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Application for Exemption from Bonding Requirements Submitted to FMCSA

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On April 10, 2020, the Federal Motor Carrier Safety Administration (FMCSA) published in the Federal Register a notice of application for exemption and request for comments from the Small Business in Transportation Coalition (SBTC). SBTC is seeking reconsideration of an August 14, 2013, application by AIPBA (The Association of Independent Property Brokers & Agents, who was the predecessor to SBTC) for an exemption from the $75,000 bond requirement for all property brokers and freight forwarders. FMCSA denied the AIPBA application on March 31, 2015 and will treat the SBTC request as a new exemption application. Back in September SBTC wrote a letter to FMCSA requesting a 5-year exemption from the bond requirements with revenues under $15.01 million.

TIA has not supported eliminating or exempting anyone from the financial responsibilities required by law. TIA along with OOIDA (Owner-Operator Independent Drivers Associates) and ATA (American Trucking Association) led the fight to have the financial requirements increased from $10k to $75k in MAP-21, as part of a larger agreement between the three groups. The increase in the financial responsibility did not have the negative impacts as predicted by AIPBA, since there are more licensed brokers in existence now than before the increase.

TIA’s Highway Logistics Conference will be developing formal comments to submit to the FMCSA in strong opposition to this application and any other attempts to skirt this requirement.

If you have any questions, please contact TIA Advocacy (advocacy@tianet.org).

 

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