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Frequently Asked Questions |
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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.
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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!
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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.
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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.
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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'.
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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.
FREE Insurance
Quote
FREE Bond Quote
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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.
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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.
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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!
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11. What is a Tariff?
A tariff is a published listing of your rates and charges
and the rules that apply to the transportation of a
residential household goods shipment.
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12. Do I need a Tariff?
If you apply to become an Interstate common carrier of
household goods (mover) the
United States Code
and
Federal Regulations
require that you publish a Tariff before
you can begin lawfully operating.
Your Tariff must include all of the rates and charges
that you will charge a shipper of household goods and
you may not apply a rate or charge unless it appears in
your published Tariff. There are severe
civil and criminal penalties
for not publishing and abiding by your
lawful tariff. To find out more information about the
Federal Tariff Requirement, call the USDOT directly at:
202-565-1578. Note: if you will be transportating
household goods, be sure to ask about the tariff
requirement for a moving company.
DOTAuthority.com will publish your easy-to-read, custom
Tariff for a one-time fee of $550 for Interstate Rates
and $450 for New York State Rates. There are no annual
fees, no subscriptions and no "primers".
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13. 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.
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14. 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.
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