May 13, 2002

Test vehicles and their use in Sweden

 Summary of proposals to amend regulations regarding test vehicles and their use in Sweden


Introduction

This summary aims to provide an overview of the various proposals that have been reported by Vägverket, the Swedish National Road Administration, in a particular memorandum regarding reported problems with the new regulations for test vehicles and their use in Sweden.

The Swedish National Road Administration’s (SNRA) memorandum also contains other proposals that do not directly affect test vehicles and are therefore not mentioned in this summary.

After SNRA submitted its memorandum to the Ministry of Industry, Employment and Communications, the Ministry in turn circulated the matter to a number of relevant authorities and organisations for comment. A hearing was held on Friday, 19 April 2002.
According to the Government’s schedule, a bill will be submitted to the Riksdag no later than 29 May 2002. Thereafter, the Riksdag will discuss the bill in the autumn and then it is the Government’s suggestion and intention that the proposed amendments come into force on 1 December 2002.

Overall, the contents of SNRA’s memorandum have also become the Government’s proposal to the Riksdag. However, the Swedish National Tax Board has voiced objections regarding the expansion of the vehicle manufacturer’s/car dealer’s licence system, and traffic insurance companies objected to the flexible validity periods. SNRA proposed the option of choosing any period between one (1) to twelve (12) months. Traffic insurance companies can accept two fixed periods of time, six (6) and twelve (12) months. The Government has chosen to propose that three (3), six (6) and twelve (12) months be feasible as regards the validity period. Traffic insurance companies have stated that the premium will probably be the same for a validity period of three (3) months as for six (6) months.

Certain amendments were adopted on 20 February 2002 and on 1 March 2002 in those parts of SNRA regulations at the disposal of SNRA.

Previous and current regulations

Prior to 1 October 2001, the ordinance Turistvagnskungörelsen (1972:601) applied in principle to test vehicles. According to these regulations, those persons who did not have Sweden as their true domicile and who were staying in the country only temporarily were to receive a ‘tourist vehicle licence’ (turistvagnslicens) for the use of a car, motorcycle or trailer not registered in Sweden. This licence was approved with the condition that the vehicle was imported for personal use only or for test driving or similar purposes and that the vehicle was only to be used temporarily in the country, and that temporary exemption from duty for the vehicle had been granted or the vehicle inspected by customs officials in some other way.

Under certain conditions, test vehicles could be used with a tourist vehicle licence without being registered in accordance with these regulations (‘ordinary registration’). The requirements included processing by customs and a certificate guaranteeing compliance with regulations for use in traffic in the country where the vehicle was registered or that the vehicle had been approved during vehicle inspection. When a licensed vehicle was inspected, the same requirements basically applied as for vehicles subject to ordinary registration. Certification that the vehicle could be used in traffic in the home country was to be issued by a Swedish consulate or the police authorities in the foreign country, or by a consulate representing the country in Sweden.

Traffic insurance was compulsory if the vehicle was to be used here.

In connection with Sweden joining the European Union in 1995, tourist vehicle licences could no longer apply to vehicles brought in from another EU member state.

In order to solve the test vehicle problem pending a permanent solution and a change of procedures regarding tourist vehicle licences, SNRA permitted an exception to the ordinance Förordning om fordon i internationell vägtrafik i Sverige (1987:27) regarding vehicles in international road traffic in Sweden. The exception regarded the requirement for the vehicle to be registered in a foreign state in order for it to be used in international road traffic in Sweden. This kind of application entailed different requirements in different contexts. However, neither approved vehicle inspection nor approved traffic safety inspection were required. The requirements for proving that the vehicle had traffic insurance cover also varied. This meant that the treatment of exemptions generally was more lax than was the case earlier with the Turistvagnskungörelsen ordinance.

Under the provisions of the Motor Traffic Damage Act (1975:1410), however, this meant that there was a requirement for Swedish traffic insurance for such vehicles being used in Sweden and which were unregistered in the home country.

In the bill prior to the current road traffic register legislation (bill 2000/01:95), it is stated that it would be appropriate for the different forms of interim registration to be collected in one system, called ‘temporary registration’, where as few vehicles as possible were excluded from the system. The assumption was therefore that the owner of the vehicle should (ordinarily) register the vehicle in the country of his or her primary domicile. Test vehicles brought in from another EU member state or from a non-EU member state were to be temporarily registered in Sweden, but customs processing was not to be a condition of this registration. A validity period of twelve months for such registration was also proposed.

