# EUR-Lex - 52012PC0164 - EN

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# 52012PC0164

**Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL simplifying the transfer of motor vehicles registered in another Member State within the Single Market /* COM/2012/0164 final - 2012/0082 (COD) */**

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EXPLANATORY MEMORANDUM

1.           CONTEXT OF THE PROPOSAL

Notwithstanding the progressing integration of
the single market, motor vehicle registration problems remain a frequent
barrier within the internal market, for businesses but also for citizens. Motor
vehicle registration problems were highlighted as one of the 20 main concerns
with the Single Market as it stands now in a list compiled by the Commission. In
the 2010 EU Citizenship Report "Dismantling the obstacles to EU citizens
rights"[1], the Commission identified
vehicle registration problems as one of the main obstacles faced by citizens
when exercising their rights under EU law in their daily lives and announced,
among the actions envisaged to remove such obstacles, the simplification of the
formalities and conditions for the registration of vehicles registered in
another Member State (action 6 of the EU citizenship report).

The obligation to register, in the receiving
Member State, a motor vehicle registered in the Member State of origin has been
a source of complaints and court cases for many years. Citizens and businesses
purchasing a motor vehicle in another country and taking it back with them to
the country where they live usually face complex and burdensome registration
procedures and time-consuming demands for extra paperwork.

As a result, motor vehicle registration
problems have negative impacts on the free movement of goods, a fundamental
freedom which constitutes a cornerstone of the European Union. This was
underlined in the Europe2020 Strategy for smart, sustainable and inclusive
growth[2], which pointed out that
businesses and citizens are faced every day with the reality that bottlenecks
to cross-border activity remain despite the legal existence of the single
market.

In its opinion of 11 March 2011, the High Level
Group of Independent Stakeholders on Administrative Burdens supported a
possible Commission initiative to simplify registration conditions and
formalities. In addition, the Group called upon the national authorities to
strive for improved registration processes as soon as possible, in particular
concerning mutual recognition of the necessary documentation, and to refrain
from burdensome requests for supplementary documentation.

All Member States have a vehicle registration
system of motor vehicles. It constitutes the administrative authorisation for
their entry into service in road traffic, involving their identification and
the issuing of a registration number. The registration data are used for the taxation
of motor vehicles. At the end of the registration procedure, Member States
issue a registration certificate which certifies that the vehicle is registered
in a Member State. The registration certificate also contains the name and
address of the person in whose name a vehicle is registered (the ‘holder’ of
the registration certificate who is not necessarily the owner of the motor
vehicle).

Yet, when the motor vehicle is registered in
one Member State and frequently used in another, two main problems frequently
occur:

(1)
Citizens who move to another Member State,
cross-border workers, car-rental companies and people leasing a motor vehicle
in another Member State are often obliged to register it on the territory where
they live or where the vehicle is used, although the motor vehicle is already
registered in another Member State. This is for example the case when
certificate holders change their residence and move permanently to another
Member State with their motor vehicle. However, it is a tedious problem for
citizens that live part of the year in one Member State and the other part in
another, as well as for cross-border commuters who use, in their own Member
State, a motor vehicle registered by their employer in another Member State. In
this case, the motor vehicle is registered in one of the Member States but the
holder is often asked by the other Member State to register it there. Leasing companies also face registration problems, at least if they
are the holder of the registration certificate and when the motor vehicle is
used by a person established in another Member State. Finally, car-rental firms
that wish to move a part of their fleet to another Member State for a short
period to meet seasonal demands, are usually obliged to register the motor
vehicles concerned in that Member State.

(2)
The formalities of re-registration for a motor
vehicle being transferred from one Member State to another are often very
burdensome and lengthy. Transferring a motor vehicle for a longer period to
another Member State leads to new paperwork in the receiving Member State and,
usually, also to additional paperwork to cease the registration of the vehicle
in the Member State of origin. The additional burden is principally caused by
the fact that the registration authorities of the receiving Member State have
little or no information about the motor vehicle, except the information that
they can find on the registration certificate. If the vehicle were to be
re-registered in the same Member State, registration authorities could rely on
the information in their national databases.

2.           RESULTS OF CONSULTATIONS WITH INTERESTED
PARTIES AND IMPACT ASSESSMENTS

This proposal is accompanied by an executive
summary of the impact assessment and an impact assessment, a draft version of
which was assessed by the Impact Assessment Board of the European Commission
which issued its opinion on 16 December 2011. The final impact assessment was
amended accordingly.

This proposal would lead to a very substantial
administrative simplification for businesses, citizens and registration
authorities. The reduction of the administrative burden would amount to savings
of at least EUR 1,445 million per year.

From March to May 2011, a public consultation
of stakeholders, consisting of tailor made questionnaires for citizens,
economic operators and public authorities, was carried out through I.P.M. (Your
Voice in Europe). A summary of the public consultation results can be found in
Annex 1 of the impact assessment and is also available on the Europa web site[3].
The Commission’s minimum standards have all been met. A conference was
organised on 21 June 2011 to present preliminary results of the public
consultation, and to provide an additional forum for debate and exchange of
information between different stakeholders, and in particular for public
authorities in charge of registration in the Member States.

3.           LEGAL ELEMENTS OF THE PROPOSAL

3.1         Objectives of the proposal

The general objective of this initiative is to
improve the functioning of the single market through the elimination of administrative
barriers related to the re-registration procedure of motor vehicles, which
currently hinder the free movement of goods.

The specific objectives of this initiative are
to harmonise, streamline, and simplify the procedures for re-registration of
motor vehicles registered in another Member State, for citizens, employees,
employers, car rental and leasing companies, and registration authorities.
Moreover, this initiative aims at reducing the administrative burdens of all
actors involved without hindering road safety or the prevention of crimes and
fraud.

The operational objectives to be accomplished
by this initiative are the following:

–
To determine in which Member State a motor
vehicle transferred between Member States should be registered;

–
To reduce the time of re-registration
procedures;

–
To reduce the administrative burden on citizens
and undertakings by limiting the number of documents necessary to carry out the
re-registration procedure and by facilitating data exchange between national
registration authorities.

3.2.        Legal basis – Form of the
legal act

Current problems and differences in
administrative rules at national level as regards the re-registration of motor
vehicles registered in another Member State impede the free movement of these
vehicles within the EU. The EU has therefore the right to act on the legal basis
of Article 114 TFEU, in order to ensure the proper functioning of the single
market for second-hand motor vehicles purchased in another Member State. In
addition, this proposal would also be beneficial for citizens transferring a
motor vehicle to another Member State of residence, for citizens using a motor
vehicle registered in the Member State of employment, as well as for car-rental
firms (and to a lesser extent leasing firms) which, due to registration
requirements for themselves or their client, encounter barriers for the
cross-border use of these vehicles.

The proposed legal instrument has the form of a
regulation for the following reasons. A regulation is directly applicable in the
Member States without the need for transposition into the different national
laws. Since the legislative instrument would only apply to cross-border
situations within the EU, a regulation would ensure legal certainty and
simplification within the internal market. Furthermore, a regulation is a more
effective instrument for organising the electronic exchange of information
among national registration authorities. Finally, the risk for
"gold-plating" by Member States does not exist when the legal act
takes the form of a regulation.

3.3         The content of the
proposal

Article 1
confirms the principle that Member States are entitled
to exempt certain categories of motor vehicles from registration. The fact that
a motor vehicle was registered in another Member State does not imply that the
same motor vehicle should be subject to registration obligations in the Member
State to which it was transferred. Article 1 also expressly points out that
motor vehicles registered in third countries fall outside the scope of this
proposal. Furthermore, the proposal is construed to exclude the registration of
motor vehicles that were registered in the same Member State. Re-registrations
of motor vehicles within the same Member State are therefore still subject to
the national rules of the Member State and will not be affected by this
proposal. Furthermore, Member States remain free to exercise their power of
taxation with respect to motor vehicles, in accordance with Union law.

