1. Do you need additional authority? 2. Do you have questions regarding which motor carrier or broker authority is best for you? 3. Do you have questions about transportation questions in general?
If so, you need to contact DOTAuthority.com. DOTAuthority.com specializes in filing motor carrier authorities with the Federal Highway Administration.
1. What is operating authority?
“Operating authority” is the term used by transportation regulatory agencies to describe a grant of legal permission by a federal or state government to engage in for-hire interstate (state-to-state) or intrastate (within a state) transportation by motor vehicle. Essentially, it is a business license. Much like a plumber needs to be licensed and insured, so too does a trucker or mover (also called a motor carrier). In certain areas called “Commercial Zones” no trucking license is needed if you operate solely within the zone. However, if you are unlicensed and you transport regulated commodities where one or both points are outside the zone, you run the risk of being issued notices of violation and having to pay substantial civil penalties. Effective September 2002, you also run the risk of being placed out-of-service by a law enforcement officer. If you transport residential household goods on a regular basis, you will need household goods authority (moving license).
2. What types of authority are there?
Authority is broken down by type (“common”, “contract” and “broker”) and commodity (“property except household goods”, “household goods” and “passenger”). “Common” carriers are essentially companies that are open to the public for hire. “Contract” carriers only serve businesses with whom they have-- you guessed it-- a contract! “Brokers” merely arrange for transportation but don’t actually take possession of a shipment. General commodities are classified as “Property Except Household Goods”, while the personal effects of a homeowner are considered “Household Goods”. Most carriers that operate bus companies or van services are required to have “Passenger” authority. There is also 'freight forwarder' authority. Freight Forwarders are essentially travel agents for freight who arrange for motor carrier, ocean and/or air transportation to get freight from Point A to Point B.
3. How much does it cost to get operating authority?
If you apply for interstate authority through DOTAuthority.com, the cost to get your operating authority is a one-time, flat fee of $499 or $699 depending on the level of expertise you require. This is an all-inclusive rate that includes the federal filing fee, your USDOT registration number (in addition to your MC license number) and the process agent; everything you need to get your operating authority except insurance. There are no extra or hidden charges. Some truck permit companies (who may or may not have licensed practitioners working on your application) charge up to $850 for this service. Beware, as some permit companies may offer you a low rate but then will add on additional charges for the process agent and your USDOT Registration filing. Some will even charge you an annual fee for the process agent!
4. How much can it cost me if I operate without authority?
Operating without authority can lead to civil penalties and nightmare appearances before administrative law judges. The USDOT recently assessed $9,500 in civil penalties to a carrier for not having the proper authority.
At the state level, those states that require that you have operating authority can also impose civil penalties. In New York State, for instance, the penalty for operating without authority can be as high as $5,000 for each violation. In certain jurisdictions it is actually considered a crime if you continually operate without authority and is punishable by jail time and/or fines.
5. What do I need to do to get operating authority?
To get your interstate operating authority and take advantage of our same-day electronic filing service (no additional charge) just fill out our on-line questionnaire through the DOTAuthority.com website. We will file your application with the correct federal government agency. You should know that there is no longer an Interstate Commerce Commission (ICC). It was dissolved by Congress in 1996 (Interstate Commerce Commission Termination Act). Applications were then handled by the Federal Highway Administration for a short time but are now no longer processed by that agency. There are now two agencies under the USDOT that perform the remaining licensing, insurance and tariff/complaint review functions that were formerly performed by the ICC.
For your convenience, DOTAuthority.com accepts VISA, MasterCard and American Express. All credit card transactions are processed in our online secure environment or we can take your credit card information over the phone or by fax. If you would like to pay by business check or money order, simply print out the form and mail it to: 340 Vets Highway, Commack, NY 11725, along with your payment. If you would like to speak with a representative before you move forward with your on-line application, call us at (888) 414-1874 or send us an email.
6. Do I need experience in trucking or moving?
To get Interstate authority you do not need prior experience. In order to obtain Interstate household goods authority, you must simply be able to certify that you are fit, willing and able to exercise the special care associated with transporting household goods.
To obtain household goods operating authority from New York State, you or a key employee need 2 years of experience with a licensed mover and a bona fide place of business in New York to apply and you must attend a household goods conference at which time your fitness will be assessed. To obtain 'property except household goods' authority you do not need prior experience.
If you would like to apply for New York State trucking or moving operating authority, send us an email, or call us at (888) 414-1874 and we'll help you make the 'right moves'.
