Cabotage/Operating Cabotage/Operating AuthorityAuthority

US Border Demonstration ProgramUS Border Demonstration Program

Milt SchmidtMilt SchmidtChief, North American Borders DivisionChief, North American Borders Division

Federal Motor Carrier Safety AdministrationFederal Motor Carrier Safety Administration1200 New Jersey Avenue, S.E.1200 New Jersey Avenue, S.E.

Washington D.C. 20590Washington D.C. 20590202-366-4049202-366-4049

Milt.schmidt@dot.govMilt.schmidt@dot.gov

What is CabotageWhat is Cabotage

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

What Regulations Apply to What Regulations Apply to CabotageCabotage

Department of Homeland SecurityDepartment of Homeland Security– Immigrations Immigrations

8 CFR 214.2(b)(4)8 CFR 214.2(b)(4)http://www.cbp.gov/xp/cgov/import/carriers/lhttp://www.cbp.gov/xp/cgov/import/carriers/l

and/how.xmland/how.xml. .

Applicable to all alien (foreign) driversApplicable to all alien (foreign) drivers

– Customs and Border Protection Customs and Border Protection 19 CFR 123.1419 CFR 123.14Applicable to all foreign commercial motor Applicable to all foreign commercial motor

vehicles.vehicles.

What Regulations Apply to What Regulations Apply to CabotageCabotage

FMCSAFMCSA– 49 CFR 365.101(h)49 CFR 365.101(h) Applications for Mexico- Applications for Mexico-

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

What Regulations Apply to What Regulations Apply to CabotageCabotage

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

– FMCSA regulations applicable to Mexico-FMCSA regulations applicable to Mexico-domiciled motor carriers only.domiciled motor carriers only.

Definitions of CargoDefinitions of Cargo Domestic Cargo: Domestic Cargo:

– cargo loaded in the United States and delivered to a cargo loaded in the United States and delivered to a location in the United Stateslocation in the United States

– Includes freight picked up at an international port in the Includes freight picked up at an international port in the U.S. and delivered to another point in the U.S.U.S. and delivered to another point in the U.S.

International Cargo: cargo transported by a International Cargo: cargo transported by a Mexico-domiciled motor carriers in CMVs from Mexico-domiciled motor carriers in CMVs from Mexico to the United States, with no loading in Mexico to the United States, with no loading in the United States, or from the United States to the United States, or from the United States to Mexico, with no unloading in the United States.Mexico, with no unloading in the United States.

Cabotage and the US-Mexico Cabotage and the US-Mexico Demonstration ProgramDemonstration Program

Mexico-domiciled motor carriersMexico-domiciled motor carriers– Comply with DHS cabotage regulations.Comply with DHS cabotage regulations.– Comply with FMCSA cabotage Comply with FMCSA cabotage

regulations, i.e. cannot transport regulations, i.e. cannot transport domestic cargo.domestic cargo.

– Compliance is a condition of provisional Compliance is a condition of provisional operating authority.operating authority.

How are Cabotage violations How are Cabotage violations DiscoveredDiscovered

Roadside InspectionsRoadside Inspections– Review of driver documentsReview of driver documents– Review of driver record of duty statusReview of driver record of duty status– Other available documents/information Other available documents/information – Interview driverInterview driver

Compliance ReviewsCompliance Reviews– Review of documentsReview of documents– Financial recordsFinancial records– Other documentsOther documents

Enforcement of Cabotage Enforcement of Cabotage ViolationsViolations

Conduct driver-vehicle inspectionConduct driver-vehicle inspection Document violation on inspection reportDocument violation on inspection report

– State Inspectors: 392.9a(a)(2) – Operating State Inspectors: 392.9a(a)(2) – Operating beyond the scope of the operating authority beyond the scope of the operating authority granted/Providing prohibited point-to-point granted/Providing prohibited point-to-point transportation services-365.501(b)(Cabotage). transportation services-365.501(b)(Cabotage).

– Place vehicle out-of-servicePlace vehicle out-of-service– Obtain documentation of violationObtain documentation of violation– Provide documentation to FMCSA Division Provide documentation to FMCSA Division

Office for follow-up enforcement actions.Office for follow-up enforcement actions.

ASPEN ModificationASPEN Modification

New OOS violation added (effective New OOS violation added (effective 9/14/07)9/14/07)– 392.9a(a)(2) – Operating beyond the 392.9a(a)(2) – Operating beyond the

scope of its operating authority/ scope of its operating authority/ Providing prohibited point-to-point Providing prohibited point-to-point transportation services-365.501(b) transportation services-365.501(b) (Cabotage).(Cabotage).

– Used because States have not adopted Used because States have not adopted Part 365.Part 365.

Questions and AnswersQuestions and Answers(see handout)(see handout)

Can a Mexican driver pick up a container Can a Mexican driver pick up a container shipment at a United States seaport for delivery shipment at a United States seaport for delivery in the United States?in the United States?

Under what circumstances may a driver enter Under what circumstances may a driver enter with an empty tractor?with an empty tractor?

Does the driver have to depart with the same Does the driver have to depart with the same trailer with which he or she entered the United trailer with which he or she entered the United States?States?

May a driver drop a trailer and bobtail to another May a driver drop a trailer and bobtail to another location to pick up a trailer for return to Mexico?location to pick up a trailer for return to Mexico?