Article 2
contains the definitions which closely reflect existing definitions laid down
in Union law and in particular in Directive 1999/37/EC of 29 April 1999 on the registration documents for vehicles[4]. This Directive applies to motor vehicles which are subject to Framework
Directive 2007/46/EC of the European Parliament and of the Council of 5
September 2007 establishing a framework for the approval of motor vehicles and
their trailers, and of systems, components and separate technical units
intended for such vehicles[5] and Directive 2002/24/EC of
the European Parliament and of the Council of 18 March 2002 relating to the
type-approval of two or three-wheel motor vehicles and repealing Council
Directive 92/61/EEC[6], and not to agricultural
or forestry tractors. However, Directive 1999/37/EC does not provide for an
exhaustive harmonisation according to a recent judgement of the Court of
Justice[7].

Article 3 sets
out that a Member State may only require the registration on its territory of a
vehicle registered in another Member State if the holder of the registration
certificate has his normal residence on its territory. Article 3 proposes
several criteria for determining the normal residence. For natural persons not
acting in the course of their business activity, the criteria proposed are those
set out in Article 7 of Council Directive 83/182/EEC of 28 March 1983 on tax
exemptions within the Community for certain means of transport temporarily
imported into one Member State from another[8]. For
companies, the criteria proposed refer to the place of establishment or the
place of business, meaning that for cars registered in the name of a company in
the Member State of its establishment and used by an employee having his normal
residence in another Member State, the latter Member State cannot require
registration on its territory. This avoids the necessity of a case-by-case
assessment in the Member State of normal residence of the employee in order to
determine if a company car is mainly used for private or professional purposes,
and if home-office commutes count as professional or private use.

Article 4 sets a
clear and simple rule: where the holder of the registration certificate moves
his normal residence to another Member State, he should request the registration
of his vehicle within a period of six months following his arrival. During that
period, the use of the vehicle may not be restricted by the Member State of
arrival. Article 4 also contains a drastic simplification of the registration
procedures for motor vehicles that were registered in another Member State. It
applies the settled case-law of the Court of Justice on the free movement of
goods, according to which Member States should facilitate intra-EU trade by
recognising the proof issued in another Member State showing, for example, that
a vehicle registered in the territory of that State has passed a roadworthiness
test. The Court of Justice also indicated that this principle of mutual
recognition of registration and roadworthiness information should be
complemented by the cooperation between the authorities in the Member States
concerning any data that may be missing[9]. Yet, Article 4 organises
this cooperation in an electronic manner whereby the vehicle registration
authority should seek the data in the vehicle register of the Member State
where the motor vehicle was registered, through the software application
referred to in Article 7 and Annex II. This principle of administrative
cooperation through electronic means also functions in the other direction: when
a Member State registers a vehicle that was registered in another Member State,
Article 4 obliges the registration authority of the Member State of destination
of the motor vehicle to inform the registration authority of the Member State
of previous registration. Finally, Article 4 of this proposal allows additional
controls of the motor vehicle in certain specific cases.

Article 5
defines precisely in which cases registration authorities are entitled to
refuse the registration of a motor vehicle that was registered in another
Member State. The main objective of Article 5 is to prevent fraud and to ensure
road safety since the re-registration of a motor vehicle registered in another
Member State is sometimes used for legalising stolen vehicles or vehicle
documents. Stolen vehicles are often sold with their identity changed, for
example through ‘cloning’ (i.e. a practice whereby a vehicle is stolen and then
its genuine identity markings removed and changed to reflect the identity of a
legitimate vehicle that is currently in use on the road, so that the stolen
vehicle assumes the identity of the legitimate vehicle and two vehicles are now
being used with the same vehicle registration number) or ‘ringing’ (i.e. the
practice where a stolen vehicle’s identity is swapped with that of a seriously
damaged vehicle). This can only be prevented by a close cooperation between
registration authorities. Therefore, this article should also contribute to the
implementation of:

·
Directive 2000/53/EC of the European Parliament
and of the Council of 18 September 2000 on end-of life vehicles[10].
This Directive obliges the Member States, inter alia, to take the necessary
measures to ensure that all end-of life vehicles are transferred to authorised
treatment facilities. According to the Directive, Member States must set up a
system according to which the presentation of a certificate of destruction is a
condition for deregistration of the end-of life vehicle. This certificate is
issued to the holder and/or owner when the end-of life vehicle is transferred
to a treatment facility.

·
Council Decision 2004/919/EC of 22 December 2004
on tackling vehicle crime with cross-border implications[11]
which aims at achieving improved cooperation within the
European Union with the aim of preventing and combating cross-border vehicle
crime, whereby particular attention is given to the relationship between
vehicle theft and the illegal car trade. The Decision obliges each Member State
to ensure that its competent authorities take the necessary steps to prevent
abuse and theft of vehicle registration documents. The Decision obliges
national vehicle registration authorities to be informed by law enforcement
authorities of whether a vehicle that is in the process of being registered is
known to have been stolen. The Decision also aims at preventing the abuse of
vehicle registration certificates: each Member State must ensure that its
competent authorities take the necessary steps to recover a vehicle owner’s or
vehicle holder’s registration certificate if the vehicle has been seriously
damaged in an accident (total loss). A registration certificate must also be
recovered where, during a check by the law enforcement agency, it is suspected
that there has been an infringement concerning the vehicle’s identity markings,
such as the vehicle identification number.

Article 6
ensures that the intra-EU trade of second-hand vehicles is made easier, by
harmonised rules on the temporary registration of motor vehicles. Such rules
are necessary in the first place for persons purchasing a motor vehicle in
another Member State, in order to enable them to drive the vehicle to their own
Member State in view of its final registration there. When a motor vehicle
already registered in a Member State is sold to a person established in another
Member State, the seller will probably deregister the motor vehicle at the
moment that the vehicle is sold. The seller will probably not allow the buyer
to drive the motor vehicle carrying the registration number of the former.
Therefore, a temporary registration system is indispensable to improve the
functioning of the market of second-hand motor vehicles and to ensure that the
gap between the registration in the first Member State and the new registration
in the second is temporarily bridged. A temporary registration system also
allows registration authorities to safeguard the quality of the registration
data in their registers so that they can be easily exchanged through the software
referred to in Article 7. Article 6 proposes to limit the validity of the
temporary registration to 30 days so that it is compatible with Article 15 of
Directive 2009/103/EC of the European Parliament and of the Council of 16
September 2009 relating to insurance against civil liability in respect of the
use of motor vehicles, and the enforcement of the obligation to insure against
such liability[12]. Article 15 of Directive
2009/103/EC organises the insurance coverage of motor vehicles dispatched from
one Member State to another, by specifying that in such cases, the Member State
where the risk is situated is considered to be the Member State of destination,
immediately upon acceptance of delivery by the purchaser, for a period of 30
days, even though the vehicle has not formally been registered in the Member
State of destination. If the vehicle is involved in an accident during this
period while uninsured, the body responsible for compensation in the Member
State of destination will be liable for the compensation provided for in
Article 10 of Directive 2009/103/EC.

Article 7 of the
proposal organises the electronic exchange of vehicle registration data between
Member States, for the purpose of re-registration of a motor vehicle. Article 7
authorises the Commission to adopt implementing acts for the common procedures
and specifications for the software application, including the format for the
data exchanged, the technical procedures for electronic consultation of, and
access to the national electronic registers, access procedures and security
mechanisms. The electronic exchange of vehicle registration data between Member
States should take place in accordance with the European Interoperability
Framework (EIF)[13].

