Govt simplifies trade certificate regime under motor vehicle rules
Sep 17, 2022
New Delhi [India], September 17 : In a significant move to promote ease of doing business, the Ministry of Road Transport & Highways has notified new rules to simplify and streamline the trade certificate regime under the Central Motor Vehicle Rules.
Due to certain anomalies in the existing rules, the applicability of the Trade Certificate was open to interpretation in many cases, leading to harassment of many business establishments. Moreover, the application for a trade certificate was required to be filed physically at the RTO which was a time-consuming process, the Ministry of Road Transport & Highways said in a statement on Saturday.
Through a notification dated 14 September 2022, the Ministry of Road Transport & Highways has notified comprehensive reforms in the Trade Certificate regime under the Central Motor Vehicle Rules, 1989.
Under the revised rules, Trade Certificate will be required only in the 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.
The application for Trade Certificate and Trade Registration Marks can be made electronically on the Vahan portal, without the need to visit the RTO. Further, the applicant can apply for multiple types of vehicles in a single application.
The time period for grant or renewal of trade certificate has been fixed at 30 days, wherein applications not disposed within 30 days shall be deemed approved.
Under the revised rules, the validity of the Trade Certificate has been increased from 12 months to 5 years.
A dealership authorisation certificate (Form 16A) has been introduced to bring about uniformity across dealership authorisations. The trade certificate has been made co-terminus with the dealership authorisation. Display of dealership authorisation certificate in showrooms/godowns has also been mandated.
The date of implementation is proposed w.e.f. 1st November 2022. The existing trade certificates will continue to be valid till their renewal is due, as per a statement released by the Ministry of Road Transport & Highways.