Current regulations deviate somewhat from the regulations that applied under the previous Turistvagnskungörelsen ordinance. Road traffic register legislation states, among other things, what an application is to contain and that the application must include a traffic insurance certificate for vehicles requiring traffic insurance. The fact that test vehicles require traffic insurance must be viewed as evident by the regulations of the Motor Traffic Damage Act.
The Government’s authorisation to order exemptions from compulsory traffic insurance can be found in the Motor Traffic Damage Act. The Government has exercised this authorisation so that motor vehicles, under certain conditions, may be brought into Sweden in order to be used temporarily in traffic without Swedish traffic insurance if they are registered in another state.

It is evident by other regulations in road traffic register legislation that an application for temporary registration must include the documentation and information stipulated by SNRA. This rule also applies to test vehicles.

Regulations in other countries

Testing operations in the Nordic countries are run in northern Sweden and northern Finland. Certain vehicle manufacturers that conduct testing operations in Sweden or Finland also run certain types of testing operations on the Continent, such as in Germany.

Germany has bilateral agreements with other countries, including Italy, and therefore permits Italian vehicle manufacturers to use transport signs or the equivalent (cf. Swedish vehicle manufacturer’s/car dealer’s registration plates) that are used in Italy. In November 2001, Swedish representatives submitted a proposal for a bilateral agreement to Germany. The proposal is based on Sweden permitting the use of the German equivalent of Swedish vehicle manufacturer’s/car dealer’s registration plates and, similarly, Germany permitting Swedish vehicle manufacturer’s/car dealer’s registration plates. If this kind of agreement were to be realised, testing operations would be facilitated for German vehicle manufacturers. Similar bilateral agreements could be entered into with other countries as well.

Vehicles not registered in any country and which are to be tested in Finland need temporary registration plates issued to companies, institutions or the equivalent, in addition to a temporary registration certificate. These registration plates are not linked to any particular vehicle and may be used by a company for all vehicles used for testing purposes during the validity period of the certificate. The Finnish authorities cannot ascertain which vehicles are being used for testing purposes and which have temporary registration plates. Traffic safety inspections are not carried out; neither are certificates needed guaranteeing that the vehicle fulfils equivalent requirements. However, in order for a vehicle to be used in regular road traffic, it must be in a condition that fulfils road safety requirements. The holder of the temporary registration is responsible for complying with Finnish requirements during use. Sometimes, certain testing of vehicles with temporary transfer plates may be carried out, but in the case of temporary registration plates, no vehicle inspection is carried out.

In summary, it can be said that the Finnish system as regards the use of test vehicles is quite similar to the Swedish vehicle manufacturer’s/car dealer’s licence system. Having taken the amendments that have come into force or will come into force on 1 December 2002 into consideration, Swedish regulations will be similar to the Finnish system and may even be somewhat more flexible. A major problem according to testing companies regards the compulsory Swedish traffic insurance, but according to Finnish sources, Finnish legislation also requires traffic insurance that covers damage or injury in Finland.

Problems

During meetings and contacts concerning this matter, the following problems have been noted:
 Compulsory Swedish traffic insurance because foreign manufacturers feel that the vehicles are insured in their home country.
 Slow handling of matters – 4-5 working days compared to one working day previously.
 Compulsory vehicle inspection in Sweden or a certificate guaranteeing compliance with the equivalent of 96/96/EC in the home country.
 Obstacles to new temporary registration before 12 months have passed since the expiry of the previous registration.
 Lack of flexibility in processing.
 Difficulties in transporting vehicles with short notice.
 Difficulties in driving vehicles to and from Bilprovningen’s vehicle inspection stations.

Note that test vehicles used in upper Norrland have varying status when brought to Sweden:
1) Vehicles registered for normal use in the home country
2) Unregistered vehicles only to be used at the test track site
3) Unregistered vehicles to be used both at the test track site and on public roads, or in ordinary traffic within the testing area

Only vehicles lacking valid registration in any country comprise a problem when it comes to using them in Sweden.

Amendments

On 20 February, SNRA approved amendments to the regulations (VVFS 2001:118) regarding the registration of vehicles, etc. in the road traffic register. These amendments (VVFS 2002:24) are intended to solve some of the problems addressed by testing companies and foreign manufacturers, and generally came into force immediately.

