Need a clarification on Cabotage rule

No. You cannot point to point in the US as a Canadian driver. Just like US drivers cannot do it here. Although CBSA seems to want to not bother enforcing that ruling on our soil.

If you were to run like this it would be OK.

Pickup in TO.
Deliver PART load in Chicago.
Pickup PART load to be returning to CANADA.
Deliver other PART load FROM CANADA to Laredo.
Pickup another PART load in Laredo returning to CANADA.

That is legal as you are not picking up a load in the US for delivery in the US.

 

No. Such a move is not legal under the rules.

This is not an incidental load.

 

I used to do this quite a bit. It's basically how many companies with yards in Laredo,El Paso and Otay Messa get their trailers out of there.


As long as the freight going to Laredo,Tx will be crossing the border into Mexico,then you are O.K.(this would be the international transfer refered to in the law).


You can also pick up a load that originates in Mexico and deliver it to a point in the US.


As long as the loads destination or origin(it can be one or the other) doesn't occur in the US it can be delivered in the US.

For you to be asked to do this,you most likely work for a company with a drop yard in Laredo? Celadon,BLM,C.A.T,Keypoint,Holmes?

 

Surely "incidental" in this context means an action without which the export part of the trip is impossible, such as, for example, picking up and delivering parts for an item intended for export, and then loading, and delivering, the completed product.

Hitherto, I had always thought it was illegal for a foreign vehicle to engage in domestic traffic, in either country. Where does your quote (#4) come from?

 

Technical violation.

It makes no difference whether the load delivered in Laredo ends up in Mexico. If the load is dropped by the carrier in Laredo, it is the point of delivery and makes it a us point to point load.

 

No, it's not a poiny of delivery, rather it's a point of INTERLINE for furtherance to Mexico with another carrier.

 

The following document only paraphrases the regulations on cabotage of the Immigration
and Naturalization Service and the U.S Customs Service. The contents may not be relied
upon as a substitute for the official regulations. Although the FMCSA makes every effort to
assure that the information provided is complete an accurate, it is not intended to take the
place of published regulations of the Immigration and Naturalization Service or the U.S.
Customs Service. For questions on those regulations, contact the U.S Customs Service, Office
of Regulations and Rulings, 202-927-1327 or Immigration and Naturalization Service, ​

Office
of Inspections, 202-514-3019. You may also contact them through the link to their website
below.​

www.ins.usdoj.gov/graphics/index.htm
www.customs.treas.gov​

Cabotage Rules for Canadian-Based Drivers​

The U.S. Customs and the Immigration and Naturalization Service (INS) are responsible for the
development and enforcement of cabotage restrictions relating to surface transportation in the
United States. Cabotage refers to the point-to-point transportation of property or passengers.
Canadian motor carriers are required to comply with U.S. Customs rules and regulations relating
to cabotage while in the U.S. Canadian drivers are required to comply with INS rules and
regulations relating to entry into the U.S. and performance of work while in the U.S.
It should be noted that while in most cases INS and U.S. Customs regulations are intended to be
consistent, differences between the regulations do exist. To be in full compliance, both the
Canadian driver and the Canadian-based vehicle must comply with the appropriate regulations.
The following is synopsis of U.S. Customs and INS rules and regulations relating to cabotage
and Canadian driver requirements​

U.S. Customs Requirements:​

1. ​

Domestic Moves. Generally, Canadian carriers are prohibited from engaging in
domestic traffic in the U.S. Canadian carriers are allowed to make international moves.
Determination of the type of traffic (international or domestic) is based on the origin and
destination of the cargo. Vehicles engaged in the transportation of cargo originating in
Canada and terminating in the U.S. or Mexico is considered an international move. This
includes vehicles transporting cargo for only a part of the complete international trip.
2. Repositioning of Empty Vehicles. The movement of empty vehicles between two
points in the U.S. is not considered a domestic move. The U.S. Customs no longer
defines an empty vehicle as Amerchandise@ and, therefore, the repositioning of empty
vehicles does not involve the transportation of merchandise. Canadian carriers are
allowed to reposition empty vehicles within the U.S.
3. In-Transit Cargo. In-transit cargo refers to the transportation of merchandise having
both a U.S. origin and destination that travels through Canada. For example,
merchandise transported between Buffalo, NY and Detroit, MI that goes through Ontario
is in-transit cargo. The transportation of in-transit cargo either entering or leaving the
U.S. on Canadian-based vehicles is allowed provided either prior or subsequent transport
is performed by U.S-based vehicles. Using the example above, a Canadian carrier would
be allowed to transport merchandise with an origin of Buffalo, NY and a destination of
Detroit, MI provided some portion of the trip was performed by a U.S.-based carrier
(Buffalo, NY to Windsor, ON on a Canadian-based vehicle; Windsor, ON to Detroit, MI
on a U.S.-based vehicle).
4. Use of Canadian-based Vehicles for Domestic Transportation. Generally, the use of
Canadian-based vehicles for domestic movement of merchandise is prohibited. There is
one exception. A domestic movement incidental to the immediate prior or subsequent
engagement of a vehicle in international transportation is allowed. Incidental is defined
as Ain the general direction of an export move or as part of the return movement to their
base country@. It includes a movement en route to the pick-up of an export move. For
example, a Toronto, ON-based carrier transports merchandise originating in Toronto and
terminating in Miami, FL. The vehicle can then be used to pick up merchandise in Miami
for delivery to St Louis, MO (a domestic move) where an export move will be picked up
for delivery to Canada. The movement of merchandise from Miami to St Louis is
considered incidental to the immediate prior or subsequent engagement of such vehicle in
international transportation. The Canadian-based vehicle can also transport a domestic
move in the general direction of an export move and then immediately return empty to
Canada.
The purpose of this change in cabotage regulations was to allow more efficient and economical
utilization of vehicles both domestically and internationally.​

