17.5 C
Vancouver
Wednesday, April 14, 2021

U.S. Mexico Leasing Changes

U.S. motor carriers are allowed to lease equipment from Mexico-domiciled companies according to the Federal Motor Carrier Safety Administration, beginning November 22, 2016. Additionally, the destination of the cargo in no longer relevant as long as the carriers meet the requirements of 49 CFR Part 376.

One of the most notable requirements set forth by Part 376 is the following: The lease shall provide that the authorized carrier lessee shall have exclusive possession, control and use of the equipment for the duration of the lease. The lease shall further provide that the authorized carrier lessee shall assume complete responsibility for the operation of the equipment for the duration of the lease.

The FMCSA conducted a three year pilot program to determine the ability of Mexican motor carriers to operate safely in the United States and, in January 2015, began accepting and processing applications for long-haul operating authority from Mexico-domiciled property carriers.