Support for SMEs

To provide ex-gratia payment to eligible vehicle owners after scrapping their Euro IV Diesel Commercial Vehicles (DCVs) during the implementation of the scheme.

Registered owners of eligible Euro IV DCVs (including Excluded Vehicles) who intend to apply for the ex-gratia payment under the Scheme have to arrange for their vehicles to be scrapped and de-registered within the period between 19 October 2020 and the vehicles' respective deadlines for cancelling the vehicle registration (both dates inclusive).

The amounts of ex-gratia payment for different classes/types of Euro IV DCVs are set out in the webpage.  The amounts inversely correlate with the age of the vehicles and remain the same throughout the Scheme period.

For an eligible Euro IV DCV (including Excluded Vehicles), its body type (for DCVs other than single deck non-franchised buses) or body type and passenger seating capacity (for single deck non-franchised buses) stated in its vehicle registration document as at 1 January 2020 will be taken in calculating the amount of ex-gratia payment.

The vehicle under application and the applicant must meet the following requirements:

1. the first registration date of the vehicle shall fall within the dates specified;
2. the vehicle is registered as a DCV (i.e. goods vehicle, light bus or non-franchised bus running on diesel) or has applied for re-registration as a DCV as of 1 January 2020;
3. the vehicle has had a valid vehicle licence on or after 1 January 2020;
4. the vehicle is a DCV on the day of cancellation of its registration;
5. the vehicle is scrapped on or after 19 October 2020 by a vehicle scrapping company registered under the ex-gratia payment scheme;
6. after the vehicle is scrapped, the registration of the vehicle is cancelled on or before the deadline; and
7. the applicant for the ex-gratia payment is the registered owner of the vehicle when its registration is cancelled.

The applicant shall follow the steps below to apply for the ex-gratia payment:

1. Within the period between 19 October 2020 and the respective deadline for cancelling the vehicle registration (both dates inclusive),
   • arrange for the scrapping of his / her Euro IV DCV by a vehicle scrapping company registered under the Scheme; and
   • notify the Transport Department ("TD") of such scrapping by submitting a completed form TD 184 or form TD 129 if the vehicle owner intends to retain the vehicle registration mark, together with the relevant original vehicle scrapping certificate issued by the registered vehicle scrapping company for cancelling the vehicle’s registration; and

2. Within three months after the vehicle's registration is cancelled (inclusive of date of de-registration), submit an application for ex-gratia payment to the TD via a completed form TD 605B together with a photo showing the vehicle's unique chassis number taken by the registered vehicle scrapping company before the vehicle is scrapped.