21 November 2022

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Motor Vehicles

Ministry of Road Transport and Highways issues draft notification pertaining to trade certificate


In order to promote ease of doing business, 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 is 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. 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.

An application for the grant of additional Trade registration mark shall be made electronically on portal in Form 17A to the registering authority. The fees shall be submitted electronically on portal. The registering authority may, if satisfied that the applicant holds a valid Trade certificate and requires additional Trade registration mark, issue to the applicant additional Trade registration mark, in Form 17B within seven days from the date of receipt of such an application.

If the registering authority has reason to believe that the holder of any trade certificate has not complied with the provisions of Rules 39 to 43A, it shall report the fact of non-compliance of the said provisions along with reasonable proof, to the head of the Motor Vehicles Department established under Section 213. The head of the department may, after giving the holder of trade certificate an opportunity of being heard, suspend or cancel the trade certificate held by him.

Tags : Trade Certificate Compliance Notification

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