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Exempt For Hire

Written by Nick Webster

Published on Dec. 11, 2023, 8:05 p.m.


According to the FMCSA, an “exempt for hire” refers to a motor carrier operating on a for-hire basis. This carrier only transports unregulated (exempt) goods owned by others. In return for the services, this carrier receives compensation. Here are some common exempt commodities that the FMCSA lists:

What Is the Definition of an Exempt For-Hire Motor Carrier?

An exempt for-hire motor carrier is a business that transports unlicensed goods in exchange for payment. These can include various low-value items, such as fruits, vegetables, and raw materials. What is MC Number? According to Administrative Ruling 119, an extensive list of products may qualify as exempt from regulation, detailing the types of commodities that fit this description. Therefore, it's essential to understand what types of freight can be classified as exempt to ensure compliance with FMCSA regulations.

What Are the Major FMCSA Requirements that Apply to For-Hire Carriers?

If you are an exempt for-hire motor carrier in the US, you may not be subject to the same standards as other carriers. Here’s what you need to know about the requirements that apply to you:

  • You may not need to have a specific certificate of authority or insurance coverage.
  • State regulations vary, and it is essential to check your state's requirements before starting operations. How To Request the DOT PIN Number?
  • If you plan on crossing state borders, FMCSA rules also apply.
  • Ensure your vehicles are well maintained and comply with all applicable laws and regulations.
  • Understanding these requirements can help ensure your operations run smoothly while keeping yourself and others safe on the roads. You will need driver qualification files filed out by all employees who drive for you working. Also, take a look at what IRP or Apportioned Registration is.

What Are the Requirements for Non-Exempt For-Hire Carriers?

If you're a for-hire carrier, you must take specific steps with the U.S. Department of Transportation (USDOT) to conduct business legally and safely. You must obtain a USDOT number plus any additional operating authority that may be required based on your planned activities. Also, visit the link.

Consider what type of services you intend to provide and determine which operating authorities are necessary before registering with the USDOT. This will ensure that you meet all applicable regulatory requirements for your operations. Visit DOT Authority Package, Tips to prepare for 2022 DOT Week filings in minutes. How do you get an Oregon Trip And Fuel Permit?

What Is Interstate Operating Authority?

Acquiring interstate operating authority is essential for companies that manage for-hire carriers or transport passengers and federally-regulated commodities. The Department of Transportation requires businesses to apply for a permit and obtain an MC number in addition to their DOT number. Depending on the nature of operations, multiple permits may be needed to ensure federal compliance. Companies need to understand the different operating authority types before selecting which best suits their needs. Must visit FMCSA Hours of Service Suspended topics.

To gain a USDOT number and an MC or other type of operating authority, newcomers must use the Unified Registration System that is accessible on the web. On this system, applicants with a USDOT number and one type of operating authority will be required to complete a specific form to apply for additional registrations—the importance of The FMCSA 30-Minute Break Rule.

You can quickly and easily register your business with the FMCSA with the correct information. Don't forget that if you are transporting hazardous materials in commerce, you must obtain a separate Hazardous Materials endorsement from FMCSA! Also, take a look at the Drug and Alcohol Program policy. What is DOT Clearinghouse Enforcement?

What Are Some Examples of Exempt Carriers?

Taxicabs, school buses and farm vehicles are the most common carriers exempt from regulation. Additionally, exemptions may include motor vehicles providing taxi services, shuttles transporting hotel guests between the hotel and a carrier station, motor vehicles controlled and operated by farmers transporting agricultural commodities and supplies, and those employed by cooperative associations. All of these types of transport must adhere to specific regulations when operating to be considered exempt from federal oversight. Read about Texas DOT Numbers and USDOT Numbers. Learn here How to Prepare for a Compliance DOT Audit.

What Does “Exempt Freight” Mean?

Exempt freight includes items that either perish quickly or have a limited shelf-life, such as unprocessed dairy products and hay bales. Timelier materials like newspapers also fall into this category. Other everyday examples of exempt freight include fresh produce, livestock, buttermilk, Christmas trees, honey, and plants (flowers, trees, and bulbs). What is Unified Carrier Registration?

Can You Provide More Examples of “Non-Exempt” Freight?

Of course. Paper products, gravel, insecticides, dog food, and lumber are some of the non-exempt freight types that require processing. These goods tend to have longer shelf lives and preservatives that prevent spoilage. To see a full list of exempt and non-exempt commodities, please refer to the Federal Motor Carrier Safety Administration's Composite Commodity List. Check out The Basics of Farm Exemptions. You will then be able to maintain complete motor carrier authority or broker. What are the Top 3 DOT paper-appointed Violations?

Summary: What Does “Exempt For Hire” Mean in the Trucking Industry?

  • Exempt for hire means that a trucking company can transport certain goods and materials interstate.
  • This exemption allows the company to bypass specific regulations, such as obtaining operating authority from the FMCSA. You must visit the link.
  • The exemption applies only to certain commodities that are exempt from regulation, such as agricultural products or livestock. IFTA Sticker Registration steps.
  • Companies must still comply with other safety regulations, such as those about hours of service and vehicle maintenance.
  • Also, trucking businesses may need special permits to transport hazardous materials or oversize loads. What is the DOT SAP Program?

Companies that operate under an “exempt for-hire status” must also register their vehicles with the FMCSA and carry proper insurance.

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