Article 8 aims
at facilitating the intra-EU trade of second-hand vehicles by businesses,
through harmonised rules on the ‘professional registration’ of motor vehicles.
At the moment, ‘professional registration’ schemes exist in most Member States
in order to allow retailers to drive motor vehicles on public roads for a very
short period without being obliged to formally register them. ‘Professional
registration’ schemes are usually reserved for manufacturers, assemblers,
distributors and dealers, with respect to motor vehicles which they possess, or
for testing purposes. Most Member States do not issue professional registration
certificates as such, involving identification of the motor vehicle. They often
provide another type of document, establishing the link between the
registration plates and their holder, and/or require the holder to keep a
logbook in which trips made with the registration plate are recorded. However,
practice shows that most ‘professional registrations’ are not recognised by
other Member States, usually due to the absence of a formal registration
certificate, so that most professional distributors and traders refrain from
using professional registrations outside their national territory. The
objective of Article 8 is to bring an end to these obstacles to the intra-EU
trade of second-hand motor vehicles, through a common system whereby
‘professional registrations’ granted to manufacturers, assemblers, distributors
and dealers established in one Member State would be recognised in the other
Member States. Article 8 authorises the Commission to adopt implementing acts
for laying down the format and the model of the professional vehicle
registration certificate.

Article 9
obliges the Member States to inform the Commission of the names and contact
details of the vehicle registration authorities which are responsible for
managing the official registers of vehicles on their territory and for the
application of this Regulation. The Commission will then publish a list of
vehicle registration authorities and any updates to that list on its website.
In addition, Article 9 obliges vehicle registration authorities to ensure that
the information on the registration of vehicles in the Member State of the
relevant authority and the name and contact details of the authority are easily
accessible to the public.

Articles 10 and 11 delegate powers to the Commission to adopt the amendments to
Annexes I and II in the light of technical progress, in particular, in order to
take into account relevant amendments to Directive 1999/37/EC or amendments to
other Union acts directly relevant for the updating of Annexes I and II. These
articles also delegate powers to the Commission to lay down the conditions which should be met by undertakings using professional vehicle registration certificates in
order to satisfy the requirements of a good reputation and the requisite
professional competence, and to specify the duration of the validity of the professional vehicle registration certificates:

–
Annex I should correspond to the content of the
harmonised registration certificate laid down in Directive 1999/37/EC, as
regards the vehicle data. Since neither the personal data of the holder of the
previous registration certificate nor the personal data of any other person
mentioned on the certificate (e.g. the owner, the user etc) are necessary for
re-registration purposes, these data are not retained in Annex I although they
are part of the obligatory information set out in the harmonised registration
certificate laid down in Directive 1999/37/EC. Yet, possible future changes to,
for example, the content of the certificate of conformity which serves as a
basis for first registration cannot be excluded. Such changes could be the
consequence of, for example, an amendment of Framework Directive 2007/46/EC of
the European Parliament and of the Council of 5 September 2007 establishing a
framework for the approval of motor vehicles and their trailers, and of
systems, components and separate technical units intended for such vehicles.
The delegation of powers should enable the Commission to adapt Annex I to such
amendments.

–
Annex II refers expressly to the software
application which will probably require several future technical updates in
order to reflect the technological developments in the field of information
technologies. The delegation of powers should enable the Commission to adapt
Annex II correspondingly.

–
The delegation of powers should enable the
Commission to lay down the conditions which should be met
by undertakings using professional vehicle registration
certificates in order to satisfy the requirements of a good
reputation and the requisite professional competence, as set out in Article
8(1)(c). It should also enable the Commission to specify the duration of the
validity of the professional vehicle registration
certificates.

Article 12 sets
out the Committee procedure for the implementation of Articles 7 and 8, i.e.
the implementing acts for the common procedures and specifications for the
software application referred to in Article 7, including the format for the
data exchanged, the technical procedures for electronic consultation of and
access to the national electronic registers, access procedures and security
mechanisms, as well as the implementing acts laying down the format and the
model of the professional vehicle registration certificate. These implementing
acts would be of general scope so that the examination procedure should apply
in accordance with Article 2(2)(a) of Regulation (EU) No 182/2011 of the
European Parliament and of the Council of 16 February 2011 laying down the
rules and general principles concerning mechanisms for control by Member States
of the Commission’s exercise of implementing powers[14].

Article 13
organises the evaluation of this Regulation which should result in a report to
the European Parliament and the Council four years after the entry into force
of the Regulation. The evaluation should identify possible problems and
shortcomings of the Regulation and could be the starting point for further
actions, including a possible proposal to amend the Regulation, in view of a
further administrative simplification for citizens and businesses and a better
integration of the single market for second-hand motor vehicles.

Article 14 specifies
that the Regulation will apply after one year following its entry into force.

4.           BUDGETARY IMPLICATION

The budgetary implication of this proposal is
set out in the financial statement attached to the proposal. This proposal only
requires administrative appropriations. It does not require the use of
operational appropriations.

2012/0082 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL

simplifying the transfer of motor vehicles
registered in another Member State within the Single Market

(Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE
COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 114 thereof,

Having regard to the proposal from the
European Commission,

After transmission of the draft legislative
act to the national Parliaments,

Having regard to the opinion of the
European Economic and Social Committee[15],

After consulting the European Data
Protection Supervisor,

Acting in accordance with the ordinary
legislative procedure,

Whereas:

(1)       All Member States have a
vehicle registration system for motor vehicles which constitutes the
administrative authorisation for their entry into service in road traffic,
during which the vehicle is identified and the registration number is assigned
to it. However, many of the national rules on vehicle registration are
conflicting, complex and burdensome. As a result, vehicle registration problems
create barriers within the internal market and lead to problems for the free
movement, within the Union, of motor vehicles registered in another Member
State.

(2)       The 2010 EU Citizenship Report
"Dismantling the obstacles to EU citizens' rights"[16]
identified vehicle registration problems as one of the main obstacles faced by
citizens when exercising their rights under the Union law in their daily lives.
In that Report, the Commission underlined the need to remove that obstacle, by
simplifying the formalities and conditions for the registration of vehicles
registered in another Member State.

(3)       Council
Directive 1999/37/EC of 29 April 1999 on the registration documents for
vehicles[17] harmonises the form and
content of the registration certificate in order to facilitate its
comprehension and thus facilitate the free movement, on the roads in the
territory of the other Member States, of vehicles registered in a Member State.
Pursuant to that Directive, the registration certificate issued by a Member
State should be recognised by the other Member States for the identification of
the vehicle in international traffic or for its re-registration in another
Member State. Directive 1999/37/EC, however, does not contain any provisions
determining the competent Member State for the registration and the applicable
formalities and procedures. Consequently, in order to
eliminate the barriers to the free movement of motor vehicles within the
internal market, it is necessary to establish separate harmonised rules on determining
the Member State in which motor vehicles must be registered and on simplified
procedures for the re-registration of motor vehicles registered in another
Member State.

(4)       The national rules of
Member States often require undertakings and citizens established on their
territory to register there a motor vehicle registered by a third person
established in another Member State, including where the vehicle is not
essentially used on a permanent basis in a Member State requiring registration
and there is no intention to use it in that manner. Therefore, it is necessary
to establish in which Member State a motor vehicle should be registered if it
is held by a person established or residing in a Member State other than the
Member State in which the owner is established or residing. In those
circumstances, it is appropriate for Member States to mutually recognise the
valid registration in another Member State.

(5)       The registration of motor
vehicles registered in another Member State is hampered by burdensome registration
formalities in the Member States, in particular by the obligation to submit
these vehicles to complementary tests in order to assess their general
condition prior to registration or in order to identify them. Therefore, it is necessary
to reduce these formalities in order to ensure the free movement of motor
vehicles and to reduce the administrative burden for citizens, businesses and
registration authorities. Especially for citizens or businesses acquiring a
motor vehicle registered in another Member State, it is appropriate to provide
for a simplified registration procedure that includes the recognition of
documents and roadworthiness tests issued in another Member State and that
would organise the administrative cooperation between the competent authorities
on the exchange of missing data.

