Trucking Compliance: A Step-by-Step Guide

Welcome to TRUCKSSISTANCE’s Step-by-Step Guide to Trucking Compliance

Navigating the maze of regulations in the trucking industry can be challenging. This guide will walk you through each step to ensure your trucking business meets all necessary compliance requirements.

Step 1: Obtain Your USDOT Number

Description: The U.S. Department of Transportation (USDOT) number is a unique identifier assigned to companies operating commercial vehicles in INTRASTATE (within the state borders) commerce. It’s required by the Federal Motor Carrier Safety Administration (FMCSA) to track and monitor a company’s safety record, compliance with regulations, and other important information.

Key Points about the USDOT Number:

• Requirements: Most companies operating commercial vehicles that transport passengers or haul cargo in interstate commerce must obtain a USDOT number.
• Visibility: The USDOT number must be displayed on both sides of the vehicle’s cab in a contrasting color and should be easily visible from at least 50 feet away during daylight hours.
• This number plays a crucial role in maintaining compliance with federal regulations and ensuring the safety of commercial vehicle operations.

If you have more questions or need assistance with the process, feel free to ask!

Step 2: Apply for Operating Authority (MC Number)

Description: The FMCSA MC (Motor Carrier) Number is an operating authority issued by the Federal Motor Carrier Safety Administration (FMCSA). It is required for businesses involved in INTERSTATE commerce, which means transporting goods or passengers across state lines. Here are some key points about the MC Number:

Key Points about the FMCSA MC Number:

• Identification: The MC Number acts as a unique identifier for a motor carrier and is used by the FMCSA to regulate and monitor commercial activities.
• MC Operating Authority: It grants businesses the authority to operate as a for-hire carrier, broker, or freight forwarder in interstate commerce.
• Types of Authority: There are different types of operating authority, including common carrier, contract carrier, broker, and freight forwarder, each with specific requirements and regulations.
• Compliance: Companies with an MC Number must comply with FMCSA regulations, including insurance requirements, safety standards, and record-keeping.

Why It’s Important:

Without active MC Number you wouldn’t be able to operate commercial vehicles in INTERSTATE commerce. It ensures compliance with federal regulations and allows companies to legally transport goods and passengers across state lines.

If you need any more details or assistance with the application process, feel free to ask!

Step 3: Designate a Process Agent (BOC-3 Filing)

The BOC-3 form, also known as the “Designation of Agents for Service of Process,” is a crucial document required by the Federal Motor Carrier Safety Administration (FMCSA). It designates a process agent in each state where a transportation company operates.

Here are some Key Points about BOC-3:

• Purpose: The BOC-3 form assigns a process agent to receive legal documents on behalf of the company in case of legal proceedings.
• Requirement: It is mandatory for companies involved in interstate commerce to file a BOC-3 form with the FMCSA. Without it your Operating Authority (MC) will not be granted.
• Process Agents: These agents act as the company’s legal representatives in each state, ensuring that any legal documents are properly handled and forwarded.

Step 4: Secure the Necessary Insurance

The Federal Motor Carrier Safety Administration (FMCSA) sets specific insurance requirements to ensure that commercial vehicle operators have adequate financial responsibility in case of accidents or incidents. Here are the key insurance requirements:

Key Insurance Requirements by FMCSA:

Public Liability Insurance (BMC-91 or BMC-91X):

• Purpose: Covers bodily injury, property damage, environmental restoration, and cleanup costs.
• Minimum Coverage: $750,000 to $5,000,000, depending on the type of cargo and vehicle weight.
• Passenger Carriers: Minimum coverage of $5,000,000 for vehicles with a capacity of 15 passengers or fewer.

Cargo Insurance (BMC-34 or BMC-83):

• Purpose: Covers loss or damage to cargo being transported.
• Minimum Coverage: $5,000 per vehicle plus $10,000 per occurrence.
• Household Goods Carriers: Specific requirements for cargo insurance filings.

Surety Bond or Trust Fund (BMC-84 or BMC-85):

• Purpose: Required for freight brokers and freight forwarders.
• Minimum Coverage: $75,000 for brokers.
• Surety Bond: Brokers pay a percentage of the $75,000 as a monthly or yearly premium.
• Trust Fund: Brokers pay the full $75,000 into a trust fund as insurance.

Hazardous Materials (MCS-90):

• Purpose: Required for carriers transporting hazardous materials.
• Endorsement: Must be attached to an auto liability policy to meet federal requirements.

How to Show Proof of Insurance:

• Insurance Companies: File proof of insurance electronically with the FMCSA.
• Forms: Use specific forms like BMC-91, BMC-34, BMC-84, and MCS-90.
• Maintenance: Ensure that proof of insurance is maintained on file with the FMCSA to avoid revocation proceedings.

These insurance requirements are designed to increase safety and reduce liability within the trucking industry, ensuring that carriers are financially responsible in case of accidents or incidents.

Does this help clarify the FMCSA’s insurance requirements for you?

Step 5: Conduct Driver Qualification and Background Checks

Description: Ensure all drivers meet the FMCSA’s qualification standards.

How to Conduct:

• Obtain and review Motor Vehicle Records (MVRs) for each driver.
• Conduct a thorough background check, including employment history and drug testing.
• Maintain driver qualification files with all required documentation.

We can help with providing you all the necessary forms and documents.

