Carriers operating without authority or beyond their scope of authority can be put out of service and are subject to fines.
Listed as “Not Authorized”?
Your Operating Authority is NOT active and you are NOT Authorized to operate as for-hire in interstate commerce.
Requirements for a New MC or MX Number?
Depending on the type of authority granted to you, you must have an MC, MX, FF, or Broker Number.
Broker Authority
A broker authority is for an individual, partnership, or corporation that arranges the transportation of belonging to other by using an authorized Mortor Carrier (MC) Number.
Operating Authority
You must have an MC, MX, FF or Broker Number, depending on the type of authority granted to you.
Revocation of Operating Authority
Revocation of operating authority means when an existing motor carrier, broker, or freight forworder is no longer operating and needs to revoke their authority with FMCSA.
Mexican Certificate
Mexican Certificate of Registration applies to Mexican-based companies who have a USDOT Number and want to operate within a 20-mile radius of the U.S. border.
Operating Authority
The term 'operating authority' refers to the legal right of a motor carrier to operate a commercial motor vehicle across the U.S. for the following purposes:
Operating as “for-hire” carriers for a fee or other compensation.
Transporting passengers, or arranging for their transport, in interstate commerce.
Transporting federally regulated commodities or arranging for their transport, in interstate commerce.
The Three Most Common Types Of Operating Authorities
Common Carrier, Contract Carrier, or Broker Authority – MC
Mexican Domiciled Authority - MX
Freight Forwarder Authority - FF
The operating authority (MC/MX/FF) numbers are also known as docket numbers.
Determine Whether You Need Operating Authority Or Not
To determine whether you need an operating authority or not, you must answer the following questions:
Do you perform trade, traffic, or transportation exclusively in your domicile state?
Are you a private carrier?
Are you available for hire to haul exempt commodities (goods not regulated by the government)?
Do you operate exclusively in a federally-designated zone exempt from any interstate authority?
If "Yes," you do not need operating authority. However, if you do not fall into any of these categories, you will be classified as an entity involved in interstate commerce; therefore, you will need operating authority.
NOTE:
If you deal with hazardous materials, you need operating authority regardless of where you travel across the U.S.
Even if you do not travel outside of your domicile state, if your cargo crosses state lines or you pick up property from a railhead, ocean or river port, you are engaged in interstate commerce.
Motor Carrier (MC) Number
An MC Number is mandatory if you engage in interstate commerce (i.e., crossing state lines). The following are required to have interstate operating authority (an MC Number) in addition to a USDOT Number:
a) Businesses that transport passengers in interstate commerce for a fee or other compensation - could be direct or indirect.
b) If transport involves federally regulated commodities owned by others or require arranging transport for a fee or other compensation in interstate commerce.
Mexican Carrier (MX) Number
"MX" is a prefix for a motor carrier that is owned or controlled by a citizen of Mexico. Specifically, this number refers to a person domiciled in Mexico.
According to the FMCSA, "Mexico-domiciled motor carriers that enter the U.S. must have an FMCSA-assigned MX Number, a valid FMCSA Certificate of Registration for commercial-zone operations, or long-haul Provisional or Standard Operating Authority Registration, and a USDOT Number regardless of the distance traveled into the U.S."
The MX Number is also assigned to brokers and interstate for-hire motor carriers that apply for operating authority. The time it takes to obtain an MX Number varies depending on when the application is submitted. It also depends on how the application originated. Be sure to refer to the guidelines enlisted per the Unified Registration System (URS) under Commercial Zone Authority.
Freight Forwarder (FF) Number
Freight Forwarders are issued FF Numbers, whereas brokers and carriers are issued MC Numbers. Since Freight Forwarders cannot transport freight from one state to another, there is no provision for Freight Forwarders to obtain single-state registration.
Freight forwarders are responsible for arranging the transportation of goods by FMCSA-licensed carriers. Therefore, Freight forwarders issue bills of lading to shippers and are accountable for the loss of or damage to the goods. Freight Forwarders are required to register with FMCSA. When the FMCSA Operating Authority grants permission to a Freight Forwarder to arrange for interstate or foreign commerce, an FF Number is issued. Forwarders must register with the Federal Highway Administration (FHWA) by filing a Form OP-1 (FF).
Broker Authority
A broker authority is for an individual, partnership, or corporation that arranges the transportation of belongings for others by obtaining an authorized Motor Carrier (MC) Number.
Types of Broker Authority:
Broker of Property/Freight - Transportation of belongings for others (excluding household goods) using an authorized Motor Carrier.
Broker of Household Goods - Arrange for the transportation of household goods (personal items and property used at home) for others by using an authorized Motor Carrier.
Need To Know:
Once your MC Number is assigned, you must do the following to complete the process:
For Brokers of Property/Freight: Complete the BMC-85 form (Surety Bond or Trust Fund Agreement) of $75,000.
For Brokers of Household Goods: Complete the BMC-84 form (Surety Bond or Trust Fund Agreement) of $75,000.
Both Broker Types: Must complete the BOC-3 form (Designation of Process Agents).
