Understanding Operating Authority
Operating Authority, also known as MC (Motor Carrier) authority, is the certification required for a transportation company to operate as a for-hire carrier and to carry both passengers and regulated property in interstate commerce. This authority is a fundamental requirement for those in the transportation industry, including trucking companies and professional drivers looking to operate across state lines. There are a series of steps an individual or business seeking this certification will have to complete, each of which is essential to ensuring those in your employ to operate within the bounds of the law and in accordance with the stringent requirements laid out by the governing bodies.
The Steps to Acquiring an Operating Authority Certificate
The first step in acquiring an operating authority certificate is to understand its specific type and its specific requirements. Different types of operations call for different authority designations -- those hauling freight, for example, have different authority than those carrying passengers or moving household goods. After a business owner or professional driver has identified the necessary type of authority, the next step is to submit an application to the Federal Motor Carrier Safety Administration (FMCSA). This process is incredibly detailed and requires that all forms be filled out correctly and fees paid on time. Failing to do so will result in the instant denial of that application -- a disaster for an individual trying to get a new business off the ground.
FMCSA Registration's specialists can assist with the application process and ensure all forms are accurately filled out, greatly decreasing the risks of a catastrophic and costly oversight. After an operating authority application is submitted and has undergone a mandatory public notice period -- during which the application is reviewed and any objections are noted if raised -- an additional stage is reached in the application process. The applicant will then be put through a safety audit that will bulk check against the FMCSA's strict safety regulations. Meeting these regulations is critical; did you know, for example, that the maximum number of warnings allowed is three, and that more than three result in an automatic failure? The safety audit is the key to obtaining operating authority.
Maintaining Compliance
But while the certification is by definition a significant one to obtain, it is merely the first step to joining the over 21,000 new companies that have entered the transportation industry for each of the last two years. Retaining the authority and avoiding fines, penalties and potential disbandment of the company is the tough part. FMCSA Regulations must be adhered to; registration must be kept up to date and regulations must be consulted and followed closely; audits and inspections will be done regularly and are mandatory, so that should be both expected and planned for on a regular basis so that your business can continue to maintain the strictest of operational standards and to keep its hard-won operating authority.
For owners of transportation companies and professional drivers, their operating authority is their bond; a commitment to safety, professionalism, and industry-leading operational standards that EFFIERI understands cannot be overstated. Please contact us today -- whether you are in need of assistance with the application process or you just need some help to ensure your company's operations remain compliant. Staying proactive and informed in your operating authority is critical to ensure that your transportation business operates smoothly, legally, and soundly under federal regulation to prepare you for a profitable future in transportation.
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