The US Department of Transportation's Federal Motor Carrier Safety Administration (FMCSA) will be able to fine Freight Forwarders up to $10,000 if
they are not compliant with new regulations from the Moving Ahead for Progress in the 21st Century Act (MAP-21). Freight Forwarders that are
subject to FMCSA jurisdiction need to obtain and file with FMCSA a surety bond or trust agreement in the amount of $75,000 by December first to
stay compliant.

Enforcement Timeline
The new regulations have actually been in effect since October 1, 2013. The FMCSA has provided a 60-day phase-in period beginning October 1,
2013, to allow the industry to complete all necessary filings. The head of Safety for the FMCSA recently told one our employees that several Freight
Forwarders have still not registered. By now, they should have received warning letters.

The Moving Ahead for Progress in the 21st Century Act (MAP-21) was signed into law on July 6, 2012 by the President. MAP-21 (Pub. L. 112-141, 126
Stat. 405 (2012)) included a number of mandatory, non-discretionary changes to FMCSA programs. Some of these changes amended the financial
security requirements applicable to property brokers and freight forwarders operating under FMCSA's jurisdiction.

Original Notice Questions and Answers
The original notice can be found in the September 5, 2013 Federal Register (FR DOC #: 2013-21539). It has a list of common questions and
responses about the regulation. Here are some interesting excerpts:

Question: Are freight forwarders and brokers required to register with FMCSA?
Answer: Yes. Freight forwarders and brokers that are involved in interstate commerce and subject to FMCSA jurisdiction are required to register with
FMCSA. Freight forwarders that perform both freight forwarder services and motor carrier services (beyond the scope of their freight forwarding
operations) must register both as freight forwarders and as motor carriers. Additionally, as noted in Q1 above, MAP-21 requires motor carriers that
broker loads, even occasionally, to register both as motor carriers and as brokers.

Question: What is the civil penalty for a broker or freight forwarder who engages in interstate operations without the required operating authority
Answer: A broker or freight forwarder who knowingly engages in interstate brokerage or freight forwarding operations without the required operating
authority is liable to the United States for a civil penalty not to exceed $10,000 and can be liable to any injured third party for all valid claims
regardless of the amount (49 U.S.C. 14916(c)). The penalties and liability to injured parties apply jointly and severally to all corporations or
partnerships involved in the transportation and individually to all officers, directors, and principals of these business forms (49 U.S.C. 14916(d)).
Under 49 U.S.C. 14901(d)(3), a broker of household goods (HHG) who engages in interstate operations without the required operating authority is
liable to the United States for a civil penalty of not less than $25,000 for each violation.

Question: May I use group surety bonds or trust funds to satisfy FMCSA's financial responsibility requirement?
Answer: No. Although FMCSA is authorized, pursuant to 49 U.S.C. 13906(b) and (c), to accept group financial security products to meet property
broker and freight forwarder financial responsibility requirements on the condition that those products otherwise meet the requirements set forth in
49 U.S.C. 13906 and 49 CFR part 387, the Agency is not required to accept these group financial security products. At this time, FMCSA is
considering the enforcement implications of group sureties as well as the effect on small entities and new entrants. FMCSA is committed to
reexamining this issue as part of its enforcement phase-in plan described under section C, FMCSA Implementation and Enforcement Timelines,

Question: If my surety bonding company or trustee previously filed Forms BMC-84 or BMC-85, do I need to file a new one reflecting the new $75,000
minimum financial security requirement?
Answer: Yes. All brokers and freight forwarders subject to FMCSA jurisdiction must file new BMC-84 or BMC-85 forms reflecting the new minimum
financial security amount of $75,000 as of October 1, 2013. FMCSA will develop new BMC forms for use by surety bonding companies and trust fund
institutions in advance of the October 1, 2013, deadline.