May a United States carrier employ foreign May a United States carrier employ foreign drivers?drivers?

Questions on CabotageQuestions on Cabotage

Operating AuthorityOperating Authority

U.S-Mexico Demonstration ProgramU.S-Mexico Demonstration Program– Provisional Operating AuthorityProvisional Operating Authority– Up to 100 Mexico-domiciled motor Up to 100 Mexico-domiciled motor

carrierscarriers– One-year durationOne-year duration– Unique identifier – suffix “X” after Unique identifier – suffix “X” after

USDOT numberUSDOT number

Operating Authority: Mexico-Operating Authority: Mexico-Domiciled Motor CarriersDomiciled Motor Carriers

All Mexico-domiciled motor carriers All Mexico-domiciled motor carriers transporting commodities transporting commodities Commercial Zone (approximately 7,000)Commercial Zone (approximately 7,000)Beyond Commercial ZoneBeyond Commercial Zone

Grandfathered (pre-1982 authority)(11)Grandfathered (pre-1982 authority)(11) Long-haul charter passenger carriers.Long-haul charter passenger carriers. Mexico-domiciled, U.S owned (1300)Mexico-domiciled, U.S owned (1300) US-Mexico Demonstration Program US-Mexico Demonstration Program

participants (up to 100)participants (up to 100)

Definition of Commercial ZoneDefinition of Commercial Zone

49 CFR 372.24149 CFR 372.241 Basically includesBasically includes

– MunicipalityMunicipality– Contiguous municipalitiesContiguous municipalities– Municipalities or unincorporated areas Municipalities or unincorporated areas

adjacent to the base municipality any adjacent to the base municipality any part of which is within 3-20 miles of part of which is within 3-20 miles of base municipality depending on its base municipality depending on its population. population.

US-Mexico Demonstration Program US-Mexico Demonstration Program RequirementsRequirements

Provisional operating authority (OP-1-Provisional operating authority (OP-1-MX)MX)

Permanent operating authority after Permanent operating authority after 18 months (subject to Secretary 18 months (subject to Secretary determination on demonstration determination on demonstration program)program)

Unique identifier (suffix “X” after US Unique identifier (suffix “X” after US DOT number)DOT number)

Verification of Operating AuthorityVerification of Operating Authority

Access L & I public website at: Access L & I public website at: http://li-public.fmcsa.dot.govhttp://li-public.fmcsa.dot.gov

Access Query CentralAccess Query Central website at:website at: http://qc.fmcsa.dot.govhttp://qc.fmcsa.dot.gov

Dial the Licensing and Insurance Status Dial the Licensing and Insurance Status Line at (202) 366-9805Line at (202) 366-9805

Dial the FMCSA toll free line at Dial the FMCSA toll free line at 1-800-832-56601-800-832-5660

Dial the L&I automated response phone Dial the L&I automated response phone system at (202) 358-7000system at (202) 358-7000

Enforcement of Operating Authority Enforcement of Operating Authority ViolationsViolations

Conduct driver vehicle inspectionConduct driver vehicle inspection Cite violation on the inspection Cite violation on the inspection

reportreport– 392.9a(a)(1)- no operating authority392.9a(a)(1)- no operating authority– 392.9a(a)(2)- operating beyond the 392.9a(a)(2)- operating beyond the

scope of the operating authority grantedscope of the operating authority granted– Place the vehicle out-of-servicePlace the vehicle out-of-service

ASPEN ModificationsASPEN Modifications

New OOS violation added (effective New OOS violation added (effective 9/14/07)9/14/07)– 390.3(e)(1) – Failing to comply with all 390.3(e)(1) – Failing to comply with all

applicable regulations contained in 49 applicable regulations contained in 49 CFR Parts 350-399/Failing to display a CFR Parts 350-399/Failing to display a current CVSA decal, as required by current CVSA decal, as required by 385.103(c).385.103(c).

– Used because States have not adopted Used because States have not adopted Part 385.Part 385.

Questions-Operating Questions-Operating AuthorityAuthority

English Language ProficiencyEnglish Language Proficiency

49 CFR 391.11 (b)(2)- Can read and 49 CFR 391.11 (b)(2)- Can read and speak the English language speak the English language sufficiently:sufficiently:– to converse with the general public to converse with the general public – to understand highway traffic signs and to understand highway traffic signs and

signals in the English language signals in the English language – to respond to official inquiries to respond to official inquiries – and to make entries on reports and and to make entries on reports and

records records

English Language ProficiencyEnglish Language Proficiency

Driver InterviewDriver Interview– In EnglishIn English– Example QuestionsExample Questions– Inspector determinationInspector determination

EnforcementEnforcement– Driver OOS – authority to operate beyond Driver OOS – authority to operate beyond

commercial zonecommercial zone– Driver citation – authority to operate Driver citation – authority to operate

exclusively in commercial zoneexclusively in commercial zone CVSA OOS PolicyCVSA OOS Policy

Why This is ImportantWhy This is Important

Border Opening is Secretary’s top Border Opening is Secretary’s top prioritypriority

Congressional concernsCongressional concerns Safety interest group concernsSafety interest group concerns OIG will be reviewing enforcement OIG will be reviewing enforcement

effortsefforts UniformityUniformity

Questions-English Language Questions-English Language ProficiencyProficiency