(6)       This Regulation should
take account of Council Decision 2004/919/EC of 22 December 2004 on tackling
vehicle crime with cross-border implications[18], the
objective of which is to achieve improved cooperation within the Union with the
aim of preventing and combating cross-border vehicle crime. According to that Decision,
each Member State needs to ensure that its competent authorities take the
necessary steps to prevent abuse and theft of vehicle registration documents.
Therefore, this Regulation should allow Member States to refuse the
registration of a motor vehicle registered in another Member State in case of vehicle
crime, including abuse and theft of vehicle registration documents.

(7)       This Regulation should
pursue administrative simplification for citizens, businesses and registration
authorities, in particular through electronic exchange of vehicle registration
data. Therefore, it is necessary for the administrative simplification of
registration formalities that Member States grant each other the right of
access to their vehicle registration data in order to improve the exchange of
information and to speed up the registration procedures.

(8)       Processing of personal
data in application of this Regulation is subject to Directive 95/46/EC of the
European Parliament and of the Council of 24 October 1995 on the protection of
individuals with regard to the processing of personal data and on the free
movement of such data[19]. Regulation (EC) No
45/2001 of the European Parliament and of the Council of 18 December 2000 on
the protection of individuals with regard to the processing of personal data by
the Community institutions and bodies and on the free movement of such data[20]
applies to the processing of personal data by the Commission in the context of
the present Regulation.

(9)       The transfer of a motor
vehicle registered in a Member State to another Member State, in view of its
registration by that other Member State, requires a widely accessible temporary
registration in order to ensure road safety and the transmission of reliable
vehicle registration data by electronic means. Therefore, it is necessary to
establish a system whereby motor vehicles can be registered temporarily.

(10)     The transfer of motor
vehicles to another Member State by undertakings distributing motor vehicles or
providing testing or repair and maintenance services for motor vehicles usually
takes place with national professional registration numbers. However, these
professional registration numbers are often not recognised in other Member
States so that the professional trade of second-hand motor vehicles undertakings
across borders, especially in border regions, is being hampered. Consequently,
it is necessary to adopt a system whereby undertakings distributing motor
vehicles or providing testing, repair and maintenance services for motor
vehicles can transfer these vehicles to another Member State with a
professional registration number.

(11)     Since the objectives of
this Regulation, namely the reduction of the registration formalities in order
to ensure the free movement of motor vehicles registered in another Member
State and the reduction of the administrative burden for citizens, businesses
and registration authorities cannot be sufficiently achieved by the
Member States due to the conflicting national rules and can, therefore, by
reason of its scale and effect, be better achieved at the Union level, the
Union may adopt measures, in accordance with the principle of subsidiarity as
set out in Article 5 of the Treaty on European Union. In accordance with
the principle of proportionality, as set out in that Article, this Regulation
does not go beyond what is necessary in order to achieve those objectives.

(12)     This Regulation respects
the fundamental rights and observes the principles recognised by the Charter of
Fundamental Rights of the European Union.

(13)     In order to achieve the
objective of exchange of information between Member States through
interoperable means, the power to adopt acts in accordance with Article 290 of
the Treaty on the Functioning of the European Union should be delegated to the
Commission in respect of amendments to Annexes I and II of this Regulation in
the light of technical progress, in particular, in order to take into account
relevant amendments to Directive 1999/37/EC or amendments to other Union acts
directly relevant for the updating of Annexes I and II of this Regulation, in
respect of the conditions which should be met by
undertakings using professional vehicle registration
certificates in order to satisfy the requirements of a good
reputation and the requisite professional competence, and in respect of the
duration of the validity of the professional vehicle
registration certificates. It is of particular importance that the Commission
carries out appropriate consultation during its preparatory work, including at
expert level. The Commission, when preparing and drawing up delegated acts,
should ensure a simultaneous timely and appropriate transmission of relevant
documents to the European Parliament and to the Council.

(14)     In order to ensure uniform
conditions for the implementation of this Regulation, implementing powers
should be conferred on the Commission to lay down the common procedures and
specifications for the software application that is necessary for the
electronic exchange of vehicle registration data, including the format for the
data exchanged, the technical procedures for electronic consultation of and
access to the national electronic registers, access procedures and security
mechanisms, and to establish the format and the model of the professional
vehicle registration certificate. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the
European Parliament and of the Council of 16 February 2011 laying down the
rules and general principles concerning mechanisms for control by the Member
States of the Commission's exercise of implementing powers[21].

HAVE ADOPTED THIS REGULATION:

Article 1
Scope

1.           This Regulation shall
apply to the following vehicles:

(a)
any motor vehicle or trailer as referred to in
Article 3 of Directive 2007/46/EC of the European Parliament and of the Council[22];

(b)
any two or three-wheel motor vehicle, whether
twin-wheeled or otherwise, intended to travel on the road, as referred to in
Article 1 of Directive 2002/24/EC of the European Parliament and of the Council[23].

2.           This Regulation shall not
apply to the registration of motor vehicles registered in a third country.

3.           This Regulation is without
prejudice to the right of Member States to exempt motor vehicles from
registration in accordance with Directive 1999/37/EC.

Article 2
Definitions

For the purposes of this Regulation, the
following definitions apply:

(1)          ‘registration’ means the
administrative authorisation for the entry into service in road traffic of a
vehicle, during which the vehicle is identified and a serial number, known as
the registration number, is assigned to it;

(2)          ‘vehicle registered in
another Member State’ means a vehicle having a valid registration certificate
issued by another Member State;

(3)          ‘holder of the
registration certificate’ means the person in whose name a vehicle is
registered in a Member State;

(4)          ‘professional vehicle
registration’ means the administrative authorisation for
the entry into service in road traffic of vehicles, during
which the vehicles are identified and a serial number, known as the professional
registration number, is assigned which may be used by different vehicles.

Article 3
Place of registration of vehicles registered in another Member State

1.           A Member State may only require
the registration on its territory of a vehicle registered in another Member
State if the holder of the registration certificate has his normal residence on
its territory.

2.           The Member State in which
the holder of the registration certificate has his normal residence is any of
the following:

(a)
for a company or other body, corporate or
unincorporated, the Member State where the central administration is located;

(b)
for a branch, agency or any other establishment
of a company or other body, the Member State where the branch, agency or any
other establishment is located;

(c)
for a natural person acting in the course of his
business activity, the Member State which is his principal place of business;

(d)
for any other natural
person:

(i)      the place where a person usually lives,
that is for at least 185 days in each calendar year, because of personal and
occupational ties, or, in the case of a person with no occupational ties
because of personal ties which show close links between that person and the
place where he is living;

(ii)      for a person whose occupational ties
are in a different place from his personal ties and who consequently lives in
turn in different places situated in two or more Member States, the place of
his personal ties, provided that such person returns there regularly.

The condition set out in point (ii) shall not
apply where the person is living in a Member State in order to carry out a task
of a definite duration. Attendance at a university or school shall not imply
transfer of normal residence.

Article 4
Registration procedure for vehicles registered in another Member State

1.           Where the holder of the
registration certificate moves his normal residence to another Member State, he
shall request registration of a vehicle registered in another Member State
within a period of six months following his arrival.

During the period referred to in the first
subparagraph, the use of the vehicle shall not be restricted.

2.           The request to register a
vehicle registered in another Member State shall be submitted to a vehicle
registration authority and include the relevant parts of the registration
certificate in accordance with Article 5(2) of Directive 1999/37/EC or any
other evidence of prior registration in another Member State.

3.           Upon receipt of the
request for the registration of a vehicle registered in another Member State,
the vehicle registration authority shall immediately gather the information on
the data items set out in Annex I directly from the vehicle registration
authority of the Member State where the vehicle is registered, in accordance
with Article 7, and transfer the data to its own register.

