Communication from the Commission - Interpretative communication on procedures for the registration of motor vehicles originating in another Member State
Date: 2007-02-14
Institutions: European Commission
Subjects: free movement of goods, intra-EU trade, motor vehicle, technical regulations, used goods, vehicle registration

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Commission interpretative communication on procedures for the registration of motor vehicles
originating in another Member State

(Text with EEA relevance)

(2007/C 68/04)

1. INTRODUCTION

Buying a motor vehicle in, or transferring a motor vehicle to another Member State has become much
easier than a few years ago, mainly due to three important developments.

(a) The different national systems of type-approval were replaced by the EC whole vehicle type-approval
(WVTA) system (1) that has applied to most passenger cars and motorcycles on a mandatory basis since
January 1998 and June 2003, respectively. As a result, these categories of motor vehicles must comply
with all the relevant EC type-approval directives in order to be placed on the market, and Member States
may not refuse the sale, registration or entry into service of such vehicles. A proposal for a new Frame-
work Directive (2) is currently under consideration by the European Parliament and the Council. Once
adopted, commercial vehicles (buses and coaches, vans and trucks) will be included in the EC whole
vehicle type approval. A uniform EC type-approval throughout the European Union enables faster and
easier registration in all Member States.

(b) The new block exemption regulation on the application of the competition rules to motor vehicle sales
and servicing (3) has further enhanced European consumers' possibilities to benefit from the single
market in practice so that consumers can take full advantage of price differentials between the various
Member States. For example, consumers can now use without limitation the services of intermediaries
or purchasing agents to buy their motor vehicle where it suits them. Distributors have greater freedom
to operate outside their home territory and sell vehicles to consumers in other Member States (so-called
active sales in addition to passive sales where consumers take the initiative to approach the distributor).

(c) The European Community (EC) has introduced a harmonised registration certificate for motor vehi-
cles (4). Its main objective is to facilitate the free movement of vehicles registered in one Member State,
on the roads of other Member States, and the re-entry into service of vehicles that have previously been
registered in another Member State.

Nevertheless, a considerable number of citizens and enterprises still shy away from purchasing a motor
vehicle in another Member State since they fear facing needless paperwork and extra costs in their home
country. Moreover, the transfer of motor vehicles to another Member State is still a source of complaints, in
particular due to burdensome type-approval and registration procedures. Currently, as many as up to 20 %
of the ongoing infringement cases in the field of Articles 28 to 30 of the EC Treaty and 7 % of SOLVIT-
cases concern registration of motor vehicles (5).

This Communication aims at providing a comprehensive and up-to date overview on the principles of EC
law that apply to the registration of motor vehicles in a Member State other than the State of purchase, and
to the transfer of registration between Member States, in the light of recent developments in European legis-
lation and in the case-law of the Court of Justice. This communication, however, does not give an overview

(1) Council Directive 70/156/EEC of 6 February 1970 on the approximation of the laws of the Member States relating to the
type-approval of motor vehicles and their trailers (OJ L 42, 23.2.1970, p. 1). Directive as last amended by Directive
2006/40/EC of the European Parliament and of the Council (OJ L 161, 14.6.2006, p. 12).

(2) Commission proposal for a Directive of the European Parliament and of the Council on the approval of motor vehicles and
their trailers, and of systems, components and separate technical units intended for such vehicles, COM(2003) 418,
amended by COM(2004) 738.

(3) Commission Regulation (EC) No 1400/2002 of 31 July 2002 on the application of Article 81(3) of the Treaty to categories
of vertical agreements and concerted practices in the motor vehicle sector (OJ L 203, 1.8.2002, p. 30). Regulation as
amended by the 2003 Act of Accession.

(4) Council Directive 1999/37/EC of 29 April 1999 on the registration documents for vehicles (OJ L 138, 1.6.1999, p. 57).

Directive as last amended by Commission Directive 2006/103/EC (OJ L 363, 20.12.2006, p. 344).

(5) http://europa.eu.int/solvit/site/statistics/index_en.htm)

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of the principles of EC law that apply to car registration taxes and circulation taxes (1), which are currently
governed by Articles 25 or 90 of the EC Treaty (2).

This communication replaces in its entirety Commission interpretive communication on procedures for the
type-approval and registration of vehicles previously registered in another Member State (3). It should be
noted, however, that only the European Court of Justice has the authority to rule definitively on the interpre-
tation of Community law.

