Centre Proposes Online Issue Of Trade Certificates For Unregistered Vehicles

Ministry of Road Transport & Highways has published a draft notification dated 5th May 2022 regarding amendments in certain provisions of the Central Motor Vehicles Rules 1989 pertaining to the Trade Certificate.

• A Trade Certificate is required only in case of vehicles which are neither registered nor temporarily registered.

• Such vehicles can only be in the possession of a dealer/ manufacturer/importer of motor vehicles, or a test agency specified in rule 126 or any entity specified by the Central Government.

• In an endeavour to promote “Ease of doing business”, it has been proposed that such agency can apply for a Trade Certificate and Trade Registration Marks electronically for multiple types of vehicles in a single application on the Vahan portal, without the need to visit the RTO.

• Streamlining of fees is also proposed, on the basis of the number of trade registration marks being applied for.

• Further, as the Trade certificate and registration marks are proposed to be allotted online i.e. electronically on the portal, therefore compliance burden regarding Intimation of loss or destruction of a trade certificate and application for duplicate has been removed.

• The validity of the Trade Certificate has been increased from 12 months to 5 years.