81 FR 83714 - Lease and Interchange of Vehicles by Mexico-Domiciled Motor Carriers
DEPARTMENT OF TRANSPORTATION
Federal Motor Carrier Safety Administration Federal Register Volume 81, Issue 225 (November 22, 2016)
Federal Motor Carrier Safety Administration
Federal Register Volume 81, Issue 225 (November 22, 2016)
| Page Range | 83714-83714 | |
| FR Document | 2016-28018 |
[Federal Register Volume 81, Number 225 (Tuesday, November 22, 2016)] [Rules and Regulations] [Page 83714] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-28018] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Federal Motor Carrier Safety Administration 49 CFR Part 376 Lease and Interchange of Vehicles by Mexico-Domiciled Motor Carriers AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT. ACTION: Notice on applicability. ----------------------------------------------------------------------- SUMMARY: Section 219(d) of the Motor Carrier Safety Improvement Act of 1999 (MCSIA) restricted Mexico-domiciled motor carriers from leasing commercial motor vehicles (CMVs) to U.S. carriers to transport property into the United States until the international obligations under the North American Free Trade Agreement (NAFTA) chapter on cross-border trade in services were met. Given FMCSA's acceptance of applications for long-haul operating authority from Mexico-domiciled motor carriers following the conclusion of the U.S.-Mexico Cross Border Long-Haul Trucking Pilot Program, the obligations are fulfilled and the restriction is no longer applicable. DATES: Effective November 22, 2016. FOR FURTHER INFORMATION CONTACT: Bryan Price, Chief, North American Borders Division, FMCSA, 1200 New Jersey Avenue SE., Washington, DC 20590-0001. Telephone (202) 366-2995; email [email protected]. SUPPLEMENTARY INFORMATION: Background The Motor Carrier Safety Improvement Act of 1999 \1\ (MCSIA) created FMCSA and transferred authority for motor carrier safety from the Federal Highway Administration. --------------------------------------------------------------------------- \1\ Public Law 106-159, 113 Stat. 1748, 1768, December 9, 1999. --------------------------------------------------------------------------- Section 219(d) prohibited the leasing by a Mexico-domiciled motor carrier (lessor) of its equipment to a U.S. motor carrier (lessee) for operation beyond the commercial zones on the U.S.-Mexico border. This restriction specifically applied ``Before the implementation of the land transportation provisions of NAFTA . . .'' The second clause in section 219(d) further states that this prohibition exists ``during any period in which a suspension, condition, restriction or limitation imposed under section 13902(c) of title 49 . . . applies to a [long- haul] motor carrier (as defined in section 13902(e)).'' Section 13902(c) addresses ``Restrictions on motor carriers domiciled in or owned or controlled by nationals of a contiguous foreign country.'' Section 13902(c)(3) provides that only ``The President'' or his delegate may ``remove or modify in whole or in part any action taken under paragraph (1)(A) if the President or such delegate determines that such removal or modification is consistent with the obligations of the United States under a trade agreement or with United States transportation policy.'' In November 2002, President Bush issued a presidential memorandum lifting the moratorium on granting long-haul operating authority to qualified Mexico-domiciled motor carriers of property and of passengers.\2\ The only limitation that remained following this presidential action was the restriction on point-to- point transportation within the United States, which did not impact the NAFTA land transportation provisions. --------------------------------------------------------------------------- \2\ 67 FR 71795 (November 27, 2002). --------------------------------------------------------------------------- In March 2002, FMCSA issued Interim Final Rules that fulfilled a Congressional mandate to ensure the safe operation of Mexican vehicles in the United States. Several organizations filed suit in the U.S. Court of Appeals for the Ninth Circuit challenging those rules. The Court set aside the rules, and the United States sought Supreme Court review of the decision. In 2004, the Supreme Court reversed the Ninth Circuit and upheld the Agency's Interim Final Rules (Department of Transportation, et al. v. Public Citizen, et al., 541 U.S. 752 (2004)). Congress, however, subsequently passed Section 6901 of the U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act of 2007,\3\ imposing further limitations on the Agency's ability to expend appropriated funds