic immunity in such situations.