Truck Placard Benefits: Why Transport Businesses Must Comply

Truck placards are a familiar term for drivers and transport businesses, but do you truly understand the benefits of truck placards? Many still underestimate or lack a full awareness of the importance of this document. This article from Xe Tải Mỹ Đình will provide a comprehensive overview of truck placards, from definition and types of vehicles requiring them, to validity periods and the latest application procedures, helping you understand and comply with legal regulations.

What Is a Truck Placard, and Which Vehicles Are Required to Have One?

A truck placard, also known as a road transport permit, is a legal document issued by a competent authority, allowing freight and passenger transport vehicles to operate legally. It is an indispensable part of transport activities, ensuring order, traffic safety, and effective management of transport business operations.

According to Decree 10/2020/ND-CP, the following types of vehicles are required to display a placard to be allowed to conduct transport business:

  • Passenger transport vehicles operating on fixed routes: Must have the placard “XE TUYẾN CỐ ĐỊNH” (FIXED ROUTE VEHICLE).
  • Passenger transport vehicles for transfers: Must have the placard “XE TRUNG CHUYỂN” (TRANSFER VEHICLE).
  • Buses: Must have the placard “XE BUÝT” (BUS).
  • Taxis: Must have the placard “XE TAXI” (TAXI).
  • Contract passenger transport vehicles: Must have the placard “XE HỢP ĐỒNG” (CONTRACT VEHICLE).
  • Container transport vehicles: Must have the placard “XE CÔNG-TEN-NƠ” (CONTAINER VEHICLE).
  • Tractor units pulling trailers or semi-trailers: Must have the placard “XE ĐẦU KÉO” (TRACTOR UNIT).
  • Trucks and taxi trucks: Must have the placard “XE TẢI” (TRUCK).

The current standard size of a truck placard is regulated with a length of 200mm (±20mm) and a width of 100mm (±15mm). The colors and patterns on the placard are also distinguished based on the vehicle’s transportation distance, making it easier for authorities to identify and manage. For example, placards for vehicles traveling distances over 300km have a dark red frame and text on a light blue background, while vehicles traveling under 300km have a dark blue frame and text on a light pink background.

Essential Benefits of Truck Placards in Business Operations

So, what are the actual benefits of truck placards that transport businesses need to pay special attention to? A truck placard is not merely a simple administrative procedure but also offers many practical benefits and ensures that transport business operations run smoothly and legally:

  1. Compliance with the law and avoidance of penalties: This is the first and most important benefit. A truck placard is a legal permit for conducting transport business. Trucks without a placard or using an invalid placard will be considered in violation of the law and subject to penalties as prescribed, from fines to vehicle impoundment. Having a placard helps businesses avoid unnecessary legal risks, ensuring continuous and stable business operations.
  2. Enhancing the reputation and image of the business: Transport businesses that fully comply with legal regulations, including equipping their trucks with placards, demonstrate professionalism and reliability in the eyes of customers and partners. This contributes to building a reputable brand image, creating a competitive advantage in the market.
  3. Facilitating the inspection and management process: Truck placards help authorities easily control and manage transport activities. When a vehicle has a valid placard, the inspection process on the road will be faster and more convenient, minimizing waiting times and cumbersome procedures.
  4. Ensuring insurance benefits: In the event of an incident or accident, the truck having complete legal documents, including a placard, is an important factor in ensuring the insurance benefits of the business and the vehicle owner. Lack of a placard may lead to denial of insurance compensation, causing significant financial damage.
  5. Managing the fleet more efficiently: Truck placards often come with management information such as expiration date and type of transport, helping businesses easily track and manage their fleet. From there, businesses can plan maintenance, replace placards, and optimize transport operations.

Truck placard illustrating the importance of complianceTruck placard illustrating the importance of compliance

Validity Period of Truck Placards and Important Notes

According to the provisions in Clause 2, Article 22 of Decree 10/2020/ND-CP, the validity period of truck placards is regulated as follows:

  • Placards issued to automobiles engaged in transport business and transfer vehicles have a maximum validity of 7 years, or as requested by the transport business unit (the requested time is from 1 to 7 years) but not exceeding the vehicle’s service life.
  • The “XE TUYẾN CỐ ĐỊNH” (FIXED ROUTE VEHICLE) placard issued to vehicles increasing passenger clearance during holidays and Tet has a short-term validity, not exceeding 30 days (Lunar New Year) or 10 days (holidays, New Year, National High School Examination, University and College entrance exams).

Businesses should pay special attention to the validity period of the placard to proactively carry out procedures for renewal or new issuance when necessary, avoiding the situation where the placard expires without knowledge, leading to violations of the law.

Latest Truck Placard Application Procedures in 2024

To obtain a truck placard, units and organizations need to follow these steps:

Step 1: Submit the application for a placard at the Department of Transport where the Transport Business License was issued. The application includes:

  • Application form for placard issuance (according to the form in Appendix V of Decree 10/2020/ND-CP).
  • A copy of the vehicle registration certificate or the appointment to receive the vehicle registration certificate.
  • If the vehicle is not owned by the transport business unit, a copy of the vehicle rental contract or service/business cooperation contract is required.

Step 2: Amend and supplement the application (if required by the authorities).

Step 3: Resolve the issuance of the placard. The processing time is 02 working days from the date of receipt of a valid application. The Department of Transport will issue the placard or notify the refusal in writing if the application does not meet the requirements.

Note: The procedure for reissuing a placard (due to expiration, loss, damage, change of owner, or revocation) is similar to the new issuance procedure. In case of reissue due to revocation or suspension of use rights, the application must include documents proving the remedy of the violation.

Conclusion:

A truck placard is not only a mandatory document but also an important tool to help transport businesses operate legally, efficiently, and build reputation. Understanding the benefits of truck placards, related regulations, and licensing procedures will help businesses be more proactive in their business operations, avoid legal risks, and optimize transport efficiency. Xe Tải Mỹ Đình hopes this article has provided useful information and helped you gain a more comprehensive understanding of truck placards.

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