- Filing for New Trucking Authority
- June 8, 2012 | Author: Charles E. Clos
- Law Firm: Clos, Russell & Wirth, P.C. - Westland Office
Our firm specializes in helping new entrants in the trucking industry to complete and process the requisite applications and filings with the federal government for authority to conduct business in interstate transportation. In addition, we can provide business advice concerning the benefits of operating your business as a corporation or a limited liability company.
The surface transportation of most manufactured or processed goods in interstate or foreign commerce is subject to comprehensive federal regulations and rules. These are set forth in the Federal Motor Carrier Safety Act commonly referred to as the FMCSA.
To obtain interstate authority, it is necessary to complete an application with the FMCSA, and pay a filing fee of $300.00. Additionally, you must obtain and file evidence of insurance coverage and agents for service of process.
*Motor carriers are required to file evidence of public liability insurance (PI and PD) in the amount of $750,000.00, $1 million or $5 million, depending upon the authority they seek. Designation of agents must be filed on form BOC-3. Visit Service of Process Agents, Inc. at www.BOC3NOW.com. Household Goods motor carriers must file evidence of cargo insurance on Form BMC-34.
*Brokers are required to post a surety bond (form BMC-84) or a bank trust agreement (Form BMC-85) in the amount of $10,000 to ensure that the services they arrange are provided. In addition, agents are also required to file a designation of agents (Form BOC-3). More information on bank trust agreements can be found at Service of Process Agents, Inc. http://www.processagents.net/property broker trust fund info.html.
*Freight forwarders are required to file evidence of liability and cargo insurance along with designation of agents on Form BOC-3.
In addition to the insurance and agent requirements discussed above, new carrier applicants must complete and file Form MCS-150 within 90 days of commencing operations. (See 49 C.F.R. §385.20.) This form can be filed online at www.safersys.org. The MCS-150 is required to be updated every two years.
The FMCSA also dictates that you must be familiar with all U.S. DOT (Department of Transportation ) regulations relating to the safe operation of commercial vehicles and that you will comply with the regulations. By submitting your application, you are verifying that you:
*Have in place a system and an individual responsible for ensuring overall compliance with Federal Motor Carrier Safety Regulations;
*Can produce a copy of the Federal Motor Carrier Safety Regulations;
*Have in place a driver safety training/orientation program;
*Have prepared and maintain an accident register (49 CFR 390.15);
*Are familiar with DOT regulations governing driver qualifications and that you have in place a system for overseeing driver qualification requirements (49 CFR Part 391);
*Have in place policies and procedures consistent with DOT regulations governing driving and operational safety of motor vehicles, including drivers’ hours of service and vehicle inspection, repair, and maintenance (49 CFR Parts 392, 395 and 396);
*Are familiar with and will have in place on the appropriate effective date, a system for complying with U.S. DOT regulations governing alcohol and controlled substances testing requirements (49 CFR 382 and 49 CFR Part 40).
The foregoing documents track the information required by the FMCSA in completing an application for new authority. Carriers, brokers, or freight forwarders wishing to retain the firm to assist in the application process should complete the appropriate forms and send them to Attn: Charles E. Clos, Fax: 734-326-2101. If you have any questions, please contact Mr. Clos at 734-326-2101.