
1 

(1) This order may be cited as the Deregulation (Exchangeable Driving Licences) Order 1998 and shall come into force 28 days after the day on which it is made.
(2) This Order does not extend to Northern Ireland.
2 

(1) Section 108 of the Road Traffic Act 1988 (interpretation) shall be amended as follows:
(2) In subsection (1), for the definition of “exchangeable licence” there shall be substituted—“
 “exchangeable licence” means a document authorising a person to drive a motor vehicle (not being a document mentioned in paragraph (b) of the definition of “Community licence”)—
(a) issued in respect of Gibraltar by an authority of Gibraltar,
(b) issued in respect of a country or territory which is designed without restriction by an order under subsection (2)(a) below by an authority of that country or territory, or
(c) issued in respect of a country or territory which is designated by a restricted order under subsection (2)(b) below by an authority of that country or territory, being a document which is a licence of a description specified in that order,and a licence of a description so specified as to which provision is made as mentioned in subsection (2B) below is only an exchangeable licence to the extent that it authorises its holder to drive vehicles of a class specified in the order.”
(3) For subsection (2) there shall be substituted—“
(2) The Secretary of State may by order made by statutory instrument designate a country or territory which neither is nor forms part of an EEA State for the purposes of the definition of “exchangeable licence” in subsection (1) above)—
(a) as respects all licences authorising the driving of motor vehicles granted under the law of that country or territory, where the Secretary of State is satisfied that satisfactory provision is made by that law for the granting of licences to drive motor vehicles;
(b) as respects only licences authorising the driving of motor vehicles granted under the law of that country or territory of a description specified in the order, where the Secretary of State is satisfied that satisfactory provision is made by that law for the granting of licences of that description.
(2A) An order under subsection (2)(b) above may specify a description of licence by reference to any feature of the licences concerned (including in particular the circumstances in which they are granted, any conditions to which they are subject or the classes of vehicle which they authorise the holders to drive).
(2B) An order under subsection (2)(b) above may provide that a licence of a specified description shall only be an exchangeable licence in so far as it authorises its holder to drive vehicles of a class specified in the order.”.
3 
For section 36(11A) of the Road Traffic Offenders Act 1988 (expiration of disqualification until test passed) there shall be substituted—“
(11A) For the purposes of subsection (11) above, “designated country or territory” means a country or territory designated by order under section 108(2) of the Road Traffic Act 1988 but a test conducted under the law of such a country or territory shall not be regarded as a corresponding test unless a person passing such a test would be entitled to an exchangeable licence as defined in section 108(1) of that Act.”.
Signed by authority of the Secretary of State for the Environment, Transport and the Regions
Larry Whitty
Parliamentary Under Secretary,
Department of the Environment, Transport and the Regions
3rd August 1998