4.           Vehicle registration
authorities may only carry out physical checks of the vehicle registered in
another Member State prior to its registration in any of the following cases:

(a)
if the information provided by the applicant during
the registration process cannot be found in the vehicle register of the Member
State where the vehicle is supposed to have been registered;

(b)
if the information provided by the applicant during
the registration process is different from the information held in the vehicle
register of the Member State where the vehicle is registered;

(c)
where vehicle registration authorities have
reasonable grounds to believe that the technical provisions according to which
the vehicle was approved pursuant to Article 23 or 24 of Directive 2007/46/EC
or pursuant to Article 15 of Directive 2002/24/EC are not equivalent to their
own;

(d)
if roadworthiness tests are required in case of
any change of ownership of the vehicle, or for seriously damaged vehicles.

5.           Where a vehicle registered
in another Member State is registered, the relevant vehicle registration
authority shall immediately report this to the vehicle registration authority
of the Member State where the vehicle was last registered, in accordance with Article
7.

Article 5
Refusal to register a vehicle registered in another Member State

1.           Vehicle registration
authorities may refuse to register a vehicle registered in another Member State
only in any of the following cases:

(a)
where the conditions set out in Article 4(2) are
not fulfilled;

(b)
where applicable, if the levies or fees imposed
by that Member State for the registration referred to in Article 4 were not
paid;

(c)
where the physical checks as referred to in
Article 4(4) were not successfully passed;

(d)
where the information gathered in accordance
with Article 7 indicates any of the following:

(i)      the vehicle is seriously damaged, stolen
or destructed;

(ii)      the vehicle registration documents
are stolen unless the holder of the registration certificate can clearly
demonstrate ownership of the vehicle;

(iii)     the date of the next mandatory roadworthiness
certificate has passed.

2.           Any decision taken by a
vehicle registration authority refusing to register a vehicle registered in
another Member State shall be duly substantiated. The person concerned may
within a period of one month from receipt of the negative decision request the
competent vehicle registration authority to review the decision. That request
shall include reasons for such review. Within one month from receipt of that
request, the competent vehicle registration authority shall confirm or reverse
its decision.

Article 6
Temporary registrations for transfers to another Member State

1.           Any person that has
purchased a vehicle in another Member State and where that vehicle does not
have a registration certificate may request the vehicle registration authority
to issue a temporary registration certificate of a vehicle in view of its
transfer to another Member State. The temporary registration certificate shall
be valid for a period of 30 days.

2.           Upon receipt of the
request for the temporary registration certificate referred to in paragraph 1, the
vehicle registration authority shall immediately gather the information on the
data items set out in Annex I directly from the vehicle registration authority
of the Member State where the vehicle is registered, in accordance with Article
7, and transfer the data to its own register.

3.           Vehicle registration
authorities may refuse to issue the temporary registration certificate as
referred to in paragraph 1 in any of the following cases:

(a)
where applicable, if the levies or fees imposed
by its Member State for the temporary registration were not paid;

(b)
where the information gathered in accordance
with Article 7 or the information in the national official vehicle registers
indicates any of the following:

(i)      the vehicle is seriously damaged, stolen
or destructed;

(ii)      the vehicle registration documents
are stolen unless the holder of the registration certificate can clearly
demonstrate ownership of the vehicle;

(iii)     the date of the next mandatory roadworthiness
certificate has passed.

Article 7
Exchange of information on vehicle registration data

1.           For the purposes of
registering a vehicle registered in another Member State, vehicle registration
authorities shall grant the vehicle registration authorities of the other
Member States access to the data stored in the official vehicle registers on
data items set out in Annex I.

2.           For the purposes of
paragraph 1, vehicle registration authorities shall use the software application
as set out in Annex II.

Only vehicle registration authorities may have
direct access to the data stored and ready for retrieval under the software
application. Vehicle registration authorities shall take the necessary measures
to ensure the prevention of the following:

(a)
unauthorised persons gaining access to the data
processing equipment;

(b)
information from being read, copied, amended or
deleted by unauthorised persons;

(c)
unauthorised interrogation or transmission of
information;

(d)
unauthorised reading or copying of information
during transmission.

3.           Processing of personal
data by the vehicle registration authorities in the Member States shall be
carried out in accordance with Directive 95/46/EC and under the supervision of the
public independent authority of the Member State referred to in its Article 28.

Vehicle registration authorities shall use information
transmitted in accordance with this Regulation only for the purposes of
registering a vehicle registered in another Member State.

Where information is exchanged between vehicle registration
authorities in accordance with this Regulation, the registration authority
providing the information shall be informed if requested of the use to which
the information provided is to be put and of the follow up action taken.

The vehicle registration authority providing
the information shall have regard to the accuracy of the information to be
provided and whether it is necessary and commensurate in relation to the
purpose for which it is provided. It shall observe the relevant regulations on
the protection of personal data.

If it becomes evident that incorrect
information or information that should not have been provided has been
provided, the vehicle registration authority receiving the information shall be
informed immediately. The vehicle registration authority receiving the
information shall then delete or correct the information that has been
received.

4.           The Commission shall adopt
implementing acts to lay down the common procedures and specifications for the
software application referred to in paragraph 2, including the format for the
data exchanged, the technical procedures for electronic consultation of and
access to the national electronic registers, access procedures and security
mechanisms. Those implementing acts shall be adopted in accordance with the examination
procedure referred to in Article 12(2).

Article 8
Professional vehicle registrations

1.           A vehicle registration
authority may issue one or several professional vehicle registration
certificates to any undertaking that complies with the following criteria:

(a)
it is established on its territory;

(b)
it distributes vehicles or provides repair,
maintenance or testing services for vehicles;

(c)
it has a good reputation and has the requisite
professional competence.

2.           Vehicle registration
authorities shall ensure that the vehicle data as referred to in Annex I are
recorded in their register for each professional vehicle registration.

3.           Vehicles carrying a
professional vehicle registration certificate may only be used if the vehicle
does not constitute a direct and immediate risk to road safety. Those vehicles
may not be used for commercial transport of persons or goods.

4.           Member States may not
impede, for reasons related to the registration of the vehicle, the free
movement of vehicles covered by a professional vehicle registration
certificate.

5.           The Commission shall adopt
implementing acts to establish the format and the model of the professional
vehicle registration certificate.

Those implementing acts shall be adopted in
accordance with the examination procedure referred to in Article 12(2).

Article 9
Vehicle registration authorities

1.           Member States shall inform
the Commission of the names and contact details of the vehicle registration
authorities which are responsible for managing the official registers of
vehicles on their territory and for the application of this Regulation.

The Commission shall publish a list of vehicle
registration authorities and any updates to that list on its website.

2.           Vehicle registration
authorities shall ensure that the following information is easily accessible to
the public:

(a)
the information on the registration of vehicles in
the Member State of the relevant authority;

(b)
the name and contact details of the authority so
that it can be contacted directly.

Article 10
Delegated acts

The Commission shall be empowered to adopt
delegated acts in accordance with Article 11 concerning:

(1)          amendments to Annexes I
and II to this Regulation in the light of technical progress, in particular, in
order to take into account relevant amendments to Directive 1999/37/EC or amendments
to other Union acts directly relevant for the updating of Annexes I and II to
this Regulation.

(2)          the conditions to be met by
undertakings in order to satisfy the requirements laid down in Article 8(1)(c);

(3)          the duration of the validity
of the professional vehicle registration certificates
referred to in Article 8(1).

Article 11
Exercise of the delegation

1.           The power to adopt
delegated acts is conferred on the Commission subject to the conditions laid
down in this Article.

2.           The delegation of power
referred to in Article 10 shall be conferred on the Commission for an
indeterminate period of time from the date of entry into force of this
Regulation.

3.           The delegation of power
referred in Article 10 may be revoked at any time by the European Parliament or
by the Council. A decision to revoke shall put an end to the delegation of the
power specified in that decision. It shall take effect the day following the
publication of the decision in the Official Journal of the European Union or at
a later date specified therein. It shall not affect the validity of any
delegated acts already in force.

