Unified Carrier registration in the trucking industry
If you drive a bus or truck on international commerce or interstate, then the registration requirements of the Unified Carrier Registration (UCR) Agreement is applicable to your business. The same applies to companies that relate to the transportation of goods and cargo from one place to another. If you do not have a UCR, it is fundamental that you register for one immediately.
Unregistered motor carriers who go across state lines without a UCR face the possibility of having their trucks or buses pulled off the road and receiving hefty fines. Let us discuss all you need to know about Unified Carrier Registration and what you need to do to be compliant.
WHAT IS THE UNIFIED CARRIER REGISTRATION?
The Unified Carrier Registration system is a federally regulated system that requires those who drive commercial motor vehicles on international commerce and the interstate to register their business with their home state. According to the UCR Act – 49 United States Code (USC) section 14504a, the companies and individuals who operate these vehicles must pay an annual fee depending on their fleet size.
The registration process to this system occurs annually beginning October 1, and the renewal must happen before December 31 every year. The registration process occurs electronically and online, providing a platform where the Federal Motor Carrier Safety Administration can store its information and serve as a clearinghouse.
WHO SHOULD REGISTER WITH UCR?
The UCR system applies to several commercial vehicle service operators. Among them include all interstate motor carriers, brokers and leasing companies, freight forwarders, HMSP holders/applicants, and cargo tank manufacturing and repair facilities under FMCSA jurisdiction. However, all these vehicles from these parties must meet the following criteria:
– Commercial vehicles on an interstate or international commerce travel carrying cargo must have a gross vehicle weight rating of 10,001 pounds or more.
– Commercial vehicles on an interstate or international commerce travel carrying passenger freight must possess the ability to take more than ten passengers, including the driver.
– Any commercial vehicle that transports dangerous materials in large quantities should placard within federal regulations.
Each of these qualifying parties must pay a UCR fee annually with a base state. If your base state does not take part in the system, you should pay your UCR fee through a neighboring participating state, especially if you plan to go across state lines. Currently, 41 states in the United States take part in the Unified Carrier Registration Program. States that do not play any role in this program include:
- Washington, D.C.
- New Jersey
HOW DOES UCR REGISTRATION TAKE PLACE?
New trucking companies need to complete their Unified Carrier Registration form and pay the fee as soon as possible. However, suppose your trucking company has already begun its operations. In that case, it is vital to complete the Unified Carrier Registration form as soon as the period for the coming year begins. As mentioned earlier, the registration process happens electronically, or you can also visit your local UCR registration offices.
It begins by first picking the appropriate number of trucks in your fleet traveling interstate or international commerce. This helps in estimating your annual fee, which you should pay each year promptly.
HOW TO DETERMINE YOUR UCR FEES
As mentioned earlier, once you register on the UCR system, you must pick the most appropriate fleet size applicable to you. The number of commercial motor vehicles you operate or own in international or interstate commerce determines your fleet size. For instance, Leasing and brokerage companies should pay the 0-2 fee tier while trailers are not part of fleet size.
If your trucking company has some commercial trucks or buses that do not travel across state lines and operate in states that do not participate in UCR, you should not count them as part of your fleet. Your fleet size determines your annual UCR fees. If the process is too complicated for you, multiple companies can take care of the registration for you at a small price.
BENEFITS OF PAYING THE UCR FEE
Given that the process primarily occurs online, this new system aims to streamline manual registration processes of the FMCSA and combine its forms regulated organizations to provide one unified registration system. In turn, this saves plenty of time and money for industries and entities dealing in inland cargo transportation. The FMCSA estimates that the industry will make a total saving of approximately $9 million over ten years of using this system.
The UCR Program also seeks to improve the ability of FMCSA to find small and medium-sized exempt-for-hire and private motor carriers for enforcement actions. Through this system, investigators can collaborate with various designated processing agents to find or serve documents to difficult-to-find motor carriers, thus increasing the industry’s efficiency.
Another advantage of the UCR system is that it is accessible to all interested parties. Even those who cannot access the internet can contract third-party processing agents, travel centers, kiosks at truck stops, or even the internet access at public libraries to submit their applications or pay their Annual UCR fee.
WHAT DOES IT MEAN IF YOU DO NOT PAY YOUR UCR FEE?
Although you may not notice any immediate effects, failure to pay the UCR fee will affect your trucking business in the long run. As mentioned earlier, if you travel to UCR participating states without paying the UCR fee, the USDOT officers and the state have the power to pull over your trucks and remove them from the road immediately until you clear the fee.
On such occasions, you are subject to additional penalties and fines, and you could even lose business entirely if you do not get reinstated. There is a lot of waste of time and resources due to non-compliance in the trucking industry, which affects overall productivity and profitability.
The Unified Carrier Registration UCR program’s primary role is to simplify the functions of the FMCSA and other industry-related entities. It also aids in finding helpful information about various commercial vehicles and organizing forms and documents related to these vehicles. Furthermore, revenues from this program become utilized in motor carrier safety enforcement programs.