CabotageOperating Authority US Border Demonstration Program

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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

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What is Cabotage

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

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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.

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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.

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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.

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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.

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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.

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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

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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.

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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.

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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?

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• Questions on Cabotage

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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

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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)

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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.

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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)

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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
  [phone]
• Dial the FMCSA toll free line at 1-800-832-5660
• Dial the LI automated response phone system at
  [phone]

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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

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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.

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• Questions-Operating Authority

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English Language Proficiency

• 49 CFR 391.11 (b)(2)- Can read and speak the
  English language sufficiently
• to converse with the general public
• to understand highway traffic signs and signals
  in the English language
• to respond to official inquiries
• and to make entries on reports and records

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English Language Proficiency

• Driver Interview
• In English
• Example Questions
• Inspector determination
• Enforcement
• Driver OOS authority to operate beyond
  commercial zone
• Driver citation authority to operate
  exclusively in commercial zone
• CVSA OOS Policy

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Why This is Important

• Border Opening is Secretarys top priority
• Congressional concerns
• Safety interest group concerns
• OIG will be reviewing enforcement efforts
• Uniformity

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Questions-English Language Proficiency