What is the Difference Between Vehicle Deregistration and Scrapping?
2 Answers
Vehicle deregistration and scrapping differ in that the concept of scrapping applies to the vehicle itself, while deregistration pertains to the registered information of the motor vehicle, including its license plate. Vehicle license plates are considered public resources. Failure to complete the deregistration process for a vehicle results in the occupation of public resources, leading to wastage. Mandatory Vehicle Scrapping: China implements a mandatory vehicle scrapping system, which sets different scrapping standards based on the safety and technical conditions of the vehicle and its intended use. Vehicles that meet the scrapping criteria are prohibited from being driven on public roads. Large passenger vehicles, trucks, and other commercial vehicles must be dismantled under the supervision of the traffic management authorities. If a vehicle is damaged and cannot be driven back to its registered location, the owner may sell the scrapped vehicle to a local vehicle recycling company. Vehicle Deregistration, formally known as Motor Vehicle Deregistration Registration: Vehicles that meet the national mandatory scrapping standards or fall under any of the following circumstances must have their owners promptly apply for deregistration at the local vehicle management office: the vehicle is lost; the vehicle is no longer used within China for any reason; or the vehicle is returned due to quality issues. Required documents for deregistration: the Motor Vehicle Registration Certificate and the Motor Vehicle Driving License. For lost vehicles, the owner must submit their identity proof and a vehicle loss certificate. For scrapped vehicles, a copy of the "Scrapped Motor Vehicle Recycling Certificate" is required. If the vehicle is no longer used within China, the owner must also submit their identity proof and an exit certificate. For vehicles under customs supervision, an additional document, the "Notification of Entry (Exit) and License Plate Collection (Cancellation) for Customs-Supervised Motor Vehicles" issued by customs, must be provided.
I remember once when dealing with my old car, I figured out the difference between deregistration and scrapping. Deregistration is like removing the vehicle from the government system—for example, if you sell, buy, or lose the car, you go to the traffic management office to deregister the license plate information, and the car is no longer yours, but it might still be parked somewhere. Scrapping means the car is completely written off and sent to a recycling plant for dismantling, and you get a scrapping certificate. After scrapping, you must deregister; otherwise, the vehicle might become a 'blacklisted' car and cause trouble. Don’t be like my friend who procrastinated—his car broke down, and instead of scrapping it, he just deregistered it. Later, it was discovered as an illegal disposal, resulting in credit score deductions and fines. My advice is to handle it early to save money and hassle, and also to protect the environment.