Note: A broker does not assume responsibility for the property and never takes possession.
Mexican Certificate Of Registration
A Mexican Certificate of Registration allows Mexico-domiciled public motor carriers and private motor carriers to transport freight in commerce from Mexico within a 20-mile radius of the U.S. border.
Below are the forms needed to obtain a USDOT number and operating authority registration:
The first step is to get a USDOT number by filing an MCS-150 form.
You must also complete the OP-2 application if you intend to operate within the commercial zone or the OP-1 (MX) if you plan to conduct operations beyond the commercial zone.
Note: This form is not to be filed if a business is domiciled in the U.S. and the owner or person who controls the company is a Mexican citizen.
Revocation Of Operating Authority
Revocation of operating authority means when an existing motor carrier, broker, or freight forwarder is no longer in operation.
When an individual, partnership, or corporation has suspended its operations and they no longer want to be an operator, they can opt-in for voluntary revocation.
List Of Operating Authority Types
The type of authority(s) you require will depend on which category(s) you fall into.
Motor Carrier of Property (except Household Goods).
Motor Carrier of Household Goods (Moving Companies).
Broker of Property (except Household Goods).
Broker of Household Goods.
United States-based Enterprise Carrier of International Cargo (except Household Goods).
United States-based Enterprise Carrier of International Household Goods.
Freight Forwarder Authority.
Motor Passenger Carrier Authority.
Non-North America-Domiciled Motor Carriers.
Mexico-based Carriers for Motor Carrier Authority to Operate Beyond U.S. Municipalities and Commercial Zones on the U.S.-Mexico Border.
Mexican Certificate of Registration for Foreign Motor Carriers and Foreign Motor Private Carriers.
The Difference Between A Motor Carrier Operating In Interstate vs Intrastate Commerce
Intrastate commerce means you will only be conducting transportation within your base state. In other words, you will not cross any state lines or international borders. However, you should be aware of a couple of caveats that may mean you are considered an interstate carrier. (See the caveats below.)
Interstate commerce means you will be crossing over state lines or international borders.
When you operate a commercial vehicle in the U.S. and will be doing any of the following, you are required to have a USDOT number plus obtain your operating authority.
Operating as a “for-hire” carrier.
Transporting passengers or arranging for their transport in interstate commerce.
Transporting federally regulated commodities or arranging for their transport in interstate commerce.
Carrying any amount of hazardous materials that require the vehicle to be placarded.
Note the following caveats:
If you operate within your base state only but transport property to or from a railhead, ocean port, or river port, you would be considered an Interstate carrier because the property crosses state or international borders.
The same caveat applies to Amazon/Postal carriers. Even if you do not cross over state lines, you would be considered an Interstate carrier because the parcels cross state lines.
Risks Of Operating Without An Authority
If you are operating without operating authority or beyond the scope of your authority, you could be forced out of service by the FMCSA and be subject to fines.
Applying For Your MC Number
Applying for a new MC Number typically takes between a minimum of twenty to twenty-five business days to complete. You will be published in the federal registry once you have applied for the MC Number and completed the process.
To successfully obtain your MC Number, you must complete additional requirements, such as filing your BOC-3 (Blanket of Coverage) process agent designation, surety bond, insurance, and more.
You are granted at least eighty business days to comply with these requirements. Failure to do so may result in the dismissal of your application, and you may have to pay an additional fee for another MC Number or operating authority. The best way is to contact a third-party service provider or agency to help you obtain your MC Number quickly.
Frequently Asked Questions:
Do I need an Operating Authority?
If your company plans to transport or arrange for the transportation of property, household goods, or passengers for compensation in interstate commerce (crossing state lines or national borders), you are required to obtain an Operating Authority.
What are the different types of Operating Authority?
Motor Carrier of Property (except Household Goods).
Motor Carrier of Household Goods (Moving Companies).
Broker of Property (except Household Goods).
Broker of Household Goods.
United States-based Enterprise Carrier of International Cargo (except Household Goods).
United States-based Enterprise Carrier of International Household Goods.
Freight Forwarder Authority.
Motor Passenger Carrier Authority.
Non-North America-Domiciled Motor Carriers.
Mexico-based Carriers for Motor Carrier Authority to Operate Beyond U.S. Municipalities and Commercial Zones on the U.S.-Mexico Border.
Mexican Certificate of Registration for Foreign Motor Carriers and Foreign Motor Private Carriers.
How long will it take to get my new Operating Authority?
It typically takes between 20-25 days from the date you apply. Be aware that you must comply with additional requirements to get your Operating Authority. You must file your BOC-3 process agent designation and have proper insurance on file with the FMCSA.
What is a process agent?
A process agent (BOC-3) is a representative upon whom court papers may be served in any proceeding brought against a motor carrier, broker, or freight forwarder. You must have this in place before you can be granted Operating Authority.
Am I able to start operating across state lines while waiting for my Operating Authority to be approved?
No. You cannot operate in interstate commerce until you receive your certificate/permit along with appropriate state registrations.
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