Statute Details
- Title: Road Traffic (Exemption) Order
- Act Code: RTA1961-OR11
- Type: Subsidiary Legislation (SL)
- Authorising Act: Road Traffic Act (Cap. 276), Section 142
- Citation: G.N. No. S 314/1995
- Revised Edition: 1996 Rev. Ed. (15 May 1996)
- Commencement (as indicated in the extract): 30 June 1995
- Status: Current version as at 27 Mar 2026 (per the provided extract)
- Key Provisions: Sections/Articles 1 (Citation), 2 (Exemption), 3 (Transfer of certificate of entitlement)
What Is This Legislation About?
The Road Traffic (Exemption) Order is a targeted regulatory instrument made under the Road Traffic Act. In plain terms, it creates a narrow exemption from a rule within Singapore’s motor vehicle quota system framework. Specifically, it addresses how certain certificates of entitlement (COEs) for particular categories of motor vehicles are treated when they have not been used for vehicle registration by a specified cut-off date.
Singapore’s COE regime is designed to manage the supply of motor vehicles through a quota system. Under the relevant subsidiary rules, COEs are generally subject to conditions and time-based or usage-based requirements. The Road Traffic (Exemption) Order modifies the effect of one such requirement for COEs issued to three named public transport-related companies—SBS Taxi Pte. Ltd., Singapore Airport Bus Services Ltd., and Singapore Commuter Pte. Ltd.—but only where the COEs were issued before 30 June 1995 and were not used on or after that date for registration of a motor vehicle.
In addition to the exemption, the Order provides a mechanism for transferring those exempted COEs to another company (Citycab Pte. Ltd.) with the Registrar’s approval and a fixed fee. The legislation therefore serves two practical purposes: (1) it preserves the value or validity of certain COEs despite non-use by a cut-off date, and (2) it facilitates corporate reallocation of those COEs through a controlled transfer process.
What Are the Key Provisions?
1. Citation (Article 1)
Article 1 is straightforward: it states that the Order may be cited as the “Road Traffic (Exemption) Order.” While this appears procedural, citation provisions matter for legal certainty and for practitioners when referencing the instrument in submissions, compliance advice, or enforcement contexts.
2. The Exemption (Article 2)
The core operative provision is Article 2. It provides that Rule 17 of the Road Traffic (Motor Vehicles, Quota System) Rules (referred to in the extract as “Rule 17 of the Road Traffic (Motor Vehicles, Quota System) Rules [R 31]”) shall not apply to certain COEs.
In plain language, the exemption applies to a COE for a motor vehicle in the category referred to in Rule 3(b) of the quota system rules. The COE must have been issued to one of the following companies:
- SBS Taxi Pte. Ltd.
- Singapore Airport Bus Services Ltd.
- Singapore Commuter Pte. Ltd.
Crucially, the COE must have been issued before 30 June 1995, and it must be the case that the COE had not, on or after that date, been used for the registration of a motor vehicle. The exemption is therefore conditional on both (i) the identity of the original COE holder and (ii) the historical non-use of the COE for registration after the cut-off date.
Legal and practical effect
Although the extract does not reproduce Rule 17 itself, the structure indicates that Rule 17 imposes a consequence that would otherwise apply to COEs that have not been used for registration within the relevant timeframe or after a relevant date. Article 2 overrides that consequence for the specified COEs. For practitioners, the key takeaway is that the Order is not a general amnesty; it is a narrowly tailored carve-out tied to a specific date (30 June 1995), specific COE holders, and a specific vehicle category (Rule 3(b) category).
3. Transfer of certificate of entitlement (Article 3)
Article 3 creates a transfer pathway. It states that every COE referred to in Article 2 may be transferred from the original company (SBS Taxi Pte. Ltd., Singapore Airport Bus Services Ltd., or Singapore Commuter Pte. Ltd., as applicable) to Citycab Pte. Ltd.