This communication is of particular interest to the authorities of Member States dealing with the approval
and the registration of motor vehicles, and will help them to implement EC law correctly. The Commission
will elaborate a guide for consumers, in which the transfer and registration of vehicles within the EU will be
explained.

In any event, the Commission will continue to monitor attentively the correct implementation of the princi-
ples of EC law that apply to the registration and the transfer of motor vehicles.

2. TERMINOLOGY

This Communication covers the first registration of motor vehicles as well as the registration of motor vehi-
cles previously registered in another Member State regardless of whether they are new or used.

For the purpose of this communication: A ‘motor vehicle’ is

— any powered vehicle intended for use on the road, being complete or incomplete, having at least four
wheels and a maximum design speed exceeding 25 km/h, and its trailers, with the exception of vehicles
which run on rails and of agricultural and forestry tractors, all mobile machinery and heavy-duty
commercial vehicles (4),or

— any two or three-wheel motor vehicle, whether twin-wheeled or otherwise, intended to travel on the

road (5).

A motor vehicle is ‘previously registered in another Member State’ when it has obtained the administrative
authorisation for the entry into service in road traffic, involving its identification and the issuing of a regis-
tration number. This communication therefore also concerns motor vehicles that were subject to temporary
or short-term registration, and motor vehicles that were subject to professional registration.

The length of the period during which a vehicle has been registered in one Member State before its transfer
to another Member State is irrelevant.

3. REGISTERING A MOTOR VEHICLE IN THE MEMBER STATE OF RESIDENCE

3.1. What is the Member State of residence for the purpose of registration?

According to the Court of Justice, registration is the natural corollary of the exercise of the powers of taxa-
tion in the area of motor vehicles. It facilitates supervision both for the Member State of registration and for
other Member States, since registration in one Member State constitutes proof of payment of taxes on
motor vehicles in that State (6).

(1) The principles of EC law that currently apply to car registration taxes and circulation taxes are set out in an informa-
tion document from the Commission on the rights and duties of the European citizen on the taxation of cars trans-
ferred within the Community or used regularly on cross-border journeys, published on:
http://ec.europa.eu/taxation_customs/taxation/other_taxes/passenger_car/index_en.htm

(2) The Commission adopted a proposal on passenger car related taxes (COM(2005)261 of 5.7.2006). This proposal provides
for the gradual abolition of registration taxes over a transitional period of five to ten years, and a refund system for the resi-
dual car taxes when a car registered in one Member State is permanently moved for registration to another Member State.

(3) OJ C 143, 15.5.1996, p. 4.
(4) See Article 1 of Directive70/156/EEC.
(5) That is to say any motorcycle falling under the scope Article 1 of Directive 2002/24/EC of European Parliament and of the
Council relating to the type-approval of two or three-wheel motor vehicles and repealing Council Directive 92/61/EEC (OJ
L 124, 9.5.2002, p. 1). Directive as last amended by Commission Directive (OJ L 106, 27.4.2005, p. 17).

(6) Judgment of the Court of Justice of 21 March 2002, Cura Anlagen GmbH v Auto Service Leasing GmbH (ASL), Case C-

451/99, ECR 2002, p. I-03193 (http://curia.europa.eu/en/content/juris/index.htm)

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Every individual must register his vehicle in the Member State in which he is normally resident. Article 7 of
Directive 83/182/EEC (1) and Article 6 of Directive 83/183/EEC (2) set out precise rules for determining
normal residence in situations where the persons concerned are respectively temporarily or permanently
living and driving in a Member State other than their own. However, the case law of the Court of Justice
holds that the quantitative criterion to which this article refers (having to live more than 185 days per year
in a given place) cannot be taken as the main criterion if there are other factors which alter the situation.

According to the Court of Justice, where a person has both personal and occupational ties in two Member
States, his normal residence, determined in the context of an overall assessment by reference to all the rele-
vant facts, is that where the permanent centre of interests of that person is located; in the event that such an
overall assessment does not result in its determination, primacy must be given to personal ties (3).

3.2. The different steps to obtain the registration of a motor vehicle

Current national legislation of Member States provides for (maximum) three different steps for registering a
motor vehicle in the receiving Member State:

— the approval of the technical characteristics of the motor vehicle, which in many cases will be the
EC-type approval. Some types of motor vehicles, however, are still subject to national approval proce-
dures,

— roadworthiness testing of used vehicles, the objective of which is to verify for purposes of protecting
the health and life of humans, that the specific motor vehicle is actually in a good state of repair at the
moment of registration,

— the registration of the motor vehicle, i.e. the administrative authorisation for the entry into service in
involving the identification of the motor vehicle and the issuing to it of a registration

road traffic,
number.