to issue operating authority to Mexico-domiciled motor carriers. The Agency was unable to process applications for long-haul operating authority from Mexico-domiciled motor carriers until a pilot program was completed pursuant to these new requirements. --------------------------------------------------------------------------- \3\ Public Law 110-28, 121 Stat. 112, 183, (May 25, 2007). --------------------------------------------------------------------------- From October 14, 2011, through October 10, 2014, FMCSA conducted a pilot program to determine the ability of Mexican motor carriers to operate safely in the United States. FMCSA delivered the requisite report to Congress in January, 2015. On January 15, 2015 (80 FR 2179), FMCSA announced that it would begin accepting and processing applications for long-haul operating authority from Mexico-domiciled property carriers under 49 U.S.C. 13902. Because Mexico-domiciled motor carriers may now apply for and receive long-haul operating authority, the land transportation provisions of NAFTA for property carriers have been implemented. Therefore, the previous leasing restrictions are not applicable, consistent with Section 219(d) of MCSIA. This notice is being issued to prevent inconsistent enforcement of a law that is no longer applicable. It also serves to inform all motor carriers and the general public that, in accordance with NAFTA and MCSIA, Mexican-domiciled motor carriers (lessors) are allowed to lease their equipment to U.S. motor carriers (lessees) regardless of the destination of the cargo, as long as the carriers meet the requirements of 49 CFR part 376. Included in part 376 are requirements that the ``authorized carrier'' (in this case, the U.S. motor carrier) assume ``complete responsibility for the operation of the equipment for the duration of the lease'' [49 CFR 376.12(c)]. These types of leasing arrangements are compliant with MCSIA and the Agency's regulations. Issued on: November 9, 2016. T.F. Scott Darling, III, Acting Administrator. [FR Doc. 2016-28018 Filed 11-21-16; 8:45 am] BILLING CODE 4910-EX-P
![83714 Federal Register / Vol. 81, No. 225 / Tuesday, November 22, 2016 / Rules and Regulations
and 1.429, that this Order, Is Adopted, Background Readiness, Veterans’ Care, Katrina
effective thirty (30) days after The Motor Carrier Safety Recovery, and Iraq Accountability
publication of the text or summary Improvement Act of 1999 1 (MCSIA) Appropriations Act of 2007,3 imposing
thereof in the Federal Register, except created FMCSA and transferred further limitations on the Agency’s
for the certification in paragraph 33, authority for motor carrier safety from ability to expend appropriated funds to
which contains information collections the Federal Highway Administration. issue operating authority to Mexico-
subject to PRA review and Shall Become Section 219(d) prohibited the leasing domiciled motor carriers. The Agency
Effective immediately upon by a Mexico-domiciled motor carrier was unable to process applications for
announcement in the Federal Register (lessor) of its equipment to a U.S. motor long-haul operating authority from
of OMB approval. carrier (lessee) for operation beyond the Mexico-domiciled motor carriers until a
67. It is further ordered that the commercial zones on the U.S.-Mexico pilot program was completed pursuant
Commission Shall Send a copy of this border. This restriction specifically to these new requirements.
Order to Congress and the Government applied ‘‘Before the implementation of
the land transportation provisions of From October 14, 2011, through
Accountability Office pursuant to the October 10, 2014, FMCSA conducted a
NAFTA . . .’’ The second clause in
Congressional Review Act, see 5 U.S.C. pilot program to determine the ability of
section 219(d) further states that this
801(a)(1)(A). Mexican motor carriers to operate safely
prohibition exists ‘‘during any period in
Federal Communications Commission. which a suspension, condition, in the United States. FMCSA delivered
Marlene H. Dortch, restriction or limitation imposed under the requisite report to Congress in
Secretary. section 13902(c) of title 49 . . . applies January, 2015. On January 15, 2015 (80
[FR Doc. 2016–28114 Filed 11–21–16; 8:45 am]
to a [long-haul] motor carrier (as defined FR 2179), FMCSA announced that it
in section 13902(e)).’’ Section 13902(c) would begin accepting and processing
BILLING CODE 6712–01–P
addresses ‘‘Restrictions on motor applications for long-haul operating
carriers domiciled in or owned or authority from Mexico-domiciled
controlled by nationals of a contiguous property carriers under 49 U.S.C. 13902.
foreign country.’’