Question: My company has both broker and freight forwarder authority. Is one $75,000 bond or trust fund sufficient or do I need 2 separate
bonds/trust funds?
Answer: One $75,000 bond or trust fund is sufficient as long as the legal entity holding the authorities is the same. Your company will need to file
separate BMC-84/BMC-85 forms for the broker and freight forwarder operations. However, the underlying bond or trust fund can be the same for both
operations. If your broker and freight forwarder operations are conducted under separate but affiliated companies, each entity must have a separate
bond or trust fund.

Question: MAP-21 says that I have to use a surety bond company that is approved by the U.S. Treasury Department. How do I know whether my
surety bond company is approved by the Treasury Department?
Answer: The Treasury Department's Financial Management Service maintains a list of certified surety bond companies at This and other information about certified surety bond companies can be obtained from the U.S. Department of
the Treasury, Financial Management Service, Surety Bond Branch, 3700 East West Highway, Room 6F01, Hyattsville, MD 20782, Telephone (202)
874-6850 or Fax (202) 874-9978.
Form BMC-91 or BMC-91X    //  Form BMC-34   //  Form BMC-84  //  Form BMC-85  (click here) or (click here) or look below.

Form BMC-91 or BMC-91X for proof of bodily injury and property damage (BI & PD) insurance are both used to make liability filings with the FMCSA.
FMCSA does not provide these forms. The insurance company making the filing maintains their own supply of forms. Many insurance carriers are
set up to make the required insurance filings with FMCSA electronically

Form BMC-34 for proof of cargo liability insurance is used to make cargo insurance filings for household goods carriers with FMCSA. FMCSA do not
provide these forms. The insurance company making the filing maintains their own supply of forms. Many insurance carriers are set up to make the
required insurance filings with FMCSA electronically

Form BMC-84 for broker surety bonds is used to make the bond insurance filing for the broker authority with the FMCSA. FMCSA does not provide
these forms. The insurance company making the filing maintains their own supply of forms. Many insurance carriers are set up to make the required
insurance filings with FMCSA electronically

Form BMC-85 for broker trust fund agreements is used to make the trust agreement for the broker authority with the FMCSA. This form can only be
completed by a financial institution (insured bank, commercial bank or trust company, agency or branch of a foreign bank in the U.S., insured
institution of the National Housing Act, a thrift institution, a loan or finance company).
Where do I go to look up a motor carrier, broker, or freight forwarder's interstate operating authority (active MC Number), insurance or process agent?
Please go to  
FMCSA's Licensing and Insurance site and select “Carrier search” from the pull-down menu. If you do not have access to the internet,
please call 866-637-0635. Select option 2 (automated licensing and insurance status information). (
click here) or (click here)
Motor Carrier Insurance and Insurance Forms  (
click here)  or (click here)
Phone Numbers for Freight Information and Services (
click here)  or  (click here)
Instructions for Completing Form OP-1 (FF)  Application for Freight Forwarder Authority / Who Needs /  (
click here)  or ( click here)
What Is A Freight Broker?

Legal Definition
Broker means a person who, for compensation, arranges, or offers to arrange, the transportation of property by an authorized motor carrier. Motor
carriers, or persons who are employees or bona fide agents of carriers, are not brokers within the meaning of this section when they arrange or offer
to arrange the transportation of shipments which they are authorized to transport and which they have accepted and legally bound themselves to
transport.   CFR: Title 49: Transportation - PART 371 -
Brokers of Property (click here)  or  (click here)

General Definition
A freight broker is an individual or company that serves as a liaison between another individual or company that needs shipping services and an
authorized motor carrier. Though a freight broker plays an important role in the movement of cargo, the broker doesn't function as a shipper or a
carrier. Instead, a freight broker works to determine the needs of a shipper and connects that shipper with a carrier willing to transport the items at
an acceptable price.

To operate as a freight broker, a business or individual must obtain a license from the Federal Motor Carrier Safety Administration (FMCSA). Freight
brokers are required to carry surety bonds as well.

Freight broker services are valuable to both shippers and motor carriers. Freight brokers help shippers find reliable carriers that might otherwise be
difficult to locate. They assist motor carriers in filling their trucks and earning money for transporting a wide variety of items. For their efforts, freight
brokers earn commissions.