Step 6: Implement a Drug and Alcohol Testing Program

he FMCSA Drug and Alcohol Clearinghouse is a database that contains information about violations of the U.S. Department of Transportation (DOT) controlled substances (drug) and alcohol testing program for holders of commercial driver’s licenses (CDLs). Here’s who needs to use the Clearinghouse:

Who Must Use the Clearinghouse

• CDL Holders: All drivers who hold a commercial driver’s license and operate commercial motor vehicles (CMVs) in interstate, intrastate, or foreign commerce are subject to Clearinghouse requirements.
• Employers of CDL Drivers: Employers, including motor carriers and owner-operators employing themselves as drivers, must report violations and conduct mandatory queries.
• Service Agents: These include medical review officers (MROs), substance abuse professionals (SAPs), and consortia/third-party administrators (C/TPAs), who must report relevant drug and alcohol testing information.

Key Points:

• Employers must query the Clearinghouse annually for each driver they employ.
• Records of violations remain in the Clearinghouse for five years or until the driver completes the return-to-duty process, whichever is later.
• The Clearinghouse helps identify drivers who are prohibited from operating a CMV based on drug and alcohol program violations.

Step 7: Register Vehicle with IRP (Apportion Plates)

The International Registration Plan (IRP) is a reciprocity agreement among states of the U.S. and Canadian provinces that allows commercial vehicles to operate across state and national borders without needing to register in each jurisdiction. Here are some key points about the IRP:

Who Needs IRP:

1. Commercial Vehicles Operating in Multiple Jurisdictions:
   • Interstate Commerce: Vehicles that travel across state lines within the United States.
   • International Commerce: Vehicles that operate across the U.S. and Canadian borders.
2. Types of Vehicles:
   • Trucks, Truck Tractors, and Buses: Vehicles that meet the following criteria:
     • Have two axles and a gross vehicle weight or registered gross vehicle weight over 26,000 pounds (11,793 kilograms).
     • Have three or more axles, regardless of weight.
     • Are used in combination, and the combined weight exceeds 26,000 pounds (11,793 kilograms).
3. Motor Carriers:
   • For-Hire Carriers: Companies that transport goods or passengers for compensation.
   • Private Carriers: Companies that transport their own goods or passengers as part of their business operations.

Key Points about IRP:

• Purpose: The IRP simplifies the registration process for commercial vehicles that travel interstate or internationally, reducing the need for multiple registrations and trip permits.
• Apportioned Registration: Vehicles registered under the IRP are given apportioned plates, which allocate the vehicle’s registration fees based on the miles traveled in each jurisdiction.
• Cost Efficiency: By using the IRP, trucking companies can save on registration fees and administrative costs associated with registering in multiple states or provinces.
• Compliance: The IRP ensures that commercial vehicles meet the registration requirements of each jurisdiction they operate in, promoting fair and consistent regulation.
• Heavy Vehicle Use Tax (HVUT): If your vehicle’s GVWR is over 55,000lbs. you will need to file 2290 form and pay the tax prior to registration.

We can help you register with IRP!

Step 8: Set Up a Comprehensive Maintenance Program

Description: Regular maintenance of your vehicles is crucial for safety and compliance.

How to Set Up:

• Create a maintenance schedule for all vehicles.
• Keep detailed records of all inspections, repairs, and maintenance.
• Ensure all maintenance meets FMCSA standards.

Ask us for needed forms and documents!

Step 9: Register with Unified Carrier Registration (UCR)?

The Unified Carrier Registration (UCR) is a federal program that requires individuals and companies operating commercial vehicles in interstate or international commerce to register their business and pay an annual fee based on the size of their fleet.

Who Needs It: Any company or individual that operates a commercial vehicle in interstate or international commerce, including:

• Private carriers transporting their own goods.
• For-hire carriers transporting the goods of others.
• Leasing companies leasing vehicles to carriers.
• Brokers and freight forwarders who arrange transportation of goods.

Here are the key details about UCR:

1. Annual Registration: UCR requires carriers to register their business and pay fees annually. Fees are based on the total number of vehicles in the fleet.
2. Fees: The fee structure is tiered and depends on the number of commercial motor vehicles in the fleet, with different tiers ranging from 0-2 vehicles to 1,001 or more vehicles.
3. State Enforcement: States enforce the UCR program and collect fees, which are then used to fund safety programs and other initiatives.
4. Compliance: Failure to register and pay UCR fees can result in fines and penalties during roadside inspections.

If you need more information on how to register or any specific details, feel free to ask!

Step 10: Additional Permits You Might Need

International Fuel Tax Agreement (IFTA): For fuel tax reporting.

State-Specific Requirements: Various permits and filings depending on the state (e.g., Oregon PUC Trip Permit, Kentucky KYU Filing, New Mexico WDT Filing, New York HUT).

Standard Carrier Alpha Code (SCAC): For identifying transportation companies.

Uniform Intermodal Interchange and Facilities Access Agreement (UIIA): governs the interchange of intermodal equipment between trucking companies and equipment providers (such as ocean carriers, railroads, and equipment leasing companies)

Hazardous Materials Safety Permit (FMCSA): For transporting hazardous materials

Step 11: Maintain Accurate Records

Description: Proper record-keeping is essential for compliance with FMCSA regulations.

How to Maintain:

• Keep records of driver hours of service (HOS), vehicle inspections, maintenance, and repairs.
• Ensure all records are easily accessible and up to date.
• Conduct regular audits to ensure compliance.

Step 12: Prepare for FMCSA Audits and Inspections

Description: Be ready for FMCSA audits and inspections to ensure ongoing compliance.

How to Prepare:

• Review and understand the FMCSA’s compliance audit process.
• Ensure all records and documentation are complete and accurate.
• Conduct internal audits to identify and address any compliance issues.

Ensure Your Compliance Today!

Follow Our Step-by-Step Guide and Stay Ahead

Don’t let compliance challenges slow down your trucking business. Follow our comprehensive guide to ensure you meet all regulatory requirements. If you need further assistance, TRUCKSSISTANCE is here to help. Click the button below to get started!

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