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Descriptions of the different types of interstate Operating Authority are as follows:
  • Motor Common Carrier of Property (except Household Goods)
    - An authorized for-hire Motor Carrier that transports regulated commodities (except household goods) for the general public in exchange for payment that is based on published tariff rates. Motor Common Carriers of Property (except household goods) must file proof of both public liability (bodily injury and property damage - BI & PD) and cargo insurance with FMCSA in order to obtain interstate Operating Authority.

  • Motor Contract Carrier of Property (except Household Goods)
    - An authorized for-hire Motor Carrier that transports regulated commodities (except household goods) for specific customers in exchange for payment that is based on negotiated contracts. Motor Contract Carriers of Property (except household goods) must file proof of public liability (BI & PD) insurance with FMCSA in order to obtain interstate Operating Authority. Cargo insurance is not required. A Motor Contract Carrier of Property (except household goods) cannot be a Motor Common Carrier of Property (except household goods) without applying for additional Motor Common Carrier Operating Authority and filing proof of cargo insurance with FMCSA.
  • Motor Common Carrier of Household Goods
    - An authorized for-hire Motor Carrier that transports only household goods for the general public in exchange for payment that is based on published tariff rates. Household goods are personal items that will be used in a home. They include items shipped from a factory or store, if purchased with the intent to use in a home, and transported at the request of the householder who pays for the transportation charges. Motor Common Carriers of Household Goods must file proof of both public liability (BI & PD) and cargo insurance with FMCSA in order to obtain interstate Operating Authority.
  • Motor Contract Carrier of Household Goods
    - An authorized for-hire Motor Carrier that transports only household goods for specific customers in exchange for payment that is based on negotiated contracts. Household goods are personal items that will be used in a home. They include items shipped from a factory or store, if purchased with the intent to use in a home, and transported at the request of the householder who pays for the transportation charges. Contract Carriers of Household Goods must file proof of public liability (BI & PD) insurance with FMCSA in order to obtain interstate Operating Authority. Cargo insurance is not required. A Motor Contract Carrier of Household Goods cannot be a Motor Common Carrier of Household Goods without applying for additional Motor Common Carrier Operating Authority and filing proof of cargo insurance with FMCSA.
  • Broker of Property (except Household Goods)
    - An individual, partnership, or corporation that receives payment for arranging the transportation of property (excluding household goods) belonging to others by using an authorized Motor Carrier. A Broker does not assume responsibility for the property and never takes possession of it.

What is an MC Number?
A MC number is issued by the FMCSA. It grants the right to commence operations in interstate commerce in the transportation industry. There are several factors involved in obtaining an MC number including a USDOT number, BOC 3 Process Agents, and Insurance.


What is USDOT Number?
Companies that operate commercial vehicles transporting passengers or hauling cargo in interstate commerce must be registered with the FMCSA and must have a USDOT Number. Also, commercial intrastate hazardous materials carriers who haul quantities requiring a safety permit must register for a USDOT Number. The USDOT Number serves as a unique identifier when collecting and monitoring a company's safety information acquired during audits, compliance reviews, crash investigations, and inspections.

What is IRP?
IRP stands for International Registration Plan. This covers the apportioned tags for your tractor. The contiguous 48 states plus Canadian Provinces participate in the program. You must register with your base state and select the states that you wish to operate in the current or coming year. This must be renewed annually and has a prorated annual fee. Only vehicles over 26,000 Gross Vehicle Weight participate in the program. The annual fee can cost anywhere from $800 to $2500 with the average fee ranging from $1200 to $1600.

What is IFTA?
IFTA stands for International Fuel Tax Agreement. It is a means to pay fuel taxes to the different participating states and provinces by registering and filing quarterly returns with your base state. The contiguous 48 states plus Canadian Provinces participate in the program. Only vehicles over 26,000 Gross Vehicle Weight participate in this program. Registration for the program is generally free but some states may charge a registration and decal fee that usually costs under $30.

What is Intrastate Authority?
ntrastate authority is the right granted by a state to commence for hire trucking operations within the borders of that state only. If a load's origin and destination are within the same state then intrastate authority may be required. This generally takes less time to acquire than the interstate authority as only one government agency is required to issue permits. Also a company engaged only in intrastate activities does not need to register with the IFTA or IRP.

What states require special permits?
Four states have special permits that are required to operate within their borders. You can register for these permits upfront or acquire trip permits. The states are New York (HUT), Kentucky (KYU Number), New Mexico, & Oregon (File Number). Depending on your operations you should consider registering for some or all of these states as most have a low registration fee of $15 or less per truck.

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