This is the official process by which a vehicle owner surrenders their license plates to the traffic authority, typically when the vehicle is no longer in circulation, is deregistered, is transferred to another state/country, or no longer requires active registration.
Common cases in which this is done:
- Cancellation of insurance or vehicle registration.
- Sale or export of the vehicle.
- Total loss, disuse, or scrapping.
- Transfer of residence to another jurisdiction.
Importance:
- Avoids future legal or tax liabilities.
- Formally closes the owner’s relationship with the vehicle.
- Ensures that no additional tax charges or fines are incurred.