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DO NOT Sell, Purchase, or Lease a USDOT Number or Operating Authority (MC Number) online or elsewhere from an unknown person or outside of a legitimate corporate transaction.
This notice applies to the purported sale or lease of registration or operating authority itself—not to the leasing of equipment (e.g., trucks or drivers) under compliant arrangements such as those governed by 49 CFR Part 376 and 49 CFR Part 390, Subpart G. Equipment leasing arrangements between motor carriers and owner-operators remain permissible and are distinct from the prohibited sale, purchase, or lease of USDOT Numbers or operating authority registration.
Upon discovery of attempts to sell, purchase, or lease a USDOT Number or Operating Authority outside of a legitimate corporate transaction, FMCSA will initiate proceedings to inactivate the USDOT Number and revoke all related registrations, including safety registration required under 49 U.S.C. 31134 and any operating authority registration required under 49 U.S.C. 13901-13905.
USDOT Numbers are like a driver’s license or identification card number, and they identify who a motor carrier, broker, freight forwarder, or other entity is. The USDOT Number belongs to the same legal person forever and may not be sold, transferred, rented, or leased. FMCSA will inactivate USDOT Numbers upon discovery that the number is being used by anyone other than the assigned legal person.
Sole Proprietor: If a motor carrier is a sole proprietor (e.g., John Doe d/b/a Doe Trucking), John Doe will always be the owner and only one who can ever use his USDOT Number. If John decides to sell his business, the buyer will need their own USDOT Number because no one else can ever “become” John Doe. If you attempt to purchase, rent, or lease, and use John’s USDOT Number, FMCSA is authorized to inactivate your number and revoke the safety registration associated with the USDOT Number.
Corporation (or any legal Business Organization): If John, however, forms a corporation (e.g., John Doe, Inc.), John can sell the company and the USDOT Number goes with the company – John Doe, Inc., is a separate legal person from John Doe. The new corporate owners should update FMCSA records immediately to note the change in ownership, and any other demographic information that might change as a result of the corporate ownership change. If John Doe, Inc., merges with Jim Smith, Inc., or is acquired by Jim Smith, Inc., the status of John Doe, Inc.’s USDOT Number depends on how the parties decide to continue business operations. If John Doe, Inc. continues operations as a corporation after the transaction, the USDOT Number stays with John Doe, Inc. If, however, John Doe Inc., is dissolved under state law and all operations only continue under Jim Smith, Inc., or another new combined company like Jim and John, Inc., then the continuing company requires its own USDOT Number and may not use the USDOT Number assigned to John Doe, Inc. John Doe, Inc.’s USDOT Number should be deactivated on Form MCS-150 using the reason “out-of-business.”
Operating Authority (MC Number) is required to perform specific for-hire transportation operations by motor vehicle in interstate commerce. Under the Interstate Commerce Commission, operating authority was often transferred because it was limited, i.e., only a certain number of motor carriers were authorized to provide a specific type of transportation along a specific route. With the sunset of the Interstate Commerce Commission, Congress removed the limitations on operating authority, allowing motor carriers, brokers, and freight forwarders to hold interstate operating authority – meaning separate authority was no longer required for specific routes.
Once a carrier holds operating authority, they are permitted to operate along any route across the country. Because of this change, transfers of operating authority are of little benefit and are less common, but there are some circumstances where FMCSA will still record a transfer following a legitimate business transaction.
Operating authority is not a distinct commodity and may not be sold, leased, or rented to another party for use as if that party were the registered entity responsible for safety management and regulatory compliance, outside of a legitimate corporate transaction.
Sole Proprietor: If a sole proprietor (i.e., John Doe d/b/a Doe Trucking) sells his business, FMCSA may require the purchaser to obtain separate operating authority or may record a transfer of operating authority, depending on the details of the transaction. In every instance, however, John Doe will be required to file an out-of-business notification. FMCSA will initiate proceedings to revoke operating authority, despite the intent of the parties, for failure to make filings to update the company record.
Corporation: In corporate transactions, FMCSA will record a transfer of operating authority only if motor carrier operations will continue with the same safety management oversight and controls after the corporate transaction. In many cases, following a corporate transaction, motor carriers are only required to report ownership or corporate officer changes – no transfer is required. In other cases, if a new entity is formed, a transfer may be recorded, or new operating authority may be required. FMCSA will initiate proceedings to revoke operating authority, despite the intent of the parties, for failure to apply for new authority or record a transfer.
If you fail to follow these rules and sell, purchase, or lease a USDOT Number or Operating Authority outside of a legitimate corporate transaction, FMCSA will initiate proceedings to inactivate the USDOT Number and revoke all related registrations, including safety registration required under 49 U.S.C. 31134 and any operating authority registration required under 49 U.S.C. 13901-13905.
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Starting on January 30, 2012, when you:
- Apply for a CDL
- Renew a CDL
- Apply for a higher class of CDL
- Apply for a new endorsement on a CDL
- Transfer a CDL from another State
You will be required to self-certify to a single type of commercial operation on your driver license application form. Based on that self-certification, you may need to provide your SDLA with a current medical examiner’s certificate and show any variance you may have to obtain or keep your CDL. Source: 76 FR 70661
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To interline a shipment is to transfer the shipment between two or more carriers for movement to final destination. For example, where the point of origin is Washington, DC and the final destination is Los Angeles, CA, Motor Carrier “A” may transport a shipment from Washington, DC and then interline with Motor Carrier “B” in San Antonio, TX. Motor Carrier “B” will then complete the transportation of the shipment to Los Angeles, CA.
