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June 3, 2022

What is Freight Broker Authority? How to get it.

Freight Broker Authority

The Federal Motor Carrier Safety Administration (FMCSA) grants an Individual, Partnership, or Corporation the authorization to arrange the transportation of goods to others by using a legal Motor Carrier (MC) number, known as Freight Broker Authority.

Depending upon the transportation of goods, Freight Broker Authority is classified into two categories:

  1. Brokers of Property (excluding household goods) – Transportation of goods to others by using a legal Motor Carrier (MC) number.
  2. Brokers of Household Goods – Transportation of household goods (Personal items and property that is used at home) to others by using a legal Motor Carrier (MC) number.

How to get Freight Broker Authority

As per FMCSA, if a broker is applying for Broker Authority for the first time, they can apply via the Unified Registration System (URS). After the broker applies on URS, FMCSA assigns an MC number, and completing the application requires keeping the following in mind:

  • Brokers of property: A surety bond (Form BMC-84) or trust fund agreement (BMC-85) in the amount of $75,000.
  • Brokers of household goods: A surety bond (Form BMC-84) or trust fund agreement (BMC-85) in the amount of $75,000.
  • Form BOC-3, Designation of process agent form
  • Application processing fees

And the FMCSA takes approximately 4-6 weeks for processing the application.

But if you are an existing Broker or Carrier then use existing forms/processes to update your authority or apply for an additional authority

  • Fill up the OP-1 form and depending upon the type of payment and method of delivery, mail it across to the addresses mentioned in the form.

It is crucial to keep an eye on your Broker Authority. To check your Authority contact a DOT Compliance expert or apply for it with DOT Compliance Group if you are not compliant.

What happens if your Freight Broker Authority is inactive or revoked?

To reinstate your Freight Broker Authority, you have to make sure that you

  • File proof of Insurance and Form BOC-3 with FMCSA
  • Have an active USDOT Number for Motor Carriers. If it is not active then submit an MCS-150 form along with a reinstatement request

The cost to reinstate Freight Broker Authority is $80, and it will become active after the 4th business day.

Some important definitions:

  1. Common Authority– When a Common Carrier provides a for-hire truck to the general public is referred to as Common Authority. And common carriers must file both liability (BI & PD) insurance and cargo insurance.
  2. Contact Authority– When a Common Carrier provides a for-hire truck to the specific, individual shippers, based on contacts is referred to as Contact Authority. And common carriers must file both liability (BI & PD) Insurance and Cargo Insurance

Getting your Freight Broker Authority can be a long and complicated process. With no room for mistakes, you cannot take the risk of making mistakes. So let DOT Compliance Group do it for you, Our professional team can obtain your Broker Authority for you.

FAQ

What if I renewed my UCR with DOT Compliance Group last year?

If you renewed with us last year, please check your Customer portal. If auto-renewal is still active, your UCR will automatically renew. If you have turned off auto-renewal, you’ll need to submit your renewal here on this page.

If I Pre-Register for 2026 UCR, when will I be charged the total amount?

The total amount will be charged on October 1, 2025 for the 2026 year.

I am an Ag Exempt Farmer. Am I exempt from registering for UCR?

No, if you cross over state lines you are required to register for UCR. Your Ag exemption does not apply to UCR.

Who is Exempt from UCR?

Private Motor Carriers of Passengers and All Motor Carriers operating solely within Hawaii, except those involved in moving household goods for individual shippers.

What states do not currently participate in UCR?

Currently Arizona, Florida, Hawaii, Maryland, Nevada, New Jersey, Oregon, Vermont, Wyoming, & the District of Columbia are non-participating states. (This information is current as of 6-16-2023. For the most up-to-date information check the FMCSA website.)

If my base state is a non-participating state that means UCR does not apply to me, correct?

No, if you operate as an interstate carrier and cross into a state that does participate, then you are required to register with UCR.

If I am an Amazon or Postal Service Contractor do I have to register for UCR?

Yes. Even though you do not cross state lines, your parcels do. That makes you an Interstate carrier and you would be required to register at the 0-2 fleet size.

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