MoRTH Issues Notification regarding Comprehensive Reforms in the Trade Certificate Regime under Central Motor Vehicle Rules, 1989

· 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

[MoRTH Notification GSR 703(E) dated 14 September 2022]

Ministry of Road Transport & Highways (MoRTH) vide GSR 703(E) dated 14 September 2022 has notified comprehensive reforms in the Trade Certificate regime under the Central Motor Vehicle Rules, 1989.

Due to certain anomalies in the existing rules, the applicability of 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.

In an endeavour to promote ease of doing business, MoRTH has notified new rules to simplify and streamline the Trade Certificate regime.

The key provisions of the new rules are as follows:

1. Trade Certificate will be 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.

2. 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.

3. 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.

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

5. 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.

6. Display of dealership authorisation certificate in showrooms/godowns has also been mandated.

7. 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.