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No, USDOT Numbers are not transferable. For more information about USDOT numbers and changing ownership, legal name or form of business, click here.
Operating authorities (MC numbers) are transferable. For more information, please see our Operating Authority Transfer FAQs.
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New entities must apply for their own operating authority. In corporate purchase transactions involving an entire operation, however, a motor carrier, broker, or freight forwarder may instead choose to transfer its existing operating authority to the new entity as a part of the transaction. Transfers most often occur during a corporate merger or acquisition, or during a corporate restructuring. Because FMCSA discontinued the operating authority transfer review and approval process described in 49 CFR Part 365, Subpart D, in 2013, these transactions no longer require FMCSA approval prior to completion. To ensure accurate registration information, FMCSA will record and track an Operating Authority Transfer when the “transfer” is part of a purchase transaction involving an entire operation and the Agency receives adequate notification from both the transferor and transferee documenting the transaction.
For example, if XYZ Trucking (XYZ) and ABC Transportation (ABC) decide to merge and form a new company, FTA Trucking, the new company would have to apply for a new USDOT number but may request a transfer of Operating Authority from either XYZ or ABC. Similarly, if XYZ is acquired by ABC and ABC does not already have operating authority, but does have a USDOT number, XYZ may transfer its operating authority to ABC as a part of the corporate transaction.
To effectively record the “transfer,” and track registration, both transferors and transferees will be asked to provide basic identifying information about their business operations. In addition, FMCSA may request evidence of the requisite merger or acquisition (e.g., articles or agreement showing merger, transfer of assets, transfer of ownership, etc.). If the merger or acquisition results in the transferor terminating all of its transportation operations, the transferor should also submit an MCS-150 out of business notification.
To properly record a transfer, FMCSA will need the following:
|
Transferor (Seller) |
Transferee (Buyer) |
|
Company Name |
Company Name |
|
Doing Business As (DBA) or Trade Name |
Doing Business As (DBA) or Trade Name |
|
Form of Business (Corporation, Partnership, or Sole Proprietorship) |
Form of Business (Corporation, Partnership, or Sole Proprietorship) |
|
USDOT # (except brokers) |
USDOT # (if any) |
|
Docket # (MC/FF/MX) |
Docket # (MC/FF/MX) |
|
Business Address |
Business Address |
|
Business Phone Number |
Business Phone Number |
|
Name of Business Owner(s) |
Name of Business Owner(s) |
|
Transferor Signature |
Transferee Signature |
|
Date Transfer took place |
Date Transfer took place |
Once the transfer recording request is received, FMCSA will review and contact the requestor for any additional information, if needed. If FMCSA determines that the submission is not actually a request to record a transfer, the Agency may direct the parties to complete the appropriate registration applications or forms to complete their desired transaction. After the request is recorded in FMCSA Systems:
- Transferees will receive a letter in the mail instructing the recipient company to submit:
- Proof of financial responsibility (Insurance)
- Designation of a process agent (BOC-3 form)
- The updated OA information will appear in the FMCSA Licensing & Insurance page and the OA status will be displayed as “Inactive” until the above requirements are met.
- Once the OA is Active, the transferee can download a copy of order recording the transfer. A hard copy will also be mailed.
Submit a request to record a transfer by creating a ticket through our website at Ask FMCSA using the Submit Us a Ticket icon at the top of the page, completing the required fields, and uploading documents. This is the fastest option. FMCSA sends confirmation emails for Ask FMCSA requests.
If you need further assistance, please contact us at 1-800-832-5660 or via our Ask FMCSA page.
For more information, FMCSA provided notice in 2013 on the process to record transfers of operating authority registration by non-exempt for-hire motor carriers, property brokers and freight forwarders. Visit https://www.federalregister.gov/documents/2013/08/23/2013-20443/transfers-of-operating-authority-registration.
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The FMCSA's policy is to assign a unique USDOT identification number to each person required to identify themself with FMCSA under 49 U.S.C. 13902, 31134 and 49 C.F.R. 390.19T or 390.200T. USDOT numbers are not transferable and are assigned to only one person and remain assigned to that person forever. A person includes an individual, corporation, partnership, or other business organization as authorized by state law. Each separate and distinct person must have separate registration.
For corporations, partnerships and other business organizations, the USDOT number will remain the same when there is a change in company officials, address or other demographic information, and the corporation, partnership, or other business organization will continue operations as the same legal person/entity. In case of a change in demographic information, the motor carrier is required to file an updated Form MCS-150, Motor Carrier Identification Report, within 30 days of the change.
We will allow a sole proprietor to maintain its USDOT number when it changes its current form of business, and the new entity will continue to operate virtually the same (absent the form of business change) as before the change. There would be no change in company officials, address, or other demographic information and the new entity will maintain identical operations, employees and assets. We will permit a change in the Tax ID number based on the new articles of incorporation.
It is important to note that the regulation has not changed. The Office of Registration and Safety Information is often asked whether a new USDOT number is or is not required following motor carrier ownership, form of business, or operational changes. The office recently provided clarification and direction for what must be done when these situations arise.
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