Frequently Asked Questions (FAQs) and Answers regarding Trade Certificate

Q 1. Why trade certificate is required ?

Ans : As per Rule 33 of CMV Rules a motor vehicle in possession of - dealer of automobile,
manufacturer of automobile, manufacturer of automobile ancillary, dealer of automobile
ancillary, test agency specified in Rule 126 of CMVR, approved repairer of vehicles, agency
engaged in building bodies to vehicles - shall be exempted from necessity of registration subject
to condition that he obtains a trade certificate.

Q 2. Who can apply for the trade certificate ?

Ans : As per Rule 34 & corresponding Application Form 16 of CMV Rules, the following may
apply for Trade Certificate –

1. Dealer of Automobile

2. Manufacturer of Automobile

3. Manufacturer of Automobile ancillary

4. Dealer of Automobile ancillary

5. Test Agency specified in Rule 126 of CMVR

6. Approved repairer of vehicles

7. Engaged in building bodies to vehicles

8. Financer of vehicles

Q 3. Why trade certificates are required for financiers ?

Ans : As per Rule 41(h) of CMV Rules, if any unregistered vehicle is to be removed by financier
after the vehicle has been taken into possession of financier due to any default in payment on
the part of other party, then financier will use financier’s trade certificate for plying
unregistered vehicle on road/ public place.

Q 4. Who can issue the Trade Certificate ?

Ans : As per Rule 33 the registering authority in whose jurisdiction the applicant has his place of
business can give the trade certificate.

Q 5. How trade certificate is used on unregistered vehicle?

Ans : As per Rule 39 of CMV Rules, whenever an unregistered motor vehicle in possession of -
dealer of automobile, manufacturer of automobile, manufacturer of automobile ancillary,
dealer of automobile ancillary, test agency specified in Rule 126 of CMVR, approved repairer of
vehicles, agency engaged in building bodies to vehicles - is used in public place for those
purposes as defined in Rule 41 of CMV Rules, the trade certificate shall be carried on that
unregistered motor vehicle in a metal weather proof circular folder (the dimensions and
specifications of folder are mentioned in Schedule of Form 17). A trade registration mark and
serial number as per Form 17 shall not be used upon more than one vehicle at a time.

The Trade certificate is valid throughout India i.e. an unregistered vehicle carrying trade
certificate can ply anywhere in India

Q 6. Whether there is any relation with the number of vehicles being sold by agency with the
number of trade certificate requirement ?

Ans : No there is no relationship. The requirement of number of certificates depends upon that
how many unregistered vehicles, the applicant wants to use simultaneously on public place.
Suppose an agency has 10 trade certificates for motorcycle then that agency can bring only 10
unregistered motorcycles simultaneously with the trade certificate fitted in a metal weather
proof circular folder on each 10 motorcycle in public place for the purpose mentioned in Rule
41 of CMV Rules. After being used the trade certificates in these 10 motorcycles, the trade
certificate can be removed from these motorcycles and again can be used for other
motorcycles.

Q.7. If a dealer sells multiple manufacturer’s same vehicle category (e.g. a dealer sells
Motorcycle of Bajaj, Hero and TVS in the same showroom), then whether the dealer will have
to take trade certificate for each manufacturer?

Ans. No, dealer will not have to take the trade certificate for each manufacturer. As per Rule
34(2) of CMV Rules, Trade Certificate (Form 17) is granted for class of vehicle and not for each
manufacturer.

Q 8. For how many period the trade certificate can be granted ?

Ans : As per Rule 37 of CMV Rules, the trade certificate can be granted for a period of twelve
months from the date of issue.

Q 9. Whether trade certificate can be renewed ? If yes, then for how many period ?

Ans : Yes a trade certificate can be renewed. As per Rule 37, the renewal will be done for a
period of 12 months from the date of renewal.

Q 10. If the same applicant wants to obtain trade certificate for more than one vehicle category
then whether the applicant will have to apply separately for each vehicle category ?

Ans : Yes. As per Rule 34(2) of CMV Rules, the applicant will have to apply separately for each
vehicle category.

Q 11. Whether a single Trade Certificate ( Form 17) can be given for more than one vehicle
category to same applicant.
Ans : No. The Trade Certificate i.e. Form 17 has an entry at serial number 4 as – class of motor
vehicle in respect of which the certificate is to be used. So for each vehicle category a separate
trade certificate will be issued to applicant.

Q 12. What is the difference between -Trade number assigned in respect of the certificate (at
Sr. No. 3) and Serial number of certificate (at Sr. No. 1) , as mentioned in Form 17 ?

Ans : The difference is elaborated as below -

Trade number assigned in respect of the certificate (at Sr. No. 3 of Form 17)

The Trade number will be uniquely assigned to each applicant for each category of vehicle. For
example as per rule 35 of CMV Rule, this Trade number will have the nomenclature as -

AB – Example of State Code

12 – Example of office Code

TC – Example of Two Letters

[1-999] – A number containing not more than three digits

So a Trade number format will be as AB12TC999 (e.g. a valid trade certificate number may be
UP32TC045). This means that a registering authority at maximum can issue total 999 trade
numbers in its jurisdiction for TC series. If the registering authority wishes to issue more than
999 trade numbers then the two letters will have to be changed i.e. in place of TC the
registering authority will have to give two other letters as TD, TE, or TF or ZZ. While assigning
two letters (other than TC) , the registering authority will have to make sure that these two
letters are not assigned to any vehicle registration number series and in future also will not be
assigned to any vehicle registration number series. Otherwise there might be a situation that
vehicle registration number and trade certificate number may be similar. This situation should
not arise.

