Attachment B - 49 U.S.C. 13903

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§ 13903

TITLE 49—TRANSPORTATION

tiously process applications, submitted by enterprises
domiciled in the United States that are owned or controlled by persons of Mexico, to obtain operating authority to provide truck services for the transportation
of international cargo between points in the United
States or to provide bus services between points in the
United States.
Motor carriers domiciled in the United States that
are owned or controlled by persons of Mexico will be
subject to the same Federal and State regulations and
procedures that apply to all other U.S. carriers. These
include safety regulations, such as drug and alcohol
testing; insurance requirements; taxes and fees; and all
other applicable laws and regulations, including those
administered by the U.S. Customs Service, the Immigration and Naturalization Service, and the Department of Labor.
This memorandum shall be published in the Federal
Register.
GEORGE W. BUSH.
Memorandum of President of the United States, Nov.
27, 2002, 67 F.R. 71795, provided:
Memorandum for the Secretary of Transportation
Section 6 of the Bus Regulatory Reform Act of 1982,
Public Law 97–261, 96 Stat. 1103 [see former 49 U.S.C.
10922(m)(1), (2)], imposed a moratorium on the issuance
of certificates or permits to motor carriers domiciled
in, or owned or controlled by persons of, a contiguous
foreign country and authorized the President to modify
the moratorium. The Interstate Commerce Commission
Termination Act of 1995 (ICCTA), Public Law 104–88, 109
Stat. 803 [ICC Termination Act of 1995, see Tables for
classification], maintained these restrictions, subject
to modifications made prior to the enactment of the
ICCTA [Dec. 29, 1995], and empowered the President to
make further modifications to the moratorium.
Pursuant to 49 U.S.C. 13902(c)(3), I modified the moratorium on June 5, 2001, to allow motor carriers domiciled in the United States that are owned or controlled
by persons of Mexico to obtain operating authority to
transport international cargo by truck between points
in the United States and to provide bus services between points in the United States.
The North American Free Trade Agreement (NAFTA)
established a schedule for liberalizing certain restrictions on the provision of bus and truck services by
Mexican-domiciled motor carriers in the United States.
Pursuant to 49 U.S.C. 13902(c)(3), I hereby determine
that the following modifications to the moratorium are
consistent with obligations of the United States under
NAFTA and with our national transportation policy
and that the moratorium shall be modified accordingly.
First, qualified motor carriers domiciled in Mexico
will be allowed to obtain operating authority to transport passengers in cross-border scheduled bus services.
Second, qualified motor carriers domiciled in Mexico
will be allowed to obtain operating authority to provide cross-border truck services. The moratorium on
the issuance of certificates or permits to Mexican-domiciled motor carriers for the provision of truck or bus
services between points in the United States will remain in place. These modifications shall be effective on
the date of this memorandum.
Furthermore, pursuant to 49 U.S.C. 13902(c)(5), I hereby determine that expeditious action is required to implement this modification to the moratorium. Effective
on the date of this memorandum, the Department of
Transportation is authorized to act on applications,
submitted by motor carriers domiciled in Mexico, to
obtain operating authority to provide cross-border
scheduled bus services and cross-border truck services.
In reviewing such applications, the Department shall
continue to work closely with the Department of Justice, the Office of Homeland Security, and other relevant Federal departments, agencies, and offices in
order to help ensure the security of the border and to
prevent potential threats to national security.
Motor carriers domiciled in Mexico operating in the
United States will be subject to the same Federal and

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State laws, regulations, and procedures that apply to
carriers domiciled in the United States. These include
safety regulations, such as drug and alcohol testing requirements; insurance requirements; taxes and fees;
and other applicable laws and regulations, including
those administered by the United States Customs Service, the Immigration and Naturalization Service, the
Department of Labor, and Federal and State environmental agencies.
You are authorized and directed to publish this
memorandum in the Federal Register.
GEORGE W. BUSH.