3.3. The approval of the technical characteristics of the motor vehicle

3.3.1. EC type-approval

All series-built passenger cars approved since 1996, motorcycles approved since May 2003 and tractors
approved since 2005 are in principle subject to EC type-approval. This is a procedure whereby a Member
State certifies that a type of vehicle satisfies all applicable European safety and environmental protection
requirements. The EC type-approval is valid in all Member States.

Where the manufacturer of the motor vehicle submits, pursuant to Directive 70/156/CEE, his application
for EC type-approval to the approval authority of a Member State, which grants EC type-approval to the
vehicle if it complies with all the requirements of the relevant directives (4), the approval authority of that
Member State sends to the approval authorities of the other Member States a copy of the vehicle type-
approval certificate for each vehicle type which it approved or refused to approve, or for which it withdrew
the certification.

The manufacturer, in his capacity as the holder of the EC type-approval, issues an EC certificate of confor-
mity which shows that the vehicle has been manufactured in conformity with the approved vehicle type.
The EC certificate of conformity must accompany each new EC type-approved vehicle. Moreover, applicable
EC competition rules require manufacturers to issue EC certificates of conformity in a non-discriminatory
timely manner regardless of the destination and/or origin of the vehicle (i.e., regardless of whether the
vehicle is sold to a consumer in another Member State or acquired by the dealer from a distributor in
another Member State).

(1) 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. (OJ L 105, 23.4.1983, p. 23.4.1983, p. 59). Directive as last
amended by Directive 2006/98/EC (OJ L 363, 20.12.2006, p. 129).

(2) Council Directive 83/183/EEC of 28 March 1983 on tax exemptions applicable to permanent imports from a Member
State of the personal property of individuals (OJ L 105, 23.4.1983, p. 64). Directive as last amended by Directive
92/12/EEC (OJ L 76, 23.3.1992, p. 1).

(3) Judgment of the Court of Justice of 12 July 2001, Paraskevas Louloudakis v Elliniko Dimosio, Case C-262/99, ECR 2001,

p. I-05547.

(4) The applicable directives are listed in Annex IV, Part I of Directive 70/156/EEC.

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Member States may only register and permit the sale or entry into service of new EC-type-approved vehicles
on grounds relating to their construction and functioning, if they are accompanied by a valid EC certificate
of conformity.

European legislation does not require that the certificate of conformity remain with the vehicle after registra-
tion. In most Member States the EC certificate of conformity is kept by the authorities once the vehicle is
registered.

New EC-type-approved vehicles which are accompanied by a valid certificate of conformity may not be
required to undergo a new approval of their technical characteristics or to comply with additional technical
requirements concerning their construction and functioning, unless they have been obviously modified after
leaving the manufacturer's factory. National legislation under which motor vehicles covered by a valid EC
type-approval certificate cannot be registered unless a national certificate is produced attesting to their
is therefore not
conformity with national requirements,
allowed (1).

for example concerning exhaust emissions,

3.3.2. National approval

Under current Community law the following categories of motor vehicles are not EC type-approved:

— commercial vehicles (buses, coaches, vans and trucks) and trailers,

— vehicles built in small series,

— vehicles approved on an individual basis.

A new motor vehicle that is not EC type-approved can be subject to national approval in the receiving
Member State, before it can be registered. The national approval will result in a national certificate of confor-
mity that will serve, among other purposes, for registering the motor vehicle.

National approval may either be national type-approval or national individual approval:

— national type-approval and national small series-type approval are intended to ensure compliance of
the vehicle type with the applicable national technical requirements. It results in a national type-confor-
mity certificate issued by the manufacturer, in which he confirms that the specific vehicle was manufac-
tured in conformity with the approved vehicle type,

— national individual approval concerns the certification of compliance of a particular vehicle (whether
unique or not) with the relevant national requirements. This procedure applies in particular to vehicles
imported individually from third countries and which do not comply with European type-approval
requirements, as well as to unique vehicles.

National type-approval and individual approval procedures for motor vehicles to be used or registered for
the first time in the EU normally fall outside the scope of EC law.

However, national approval procedures for motor vehicles which have already obtained a national approval
in another Member State and for motor vehicles that were already registered in another Member State, must
comply with Articles 28 and 30 of the EC Treaty. According to the jurisprudence of the Court of Justice, the
existence of such national procedures is, as such, not necessarily contrary to these Articles.