The transfer is not automatic. It requires:
- Approval of the Registrar
- Payment of a fee of $10
Interpretation points for lawyers
First, the transfer is limited to Citycab Pte. Ltd. The wording “be transferred … to Citycab Pte. Ltd.” indicates that the exemption COEs cannot be transferred to arbitrary third parties under this Order. Second, the Registrar’s approval is a condition precedent. In practice, this means that any transaction documentation (e.g., sale agreements, assignments, corporate restructuring instruments) should be drafted with regulatory approval as a closing condition.
Third, the fee is fixed at $10. While the amount is small, the legal significance lies in the statutory requirement that the fee be paid as part of the transfer process. Failure to comply with the fee requirement could undermine the validity of the transfer or delay registration with the Registrar.
How Is This Legislation Structured?
The Road Traffic (Exemption) Order is structured as a short instrument with three articles:
- Article 1 (Citation): identifies the Order by name.
- Article 2 (Exemption): provides the substantive exemption from Rule 17 of the Road Traffic (Motor Vehicles, Quota System) Rules for specified COEs, issued before 30 June 1995 to named companies, and not used for registration on or after that date.
- Article 3 (Transfer of certificate of entitlement): allows transfer of the exempted COEs to Citycab Pte. Ltd., subject to Registrar approval and payment of a $10 fee.
There are no additional parts or complex schedules in the extract provided. The brevity is consistent with an exemption order: it targets a specific legal consequence and provides a limited remedial mechanism.
Who Does This Legislation Apply To?
The Order applies to certificates of entitlement for motor vehicles in the category referenced in Rule 3(b) of the Road Traffic (Motor Vehicles, Quota System) Rules. It does not apply to all COEs or all vehicle categories—only those meeting the specified category and other conditions.
In terms of persons, the exemption is tied to COEs issued to SBS Taxi Pte. Ltd., Singapore Airport Bus Services Ltd., and Singapore Commuter Pte. Ltd. before 30 June 1995. The transfer provision then concerns the movement of those COEs to Citycab Pte. Ltd. with Registrar approval. Accordingly, the practical “regulated parties” are the named COE holders and Citycab, as well as the Registrar who administers approvals and fees.
For other market participants, the Order is generally relevant only indirectly—e.g., where a transaction involves one of the specified COEs or where legal counsel must determine whether a particular COE is within the exemption’s scope.
Why Is This Legislation Important?
Although the Road Traffic (Exemption) Order is short, it can be highly significant in COE-related disputes, compliance reviews, and transaction due diligence. COEs are valuable regulatory instruments, and their eligibility, usability, and transferability can materially affect corporate assets and business planning. By exempting certain COEs from the operation of Rule 17, the Order preserves legal rights that would otherwise be curtailed by the quota system rules.
From an enforcement and compliance perspective, the Order reduces uncertainty for the specified companies and their successors by clarifying that the consequence under Rule 17 does not apply to qualifying COEs. This is particularly important where COEs were issued before a cut-off date and were not used for registration thereafter—situations that could otherwise trigger automatic regulatory outcomes.
For practitioners advising on transfers, Article 3 is equally important. It provides a legal basis for transferring the exempted COEs to Citycab Pte. Ltd., but only through a controlled process requiring Registrar approval and a specified fee. In practice, this means that lawyers should treat the Registrar’s approval as a key regulatory step, ensure that the COE falls within Article 2’s definition, and confirm that the transfer target is Citycab Pte. Ltd. before advising on deal structure or drafting assignment instruments.
Related Legislation
- Road Traffic Act (Cap. 276) — in particular Section 142 (authorising power for subsidiary legislation)
- Road Traffic (Motor Vehicles, Quota System) Rules — in particular:
- Rule 17 (the provision from which the exemption is granted)
- Rule 3(b) (the vehicle category referenced by the exemption)
Source Documents
This article provides an overview of the Road Traffic (Exemption) Order for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.