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File for New AuthorityThe surface transportation of most manufactured goods in interstate or foreign commerce is subject to federal regulations which require carriers, brokers, and freight forwarders to obtain authority before commencing operations. In addition to completing and filing an application with FHWA, an applicant is required to pay a filing fee of $300.00, to obtain and file evidence of insurance or bond and agents for service of process. Motor carriers are required to file evidence of public liability insurance (PI and PD) in the amount of $750,000, $1 million or $5 million depending upon the authority they seek. Evidence of cargo insurance must be filed on Form BMC-34 and designation of agents on Form BOC-3. Brokers are required to post a surety bond (form BMC-32) or a bank trust agreement (Form BMC-84) in the amount of $10,000 to ensure that the services they arrange are provided. In addition, agents are also required to file a designation of agents (Form BOC-3). Freight forwarders, like carriers are required to file evidence of liability and cargo insurance. In addition to the insurance and agent requirements discussed above, new carrier applicants must complete and file Form MCS-150 within 90 days of commencing operations. (See 49 C.F.R. §385.20.) This obscure form can have important safety rating consequences. Importantly, new legislation which was just passed creating the Motor Carrier Safety Administration will require applicants to demonstrate familiarity with safety regulations as part of the future certification process. Although federal legislation in the F4A Act preempted most state regulations, motor carriers must still register their federal authority and pay fees under the SSRS program, and also must comply with vehicle licensing requirements, state fuel tax and income tax reporting, and a myriad of other state requirements. (Many states still have an abbreviated filing requirement for intrastate operations.) Our firm specializes in helping new entrants complete and process the requisite applicants and filings. In addition, business advice concerning whether to conduct operations as a proprietorship, partnership, or a corporation is also offered. The following documents track the information required by the DOT in completing an application for new authority. Carriers, brokers, or freight forwarders wishing to retain the firm to assist in the application process should complete the appropriate forms and fax to Attn: Henry E. Seaton, Fax: 703-573-9786. If you have any questions, please contact Mr. Seaton at 703-573-0700 (x12). CARRIER AUTHORITY FORMS Registration and Authorization for Carrier Authority Questionnaire - Carrier Authority BROKER AUTHORITY FORMS Registration and Authorization for Broker Authority Questionnaire - Broker Authority
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