A variety of rules and regulations must be followed while working in the transportation industry, including the need to keep the Department of Transportation under your control. It is not unusual that you may have to wonder if you should inactivate the DOT number . In this regard, it is important to consider this matter from different perspectives.
Understanding DOT Number Requirements
A DOT Number is named and known as a distinct serial code assigned to particular commercial vehicles. It serves more than a formal purpose, as the Federal Motor Carrier Safety Administration cites it as acting as an irreplaceable instrument of the FMCSA’s system of instrumental security and regulation. Yet, not every commercial vehicle is an obligatory owner of a DOT Number. The obligation to maintain a DOT Number is provided, first, by the vehicle's gross weight; second, by the type of transport service provided; third, by the presence or absence of movement across state borders.
Circumstances Necessitating DOT Number Deactivation
There are a number of cases when you might be obliged to deactivate your DOT Number. Noteworthy scenarios include:
Business Closure or Ownership Change
Some examples of when you may need to deactivate a DOT Number include the shutting down of a transportation business or a change in ownership where a new entity takes over the operation. deactivating your DOT number for past iterations of the business will help avoid potential quagmires when divesting the business to a new owner and will thwart any confusion over responsibilities for the number in question.
Shift in Operational Scope
In many cases, there might be a major shift in the scope of the business, such as transitioning from interstate to strictly intrastate operations not in need of a DOT Number, or change of vehicle use from commercial to non-commercial activities—both of which would warrant deactivating the current DOT Number to stop the monetary bleeding and then hopefully reactivating for future use.
Compliance and Regulatory Requirements
Instances where changes in safety standards, vehicle regulations and the cargo that you’re hauling (regulated vs. non-regulated), might require that you deactivate your existing DOT Number.
How to Approach Deactivation
As usual, FMCSA Registration or another professional who is well-versed in these matters would be able to advise you on whether your circumstance is a good candidate for deactivation of your current DOT number and ensure that you’re compliant with all the legal minutiae.
That said, do not make this decision lightly. Consult with a professional to ascertain whether deactivation is appropriate, what you must do from a regulatory compliance standpoint and an explanation for your particular course of action.
If you’re in need of further assistance or would like to learn more about this complicated process, contact FMCSA Registration today!
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