§ 13903. Registration of freight forwarders
(a) IN GENERAL.—The Secretary shall register
a person to provide service subject to jurisdiction under subchapter III of chapter 135 as a
freight forwarder if the Secretary determines
that the person—
(1) has sufficient experience to qualify the
person to act as a freight forwarder; and
(2) is fit, willing, and able to provide the
service and to comply with this part and applicable regulations of the Secretary.
(b) DURATION.—A registration issued under
subsection (a) shall only remain in effect while
the freight forwarder is in compliance with section 13906(c).
(c) EXPERIENCE OR TRAINING REQUIREMENT.—
Each freight forwarder shall employ, as an officer, an individual who—
(1) has at least 3 years of relevant experience; or
(2) provides the Secretary with satisfactory
evidence of the individual’s knowledge of related rules, regulations, and industry practices.
(d) REGISTRATION AS MOTOR CARRIER REQUIRED.—A freight forwarder may not provide
transportation as a motor carrier unless the
freight forwarder has registered separately
under this chapter to provide transportation as
a motor carrier.
(e) UPDATE OF REGISTRATION.—The Secretary
shall require a freight forwarder to update its
registration under this section not later than 30
days after a change in the freight forwarder’s
address, other contact information, officers,
process agent, or other essential information, as
determined by the Secretary.
(Added Pub. L. 104–88, title I, § 103, Dec. 29, 1995,
109 Stat. 884; amended Pub. L. 109–59, title IV,
§ 4142(b), Aug. 10, 2005, 119 Stat. 1747; Pub. L.
110–244, title III, § 305(d), June 6, 2008, 122 Stat.
1620; Pub. L. 112–141, div. C, title II, §§ 32107(b),
32916(a), July 6, 2012, 126 Stat. 782, 820; Pub. L.
114–94, div. A, title V, § 5508(a)(2), Dec. 4, 2015, 129
Stat. 1554.)
AMENDMENTS
2015—Subsec. (d). Pub. L. 114–94 struck out par. (1)
designation and heading before ‘‘A freight forwarder’’.
2012—Subsec. (a). Pub. L. 112–141, § 32916(a)(1), substituted ‘‘determines that the person—’’ for ‘‘finds that
the person is fit’’, added par. (1), inserted par. (2) designation and ‘‘is fit’’ before ‘‘, willing’’, and, in par. (2),
struck out ‘‘and the Board’’ after ‘‘Secretary’’.
Subsec. (b). Pub. L. 112–141, § 32916(a)(3), added subsec.
(b). Former subsec. (b) redesignated (d).
Subsec. (c). Pub. L. 112–141, § 32916(a)(3), added subsec.
(c). Former subsec. (c) redesignated (e).
Pub. L. 112–141, § 32107(b), added subsec. (c).

Page 415

§ 13904

TITLE 49—TRANSPORTATION

Subsec. (d). Pub. L. 112–141, § 32916(a)(4), amended subsec. (d) generally. Prior to amendment, text read as follows: ‘‘The freight forwarder may provide transportation as the carrier itself only if the freight forwarder
also has registered to provide transportation as a carrier under this chapter.’’
Pub. L. 112–141, § 32916(a)(2), redesignated subsec. (b)
as (d).
Subsec. (e). Pub. L. 112–141, § 32916(a)(2), redesignated
subsec. (c) as (e).
2008—Subsec. (a). Pub. L. 110–244 amended subsec. (a)
generally. Prior to amendment, text read as follows:
‘‘(1) HOUSEHOLD GOODS.—The Secretary shall register
a person to provide service subject to jurisdiction under
subchapter III of chapter 135 as a freight forwarder of
household goods if the Secretary finds that the person
is fit, willing, and able to provide the service and to
comply with this part and applicable regulations of the
Secretary and the Board.
‘‘(2) OTHERS.—The Secretary may register a person to
provide service subject to jurisdiction under subchapter
III of chapter 135 as a freight forwarder (other than a
freight forwarder of household goods) if the Secretary
finds that such registration is needed for the protection
of shippers and that the person is fit, willing, and able
to provide the service and to comply with this part and
applicable regulations of the Secretary and Board.’’
2005—Subsec. (a). Pub. L. 109–59 designated existing
provisions as par. (1) and inserted heading, inserted ‘‘of
household goods’’ after ‘‘freight forwarder’’, and added
par. (2).
EFFECTIVE DATE OF 2015 AMENDMENT
Amendment by Pub. L. 114–94 effective Oct. 1, 2015,
see section 1003 of Pub. L. 114–94, set out as a note
under section 5313 of Title 5, Government Organization
and Employees.
EFFECTIVE DATE OF 2012 AMENDMENT
Amendment by Pub. L. 112–141 effective Oct. 1, 2012,
see section 3(a) of Pub. L. 112–141, set out as an Effective and Termination Dates of 2012 Amendment note
under section 101 of Title 23, Highways.
FINANCIAL RESPONSIBILITY REQUIREMENTS
Pub. L. 112–141, div. C, title II, § 32104, July 6, 2012, 126
Stat. 780, provided that: ‘‘Not later than 6 months after
the date of enactment of this Act [see section 3(a), (b)
of Pub. L. 112–141, set out as Effective and Termination
Dates of 2012 Amendment notes under section 101 of
Title 23, Highways], and every 4 years thereafter, the
Secretary shall—
‘‘(1) issue a report on the appropriateness of—
‘‘(A) the current minimum financial responsibility requirements under sections 31138 and 31139 of
title 49, United States Code; and
‘‘(B) the current bond and insurance requirements
under sections 13904(f), 13903, and 13906 of title 49,
United States Code; and
‘‘(2) submit the report issued under paragraph (1) to
the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives.’’

