September 04, 2013
FMCSA Provides Guidance on Map-21 Q&A
The Federal Motor Carrier Safety Administration has announced that a notice will be published in tomorrow’s Federal Register providing guidance for the implementation of certain provisions of the Moving Ahead for Progress in the 21st Century Act (MAP-21). The notice includes a Q&A in regards to registration and financial requirements for brokers and freight forwarders. The agency also introduces a phased-in enforcement period.
If you are a freight forwarder or broker involved in interstate commerce and subject to FMCSA jurisdiction then you are required to register with the FMCSA.
Financial Security Requirements
All FMCSA regulated brokers and freight forwarders must obtain and file with the FMCSA a surety bond or trust fund agreement in the amount of $75,000 by Oct. 1, 2013. At this time, the agency will not be accepting group surety bonds or trust funds to satisfy the requirements. The FMCSA is considering the enforcement implications of group sureties as well as the effect on small entities and new entrants. They are looking to reexamine this issue as part of its enforcement phase-in plan.
FMCSA will be providing a 60-day phase-in period beginning Oct. 1, 2013 to allow the industry to complete all necessary filings. Beginning Nov. 1, FMCSA will mail notifications to all brokers and freight forwarders that have not met the $75,000 minimum financial requirement. Brokers or forwarders who fail to meet the deadline will receive a 30 day advance notice before their operating authority registrations are revoked.
Click here to view the full FMCSA Guidance notice. At Avalon, we are here to assist, we offer a range of insurance and surety products to meet the needs of transportation brokers and domestic surface freight forwarders.
For more information please contact Gabriela Craver, Underwriting Manager, Surety at firstname.lastname@example.org or at (847) 700 - 8073. Additional information including a list of our offices may be found at www.avalonrisk.com.Printable version Back to Quest News™