4.           As soon as it adopts a
delegated act, the Commission shall notify it simultaneously to the European
Parliament and to the Council.

5.           A delegated act adopted
pursuant to Article 10 shall enter into force only if no objection has been
expressed either by the European Parliament or the Council within a period of two
months of notification of that act to the European Parliament and the Council
or if, before the expiry of that period, the European Parliament and the
Council have both informed the Commission that they will not object. That
period shall be extended by two months at the initiative of the European
Parliament or of the Council.

Article 12
 Committee procedure

1.           The Commission shall be
assisted by a committee. That committee shall be a committee within the
meaning of Regulation (EU) No 182/2011.

2.           Where reference is made to
this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.

3.           Where the opinion of the committee
is to be obtained by written procedure, that procedure shall be terminated
without result when, within the time-limit for delivery of the opinion, the
chair of the committee so decides or a simple majority of committee members so
request.

Article 13
Evaluation

The Commission shall submit a report on the
evaluation of this Regulation to the European Parliament and the Council by [four
years after the entry into force of this Regulation]. The Commission shall, if
necessary, submit appropriate proposals with a view to amending this
Regulation, and aligning other Union acts, in particular taking account of the
possibilities of further administrative simplification for citizens and
businesses.

Article 14
Entry into force and applicability

This Regulation shall enter into force on
the twentieth day following that of its publication in the Official Journal
of the European Union.

It shall apply from xxxx [date to
be inserted: one year after entry into force of this Regulation].

This Regulation shall be binding
in its entirety and directly applicable in all Member States.

Done at Brussels, 4.4.2012

For the European Parliament                       For
the Council

The President                                                 The
President

ANNEX I

Data-set for automated search of
vehicle registration data referred to in Article 7(1)

Item || Harmonised Codes Directive 1999/37/EC

1. Country of registration || --

2. Registration number || (A)

3. Date of first registration of the vehicle || (B)

4. Registration certificate identification number(s) || --

5. Name of issuing authority of the registration certificate || --

6. Vehicle: make || (D.1)

7. Vehicle: type - Variant (if available); - Version (if available) || (D.2)

8. Vehicle: commercial description (s) || (D.3)

9. Vehicle Identification Number (VIN) || (E)

10. Mass: maximum technically permissible laden mass, except for motorcycles || (F.1)

11. Mass: maximum permissible laden mass of the vehicle in service in the Member State of registration || (F.2)

12. Mass of the vehicle in service with bodywork, and with coupling device in the case of a towing vehicle in service from any category other than M1 || (G)

13. Period of validity, if not unlimited || (H)

14. Date of the registration to which this certificate refers || (I)

15. Type-approval number (if available) || (K)

16. Number of axles || (L)

17. Wheelbase (in mm) || (M)

18. For vehicles with a total permissible mass exceeding 3500 kg, distribution of the technically permissible maximum laden mass among the axles: axle 1 (in kg) || (N.1)

19. For vehicles with a total permissible mass exceeding 3500 kg, distribution of the technically permissible maximum laden mass among the axles: axle 2 (in kg), where appropriate || (N.2)

20. For vehicles with a total permissible mass exceeding 3500 kg, distribution of the technically permissible maximum laden mass among the axles: axle 3 (in kg), where appropriate || (N.3)

21. For vehicles with a total permissible mass exceeding 3500 kg, distribution of the technically permissible maximum laden mass among the axles: axle 4 (in kg), where appropriate || (N.4)

22. For vehicles with a total permissible mass exceeding 3500 kg, distribution of the technically permissible maximum laden mass among the axles: axle 5 (in kg), where appropriate || (N.5)

23. Technically permissible maximum towable mass of the trailer: braked (in kg) || (O.1)

24. Technically permissible maximum towable mass of the trailer: unbraked (in kg) || (O.2)

25. Engine: capacity (in cm3) || (P.1)

26. Engine: maximum net power (in kW) (if available) || (P.2)

27. Engine: type of fuel or power source || (P.3)

28. Engine: rated speed (in min -1) || (P.4)

29. Engine identification number || (P.5)

30. Power/weight ratio (in kW/kg) (only for motorcycles) || (Q)

31. Colour of the vehicle || (R)

32. Seating capacity: number of seats, including the driver’s seat || (S.1)

33. Seating capacity: number of standing places (where appropriate) || (S.2)

34. Maximum speed (in km/h) || (T)

35. Sound level: stationary (in dB(A)) || (U.1)

36. Sound level: engine speed (in min-1) || (U.2)

37. Sound level: drive-by (in dB(A)) || (U.3)

38. Exhaust emissions: CO (in g/km or g/kWh) || (V.1)

39. Exhaust emissions: HC (in g/km or g/kWh) || (V.2)

40. Exhaust emissions: NOx (in g/km or g/kWh) || (V.3)

41. Exhaust emissions: HC + NOx (in g/km) || (V.4)

42. Exhaust emissions: particulates for diesel (in g/km or g/kWh) || (V.5)

43. Exhaust emissions: corrected absorption coefficient for diesel (in min-1) || (V.6)

44. Exhaust emissions: CO2 (in g/km) || (V.7)

45. Exhaust emissions: combined fuel consumption (in l/100 km) || (V.8)

46. Exhaust emissions: indication of the environmental category of EC type-approval; reference to the version applicable pursuant to Directive 70/220/EEC or Directive 88/77/EEC || (V.9)

47. Fuel tank(s) capacity (in litres) || (W)

48. Date of last roadworthiness test || --

49. Date for next roadworthiness test || --

50. Mileage (if available) || --

51. Vehicle destructed (Yes/No) || --

52. Date of issue of certificate of destruction[24] || --

53. Establishment or undertaking issuing the certificate of destruction || --

54. Reason for destruction || --

55. Vehicle stolen (Yes/No) || --

56. Stolen registration certificate and/or plates (Yes/No) || --

57. Inactive registration || --

58. Suspended registration || --

59. Change of registration number || --

60. Roadworthiness test required after accident with serious damage || --

61. Additional testing required after altering or modification of any of the items 9 to 47 ||

ANNEX II

Use of the software application as
referred to in Article 7

1.           The exchange of
information shall be carried out by interoperable electronic means without
exchange of data involving other databases. This exchange of information shall
be conducted in a cost efficient and secure manner and ensure the security and
protection of the data transmitted, as far as possible using existing software
applications.

2.           For the purposes of this
Regulation, the software application shall provide for online real-time
exchange mode and/or batch exchange mode. The batch exchange mode shall allow for
the exchange of multiple requests or responses within one message.

3.           Each Member State shall
bear its costs arising from the administration, use and maintenance of the
software application referred to in point 1.

4.           The registration
authorities shall, using the automated procedures as referred to in points 1
and 2, retrieve the information on data items referred to in Annex I from the electronic
vehicle registers of one or more other Member States.

5.           The software application
shall handle secure communication to the other Member States and shall
communicate to the back-end legacy systems of Member States using XML. Member
States exchange messages by sending them directly to the recipient.

