Joint Committee on Statutory Instruments First Report


APPENDIX IV

Memorandum by the Department of Transport

ROAD VEHICLES (REGISTRATION AND LICENSING) (AMENDMENT) REGULATIONS 1997 (S.I. 1997/401)

  1. At its meeting on 11 March the Committee instructed that the Department be requested to submit a Memorandum on the following point:

    New regulation 12A (inserted by regulation 6) makes provisions in paragraph (5) for the case where a motor vehicle trader transfers a vehicle to another person. Paragraph (5)(a) deals with the case where the transfer is to another motor vehicle trader and requires the transferor to give ("before the expiration of the period of three months beginning on the day after the date on which the vehicle was last owned by a person who was not a motor vehicle trader") to the new keeper certain parts of the registration document. Explain what cases are intended to be covered by paragraph (5)(b). Is paragraph (5)(b) intended to apply to -

      (i)   a transfer to a person who is not a motor vehicle trader? If so, explain whether paragraph (2) also applies to the case and, if not, what excludes the application of paragraph (2);

       (ii)   a transfer to another motor vehicle trader of a vehicle which was not previously owned by a person who was not a motor vehicle trader? If so, explain how this is achieved, given that in paragraph (5)(a) the words quoted above do not govern the transfer to another motor vehicle trader but relate to the period within which certain parts of the registration document must be given to the new keeper.

  2. Regulation 12A is intended to establish a system of joint notification of changes in the keepership of registered vehicles. Paragraph (5) makes special provision for transfers within the motor trade. The reason for this is that, once a vehicle has been acquired by a trader, it may pass through the hands of several traders before it is eventually purchased by a customer for his own use. Paragraph (5) accordingly contains provisions whereby, for a period of three months, a vehicle can circulate within the motor trade without each change of ownership having to be notified to the Secretary of State.

  3. Subparagraph (a) covers the case of a transfer from one trader to another during a period not exceeding three months whilst the vehicle is within the trade. The words "before the expiration of the period of three months beginning with the day after the date on which the vehicle was last owned by a person who was not a motor vehicle trader" in paragraph (5)(a) refer to the date of the transfer to another motor trader and not to the time within which the documents must be given to the new keeper. The intention is that where there is a series of transfers between traders within this period, the transferring keeper should merely give to the new keeper the registration documents.

  4. Paragraph (5)(b) is intended to cover the case where a trader sells to another trader outside the three months period or to anyone else before or after the expiration of that period.

  5. Against this background the answer to the specific questions about how paragraph (5)(b) is intended to apply are as follows:

      (i)   Paragraph (5)(b) is intended to apply where a motor vehicle trader transfers a vehicle to another trader outside the three months period or to another person at any time. There is no conflict between this provision and paragraph (2) since paragraphs (i) to (iv) merely replicate the provisions of paragraph (2)(a)(i) to (iv).

      (ii)   As already explained, paragraph (5)(b) applies to a transfer to another motor vehicle trader outside the period of three months. That period is not the period within which the documents must be handed over, but the period within which the requirements of paragraph (5)(a) apply.

  6. The Department is preparing regulations to consolidate the Road Vehicles (Registration and Licensing) Regulations 1971 and its various amending instruments and this would provide an opportunity of elucidating the new regulation 12A should the Committee consider that desirable.

18th March 1997


 
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