Unified registration of the carrier in the United States of America is mandatory for all owners of commercial vehicles who carry out their activities between states. This applies to all individuals and legal entities involved in this business.
How to register with UCR
If you are just starting a shipping business, you need to learn the rules for enrolling in the program. Here’s the easiest step-by-step guide:
- Count how many vehicles you have that carry cargo or passengers between states. The total weight of the truck must be above 10,000 pounds, and passenger transport must accommodate 10 or more passengers.
- Contact the UCR office.
- Calculate the fee by the number of cars.
- Pay the fee.
Contributions to UCR
Registration obliges program participants to make contributions to UCR. The amount of the contribution depends on the number of vehicles that are involved in the transportation of goods between states. If the company has trucks, but they carry goods only in the redistribution of their state, they are exempt from registration, and you do not need to pay for them.
Not all states of the country are involved in the registration program. It does not include New Jersey, Florida, Nevada, Maryland, D.C., Arizona, Hawaii, Wyoming, Oregon and Vermont. Basing your business in these states does not exempt you from registering with UCR and paying an annual fee. You must do this in a neighbouring or any other state where the program operates.
Amount of annual contributions
The policy of the authorities in the field of cargo transportation can be called flexible. The size of payments in UCR can vary in one direction or another. For example, the Federal Motor Carrier Safety Administration (FMCSA) reduced the amount of contributions for 2019 for carriers with one or two trucks from $ 73 to $ 63. Accordingly, fees have decreased for other categories of carriers, with a large number of vehicles.
The reduction in rates is due to the requirements for adjusting fees. If this year there was a reduction, then last year there was an excess of the permissible threshold of total income. It should be noted that the reduction in contributions is temporary.
How to determine the amount of the contribution
After registering with UCR, the carrier needs to pay a fee corresponding to the category of the business. It is not difficult to calculate the amount of the contribution. It depends on the number of vehicles that carry cargo or passengers from one state to another. Here is a table in which you can easily find the category of your business and the amount of the contribution:
|Number of vehicles for the transportation of goods in between states||The amount of the contribution in dollars|
|1001 and more||73346|
Brokers and leasing companies pay contributions at the minimum rate that owners of up to two vehicles pay.
What threatens those who do not have registration
The UCR program is mandatory for all interstate carriers. The program does not involve 9 states and the District of Columbia. This circumstance does not exempt carriers whose business is registered with them, but they transport goods and passengers to other states. If the UCR does not work in your place, register in a neighbouring state.
The lack of registration and an annual fee is fraught with great trouble. You will have to pay fines that far exceed the amount of the contribution. Even the first violation involves fines from 100 to 5000 dollars, depending on the category of business.
In some cases, the vehicle may be delayed. In order not to risk your business, register in the UCR program on time and pay annual fees.
To become a cargo dispatcher, please contact us.