Freight brokers use their knowledge of the shipping industry and technological resources to help shippers and carriers accomplish their goals.
Many companies find the services provided by freight brokers indispensable. In fact, some companies hire brokers to coordinate all of their shipping

Often, freight brokers are confused with forwarders. Though a freight forwarder performs some of the same tasks as a freight broker, the two are not
the same. A forwarder takes possession of the items being shipped, consolidates smaller shipments, and arranges for the transportation of the
consolidated shipments. By contrast, a freight broker never takes possession of items being shipped thus in the absence of negligent entrustment,
a freight broker is not normally involved as a party litigant in a cargo claim dispute, although as an accommodation, the freight broker may assist the
shipper at their request and expense with filing freight claims.
By Lawyer:  (keyword SEARCH from google:  truck broker travel agent lawyer)
Freight Brokers, Freight Forwarders and Forwarder-Common Carriers (
click here)  or   (click here)
What is “freight forwarder”?   “transportation broker”?   “non-vessel operating common carrier (“NVOCC”) (
click here) or (click here) or (click here)
Freight Brokers, Freight Forwarders and Forwarder-Common Carriers (
click here) or  (click here)  &  broker is like a travel agent for freight.
A broker (aka:
freight Brocker / property Broker) or freight forwarder who never actually handles the goods, is little more than a "travel agent.
ABN Amro Verzekeringen BV v. Geologistics Americas, Inc., 253 F.Supp.2d 757 (S.D.N.Y., 2003).

Delivery truck driver
SUING customer (Receiver of shipment)   (Puckrein v. ATI Transport,  
Hire by individual / Consignee)
(Freight Broker vs. Freight Forwarder) (click here)
Under US Law (49 U.S. Code § 13102 - Definitions)  a freight forwarder is defined as a carrier and is subject to specific regulations that makes
companies that qualify, superior to those who are qualified solely as a broker.

Carriers that are freight forwarders are entitled to issue their own bill of lading. Some brokers can prepare a bill of lading, but carriers who can issue
them are legally signing for the freight, which reduces your liability.

And technically, a broker’s name may not be in the carrier section of a Bill of Lading.
Freight forwarders also perform assembly and consolidation through both the accumulation of partial load shipments on a single truck and through
the use of LTL carriers to distribute consolidated truckload shipments.

For the purposes of defining whether a forwarder may also offer full truckload service, this issue was decided back in September of 1961 in
EASTERN EXPRESS, INC. v. UNITED STATES in favor of freight forwarders.

Specifically it is in the area of freight loss and damage claims,  a broker may contractually agree to indemnify a shipper on a claim but as a carrier,
but a freight forwarder has the obligation to process claims as defined in the law.

Broker.— The term “broker” means a person, other than a motor carrier or an employee or agent of a motor carrier, that as a principal or agent sells,
offers for sale, negotiates for, or holds itself out by solicitation, advertisement, or otherwise as selling, providing, or arranging for, transportation by
motor carrier for compensation.

Carrier.— The term “carrier” means a motor carrier, a water carrier, and a freight forwarder (emphasis added)

Freight forwarder.— The term “freight forwarder” means a person holding itself out to the general public (other than as a pipeline, rail, motor, or
water carrier) to provide transportation of property for compensation and in the ordinary course of its business.
a.  The ability and the obligation to properly process and pay valid freight claims is a key differentiator.
b.  Freight forwarder (Carrier/Motor Carrier): Publicly publish a rules tariff which clearly lays out a freight forwarder’s obligation.
c.  The ability to issue a bill of lading in the company name.
d.  Carry primary cargo coverage insurance.
e.  Freight Forwarders have the same bonding requirements as a Broker.
f.   Broker may enter into a contract to protect the shipper on freight loss & damage claims, but is not required by law. Unlike a freight forwarder.
g. About 16,000 active brokers in the United States   and   about  1,700 freight forwarders.

The term does not include a person using transportation of an air carrier subject to
part A of subtitle VII.
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