7.           The XML-messages sent over
the network shall be encrypted.

LEGISLATIVE FINANCIAL STATEMENT
FOR PROPOSALS

1.           FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1.    Title of the proposal/initiative

1.2.    Policy
area(s) concerned in the ABM/ABB structure

1.3.    Nature
of the proposal/initiative

1.4.    Objective(s)

1.5.    Grounds
for the proposal/initiative

1.6.    Duration
and financial impact

1.7.    Management
method(s) envisaged

2.           MANAGEMENT MEASURES

2.1.    Monitoring
and reporting rules

2.2.    Management
and control system

2.3.    Measures
to prevent fraud and irregularities

3.           ESTIMATED FINANCIAL IMPACT OF THE
PROPOSAL/INITIATIVE

3.1.    Heading(s)
of the multiannual financial framework and expenditure budget line(s) affected

3.2.    Estimated
impact on expenditure

3.2.1. Summary of estimated impact on expenditure

3.2.2. Estimated
impact on operational appropriations

3.2.3. Estimated
impact on appropriations of an administrative nature

3.2.4. Compatibility
with the current multiannual financial framework

3.2.5. Third-party
participation in financing

3.3.    Estimated impact on revenue

LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS

1.           FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1.        Title of the proposal/initiative

Proposal for a Regulation of the European Parliament and of the
Council on simplifying the transfer of motor vehicles registered in another
Member State within the Single Market

1.2.        Policy area(s) concerned
in the ABM/ABB structure[25]

Title 2 – Enterprise - Chapter 02 03: Internal market for goods and
sectoral policies

1.3.        Nature of the
proposal/initiative

The
proposal/initiative relates to a new action

1.4.        Objectives

1.4.1.     The Commission's
multiannual strategic objective(s) targeted by the proposal/initiative

1a. Competitiveness for growth and employment

1.4.2.     Specific objective(s) and
ABM/ABB activity concerned

Specific objective No. 1: To continually review existing internal market acquis and propose
new legislative or non-legislative action whenever appropriate.

1.4.3.     Expected result(s) and
impact

Specify the effects
which the proposal/initiative should have on the beneficiaries/groups targeted.

The expected result of this initiative is an improvement of the
functioning of the single market through the elimination of administrative
barriers related to the re-registration procedure of motor vehicles, which
currently hinder the free movement of motor vehicles. This proposal should
harmonise, streamline, and simplify the procedures for re-registration of motor
vehicles registered in another Member State, for citizens, employees,
employers, car rental and leasing companies, and registration authorities. This
proposal should also reduce the administrative burdens of all actors involved without
hindering road safety or the prevention of crimes and fraud.

This proposal will have an impact on citizens moving from one
country to another or people having a holiday home in another Member State, and
on persons living in one Member State and using a motor vehicle registered by
their employer in another Member State. Citizens are also the main group of
customers for the intra–EU second-hand market of motor vehicles. Second-hand
traders are also directly affected by this proposal, as well as leasing companies
and car-rental companies. Finally, this proposal will have an impact on motor
vehicle registration authorities. The specific impacts are indicated in more
detail in the accompanying impact assessment.

1.4.4.     Indicators of results and
impact

Specify the
indicators for monitoring implementation of the proposal/initiative.

- Number of complaints;

- Number of SOLVIT cases;

- Number of court cases;

- Number of requests to the European Consumers Centres;

- Number of re- and de-registrations;

- Public consultation in particular on administrative
burdens;

- Survey specifically addressed to this sector;

- Survey specifically addressed to national registration
authorities;

- EUCARIS statistics.

1.5.        Grounds for the
proposal/initiative

1.5.1.     Requirement(s) to be met in
the short or long term

The general objective of this initiative is to improve the
functioning of the single market through the elimination of administrative
barriers related to the re-registration procedure of motor vehicles, which
currently hinder the free movement of motor vehicles..

1.5.2.     Added value of EU
involvement

The cross-border aspects of car registration continue causing
problems within the internal market. For example, there were 17 judgements and
orders of the Court of Justice on the obstacles, caused by car registration
related matters, to the free movement of goods, services and persons since 2000.
The differences in administrative rules at national level as regards the
re-registration of motor vehicles registered in another Member State impede the
free movement of these vehicles within the EU. The EU has therefore the right
to act on the basis of Article 114 TFEU, in order to ensure the proper
functioning of the single market for second-hand motor vehicles purchased in
another member state, for citizens transferring a motor vehicle to another
Member State of residence, for citizens using a motor vehicle registered in the
Member State of employment, as well as for car-rental firms (and to a lesser
extent leasing firms) which, due to registration requirements for themselves or
their client, encounter barriers for the cross-border use of these vehicles.
However, in order to comply with the subsidiarity principle, this proposal does
not affect re-registrations within the same Member State, or the transfer of a
motor vehicle within the same Member State.

1.5.3.     Lessons learned from
similar experiences in the past

Besides starting infringement procedures, the Commission published
interpretative communications summarising EU law on the subject. However, EU
law and the jurisprudence of the Court of Justice on the subject keep evolving
so that most interpretative communications on car registration are quite
quickly outdated, including the one published in 2007. Moreover, an interpretative
Communication is non-binding, and so far has not acted as effective guidance or
a constraint on Member States. Furthermore, although the Commission has already
issued these different interpretative communications, it cannot be claimed that
they have considerably reduced the number of problems. National registration
authorities are aware – or should be aware – of the existence of the latest
interpretative communication but usually apply national law in the case of
conflict between national rules and the interpretative communication. There are
no indications that citizens and enterprises would be aware of the existence of
the communication, and it seems unrealistic to expect that the communication –
which outlines the main elements of EU law and the jurisprudence of the Court
of Justice – would be very helpful for them in case of a conflict.

1.5.4.     Coherence and possible
synergy with other relevant instruments

This initiative is entirely coherent with other relevant
instruments, in particular Directive 1999/37/EC of 29 April 1999 on the registration documents for vehicles, Directive
2000/53/EC of the European Parliament and of the Council of 18 September 2000
on end-of life vehicles, Directive 2009/103/EC of the European Parliament and
of the Council of 16 September 2009 relating to insurance against civil
liability in respect of the use of motor vehicles, and the enforcement of the
obligation to insure against such liability, Council Decision 2004/919/EC of 22
December 2004 on tackling vehicle crime with cross-border implications, Council
Decision 2008/615/JHA of 23 June 2008 on the stepping up of cross border
cooperation, particularly in combating terrorism and cross-border crime and
Council Decision 2008/616/JHA of 23 June 2008 on the implementation of Decision
2008/615/JHA on the stepping up of cross-border cooperation, particularly in
combating terrorism and cross-border crime.

1.6.        Duration and financial
impact

Proposal/initiative of unlimited duration

1.7.        Management mode(s)
envisaged

Centralised direct management by the Commission

2.           MANAGEMENT MEASURES

2.1.        Monitoring and reporting
rules

Specify frequency
and conditions.

Article 13 of this proposal organises the evaluation of this
Regulation which should result in a report to the European Parliament and the
Council four years after the entry into force of the Regulation. The evaluation
should identify possible problems and shortcomings of the Regulation and could
be the starting point for further actions, including a possible proposal to
amend the Regulation, in view of a further administrative simplification for
citizens and businesses and a better integration of the single market for
second-hand motor vehicles.

2.2.        Management and control
system

2.2.1.     Risk(s) identified

No financial risks could be identified.

2.2.2.     Control method(s) envisaged

The control methods envisaged are laid down in the Financial
Regulation and Regulation (EC, Euratom) No 2342/2002.

2.3.        Measures to prevent fraud
and irregularities

Specify existing or
envisaged prevention and protection measures.

The Commission must ensure that the financial interests of the Union
are protected by the application of preventive measures against fraud,
corruption and other illegal activities, by effective checks and by the
recovery of amounts unduly paid and, if irregularities are detected, by
effective, proportionate and dissuasive penalties, in accordance with
Regulations (EC, Euratom) No 2988/95, (Euratom, EC) No 2185/96 and (EC) No
1073/1999.

3.           ESTIMATED FINANCIAL IMPACT OF THE
PROPOSAL/INITIATIVE

3.1.        Heading(s) of the
multiannual financial framework and expenditure budget line(s) affected

· Existing expenditure budget lines

In order of
multiannual financial framework headings and budget lines.

Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution

Number [Description........................................] || Diff./non-diff ([26]) || from EFTA[27] countries || from candidate countries[28] || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation

1a. Competitiveness for growth and employment || [XX.YY.YY.YY] || Diff./non-diff. || YES || NO || NO || NO

3.2.        Estimated impact on
expenditure

3.2.1.     Summary of estimated impact
on expenditure

EUR million (to 3 decimal places)

Heading of multiannual financial framework: || Number || 1a. Competitiveness for growth and employment ||

|| DG: ENTR || || || 2014 || 2015 || 2016 || 2017 || 2018 || TOTAL

|| Ÿ Operational appropriations || 0 || 0 || 0 || 0 || 0 || 0

|| TOTAL appropriations for DG ENTR || Commitments || =1+1a +3 || 0 || 0 || 0 || 0 || 0 || 0

|| Payments || =2+2a +3 || 0 || 0 || 0 || 0 || 0 || 0

||

Heading of multiannual financial framework: || 5 || " Administrative expenditure " ||

|| DG ENTR || || || 2014 || 2015 || 2016 || 2017 || 2018 || TOTAL

|| Ÿ Human resources || 0.2 || 0.2 || 0.2 || 0.2 || 0.2 || 1.0

|| Ÿ Other administrative expenditure || 0.1 || 0.1 || 0.1 || 0.1 || 0.1 || 0.5

|| TOTAL DG ENTR || Appropriations || 0.3 || 0.3 || 0.3 || 0.3 || 0.3 || 1.5

|| TOTAL appropriations under HEADING 5 of the multiannual financial framework || (Total commitments = Total payments) || 0.3 || 0.3 || 0.3 || 0.3 || 0.3 || 1.5

|| TOTAL appropriations under HEADINGS 1 to 5 of the multiannual financial framework || Commitments || 0.3 || 0.3 || 0.3 || 0.3 || 0.3 || 1.5

|| Payments || 0.3 || 0.3 || 0.3 || 0.3 || 0.3 || 1.5

3.2.2.     Estimated impact on
operational appropriations

The proposal/initiative does not require the
use of operational appropriations

3.2.3.     Estimated impact on
appropriations of an administrative nature

3.2.3.1.  Summary

The proposal/initiative requires the use of
administrative appropriations, as explained below:

EUR million (to 3
decimal places)

|| 2014 || 2015 || 2016 || 2017 || 2018 || TOTAL

HEADING 5 of the multiannual financial framework || || || || || ||

Human resources || 0.2 || 0.2 || 0.2 || 0.2 || 0.2 || 1.0

Other administrative expenditure || 0.1 || 0.1 || 0.1 || 0.1 || 0.1 || 0.5

Subtotal HEADING 5 of the multiannual financial framework || 0.3 || 0.3 || 0.3 || 0.3 || 0.3 || 1.5

Outside HEADING 5[29] of the multiannual financial framework || || || || || ||

Human resources || 0 || 0 || 0 || 0 || 0 || 0

Other expenditure of an administrative nature || 0 || 0 || 0 || 0 || 0 || 0

Subtotal outside HEADING 5 of the multiannual financial framework || 0 || 0 || 0 || 0 || 0 || 0

TOTAL || 0.3 || 0.3 || 0.3 || 0.3 || 0.3 || 1.5

3.2.3.2.  Estimated requirements of
human resources

The proposal/initiative requires the use of
human resources, as explained below:

Estimate to be expressed in full amounts
(or at most to one decimal place)

|| || 2014 || 2015 || 2016 || 2017 || 2018

Ÿ Establishment plan posts (officials and temporary agents) ||

|| 02 01 01 01 (Headquarters and Commission’s Representation Offices) || 0.2 || 0.2 || 0.2 || 0.2 || 0.2

|| FTE = 1.5 || FTE = 1.5 || FTE = 1.5 || FTE = 1.5 || FTE = 1.5

|| XX 01 01 02 (Delegations) || 0 || 0 || 0 || 0 || 0

|| XX 01 05 01 (Indirect research) || 0 || 0 || 0 || 0 || 0

|| 10 01 05 01 (Direct research) || 0 || 0 || 0 || 0 || 0

|| Ÿ External personnel (in Full Time Equivalent unit: FTE)[30] ||

|| XX 01 02 01 (CA, INT, SNE from the "global envelope") || 0 || 0 || 0 || 0 || 0

|| XX 01 02 02 (CA, INT, JED, LA and SNE in the delegations) || 0 || 0 || 0 || 0 || 0

|| XX 01 04 yy [31] || 0 || 0 || 0 || 0 || 0 ||

|| 0 || 0 || 0 || 0 || 0 ||

|| XX 01 05 02 (CA, INT, SNE - Indirect research) || 0 || 0 || 0 || 0 || 0

|| 10 01 05 02 (CA, INT, SNE - Direct research) || 0 || 0 || 0 || 0 || 0

|| Other budget lines (specify) || 0 || 0 || 0 || 0 || 0

|| TOTAL || 0.2 || 0.2 || 0.2 || 0.2 || 0.2

|| FTE = 1.5 || FTE = 1.5 || FTE = 1.5 || FTE = 1.5 || FTE = 1.5

The human resources required
will be met by staff from the DG who are already assigned to management of the action
and/or have been redeployed within the DG, together if necessary with any
additional allocation which may be granted to the managing DG under the annual
allocation procedure and in the light of budgetary constraints.

Description of
tasks to be carried out:

Officials and temporary agents || Manage the implementation of the Regulation, inter alia through the preparation of the implementing acts and possibly the delegated acts and launching the evaluation

3.2.4.     Compatibility with the
current multiannual financial framework

The proposal initiative is compatible the
current multiannual financial framework.

3.2.5.     Third-party contributions

The proposal does not provide for co-financing
by third parties

3.3.        Estimated impact on revenue

The proposal has no financial impact on
revenue.

[1]               COM(2010)603 of 27.10.2010.

[2]               COM(2010)2020 of 3.3.2010.

[3]               http://ec.europa.eu/enterprise/policies/single-market-goods/free-movement-non-harmonised-sectors/car-registration/view_contributions_en.htm

[4]               OJ L138, 1.6.1999, p. 57 .

[5]               OJ L263, 9.10.2007, p. 1.

[6]               OJ L124, 9.5.2002, p. 1.

[7]               Judgement of the Court of Justice of 6 October 2011, Philippe
Bonnarde v Agence de Services et de Paiement, Case C-443/10.

[8]               OJ L105, 23.4.1983, p. 59.

[9]               Judgment of 20 September 2007, Commission of the
European Communities v Kingdom of the Netherlands, Case C-297/05.

[10]             OJ L269, 21.10.2000, p. 34.

[11]             OJ L389, 30.12.2004, p. 28.

[12]             OJ L263, 7.10.2009, p. 11.

[13]             COM(2010)744 of 16.12.2010.

[14]             OJ L55, 28.2.2011, p. 13.

[15]             OJ C , , p. .

[16]             COM(2010)603 of 27.10.2010.

[17]             OJ L138, 1.6.1999, p. 57.

[18]             OJ L389, 30.12.2004, p. 28.

[19]             OJ L 281, 23.11.1995, p.31

[20]             OJ L 8, 12.01.2001, p.1

[21]             OJ L 55, 28.2.2011, p. 13.

[22]             OJ L263, 9.10.2007, p. 1.

[23]             OJ L124, 9.5.2002, p. 1.

[24]             As referred to in Directive 2000/53/EC of the European
Parliament and of the Council of 18 September 2000 on end-of-life vehicles (OJ
L269, 21.10.2000, p .34) as amended.

[25]             ABM: Activity-Based Management – ABB: Activity-Based
Budgeting.

[26]             Diff. = Differentiated appropriations / Non-Diff. =
Non-differentiated appropriations

[27]             EFTA: European Free Trade Association.

[28]             Candidate countries and, where applicable, potential
candidate countries from the Western Balkans.

[29]             Technical and/or administrative assistance and
expenditure in support of the implementation of EU programmes and/or actions
(former "BA" lines), indirect research, direct research.

[30]             CA= Contract Agent; INT= agency staff ("Intérimaire");
JED= "Jeune Expert en Délégation" (Young Experts in
Delegations); LA= Local Agent; SNE= Seconded National Expert;

[31]             Under the ceiling for external personnel from operational
appropriations (former "BA" lines).