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           Frequently Asked Questions

  • What is operating authority?

  • What is the difference between interstate and intrastate commerce?

  • What are the differences between common, contract, and broker authority?

  • What is an MC Number?

  • What is a US DOT Number?

  • What is a BOC-3 Designation of Process Agents?

  • I have my authority, what else do I need?

  • What is IRP?

  • What is IFTA?

  • Which states require special permits to operate?

     

    What is operating authority?

    Operating authority is a term used by the Federal Motor Carrier Safety Administration and other state transportation agencies to describe a grant of legal permission to engage in for-hire transportation by a motor vehicle.

     

    What is the difference between interstate and intrastate commerce?

    A motor carrier is said to conduct interstate commerce if the vehicle, its passengers, or cargo cross a State boundary.  Intrastate commerce is trade, traffic, or transportation within a single State. 

     

    What are the differences between common, contract, and broker authority?

    Common authority is for carriers that provide for-hire transportation to the general public.  Common carriers must file both liability insurance and cargo insurance.  Contract authority is for carriers that provide for-hire transportation to specific individual shippers, based on contracts.  Contract carriers are only required to file liability insurance.  Broker authority is for a company who arranges for the transportation of cargo belonging to others for compensation utilizing for-hire carriers.  Brokers are required to file a $10,000 surety bond.

     

    What is an MC Number?

    An MC Number stands for Motor Carrier Number and is required by the Federal Motor Carrier Safety Administration if you plan to transport regulated commodities for-hire across state lines. 

     

    What is a US DOT Number?

    A US DOT Number is assigned by the United States Department of Transportation and is used by various government agencies to identify a motor carrier.  All motor carriers are required to have a US DOT number to operate.

     

    What is a BOC-3 Designation of Process Agents?

    A BOC-3 designates a process agent in each state who may be served court papers in any proceeding brought against a motor carrier, broker, or freight forwarder.  A BOC-3 is required by the Federal Motor Carrier Safety Administration before operating authority can be granted.  We are a blanket company recognized by the FMCSA and can therefore file a BOC-3 on your behalf.

     

    I have my authority, what else do I need?

    Depending on where you intend to operate and your type of operations there are several other federal and state regulations you will need to comply with.  Our knowledgeable staff can assist you to determine what other permits or filings you will need.

     

    What is IRP?

    IRP stands for International Registration Plan and consists of your apportioned tag / base plate and cab card.  It is required for vehicles with a GVW (gross vehicle weight) of over 26,000 lbs that cross state lines.  Registration is done through your base state and you must select the other states you plan to operate in.

     

    What is IFTA?

    IFTA stands for International Fuel Tax Agreement and is required for vehicles with a GVW (gross vehicle weight) of over 26,000 lbs that cross state lines.

     

    Which states require special permits to operate?

    New York, New Mexico, Oregon, and Kentucky all have special permits they require for certain types of motor carriers.  Depending on your type of vehicle and operations, you may be required to obtain these permits.  Our specialists can help you determine if you qualify.