The Broker Authority license allows a company to schedule for-hire carriers to transport cargo belonging to a third party. They are the ones who transport cargo. When you apply for your registration and everything checks out, you will receive your MC number.
Requirements for Brokers
Brokers are required to register with the FMCSA. Brokers are the acceptance point for legal services. The intent is to handle financial liability coverage. A broker is required to keep all financial, administrative and record keeping. The Broker is unable to represent themselves as either a motor carrier or anything other than providing brokerage services with the FMCSA.
Types of Brokers
- Broker of Property (except Household Goods) is a sole individual or corporation that handles the transportation of property (with the exception of household goods). The transported goods are under the ownership of others by an authorize MC for which they receive payment for their services. There is no responsibility from the Broker for the property handled nor are they allowed to have any possession if it.
- Broker of Household Goods is an individual, partnership or corporation that is paid for transporting household goods that belong to a third party by utilizing an authorized MC. They do not have responsibility for these goods nor do they take possession of them. Household goods are considered personal items and property that are used within the home. In order for the Broker to handle household goods, they must specifically register as a household goods broker. The MC can also provide binding and nonbinding estimates, inventorying, protective packing and unpacking of individual items at a persons residence as well as loading/unloading at a personal residence.
Other Types of Authority
Amongst the two authorities listed above, there are other authorities that can help benefit your process. You must choose the right one carefully. The goal is to find the specific insurance that you may need as well as how much you need in coverage fees.
- US-based Enterprise Carrier of International Cargo: (with the exception of household goods) Companies that ship international cargo, that has an established headquarter in the US and is controlled by a Mexican citizen or resident alien by 55%. Their cargo either originates from outside of the US or the destination is outside of the US.
- US-Based Enterprise Carrier of International Household Goods: This type of broker handles the household goods side of transportation. The same rules apply such as having a headquarter in the US but must be owned by a Mexican citizen or resident alien by 55%. These goods are specifically personal items used in the home. Items shipped from a factory or store that are purchased for use in the home and are transported by the request of the owner of the house. The homeowner must pay for the transportation charges.
- Freight Forwarder (FF number)
- Non-North America–Domiciled Motor Carrier
- Mexican Certificate of Registration for Foreign Motor Carriers and Foreign Motor Private Carriers
What is a Freight Forwarder?
Freight Forwarders are a person or entity which is a public transporter. Their objective is to transport property for compensation. The Freight Forwarder (FF) must:
- Provide assembling and
consolidating, break-bulk and distribution operations of shipments.
- Is responsible for
transportation from the place of pickup to the place of destination.
- Uses rail, motor, or water carrier within the jurisdiction of the FMCSA or the Surface Transportation Board.
For more information, call us today at (888) 669-4383. Our agents are here to help with all registrations and will be happy to assist you!
To learn more about the various types of Interstate Authority, watch the video below.