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CabotageOperating Authority US Border Demonstration Program

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Title: CabotageOperating Authority US Border Demonstration Program

1
Cabotage/Operating AuthorityUS Border
Demonstration Program

Milt Schmidt
Chief, North American Borders Division
Federal Motor Carrier Safety Administration
1200 New Jersey Avenue, S.E.
Washington D.C. 20590
202-366-4049
Milt.schmidt_at_dot.gov

2
What is Cabotage

Point-to-point transportation
Cargo or passengers
Within a country (domestic cargo)

3
What Regulations Apply to Cabotage

Department of Homeland Security
Immigrations
8 CFR 214.2(b)(4)
http//www.cbp.gov/xp/cgov/import/carriers/land/ho
w.xml.
Applicable to all alien (foreign) drivers
Customs and Border Protection
19 CFR 123.14
Applicable to all foreign commercial motor
vehicles.

4
What Regulations Apply to Cabotage

FMCSA
49 CFR 365.101(h) Applications for
Mexico-domiciled motor carriers to operate in
foreign commerce as common, contract or private
motor carriers of property (including exempt
items) between Mexico and all points in the
United States. Under NAFTA Annex I, page I-U-20,
a Mexico-domiciled motor carrier may not provide
point-to-point transportation services, including
express delivery services, within the United
States for goods other than international cargo.

5
What Regulations Apply to Cabotage

49 CFR 365.501(b) A Mexico-domiciled carrier may
not provide point-to-point transportation
services, including express delivery services,
within the United States for goods other than
international cargo.
FMCSA regulations applicable to Mexico-domiciled
motor carriers only.

6
Definitions of Cargo

Domestic Cargo
cargo loaded in the United States and delivered
to a location in the United States
Includes freight picked up at an international
port in the U.S. and delivered to another point
in the U.S.
International Cargo cargo transported by a
Mexico-domiciled motor carriers in CMVs from
Mexico to the United States, with no loading in
the United States, or from the United States to
Mexico, with no unloading in the United States.

7
Cabotage and the US-Mexico Demonstration Program

Mexico-domiciled motor carriers
Comply with DHS cabotage regulations.
Comply with FMCSA cabotage regulations, i.e.
cannot transport domestic cargo.
Compliance is a condition of provisional
operating authority.

8
How are Cabotage violations Discovered

Roadside Inspections
Review of driver documents
Review of driver record of duty status
Other available documents/information
Interview driver
Compliance Reviews
Review of documents
Financial records
Other documents

9
Enforcement of Cabotage Violations

Conduct driver-vehicle inspection
Document violation on inspection report
State Inspectors 392.9a(a)(2) Operating
beyond the scope of the operating authority
granted/Providing prohibited point-to-point
transportation services-365.501(b)(Cabotage).
Place vehicle out-of-service
Obtain documentation of violation
Provide documentation to FMCSA Division Office
for follow-up enforcement actions.

10
ASPEN Modification

New OOS violation added (effective 9/14/07)
392.9a(a)(2) Operating beyond the scope of its
operating authority/ Providing prohibited
point-to-point transportation services-365.501(b)
(Cabotage).
Used because States have not adopted Part 365.

11
Questions and Answers(see handout)

Can a Mexican driver pick up a container shipment
at a United States seaport for delivery in the
United States?
Under what circumstances may a driver enter with
an empty tractor?
Does the driver have to depart with the same
trailer with which he or she entered the United
States?
May a driver drop a trailer and bobtail to
another location to pick up a trailer for return
to Mexico?
May a United States carrier employ foreign
drivers?

Questions on Cabotage

13
Operating Authority

U.S-Mexico Demonstration Program
Provisional Operating Authority
Up to 100 Mexico-domiciled motor carriers
One-year duration
Unique identifier suffix X after USDOT number

14
Operating Authority Mexico-Domiciled Motor
Carriers

All Mexico-domiciled motor carriers transporting
commodities
Commercial Zone (approximately 7,000)
Beyond Commercial Zone
Grandfathered (pre-1982 authority)(11)
Long-haul charter passenger carriers.
Mexico-domiciled, U.S owned (1300)
US-Mexico Demonstration Program participants (up
to 100)

15
Definition of Commercial Zone

49 CFR 372.241
Basically includes
Municipality
Contiguous municipalities
Municipalities or unincorporated areas adjacent
to the base municipality any part of which is
within 3-20 miles of base municipality depending
on its population.

16
US-Mexico Demonstration Program Requirements

Provisional operating authority (OP-1-MX)
Permanent operating authority after 18 months
(subject to Secretary determination on
demonstration program)
Unique identifier (suffix X after US DOT number)

17
Verification of Operating Authority

Access L I public website at
http//li-public.fmcsa.dot.gov
Access Query Central website at
http//qc.fmcsa.dot.gov
Dial the Licensing and Insurance Status Line at
(202) 366-9805
Dial the FMCSA toll free line at 1-800-832-5660
Dial the LI automated response phone system at
(202) 358-7000

18
Enforcement of Operating Authority Violations

Conduct driver vehicle inspection
Cite violation on the inspection report
392.9a(a)(1)- no operating authority
392.9a(a)(2)- operating beyond the scope of the
operating authority granted
Place the vehicle out-of-service

19
ASPEN Modifications

New OOS violation added (effective 9/14/07)
390.3(e)(1) Failing to comply with all
applicable regulations contained in 49 CFR Parts
350-399/Failing to display a current CVSA decal,
as required by 385.103(c).
Used because States have not adopted Part 385.