§ 13904. Registration of brokers
(a) IN GENERAL.—The Secretary shall register,
subject to section 13906(b), a person to be a
broker for transportation of property subject to
jurisdiction under subchapter I of chapter 135, if
the Secretary determines that the person—
(1) has sufficient experience to qualify the
person to act as a broker for transportation;
and
(2) is fit, willing, and able to be a broker for
transportation and to comply with this part
and applicable regulations of the Secretary.

(b) DURATION.—A registration issued under
subsection (a) shall only remain in effect while
the broker for transportation is in compliance
with section 13906(b).
(c) EXPERIENCE OR TRAINING REQUIREMENTS.—
Each broker shall employ, as an officer, an individual who—
(1) has at least 3 years of relevant experience; or
(2) provides the Secretary with satisfactory
evidence of the individual’s knowledge of related rules, regulations, and industry practices.
(d) REGISTRATION AS MOTOR CARRIER REQUIRED.—
(1) IN GENERAL.—A broker for transportation
may not provide transportation as a motor
carrier unless the broker has registered separately under this chapter to provide transportation as a motor carrier.
(2) LIMITATION.—This subsection does not
apply to a motor carrier registered under this
chapter or to an employee or agent of the
motor carrier to the extent the transportation
is to be provided entirely by the motor carrier,
with other registered motor carriers, or with
rail or water carriers.
(e) REGULATION TO PROTECT MOTOR CARRIERS
AND SHIPPERS.—Regulations of the Secretary applicable to brokers registered under this section
shall provide for the protection of motor carriers and shippers by motor vehicle.
(f) BOND AND INSURANCE.—The Secretary may
impose on brokers for motor carriers of passengers such requirements for bonds or insurance or both as the Secretary determines are
needed to protect passengers and carriers dealing with such brokers.
(g) UPDATE OF REGISTRATION.—The Secretary
shall require a broker to update its registration
under this section not later than 30 days after a
change in the broker’s address, other contact information, officers, process agent, or other essential information, as determined by the Secretary.
(Added Pub. L. 104–88, title I, § 103, Dec. 29, 1995,
109 Stat. 884; amended Pub. L. 109–59, title IV,
§ 4142(c), Aug. 10, 2005, 119 Stat. 1747; Pub. L.
110–244, title III, § 305(e), June 6, 2008, 122 Stat.
1620; Pub. L. 112–141, div. C, title II, §§ 32107(c),
32916(b), July 6, 2012, 126 Stat. 782, 821.)
AMENDMENTS
2012—Subsec. (a). Pub. L. 112–141, § 32916(b)(1), substituted ‘‘determines that the person—’’ for ‘‘finds that
the person is fit’’, added par. (1), and inserted par. (2)
designation and ‘‘is fit’’ before ‘‘, willing’’.
Subsecs. (b), (c). Pub. L. 112–141, § 32916(b)(3), added
subsecs. (b) and (c). Former subsecs. (b) and (c) redesignated (d) and (e), respectively.
Subsec. (d). Pub. L. 112–141, § 32916(b)(4), amended subsec. (d) generally. Prior to amendment, text read as follows:
‘‘(1) IN GENERAL.—The broker may provide the transportation itself only if the broker also has been registered to provide the transportation as a motor carrier
under this chapter.
‘‘(2) LIMITATION.—This subsection does not apply to a
motor carrier registered under this chapter or to an
employee or agent of the motor carrier to the extent
the transportation is to be provided entirely by the
motor carrier, with other registered motor carriers, or
with rail or water carriers.’’