Yet, these approvals must at least fulfill the following procedural conditions to comply with Articles 28 and
30 of the EC Treaty (2):

(a) the national approval procedures must,

in any event, be based on objective, non-discriminatory
criteria which are known in advance, in such a way as to circumscribe the exercise of the national
authorities' discretion, so that it is not used arbitrarily;

(1) Judgment of the Court of Justice of 29 May 1997, Administrative proceedings brought by VAG Sverige AB, Case C-329/

95, ECR 1997, p. I-02675.

(2) Judgment of the Court of Justice of 22 January 2002, Canal Satélite Digital SL v Adminstración General del Estado, and

Distribuidora de Televisión Digital SA (DTS), Case C-390/99, ECR2002, p. I-00607.

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(b) such procedures may not duplicate controls which have already been carried out in the context of
other procedures, either in the same State or in another Member State. It follows that national authori-
ties are not entitled to require technical tests when those tests have already been carried out in another
Member State and their results are available to the authorities, or at their request may be placed at their
disposal. This requires an active approach on the part of the national body to which an application is
made for approval of a motor vehicle or recognition, in that context, of the equivalence of an approval
certificate issued by an approval body of another Member State. Further, such an active approach is also
required, where appropriate, of the latter body, and in this respect it is for the Member States to ensure
that the competent approval bodies cooperate with each other with a view to facilitating the procedures
to be followed to obtain access to the national market of the importing Member State (1);

(c) the procedure must be one which is readily accessible and can be completed within a reasonable time,
and, if it leads to a refusal, the decision of refusal must be open to challenge before the courts. The
procedure must be expressly provided for in a measure of general application which is binding on the
national authorities. Moreover, a national approval procedure does not comply with the fundamental
principles of the free movement of goods if its duration and the disproportionate costs to which it gives
rise deter the owner of the motor vehicle from seeking the approval of the motor vehicle.

The technical requirements of the receiving Member State must not unnecessarily require the
motor vehicle to be modified. The fact that the motor vehicle was already registered in another Member
State means that its competent authorities considered that the motor vehicle satisfied the technical require-
ments applicable there. The approval of a motor vehicle already approved in another Member State, whether
the vehicle was already registered or not, may therefore only be refused by the competent national authori-
ties if the motor vehicle poses a genuine risk to public health. According to the jurisprudence of the Court
of Justice, the Member States, in exercising their discretion relating to the protection of public health, must
comply with the principle of proportionality. The means which they choose must therefore be confined to
what is actually necessary to ensure the safeguarding of public health or to satisfy overriding requirements
regarding, for example, road safety, and they must be proportional to the objective thus pursued, which
could not have been attained by measures less restrictive of intra-Community trade (2). Since Article 30 of
the EC Treaty provides for an exception, to be interpreted strictly (3), to the rule of free movement of goods
within the Community, it is for the national authorities which invoke it to show in each case that the
application of their rules is necessary to give effective protection to the interests referred to in
Article 30 of the EC Treaty and, in particular, that the approval of the motor vehicle in question poses a
real risk to human health or road safety.

It cannot reasonably be argued that the mere fact that a vehicle has been approved according to the rules of
another Member State and possibly (but not necessarily) has certain technical characteristics that differ from
those laid down in the law of the Member State of destination or from those of the equivalent type approval
in that State constitutes a serious risk to human health and life or to the environment.

In practice, this requires that the competent authorities of the receiving Member State take the following
steps:

(a) the technical characteristics of a motor vehicle previously approved and registered in another Member
State should first be assessed in the light of the technical rules in force in the receiving Member State.
However, not on the basis of the current rules in force, but on the basis of the rules which were in force
(in the receiving Member State) at the moment of approval in the Member State of origin;

(b) the competent authorities must take into account the test and certificates issued by the competent autho-
rities of other Member States and by the manufacturer (4). Additional tests may only be imposed when
they are necessary to provide the competent authorities with information that cannot be found on the
certificates;

(c) on that basis, competent authorities will determine on which points the motor vehicle is not in confor-
mity with the technical rules applicable in the receiving Member State at the moment of the first
approval of the vehicle in the EU;

(1) Judgment of the Court of Justice of 10 November 2005, Commission of the European Communities v Portuguese

Republic, Case C-432/03, ECR 2005, p. I-09665.

(2) Judgment of the Court of Justice of 5 February 2004, Commission of the European Communities v French Republic, Case

C-24/00. ECR 2004, p. I-01277.

(3) Judgment of the Court of Justice of 5 February 2004, Criminal proceedings against John Greenham and Léonard Abel,

Case C-95/01. ECR 2003, p. I-01333.