7. Do I need insurance?
If you apply for authority to be an Interstate carrier then you will need to obtain liability and cargo insurance. When you apply through DOTAuthority.com, we will 'steer you in the right direction' and help you find a broker that specializes in commercial transportation insurance if you don't already have an insurance broker. We do recommend, however, that you look into insurance rates before you file your application as your application fee is non-refundable.
Auto Insurance
TIP: When you do obtain your insurance THE BUSINESS NAME ON YOUR CERTIFICATE OF INSURANCE MUST MATCH THE EXACT LEGAL NAME AS INDICATED IN YOUR APPLICATION FOR AUTHORITY.
Get $250,000 in term life insurance for about 50 cents a day
The dollar amounts in parentheses represent the minimum amount of bodily injury and property damage (liability) insurance coverage you must maintain and have on file with the federal government when you operate vehicles having Gross Vehicle Weight Ratings (GVWR) of 10,000 pounds or more.
*Non-hazardous commodities ($750,000).
*Hazardous materials referenced in the FMCSA's insurance regulations at 49 CFR 1043.2(b)(2)(c) ($1,000,000).
*Hazardous materials referenced in the FMCSA's insurance regulations at 49 CFR 1043.2(b)(2)(b) ($5,000,000).
The dollar amounts in parentheses represent the minimum amount of bodily injury and property damage (liability) insurance coverage you must maintain and have on file with the federal government when you operate vehicles having less than Gross Vehicle Weight Ratings (GVWR) of 10,000 pounds.
*Any quantity of Class A or B explosives, any quantity of poison gas (Poison A), or highway route controlled quantity of radioactive materials ($5,000,000).
*Commodities other than listed above ($300,000).
Over 50? Save up to $250* on auto insurance.
--Common Carriers must also file evidence of a $10,000 cargo insurance policy.
--Brokers must file evidence of a $10,000 surety bond/trust fund.
8. Why should I choose DOTAuthority.com to prepare and file my application for operating authority and represent me? Three simple reasons.
1. We offer a low, all-inclusive fee.
2. We offer quick, same-day filing (when you pay by credit card) and get you your MC Number in approximately one to two hours. If you need your USDOT Number today, we can get you your number within one hour for a $100 expedited service fee.
3. For an additional fee, you have the choice of having your application handled by a qualified & licensed professional; that is, a Transportation Practitioner who is a former government transportation regulator (motor carrier investigator) and is now admitted to practice before the USDOT.
9. What is a “Transportation Practitioner” and why should I hire one to represent me rather than a “Permit Consultant”?
A Transportation Practitioner is a professional that is certified by the United States Department of Transportation (USDOT) as an expert in regulatory matters. A Practitioner is admitted to practice before the USDOT only after proving he is fit to serve the Transportation Industry. He must possess a background in Transportation, usually in the capacity as a former government transportation regulator and must pass a federal bar exam much like a state-licensed lawyer.
Hiring a Transportation Practitioner to prepare and file your application and serve as your representative assures that your application will be handled by a qualified professional. When you hire DOTAuthority.com's Practitioner, your application is not just filed, it is managed. We do everything we can to make sure that you comply with all requirements within the required 20 day period and help you avoid having your application dismissed.
10. What is a Process Agent?
When you apply for Interstate Authority, you are required to have a process agent on file for all 50 states. A process agent is merely someone with a bona fide place of business in the state that will accept legal documents on your behalf and forward them to you. When you apply for authority with DOTAuthority.com, we arrange for our partner process agent service company to make your required BOC-3 filing at no additional charge to you!
11. What happens after I get my operating authority?
Once you get your Interstate operating authority, you must register your authority with the Single State Registration System (SSRS). If you would like to continue to do business with us after your authority is issued, we would be happy to make your annual SSRS filings for a fee of $149 per annual application. Essentially, you must pay each of the 38 participating states a fee for each vehicle you will operate in their state per year. Fees range $1.00 to $10.00 per vehicle.
If you are a moving company, you may not operate until you also publish your Tariff. You do not need to file your Interstate Tariff with the government but you must make it available to representatives of the US Surface Transportation Board and the public upon demand. Certain states such as New York State may require that you file your Tariff.
Make sure you are in compliance with apportionment (IRP), highway use taxes and fuel taxes ( IFTA ) before you commence operations. Movers are exempt from New York State highway use and fuel taxes but still need to comply with IFTA.
12. How long will this whole process take?
You can expect to begin operating within 30-45 days if you file your application for authority and your Single State Registration System application through us. The actual time, however, will depend on how quickly your insurance company makes the required insurance filings.