DEPARTMENT OF TRANSPORTATION Section 13902(c)(3) provides that only Because Mexico-domiciled motor
‘‘The President’’ or his delegate may carriers may now apply for and receive
Federal Motor Carrier Safety ‘‘remove or modify in whole or in part long-haul operating authority, the land
Administration any action taken under paragraph (1)(A) transportation provisions of NAFTA for
if the President or such delegate property carriers have been
49 CFR Part 376 determines that such removal or implemented. Therefore, the previous
modification is consistent with the leasing restrictions are not applicable,
Lease and Interchange of Vehicles by obligations of the United States under a consistent with Section 219(d) of
Mexico-Domiciled Motor Carriers trade agreement or with United States MCSIA.
transportation policy.’’ In November This notice is being issued to prevent
AGENCY:Federal Motor Carrier Safety 2002, President Bush issued a
Administration (FMCSA), DOT. inconsistent enforcement of a law that is
presidential memorandum lifting the no longer applicable. It also serves to
ACTION: Notice on applicability. moratorium on granting long-haul
inform all motor carriers and the general
operating authority to qualified Mexico-
public that, in accordance with NAFTA
SUMMARY: Section 219(d) of the Motor domiciled motor carriers of property
and of passengers.2 The only limitation and MCSIA, Mexican-domiciled motor
Carrier Safety Improvement Act of 1999 carriers (lessors) are allowed to lease
(MCSIA) restricted Mexico-domiciled that remained following this
presidential action was the restriction their equipment to U.S. motor carriers
motor carriers from leasing commercial (lessees) regardless of the destination of
motor vehicles (CMVs) to U.S. carriers on point-to-point transportation within
the United States, which did not impact the cargo, as long as the carriers meet
to transport property into the United the requirements of 49 CFR part 376.
States until the international obligations the NAFTA land transportation
provisions. Included in part 376 are requirements
under the North American Free Trade In March 2002, FMCSA issued that the ‘‘authorized carrier’’ (in this
Agreement (NAFTA) chapter on cross- Interim Final Rules that fulfilled a case, the U.S. motor carrier) assume
border trade in services were met. Given Congressional mandate to ensure the ‘‘complete responsibility for the
FMCSA’s acceptance of applications for safe operation of Mexican vehicles in operation of the equipment for the
long-haul operating authority from the United States. Several organizations duration of the lease’’ [49 CFR
Mexico-domiciled motor carriers filed suit in the U.S. Court of Appeals 376.12(c)]. These types of leasing
following the conclusion of the U.S.- for the Ninth Circuit challenging those
Mexico Cross Border Long-Haul arrangements are compliant with
rules. The Court set aside the rules, and MCSIA and the Agency’s regulations.
Trucking Pilot Program, the obligations the United States sought Supreme Court
are fulfilled and the restriction is no review of the decision. In 2004, the Issued on: November 9, 2016.
longer applicable. Supreme Court reversed the Ninth T.F. Scott Darling, III,
DATES: Effective November 22, 2016. Circuit and upheld the Agency’s Interim Acting Administrator.
Final Rules (Department of [FR Doc. 2016–28018 Filed 11–21–16; 8:45 am]
FOR FURTHER INFORMATION CONTACT: Transportation, et al. v. Public Citizen,
sradovich on DSK3GMQ082PROD with RULES
BILLING CODE 4910–EX–P
Bryan Price, Chief, North American et al., 541 U.S. 752 (2004)).
Borders Division, FMCSA, 1200 New Congress, however, subsequently
Jersey Avenue SE., Washington, DC passed Section 6901 of the U.S. Troop
20590–0001. Telephone (202) 366–2995;
email bryan.price@dot.gov. 1 Public Law 106–159, 113 Stat. 1748, 1768,
December 9, 1999. 3 Public Law 110–28, 121 Stat. 112, 183, (May 25,
SUPPLEMENTARY INFORMATION: 2 67 FR 71795 (November 27, 2002). 2007).
VerDate Sep<11>2014 16:34 Nov 21, 2016 Jkt 241001 PO 00000 Frm 00090 Fmt 4700 Sfmt 9990 E:\FR\FM\22NOR1.SGM 22NOR1](https://thefederalregister.org/doc/81_FR_83939/page/1.svg)
Document Created: 2018-02-14 08:29:09
Document Modified: 2018-02-14 08:29:09
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Notice on applicability. | |
| Dates | Effective November 22, 2016. | |
| Contact | Bryan Price, Chief, North American Borders Division, FMCSA, 1200 New Jersey Avenue SE., Washington, DC 20590-0001. Telephone (202) 366-2995; email [email protected] | |
| FR Citation | 81 FR 83714 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR