Cabotage/Operating 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@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/how.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?

12. 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 Centralwebsite 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 L&I 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.

20. Questions-Operating Authority

21. 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

22. 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

23. Why This is Important • Border Opening is Secretary’s top priority • Congressional concerns • Safety interest group concerns • OIG will be reviewing enforcement efforts • Uniformity

24. Questions-English Language Proficiency