(4) Judgment of the Court of Justice of 16 October 2003, Commission of the European Communities v Italian Republic, Case

C-455/01, ECR 2003, p. I-12023.

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(d) the competent authorities may then only apply national technical rules which are proportionate in the
light of one of the imperative reasons recognised by the Court as mandatory requirements or mentioned
in Article 30 of the EC Treaty. It should be emphasised that applying disproportionate national technical
rules to the specific motor vehicle would infringe Community law which, in any event, takes precedence
over national law.

3.4. Roadworthiness testing of used vehicles

The objective of roadworthiness testing is to verify that the specific motor vehicle is actually in a good
state of repair at the moment of registration. However, the fact that a motor vehicle has been used on
public roads since the last roadworthiness test may justify roadworthiness testing upon registration in
another Member State.

According to the jurisprudence of the Court of Justice (1), Member States may therefore require that motor
vehicles previously registered in the same or in another Member State undergo roadworthiness
testing prior to registration, provided that this inspection is obligatory for any transfer of ownership of any
similar motor vehicle or for any change of holder of the registration certificate, regardless whether the
motor vehicle was registered in the same or in another Member State. Roadworthiness testing prior to regis-
tration must at least fulfill the same procedural conditions as the approval of the technical characteristics of
the motor vehicle, namely:

(a) it must be based on objective, non-discriminatory criteria which are known in advance, in such a
way as to circumscribe the exercise of the national authorities' discretion, so that it is not used arbitra-
rily;

(b) roadworthiness testing may not duplicate controls which have already been carried out in the context
of other procedures, either in the same State or in another Member State. When a vehicle has undergone
roadworthiness testing in a Member State, the principle of equivalence and mutual recognition laid
down by Article 3(2) of Council Directive 96/96/EC (2) requires all the other Member States to recognise
the certificate issued on that occasion, without that preventing them from requiring any additional tests
usually carried out for the purposes of registration in their territory, provided those tests are not already
covered by that certificate (3);

(c) the Commission is of the opinion that the roadworthiness testing procedure must be one that is readily
accessible and can be completed within a reasonable time. To restrict roadworthiness testing for
imported vehicles to specific and separately designated control stations can constitute an obstacle to
trade between Member States.

3.5. The registration of the motor vehicle

By registering the motor vehicle, the Member State authorises its entry into service in road traffic, involving
the identification of the motor vehicle and the issuing to it of a registration number.

3.5.1. First registration of motor vehicles

For new EC type-approved motor vehicles purchased in another Member State, the Member State of registra-
tion must request, besides specific personal data of the person or organisation seeking the registration under
harmonised Community code C (4), the EC certificate of conformity (5).

For non EC type-approved vehicles, the Member State may request presentation of the relevant national
type-approval or national individual approval certificates (see section 3.3.2).

(1) Judgment of the Court of Justice of 12 June 1986, Bernhard Schloh v Auto contrôle technique SPRL, Case C 50/85, ECR

1986, p. I-01855, points 14-16; Case C-451/99, points 62 — 64.

(2) OJ L 46, 17.2.1997, p. 1. Directive as last amended by Regulation (EC) No 1882/2003 of the European Parliament and of

the Council (OJ L 284, 31.10.2003, p. 1).

(3) Case C-451/99.
(4) As set out in Annexes I and II to Directive 1999/37/EC.
(5) Article 7(1) of Directive 70/156/EEC.

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The Commission holds the view that Member States are entitled to check at the moment of registration
whether VAT has been correctly paid.

When a professional trader in another Member State sells a motor vehicle, he is obliged to issue an invoice.
For VAT purposes, there are two possibilities:

(a) the motor vehicle is ‘new’, where the supply takes place either within six months of the date of first
entry into service or where the vehicle has travelled for no more than 6 000 kilometres. VAT will be
due in the Member State to which the vehicle is moved according to Article 2 of Council Directive
2006/112/EC of 28 November 2006 on the common system of value added tax (1) (the VAT Directive).
The supply of new means of transport is exempted in the Member State of origin where the trader is
established (Article 138(2)(a) of the VAT Directive). According to this provision, to get this exemption, it
will have to be justified that the new mean of transport is dispatched or transported to the customer, by
or on behalf of the vendor or the customer, at a destination outside the Member State of origin but
within the Community;

(b) the motor vehicle is not ‘new’: when a private person goes to another Member State to buy the motor
vehicle and transports it back himself (or arranges for this to be done) then he buys at the VAT rate of
tax at the point of sale and the result is taxation at ‘origin’. VAT will be due in the Member State where
the trader is established. When the car trader has bought the car from an initial buyer who, in particular,
did not deduct VAT included in the purchase price of the motor vehicle, the special scheme on second-
hand goods (the margin scheme) will be applicable (Article 312 et seq. of the VAT Directive).

