What is Freight Broker Authority? How to get it.
Freight Broker Authority
The Federal Motor Carrier Safety Administration (FMCSA) grants an Individual, Partnership, or Corporation the authorization to arrange the transportation of goods to others by using a legal Motor Carrier (MC) number, known as Freight Broker Authority.
Depending upon the transportation of goods, Freight Broker Authority is classified into two categories:
- Brokers of Property (excluding household goods) – Transportation of goods to others by using a legal Motor Carrier (MC) number.
- Brokers of Household Goods – Transportation of household goods (Personal items and property that is used at home) to others by using a legal Motor Carrier (MC) number.
How to get Freight Broker Authority
As per FMCSA, if a broker is applying for Broker Authority for the first time, they can apply via the Unified Registration System (URS). After the broker applies on URS, FMCSA assigns an MC number, and completing the application requires keeping the following in mind:
- Brokers of property: A surety bond (Form BMC-84) or trust fund agreement (BMC-85) in the amount of $75,000.
- Brokers of household goods: A surety bond (Form BMC-84) or trust fund agreement (BMC-85) in the amount of $75,000.
- Form BOC-3, Designation of process agent form
- Application processing fees
And the FMCSA takes approximately 4-6 weeks for processing the application.
But if you are an existing Broker or Carrier then use existing forms/processes to update your authority or apply for an additional authority
- Fill up the OP-1 form and depending upon the type of payment and method of delivery, mail it across to the addresses mentioned in the form.
It is crucial to keep an eye on your Broker Authority. To check your Authority contact a DOT Compliance expert or apply for it with DOT Compliance Group if you are not compliant.
What happens if your Freight Broker Authority is inactive or revoked?
To reinstate your Freight Broker Authority, you have to make sure that you
- File proof of Insurance and Form BOC-3 with FMCSA
- Have an active USDOT Number for Motor Carriers. If it is not active then submit an MCS-150 form along with a reinstatement request
The cost to reinstate Freight Broker Authority is $80, and it will become active after the 4th business day.
Some important definitions:
- Common Authority– When a Common Carrier provides a for-hire truck to the general public is referred to as Common Authority. And common carriers must file both liability (BI & PD) insurance and cargo insurance.
- Contact Authority– When a Common Carrier provides a for-hire truck to the specific, individual shippers, based on contacts is referred to as Contact Authority. And common carriers must file both liability (BI & PD) Insurance and Cargo Insurance
Getting your Freight Broker Authority can be a long and complicated process. With no room for mistakes, you cannot take the risk of making mistakes. So let DOT Compliance Group do it for you, Our professional team can obtain your Broker Authority for you.