Center publishes new rules to simplify and streamline trade certificate regime



In a bid to promote the ease of doing business, the Union Department of Road Transport and Highways (MoRTH) has notified new rules to simplify and streamline the commercial certificates scheme under the Central Rules on motor vehicles from 1989.

Due to some anomalies in the existing rules, the applicability of the trade certificate was subject to interpretation in many cases, resulting in the harassment of many trade establishments.

In addition, an application had to be physically filed at the RTO, which was time consuming.

The main provisions of the new rules state that a commercial certificate will only be required in the case of vehicles which are neither registered nor temporarily registered.

These vehicles may only be in the possession of a motor vehicle dealer/manufacturer/importer or testing body specified in Rule 126.

He also said that the application for business certificate and business registration marks can be done electronically on the Vahan portal, without the need to visit the RTO.

Additionally, the applicant can apply for multiple vehicle types in one application.

The deadline for granting or renewing the trade certificate has been set at 30 days, with applications not processed within 30 days being deemed approved. The validity of the trade certificate has been extended from 12 months to 5 years in accordance with the new rules.

In addition, a Concession Authorization Certificate (Form 16A) was introduced to standardize concession authorizations.

The commercial certificate was made coterminus with the concession authorization. The display of the dealership authorization certificate in showrooms/godowns has also been mandated.

The implementation date is proposed with effect from 1 November. Existing commercial certificates will remain valid until they are renewed.

–IANS

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(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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