The Ministry of Road Transport and Highways on 5th May 2022, has notified the Central Motor Vehicles (Draft Amendment) Rules, 2021 to further amend the Central Motor Vehicles Rules, 1989.
As per the draft amendment, rule 33 which deals with Necessity of Trade certificate has been substituted as follows:
Trade certificate is necessary for those manufacturers of motor vehicles or dealers of motor vehicles or test agencies specified in rule 126 or importers of motor vehicles or any entity(s) specified by central government, who possess vehicles which are neither registered nor temporarily registered.
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. 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.
Further the condition for exemption from registration is notified under rule 33A. A motor vehicle in the possession of any of the entity(s), shall be exempted from the necessity of registration subject to the condition that such entity(s) obtain a trade certificate from the registering authority having jurisdiction in the area in which entity(s) have places of business.