When a private individual sells his motor vehicle, it can be, for VAT purposes,

(a) ‘New’ (for the definition of the new vehicle see in point a. above). In that case VAT will be due in the
Member State to which the vehicle is moved. (Article 2 of the VAT Directive). To avoid double taxation,
the private individual who has sold the ‘new car’ is entitled to deduct or to be refunded of VAT included
in the purchase price in the Member State of origin, up to an amount not exceeding the amount of VAT
which he would be liable if the supply were taxable in the Member State of origin (Article 172 of the
VAT Directive).

(b) Not ‘new’. The transaction is outside the scope of VAT. No VAT will be due.

The Commission considers that national authorities may also require, at the moment of registration, proof
of insurance coverage.

3.5.2. Motor vehicles previously registered in another Member State

For motor vehicles previously registered in another Member State, the Member State of registration may
only request the submission of the following documents:

(a) The original or a copy of the non-harmonised registration certificate issued in another Member
State: Many vehicles registered before 2004 still carry the non-harmonised registration certificate. There
is no obligation in Community law to transmit the original or a copy of this type of certificate issued in
another Member State to the national registration authorities of the Member State of destination. The
Commission takes the view, however, that national law may oblige the purchaser to submit a copy of
the registration certificate issued in the Member State of origin before registering the motor vehicle, in
order to avoid double administrative controls or to reduce vehicle crime.

(b) The harmonised registration certificate: The harmonised registration certificate issued by a Member
State must be recognised by the other Member States for the vehicle's re-registration in another Member
State (2). When a buyer purchases a motor vehicle carrying the harmonised registration certificate, he
will have received Part I of the previous registration certificate in every case and Part II if it was issued.
Part I of the previous registration certificate and Part II (if issued) must be transmitted to the registration
authorities in the Member State of destination in order for these authorities to be able to withdraw the
part(s) of the previous registration certificate. They must, within two months, inform the authorities of
the Member State which delivered the certificate of its withdrawal. In addition, they must return the
certificate which they have withdrawn to those authorities if they so request within six months of its

(1) OJ L 347, 11.12.2006, p. 1. Directive as last amended by Decision 2007/133/EC (OJ L 57, 24.2.2007, p. 12).
(2) Article 4. of Directive 1999/37/EC.

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withdrawal. Where the registration certificate consists of Parts I and II (1), and Part II is missing, the
competent authorities in the Member State where the new registration has been requested may decide,
in exceptional cases, to re-register the vehicle, but only after having obtained confirmation, in writing or
by electronic means, from the competent authorities in the Member State where the vehicle was
previously registered, that the applicant is entitled to re-register the vehicle in another Member State (2).

(c) The EC or national certificate of conformity:

— national authorities may not request the EC certificate of conformity for vehicles previously regis-
tered in another Member State if the previous registration certificate of the vehicle fully complies
with the model in Directive 1999/37/EC. Pursuant to Article 4 of the Directive, the registration certi-
ficate issued by a Member State must be recognised by the other Member States for the re-registra-
tion of the motor vehicle in those States,

— however, national authorities may request the EC certificate of conformity for vehicles previously
registered in another Member State when the non-harmonised registration certificate of the other
Member State does not allow them to identify the motor vehicle with sufficient precision,

— if the motor vehicle has no EC certificate of conformity, the national authorities may request a

national certificate of conformity;

(d) Proof of payment of VAT, if the vehicle is new for VAT purposes (see section 3.5.1.);

(e) A certificate of insurance;

(f) A roadworthiness certificate if roadworthiness testing is obligatory for all re-registrations of motor

vehicles previously registered in the same or in another Member State, respectively.

4. TRANSFERRING A MOTOR VEHICLE TO ANOTHER MEMBER STATE

A motor vehicle can obviously be put on a trailer or on a truck and brought to another Member State. Yet
many motor vehicles will be driven to the Member State of destination.

Most Member States specify that, as a general rule, a motor vehicle cannot be driven on public roads
without displaying a registration number. The standard situation is the motor vehicle being driven with the
registration plates of the Member State of origin or the Member State of destination.

Moreover, civil liability must remain covered by insurance (3) and it is advisable for motorists to keep the
‘green card’, i.e. the international certificate of insurance (4) with them while using their vehicle. However,
following the signature of the Multilateral Agreement (5) in all Member States (as well as in Andorra,
Croatia, Lichtenstein Norway and Switzerland), the vehicle licence plate is the equivalent of an insurance
certificate. This allows motor vehicles having a licence plate from one of these countries to circulate freely
in this area without any checks of the compulsory motor liability insurance certificate at the borders.

(1) According to recital 7 of Directive 1999/37/EC Member States use a registration certificate consisting either of one single
part or two separate parts, and ‘it is currently appropriate to allow both systems to coexist’. Consequently, Article 3(1) of
Directive, the registration certificate consists of either a single part in accordance with Annex I or two parts in accordance
with Annexes I and II. The reference to Part II only applies to Member States who follow the system of registration certifi-
cate with two separate parts (Part I and Part II).

(2) Article 5(2) of Directive 1999/37/EC.
(3) Council Directive 72/166/EEC of 24 April 1972 on the approximation of the laws of the Member States relating to insur-
ance against civil liability in respect of the use of motor vehicles, and to the enforcement of the obligation to insure against
such liability, as amended (OJ L 103, 2.5.1972, p. 1). Directive as last amended by Directive 2005/14/EC of the European
Parliament and of the Council (OJ L 149, 11.6.2005, p. 14).

(4) Any motorist can obtain a Green Card from the insurer who has issued for him/her the compulsory motor liability insur-
ance. The Green Card System was introduced in 1953 under the aegis of the Economic Commission for Europe of the
United Nations and is managed by the Council of Bureaux. The Green Card certifies that the motorist has at least the
minimum compulsory third party insurance cover required by the laws of the countries visited (for more info, see: http://
www.cobx.org/public/NXhomeEng-Public.htm).

(5) Agreement between the National Insurer's Bureaux of the Member States of the European Economic Area signed on 30
May 2002, referred to in Annex to the Commission Decision 2003/564/EC of 28 July 2003 on the application of Council
Directive 72/166/EEC of relating to insurance against civil liability in respect of the use of motor vehicles (OJ L 192,
31.7.2003, p. 23).

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There are two ways to drive a motor vehicle lawfully to the Member State of destination: either the motor
vehicle carries a professional registration plate or the motor vehicle carries a temporary registration plate.

4.1. Driving the motor vehicle with professional number plates

Professional registration schemes exist in most Member States in order to allow retailers to drive motor vehi-
cles on public roads for a very short period without being obliged to formally register them. Professional
registration schemes are reserved for manufacturers, assemblers, distributors and dealers, with respect to
motor vehicles which they possess.

Most Member States do not issue professional registration certificates as such, involving identification of the
motor vehicle. They usually 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 registra-
tion plate are recorded.

Article 35(1)(a) of the Vienna Convention on Road Traffic (1) specifies that the Contracting Parties may not
prohibit the movement of motor vehicles that are registered by another Contracting Party, provided the
driver carries a registration certificate. The Contracting Parties must also recognise registration certificates
issued by other Contracting Parties in accordance with the Convention. However, there is no provision of
the Convention which requires or permits the Contracting Parties to prohibit the free movement of vehicles
not complying with the Convention.

Considering the freedom of transit of goods within the Community (2), the intra-Community movement of
motor vehicles displaying a professional registration number issued in another Member State is governed by
the EC Treaty (3), and in particular by its Article 28. Possible impediments must be justified in accordance
with Article 30 of the EC Treaty or with one of the mandatory requirements accepted by the Court of
Justice.

The principle that each Member State shall take all appropriate measures to ensure that civil liability in
respect of the use of vehicles normally based in its territory is covered by insurance normally also applies to
vehicles carrying professional registration plates. The extent of the liability covered and the terms and condi-
tions of the cover are determined on the basis of these measures. However, Member States may exclude vehi-
cles carrying professional registration plates from this obligation (i.e. derogate from the abovementioned
provision), if such plates appear on a list drawn up by the Member State concerned and communicated to
the other Member States and to the Commission. In that case, the other Member States retain the right to
require that the person having custody of such a vehicle be in possession of a valid green card or that he
conclude a frontier insurance contract complying with the requirements of the Member State concerned (4).
However, a new amendment to Directive 72/166/EEC introduced by the fifth motor insurance Directive
2005/14/EC (5) states that vehicles exempted from the insurance obligation on the grounds of bearing a
special plate should be treated in the same way as uninsured vehicles. Victims of accidents caused by such
vehicles will have the right to apply for compensation to the compensation body of the country in which
the accident occurred. This body should then have a claim against the guarantee fund established in the
country in which the vehicle is normally based.

4.2. The motor vehicle carries a temporary registration plate

Many Member States have put in place a system of temporary registration so that the motor vehicle can be
driven for a short period before it obtains final registration or before it leaves the territory. Temporary regis-
tration usually takes place in the Member State of origin of the vehicle. However, the Commission takes the
view that the general principle of freedom of transit of goods and the directive on registration documents
for vehicles entail that the Member State of origin should also accept the use — on its territory — of
temporary registration plates and certificates issued by the Member State of destination.

(1) United Nations — Economic Commission for Europe, 8 November 1968, as amended.
(2) Point 18 of the Judgement of the Court of Justice of 23 October 2003, Administration des douanes et droits indirects v

Rioglass SA and Transremar SL, Case C-115/02, ECR 2003, p. I-12705, point 18.

(3) See Judgement of the Court of Justice of 2 October 2003, Criminal proceedings against Marco Grilli, Case C-12/02, ECR

2003, p. I-11585.

(4) Article 4(b) of Council Directive 72/166/EEC.
(5) Article 1(3)(b) To be implemented by Member States by 11 June 2007 at the latest.

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For temporary registration:

— Member States may issue a temporary registration certificate that does not differ, or only slightly
differs from the model set out in Directive 1999/37/EC. In that case, other Member States are
obliged to recognise the temporary registration certificate issued by a Member State for the identification
of the vehicle in international traffic, provided that the driver carries Part I of the registration certificate
pursuant to Article 5(1) of the Directive (1),

— alternatively, the temporary registration certificate may substantially differ from the model set
in principle, recognise the certificate in

out in Directive 1999/37/EC. Other Member States must,
accordance with Articles 28 and 30 of the EC Treaty.

The free movement of the motor vehicle carrying a temporary registration plate and certificate may only be
impeded for reasons relating to road safety (such as the driving capacities of the driver, his compliance with
the local rules of the road or the roadworthiness of the motor vehicle), in case of reasonable suspicion of
vehicle theft or when the controlling authorities have reasonable doubts about the validity of the certificate.

In addition, motorists are recommended to carry the ‘green card’ confirming insurance coverage at least at
the minimum compulsory level required by the laws of the country which is visited. During the journey and
until its final registration in the Member State of destination, the vehicle has to be covered by an insurance
policy issued by an insurer authorised to operate in the state of origin of the vehicle. However, a new
rule (2) that has to be transposed by Member States by 11 June 2007 at the latest, specifies that where a
vehicle is dispatched from one Member State to another, the Member State where the risk is situated shall be
considered the Member State of destination, immediately upon acceptance of delivery by the purchaser for a
period of thirty days, even though the vehicle has not formally been registered in the Member State of desti-
nation. This will enable the purchaser of the vehicle to obtain insurance cover in his Member State of resi-
dence even though the vehicle still bears a foreign registration plate (temporary plate of the country of
origin). In practical terms, this means that insurance should be taken out in the country of destination. Such
insurance can be offered by insurance undertakings established in the Member State of destination, or estab-
lished in other Member States which provide services in the Member State of destination based on free
provision of services or freedom of establishment.

5. REMEDIES

Any decision taken by national authorities refusing the type-approval of the motor vehicle or refusing its
registration must be notified to the party concerned who shall, at the same time, be informed of the reme-
dies available to him under the laws in force in the Member State concerned and of the time limits allowed
for the exercise of such remedies (3).

Apart from the formal national remedies available to the person applying for registration, citizens and enter-
prises may seek a solution for vehicle approval or car
registration problems through the SOLVIT
network (4). The use of the SOLVIT system is free of charge.

It is also possible to turn directly to the European Commission and make a complaint against a Member
State. The Commission — if it considers that a Member State has failed to fulfil its obligation under the EC
Treaty — can initiate infringement proceedings against the Member State under Article 226 of the EC
Treaty.

(1) Directive 1999/37 EC also applies to temporary registration certificates, which should be recognised by the Member States

based on Article 1(2)(b), and Article 4 of the Directive.

(2) The new Article 4ais inserted into Council Directive 90/232/EEC (OJ L 129, 19.5.1990, p. 33) relating to insurance against

civil liability in respect of the use of motor vehicles by Directive 2005/14/EC.

(3) Article 12 of Directive 70/156/EEC.
(4) http://europa.eu.int/solvit/