The trucking industry is one of the most regulated industries in the United States at the state, federal, and international levels. There are numerous rules they must obey to operate across the state. These include obtaining IFTA Permits, IRP Plate, USDOT, Filing IFTA Fuel Tax Return, and many more. Navigating these rules can be challenging for many trucking companies. But they must follow them otherwise, face stiff fines and penalties, or may even lose their authority. Read on as Global Multi Services takes us through permits obtained by trucking companies at the federal and international levels.
PERMIT OBTAIN AT THE FEDERAL LEVEL
The Federal Motor Carrier Safety Administration is the governing body that oversees registrations for USDOT and MC Authority.
USDOT NUMBER AND MC AUTHORITY
The USDOT Number is a unique identification number used to evaluate the safety practices of trucking companies. Trucking companies operating interstate are generally required to obtain a USDOT number issued by the Federal Motor Carrier Safety Administration.
MC Authority is a permission trucking companies obtains from the Federal Motor Carrier Safety Administration to transport goods across the United States. They also require a DOT number and appoint a process agent in their base states.
COMMERCIAL DRIVER’S LICENSE
A commercial driver’s license is mandatory for drivers to drive a commercial vehicle legally in the United States. They must be above 18years, complete training, and pass a driving test before receiving the license. While the application and testing requirements vary from state to state, most states require drivers to be 21years and above for interstate travel. To qualify for a commercial driver’s license, drivers must pass a knowledge test, a skills test, and a medical screening.
The Unified Carrier Registration is a federally-mandated program for trucking companies operating across interstate and international borders. Trucking companies must register in their base state to obtain UCR Permits. They also need to pay an annual fee based on the total number of vehicles in their fleet. Trucking companies whose base state does not participate in UCR must register with their neighboring participating state to obtain their UCR Permits.
PERMIT OBTAIN AT THE INTERNATIONAL LEVEL
The International Registration Plan allows motor carriers to operate across the province of Canada. Trucking companies must first register in their base state and pay an apportioned fee. The fees are calculated based on the distance covered in a specific jurisdiction and the weight of the vehicles. After registration, they must track and report the mileage travel in each jurisdiction and renew their IRP Plate annually.
The International Fuel Tax Agreement is a cooperative agreement between the provinces of Canada and states of the United States except for Hawaii, Alaska. IFTA mainly aims to establish and maintain the concept of using a single fuel license used by interstate motor carriers. Qualified motor carriers need to register for IFTA in their base state, receive IFTA Permit and IFTA Decal. They must also carefully document fuel usage in each jurisdiction and file IFTA Fuel Tax Return in their base jurisdiction.