Serial number of certificate (at Sr. No. 1 of Form 17)

As per application form for trade certificate (at Form 16 Sr. No. 5), the applicant has to fill the
number of certificates required. So in Trade Certificate the serial number of certificate is used
for showing the number of certificates granted for each vehicle category. Suppose an applicant
asks for 6 number of certificates for motorcycle then 6 certificates will get printed having the
same trade number (printed at Sr. No. 3) but different serial number (printed at Sr. No. 1).

It is to be clarified that do not get confused trade number with the serial number of certificate.
Trade number can be at maximum 999 but serial number of certificates issued under a unique
trade number can be any number (it can be more than 999 also). Hence for a particular vehicle
category, a dealer can apply for more than 999 trade certificates. The registering authority can
issue any number of trade certificates to a dealer for a particular vehicle category.

Q 13. If an applicant applies for 6 trade certificates for motorcycle vehicle category then what
will be the trade number and serial number in the certificates.
Ans : The applicant will get 6 printouts of trade certificates having same trade number
(UP32TC045) but different serial numbers at each certificates (1, 2, 3, 4, 5, 6 ) as follows –
Q 14. Suppose an applicant has certain number of trade certificates and wants to get more
certificates for the same vehicle category then whether he can apply and get more certificates ?

Ans : As per Rule 35 of CMV rules, either the Trade Certificate can be Granted or can be
Renewed. So once Trade number is assigned to a dealer for a particular category of vehicle, it
will remain same and can be renewed again and again.

It is to be clarified that another new trade number can NOT be granted to same dealer for
same vehicle category (Because of this, the provision of renewal has been kept in the rule).

In case an applicant has certain number of trade certificates and wants to get more certificates
for the same vehicle category, then two cases will arise -

Case 1: The Trade certificate has NOT expired for applied vehicle category and the applicant
wants more certificates

In this case the applicant can get more certificates by depositing the same fee as grant for each
certificate. The additional certificates will be generated with increased serial numbers but with
the same trade number and the same old validity.

For example, suppose the applicant has 6 number of certificates for motorcycle having trade
number UP32TC045 having issue date as 07 April 2019 and validity upto 06 April 2020 and
Serial number of certificates as 1, 2, 3, 4, 5, 6.

Now on 19 August 2019, the same applicant wants 5 more certificates for motor cycle then he
will have to deposit grant fee for 5 more certificates on 19 August 2019. After fee deposition, 5
new trade certificates will be generated and printed having same trade number UP32TC045 and
same validity 06 April 2020 but different issue date as 19 August 2019 and different serial
numbers starting from 7 i.e. the serial numbers will be 7, 8, 9, 10, 11. Hence now the applicant
will have total 11 (6+5) number of certificates, all having same validity, same trade number,
same vehicle category but with different serial numbers as -

1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11

Case 2: The Trade certificate has expired for applied vehicle category and the applicant wants
more certificates while applying for renewal renewal

At the time of renewal, the applicant can apply for same/increased/decreased number of
certificates for the same vehicle category. Applicant will get as many numbers of certificates as
he has applied with renewed one year validity. In renewed trade certificates the trade number
will remain same.

Q 15. How the trade certificates can be renewed ?

Ans : The trade certificate issued for a particular vehicle category to an applicant can be
renewed for same vehicle category for one year. The certificates can be renewed as many times
(again and again for one year) as applicant wishes. At the time of renewal, the applicant can
apply for same/increased/decreased number of certificates for the same vehicle category. The
applicant will have to deposit the fee as per the number of certificates required during renewal.
Applicant will get as many numbers of certificates as he has applied with renewed one year
validity from the date of issue. In renewed trade certificates the trade number will remain
same.

Q 16. What is the procedure to get duplicate trade certificate ?

Ans : As per Rule 38 of CMV Rules, if at any time the trade certificate is lost or destroyed, its
holder shall report to the concerned police station and apply in Form 18 with relevant fee for
issue of duplicate trade certificate. Here the applicant will inform the serial number(s) for which
the duplicate is required and for the applied serial number(s) the duplicate certificate(s) having
mark as ‘Duplicate’ will be issued.

Q 17. What is Register of Trade Certificate ?

Ans : As per Rule 43 of CMV Rules, every holder of trade certificate will maintain a register in
Form 19 in which entry will have to be made for every trip of unregistered vehicle (having trade
certificate fitted on it), while being sent out at public place/road and brought back from public
place/road.

Q 18. Whether trade certificate can be suspended or cancelled?

Ans : Yes, as per Rule 44 of CMV Rules, the trade certificate can be suspended or cancelled by
the concerned registering authority.