Canada Permit: How to Operate Legally Across Canada

July 30, 2021 Canada PermitCanadian Carrier Code

Operating in the US as a trucking company comes with many benefits but obtaining your Canada permit increases your load opportunities and gives you access to new markets. It also provides more freight, great money, business growth, and new lanes, making it an attractive option for many US-based trucking companies. According to statistics, more than sixty million shipments are generated in Canada every year. These indicate how lucrative operating across Canada can be. Are you sold out to the idea of having a Canada Permit but wondering how to go about it? This guide provides all the necessary information you need to obtain your Canadian Carrier Code and US Border Crossing Permit. Let’s dive in as Global Multi Services explain in detail how to operate legally across Canada.

Canada Permit

Review Your Drivers and Equipment to get canada permit

As a trucking company with many drivers, you need to ensure your drivers are willing to cross the border. They need to go through training and have all the necessary documents. These include valid visas (expect Mexico citizens), clean commercial driver’s license records, FAST Membership Card, and many more. You also need to consider the weight and length of the truck in your fleet. Generally, the Gross Vehicle Weight and axle limits are high in Canada. Therefore, every trucking company that complies with the Federal Motor Carrier Safety Administration in the United States will also be legal in Canada. Also, most of the United States trailer configurations are allowed in Canada.

Obtain a CBSA Code

To operate in Canada, you need to register your trucking company with the Canada Border Service Agency and apply for a Canadian Carrier Code. The carrier code is a unique four-character code issued to trucking companies by the Canada Border Service Agency. The code is required for transporting commercial goods in and out of Canada and used in the Pre-arrival Review System.

Apply for Canada Permit and other License

Motor carriers traveling into Canada may be required to register and obtain a Canada permit and other licenses to operate. The requirements and Gross Vehicle Weight thresholds depend on each jurisdiction. You can register using IRP Or IFTA.

International Fuel Tax Agreement

The International Fuel Tax Agreement is a cooperative agreement between the Canadian province and the 48 American states. The agreement helps to simplify the inter-jurisdictional fuel tax reporting by commercial motor carriers. IFTA provides motor carriers with a single license plate issued by their home jurisdiction to drive in all member jurisdictions. They also report and pay their tax returns in their base jurisdiction.

International Registration Plan

The International Registration Plan is an agreement between the province of Canada and the 48 states of America. The IRP facilitates the collection of an apportioned fee from motor carriers operating across two or more states. The fee is calculated based on the percentage of miles motor carriers travel in each jurisdiction.

Have Insurance Coverage

After obtaining a Canada permit, you need insurance coverage. To know the required insurance coverage, add the province you want to travel across when registering with the Department of Motor Vehicles in your base state. You can also obtain liability, cargo, and reefer insurance.