In summary, the following amendments have been made:

1) Permitting vehicle manufacturers to certify that the vehicle complies with 96/96/EC as an alternative to having the vehicle inspected in Sweden or the home country.
2) Creating opportunities for simpler temporary registration plates directly while applying for temporary registration at the Arjeplog office. These plates can be used until the official temporary registration plates have been received and can be put on the vehicle. This means quicker and smoother processing of urgent cases.

Amendments in progress

Introduction

It is proposed that the amendments below be implemented by 1 December 2002. The Government intends to submit a bill to the Riksdag in May 2002. The Riksdag will then discuss the various proposals in the autumn.
A vehicle manufacturer’s/car dealer’s licence as an alternative to temporary registration

A vehicle manufacturer’s/car dealer’s licence is a form of licence and registration primarily reserved for the same.

The amendment means that foreign vehicle manufacturers, professional manufacturers of components for vehicles and those that carry out test drives for vehicle manufacturers may now be granted a vehicle manufacturer’s/car dealer’s licence. The use of this kind of license will also encompass test driving of vehicles and their use to and from the test driving site.

A vehicle manufacturer’s/car dealer’s licence is to be applied for at SNRA using a particular form. The application fee is currently SEK 475, which must be paid in connection with applying for this licence.

The applicant must have traffic insurance that covers all vehicles intended to be used with the licence (floating insurance).
The cost of this kind of traffic insurance may vary between insurance companies. Certain companies even have a mini-premium for this kind of traffic insurance. It is also possible that certain companies do not offer this kind of insurance product for test vehicles and test driving as regards the widening area of uses for vehicle manufacturer’s/car dealer’s licences that is now taking place. Therefore, it may be advisable to contact relevant insurance companies as soon as possible.

When applying for a vehicle manufacturer’s/car dealer’s licence, the applicant must also indicate how many vehicles are intended to be used at the same time with the licence and how many such registration plates are needed. The cost for each vehicle manufacturer’s/car dealer’s registration plate is SEK 715 per year in tax, SEK 60 in a one-off fee for the plate and an annual administrative fee of SEK 35. A vehicle manufacturer’s/car dealer’s licence may not be dormant for parts of the year. It is continually in force and the yearly fees must always be paid.

Applying for new temporary registration in connection with the expiry of the previous period of temporary registration

Test vehicles will be offered new temporary registration even if twelve months have not yet passed since the expiry of the previous period of temporary registration.
This does not entail an extension of the previous period. A new application must always be submitted and the application requirements must be fulfilled.
Applying for temporary registration before the vehicle is brought into the country

An application for temporary registration may be submitted before the vehicle has been brought into the country. This may be an advantage in urgent cases but the temporary registration plate must then be sent from the contractor in Norrland to the vehicle manufacturer abroad so that the plate can be put on the vehicle for use when driving it through Sweden in those cases when the vehicle is to be driven on its own tyres.
Driving an unregistered vehicle to and from the vehicle inspection facility for vehicle inspection purposes

It shall be possible to drive unregistered test vehicles to and from Bilprovningen’s vehicle inspection stations for vehicle inspection purposes.

When submitting an application for registration, SNRA regulations require a certificate from Bilprovningen stating that the vehicle has passed inspection or a certificate from a foreign inspection facility stating that the vehicle has passed inspection there and fulfils the EC directive 96/96/EC, or, a certificate from the vehicle manufacturer stating that the vehicle complies with 96/96/EC. In those cases when a certificate is to be issued by Bilprovningen after vehicle inspection in Sweden, the vehicle may be driven unregistered to and from the Bilprovningen station for this purpose.

If the manufacturer or contractor (the testing company) has a vehicle manufacturer’s/car dealer’s licence, the vehicle may be driven to and from the Bilprovningen station with this licence.

To drive the vehicle to and from Bilprovningen according to this regulation, Bilprovningen must issue an appointment certificate, which is to be presented as required by the police or car inspector when using the vehicle. The vehicle may not be used on any other day than stated on this certificate and when a vehicle inspection appointment has been made with Bilprovningen.

More flexible validity periods for exporting new vehicles and for test vehicles

The final proposal entails the possibility of choosing a validity period of three (3), six (6) or twelve (12) months.
Due to insurance companies’ administrative costs, this may mean that these companies will charge the same insurance premium for three months’ validity as for six months.
Cancelling temporary registration on the owner’s request; change of ownership will always mean that the temporary registration is cancelled

The proposal entails that temporary registration may be cancelled on the owner’s request and that a change of ownership will automatically mean that the temporary registration is cancelled. SNRA will then decide that the temporary registration is no longer valid.