• Companies must file an MCSA-1 with the Federal Motor Carrier Safety Administration using the Unified Registration System and receive a U.S. Department of Transportation number to begin operations as an interstate carrier — or as an intrastate carrier transporting hazardous materials requiring a safety permit.
• The new entrant registration process requires motor carriers to be subject to an 18-month monitoring period. The carrier’s roadside safety performance will be closely monitored during this period to ensure their basic safety management controls are operating effectively.
• A carrier’s permanent authority begins at the end of the 18-month monitoring period when they pass the safety audit and do not have any outstanding civil penalties.

To begin operations as an interstate carrier — or as an intrastate carrier transporting hazardous materials requiring a safety permit, the company must file an MCSA-1 with the Federal Motor Carrier Safety Administration (FMCSA) using the Unified Registration System (URS) and receive a U.S. Department of Transportation (USDOT) number. Once activated, this number or registration allows the company to operate commercial vehicles. It will not be activated until all the initial filing requirements are completed. The initial registration form is much more in-depth than the subsequent required updates.

Registration requires basic company demographics to be provided. This information is not directly used for safety scoring but does provide information that is helpful to the FMCSA for studies and investigations.

The full legal business name as it appears on the articles of organization, or the complete corporate name as it appears on the incorporation certificate must be included in the registration – complete with any suffixes. The name cannot be a related entity or a tradename, the FMCSA needs to know the entity that is responsible for the safe operation of the vehicles.

The form also allows a separate entry of a single trade name or doing business name (DBA). This entry can have a benefit in how the vehicles are marked. When the tradename or DBA is included on the registration, the vehicles can be marked with either the legal name or the trade name. Before including a tradename on the registration, be aware that tradename laws can vary from state to state.

This principal address on the form must be a physical address (not a P.O. box). This is the address used by FMCSA for on-site visits for the purpose of conducting safety audits, investigations, and other activities. For this reason, it cannot be the address of a consultant, service agent, or an attorney unless they also engage in operations at that location. If the mailing address is different than the physical address, there is another line to include it.

What is the new entrant process to become a motor carrier?

After being issued a new entrant registration, the carrier is subject to an 18-month safety-monitoring period. During this safety monitoring period, the carrier’s roadside safety performance will be closely monitored to ensure the carrier’s basic safety management controls are operating effectively. Also, during this safety-monitoring period, the motor carrier (MC) will receive a safety audit.

A safety audit will be conducted on the new entrant once it has been in operation for enough time to have sufficient records to allow the agency to evaluate the adequacy of its basic safety management controls. This period will generally be at least three months. Typically, the safety audit occurs within the first 12 months of operation.

The carrier may be subjected to an expedited safety audit or compliance review if any of seven violations listed in 385.308 are discovered during a roadside inspection or by any other means.

The violations include, but are not limited to, using a driver who does not possess a valid commercial driver’s license, operating a vehicle placed out of service, being involved in certain hazardous materials reportable incidents, and operating a commercial motor vehicle (CMV) without appropriate levels of financial responsibility. The entire list of violations may be found in 385.308.

The safety audit will be conducted by a state or federal auditor who will review the carrier’s safety management system. The areas of review include, but are not limited to, the following:

• Driver qualification;
• Driver duty status;
• Vehicle maintenance;
• Accident register; and
• Controlled substances and alcohol use and testing requirements.

The FMCSA will notify the carrier of the results of the safety audit within 45 days.

If FMCSA determines the new entrant has adequate basic safety management controls, the new entrant will be notified and will continue to be monitored for the remainder of the 18-month safety-monitoring period.

If FMCSA determines the new entrant does not have adequate basic safety management controls, the new entrant will be notified that its new entrant registration will be revoked and its operations placed out of service unless the new entrant takes specific actions to remedy its safety practices.

A new entrant will automatically fail a safety audit and will receive notice that its USDOT new entrant registration will be revoked if found in violation of any of one of 16 regulations listed in 385.321.

These violations include, but are not limited to, non-compliance with alcohol and controlled substance regulations, using a driver who does not possess a valid commercial driver’s license, using an unqualified driver, and failing to require a driver to complete a daily log. The entire list of violations may be found in 385.321.

All new entrant MCs must complete an application package consisting of an MCSA-1 online-only form. The online form is available at fmcsa.dot.gov/registration. This online-only form was the result of the FMCSA’s URS.

For-hire MCs must also pay a $300 filing fee to obtain regulated for-hire carrier authority.

Once the application package is completed, the carrier will be granted new entrant registration (USDOT number).

Electronic filing is available using the Safer System at http://safer.fmcsa.dot.gov/.

The regulations governing registering as a new entrant are found at 385 Subpart D. The Safety audit criteria is found in 385 Appendix A.

When does a new entrant status end and permanent authority begin?

A new entrant will be notified in writing that new entrant designation will be removed from their registration at the end of the 18-month safety-monitoring period if the following are true:

• The carrier passes the safety audit or has not been deemed unfit following a compliance review; and
• The new entrant does not have any outstanding civil penalties.