EU proposal to simplify Single Market Car Registration

Thursday, 05 Apr 2012, 10:42

 

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Commission slashes unnecessary burden for registering a car in another Member State

The European Commission has decided to present a proposal for the simplification of car registration in member states. The proposal presented by European Commission Vice-President Antonio Tajani, responsible for Industry and Entrepreneurship would lead to a very substantial administrative simplification with total savings of at least € 1.5 billion per year for businesses, citizens and registration authorities.

The diversity of rules among member states causes unnecessary bureaucratic delays. The requirements to register vehicles according to National legislation takes 5 weeks on average. The cost is estimated at € 400 and what should be a simple procedure has become  a significant barrier to the free movement of goods, services and workers.    

General administrative formalities for the re-registration within the EU of cars, vans, buses and trucks will be greatly simplified, especially when moving residence from one EU country to another and when purchasing a second hand car from another EU country.  This proposal would also virtually eliminate the possibility of registering a stolen car from one EU country in another member state. Car-rental companies will save substantially, once today's proposal will be approved.

European Commission President José Manuel Barroso said: "With today's proposal the Commission wants to make it as easy as possible for citizens and companies to move and register cars across borders in the European Union. Greatly simplified rules for cross-border car registration and a substantial reduction of administrative burden will bring us a step closer to a smooth functioning Single Market, our engine for growth and jobs."

In the 2010 EU Citizenship Report "Dismantling the obstacles to EU citizens rights", the Commission identified car registration problems as one of the main obstacles faced by citizens when exercising their rights under EU law. The Commission will take an initiative later this year to clarify EU rules that Member States must respect when car registration and circulation taxes are applied. The Commission will make recommendations to improve the single market, in particular to avoid double taxation of cars when citizens move from one Member State to another. The proposal will now be discussed by the European Parliament and the Council. Once it will be approved Member States will be given one year to prepare for the new procedures.

When the proposal is adopted by the European Parliament and the Council, this will imply:

· Citizens who spend part of the year in a holiday residence in another EU country will not have to re-register their car there.

· Citizens who move permanently to another EU country will have 6 months to re-register their car there.

· Citizens who buy or sell a second-hand car in another EU country will not have to face additional technical controls and administrative problems.

· Citizens who work in another EU country and use a car registered by their employer there will no longer have to register it in their home country.

· Car-rental companies will be able to transfer cars to another EU country during the holiday periods without re-registration. This should lower the price of car rentals.

·  For companies, the same principle applies: the cars, buses, vans and trucks should be registered in the EU country where the main office is established, and other EU countries must accept this.

·  Registration authorities will increasingly cooperate with each other, making it easier to track stolen cars. It will become impossible to register a stolen car in another EU country.

·  Many controls will be abolished altogether, with authorities getting any technical information they need about the car directly from their colleagues in the country where it is already registered.

 

Source: European Commission Press release

 

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