The Ministry of Road Transport & Highways has notified new rules to simplify and streamline the Trade Certificate regime in a bid to promote ease of doing business. There were some anomalies in the existing rules, which were causing harassment to business establishments.
Accordingly, the Trade Certificate will be required only in case of vehicles which are neither registered nor temporarily registered. Application for Trade Certificate can be made electronically on Vahan portal, without visiting the RTO. 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 time period for grant or renewal of trade certificate has been fixed at 30 days as per the new rules and it outlines that applications that are not disposed within 30 days will be deemed as approved. The validity of the Trade Certificate has been increased to 5 years from 12 months.
In a bid to bring about uniformity across dealership authorisations, a dealership authorisation certificate (Form 16A) has been introduced. The trade certificate has been made co-terminus with the dealership authorisation. Display of this certificate is now mandatory at showrooms and warehouses.
The proposed date for implementation of the new certificate is November 1, 2022. Meanwhile the Ministry also clarified that the existing trade certificates will continue to be valid till their renewal is due.
The Ministry of Road Transport and Highways (MoRTH) has also issued notification for providing 58 citizen-centric services completely online, eliminating the need to visit the RTO, services can be availed with the help of Aadhaar authentication, on voluntary basis. These are services related to driving license, conductor license, vehicle registration, permit, transfer of ownership.
In a press statement, MORTH explained, “Providing such services in a contactless and faceless manner would go a long way in saving critical time of citizens while easing their compliance burden. Consequently, the footfall at the RTOs is likely to significantly reduce, which would lead to greater efficiency in their functioning.”