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Broker Authority

Broker Authority allows the 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 registration and everything is checked, you will receive your MC Broker number.

 

Requirements for Brokers

Brokers are required to register with FMCSA. Brokers are the point of acceptance of legal services. The intention is to process financial liability coverage. The broker is required to maintain all financial, administrative and accounting records. A broker cannot represent himself as a motor carrier or anything other than providing brokerage services with 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 Goodsis an individual, partnership or corporation that is paid for transporting household goods that belong to a third party by utilizing an authorized MC number. 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 number can also provide binding and nonbinding estimates, inventorying, protective packing and unpacking of individual items at a person’s residence as well as loading/unloading at a personal residence.
  • 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.
  • 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. Non-North America–Domiciled Motor Carrier
  • Freight Forwarder (FF number)
  • Mexican Certificate of Registration for Foreign Motor Carriers and Foreign Motor Private Carriers

 

For more information, call DOT filing at 818-568-0644. Our agents are here to help with all registrations and will be happy to assist you!