INS Requirements:​

1. ​

Temporary Visitors for Business. Canadian truck drivers must meet the general entry
requirements as a visitor for business. The requirements include:​

$ ​

have a residence in a foreign country which he or she has no intention of
abandoning,​

$ ​

intend to depart the U.S. at the end of the authorized period of temporary
admission,​

$ ​

have adequate financial means to carry out the purpose of the visit to and
departure from the U.S., and​

$ ​

establish that he or she is not inadmissible to the U.S. under the provisions of
section 212(a) of the Immigration and Naturalization Act, which includes such
grounds of inadmissibility as health-related, criminal, subversive, public charge,
improper manner of arrival or improper documents, other immigration violations,
and several other categories of ineligibility.
2. Documentary Requirements. Each applicant for admission as a visitor for business is
required to satisfy the inspecting officer of his or her citizenship. An oral declaration may
be accepted or the inspecting officer may request supporting documentation. Such
documentation may include, but is not limited to, a passport, a birth certificate, or a
certificate of citizenship.
3. Key Principles Relating to Cabotage.​

$ ​

Drivers may be admitted to deliver or pick-up cargo traveling in the stream of
international commerce.​

$ ​

Drivers may not engage in point-to-point hauling within the U.S.​

$ ​

Drivers may not engage in any activity that qualifies as local labor for hire.
4. INS Regulations. Canadian-based drivers may transport goods or passengers to the
U.S. from Canada if all goods or passengers to be delivered were loaded in Canada.
Likewise, Canadian-based drivers may load and transport goods or passengers from the
U.S. to Canada provided no unloading occurs in the U.S. They may also load goods or
passengers at various locations in the U.S. only if all goods and passengers will be
unloaded in a foreign country.
Purely domestic service (point-to-point within the U.S.) is not permitted.
Solicitation, in competition with U.S. operators, is not permitted. This means that a
Canadian-based driver cannot solicit a return load for delivery to Canada while in the
U.S. Any return load must be pre-arranged.
5. Examples of Permissible Movements by Canadian-based Drivers.​

$ ​

A shipment from Canada to one or more locations within the U.S.​

$ ​

A return shipment from one or more U.S. pick-up locations for delivery to Canada
provided the pick-ups were pre-arranged.​

$ ​

Delivery of a shipment from Canada to the U.S., drive with the same empty trailer
to another U.S. location, live load that trailer for delivery to Canada.​

$ ​

Delivery of a shipment from Canada to the U.S., drive with the same empty trailer
to another U.S. location, drop the trailer, pick up a second loaded trailer for
delivery to Canada.​

$ ​

Delivery of a shipment from Canada to the U.S., pick up a different empty trailer
and drive to another U.S. location, live load that trailer for delivery to Canada.​

$ ​

Delivery of a loaded trailer from Canada to one U.S. location, drive the tractor
(with no trailer) to another U.S. location to pick up a loaded trailer for delivery to
Canada.​

$ ​

Canadian relay drivers may drive entirely domestic segments of an international
move. For example, a Canadian driver may drive a vehicle (transporting an
international shipment originating in New York City and destined for Montreal,
PQ) from New York City to Albany, NY where another Canadian driver takes
over and completes the trip by driving from Albany, NY to Montreal, PQ. The,
driver does not need to enter the U.S. with the vehicle, but must enter within a
reasonable period.​

$ ​

Drivers may perform activities that are Anecessary incidents@ of international
commerce, such as loading or unloading international cargo.​

$ ​

Drivers may be paid by a U.S. carrier/employer, provided the driver is engaged
solely in the international delivery of goods and cargo to or from the U.S. The
driver must qualify as a visitor for business.
6. Examples of Movements Not Permitted by Canadian-based Drivers.​

$ ​

Pick up a shipment at one U.S. location for delivery to another U.S. location​

$ ​

Reposition an empty trailer between two points in the U.S. when the driver did not
either enter with or depart with that trailer.​

$ ​

Pick up additional domestic shipments to fill up a partially filled trailer carrying
an international shipment.​

$ ​

Solicit shipments for delivery while in the U.S.​

Conflicts Involving U.S. Customs and INS Regulations​

U.S. Customs regulations allow for Canadian-based vehicles to transport domestic shipments
(point-to-point in the U.S.) when the shipment is incidental to the immediate prior or subsequent
engagement of the vehicle in an international movement. INS regulations do not allow a
Canadian-based driver to pick up a shipment at a U.S. location for delivery to another U.S.
location. It should be noted that the U.S. Customs regulations provide that the Canadian-based
driver must be in compliance with the applicable INS regulations to operate a vehicle in this type
of move. Because the INS regulation prohibits this type of move, in effect, the U.S. Customs
regulation is moot at the present time.
U.S. Customs regulations do not consider the repositioning of any empty trailers domestic
transportation and allow Canadian-based drivers to execute such movements. INS regulations
prohibit Canadian-based drivers from repositioning empty trailers unless the driver either entered
with or departed with that trailer.​

Relevant Reference Material​

$ ​

U.S. Customs Notice dated October 1, 1997​

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U.S. Customs Memorandum dated May 8, 1998​

$ ​

Treasury Decision (T.D.) 99-10 published in the Federal Register dated February 16,
1999​

$ ​

19 USC 1592​

$ 19 CFR 123.14

 

I would not even consider it. If it were offered to me in Canada for the same effect, I would walk away.

It is a violation.