Authorized Vehicle Scrapping Facility (AVSF)

Authorized Vehicle Scrapping Facility (AVSF) Overview

To establish an Authorized Vehicle Scrapping Facility (AVSF), follow these steps:

Guidelines: The Central Government has issued guidelines for setting up and operating AVSF in India. These guidelines apply to vehicles that are no longer validly authorized under the Motor Vehicle Act or when owners wish to scrap their vehicles. AVSF ensures the safe disposal of such vehicles, protects the environment, and promotes a legally compliant vehicle dismantling and scrapping industry. Authorization to start an AVSF is granted by the respective state/UT government.

Terms to Know:

Understand these key terms related to Vehicle Scrapping:

Authorized Scrapper: An individual, firm, society, trust, or company that owns and operates an Authorized Vehicle Scrapping Facility.
Authorized Vehicle Scrapping Facility: An establishment with authorization for vehicle scrapping, issued under the guidelines for dismantling and scrapping.
Deposit Certificate: A certificate issued by AVSF, acknowledging the transfer of vehicle ownership from the authorized owner to the authorized scrapper.
Vehicle Scrapping Certificate: A certificate issued by AVSF, acknowledging the final disposal of the vehicle. It must be kept by the authorized scrapper.
Scrapping Yard: The location where the dismantled parts of the vehicle are processed.

Qualifying Vehicles for Scrapping:

The following vehicles are eligible for scrapping:

Vehicles that have not renewed their original certificate of registration.
Vehicles that have not been granted fitness certificates.
Vehicles damaged due to fire, riot, natural disasters, accidents, or any calamity, and the owner has certified them as scrap.
Vehicles declared obsolete, surplus, or beyond economical repair by the Central or state government.
Vehicles that have outlived their utility or are used for mining, highway projects, etc.
Manufacturing rejects and test vehicles.
Auctioned, impounded, and abandoned vehicles.

Authorized Vehicle Scrapping Facility (AVSF) Guidelines

To establish an Authorized Vehicle Scrapping Facility (AVSF), follow these steps:

Eligibility Criteria

In order to obtain authorization for the treatment of end-of-life vehicles by the respective state/UT governments, the proposed AVSF must meet the following eligibility conditions:

Ownership and Legal Entity:
The AVSF should be owned and operated by a legal entity, such as a person, firm, society, or trust established in accordance with applicable laws.
The entity must have a certificate of incorporation, valid GST registration, and a valid PAN.

Licensing:
The entity should have applied for or possess an establishment license from the relevant authority.

Technical Requirements:
The AVSF must fulfill the minimum technical requirements for collecting and dismantling centers as specified by the pollution control board.
It should have the necessary workforce and equipment to carry out dismantling activities.
Quality Certifications:
The entity must undertake to obtain the required quality certifications within 12 months of commencing operations.
Infrastructure:
The AVSF should provide an approved plan layout and building plan.
It must have an environmental management plan for the facility.
Connectivity and Security:
The AVSF will be provided connectivity and access to the VAHAN database of vehicle registrations with a User ID and password.
The entity must have security certifications for its IT system to safely access the VAHAN database.
Verification and Record-Keeping:
The AVSF should verify the identity of the person handing over a vehicle for scrapping to determine its actual owner. A copy of the verification record should be kept for a minimum of 6 months.

Authorization Validity and Renewal

The authorization for starting an AVSF is valid for 10 years.
It can be renewed for another 10 years.
The authorization is not transferable.

Minimum Requirements for AVSF

The AVSF should meet the following minimum requirements:

Adequate area for vehicle movement, storage, and installation of equipment for de- pollution, de-risking, and dismantling end-of-life vehicles.
Compliance with all relevant environmental norms.
Provision for recycling hazardous wastes, such as e-waste, lead-acid batteries, lithium-ion components, and recovery of rare-earth metals. If the AVSF lacks the capability or provisions for recycling, such materials must be sold to duly authorized recycling agencies.

Procedure to Establish an AVSF

Follow this procedure to set up an Authorized Vehicle Scrapping Facility in India:

Application:
o Submit an application, along with the specified fee, to the registration authority of the concerned state government or UT administration where the facility is proposed to be located.
Application Processing:
The state or UT administration will dispose of the application within 60 days, including all necessary internal approvals from different departments. After this period, the application will be deemed approved.
Single Window Clearance:
The central government will establish a single window clearance for AVSF registration within 6 months from the notification of these rules. Until then, the state government or UT administration will process all applications manually.
Registration Validity:
The registration granted to the AVSF will be valid for ten years and can be renewed for another 10 years.

Vehicle Scrapping Process

The vehicle scrapping process at an AVSF involves the following steps:

Vehicle Handover:
The authorized owner or representative gives the vehicle to the AVSF, along with the necessary documents.
Verification:
The AVSF conducts verifications to confirm the legitimacy of the person handing over the vehicle for scrapping.
Database Entry and Deregistration:
The AVSF accesses the VAHAN database to make suitable entries about the vehicle scrapping and facilitate the submission of the scrapping request electronically.
The registration certificate is transmitted to the road transport or regional transport office (RTO) to deregister the vehicle.
Deposit Certificate and Incentives:
The AVSF issues a certificate of deposit to the owner or authorized representative. This certificate can be used to claim benefits and incentives for the purchase of a new vehicle, as determined by the government. It serves as proof of transfer of vehicle ownership to the AVSF.
Payment and Scrapping Certificate:
The AVSF pays the authorized owner or representative for the value of the scrapped vehicle.
After completing the treatment process, the AVSF issues a digital certificate of vehicle scrapping.
Scrapping Yard and Collection Centre:
The AVSF must establish a scrapping yard and collection centre to handle, de- pollute, and dismantle end-of-life vehicles in accordance with the prescribed regulations.

How we can Assist you in Authorized Vehicle Scrapping Facility (AVSF)

We can assist you in setting up an Authorized Vehicle Scrapping Facility (AVSF) by providing the following services:

Consultation: Our team of experts can provide consultation services to help you understand the requirements and procedures for establishing an AVSF. We will guide you through the eligibility criteria, licensing requirements, technical specifications, and environmental compliance.
Documentation: We can assist you in preparing and organizing the necessary documents required for the application process, including the certificate of incorporation, valid GST registration, PAN, establishment license, quality certifications, plan layout, building plan, and environment management plan.
Application Support: Our team can help you with the preparation and submission of the application to the registration authority of the concerned state government or UT administration. We will ensure that the application is complete and meets all the requirements.
Compliance Assistance: We can provide guidance on complying with environmental norms and regulations, including the handling and recycling of hazardous wastes. If your AVSF lacks the capability or provisions for recycling certain materials, we can help you find duly authorized recycling agencies for their disposal.
Registration Process: We will assist you throughout the registration process, including monitoring the progress and timely follow-up with the state government or UT administration. We will ensure that your application is processed within the stipulated time frame.
Renewal and Compliance: We can help you with the renewal of the AVSF authorization after 10 years. Our team will ensure that you meet all the requirements for renewal and assist you in the renewal application process.
Scrapping Process Support: Our team can guide you through the vehicle scrapping process, including document verification, database entry, deregistration, issuance of deposit certificates, payment to authorized owners, and issuance of digital scrapping certificates.
Facility Setup Guidance: We can provide assistance in setting up a scrapping yard and collection center according to the prescribed regulations. Our experts will guide you on the required infrastructure, equipment, and processes for effective vehicle de-pollution and dismantling.

By availing our services, you will receive comprehensive support and guidance throughout the entire process of establishing an Authorized Vehicle Scrapping Facility. We aim to make the process as smooth and efficient as possible, ensuring compliance with all the necessary regulations and requirements.

For more information and assistance in setting up an Authorized Vehicle Scrapping Facility, please contact our team at Estabizz Fintech. We have the expertise and resources to guide you through the process effectively.

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