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Cabotage is the point-to-point movement within Canada by U.S. carriers using U.S. drivers and U.S. equipment, and the point-to-point movement within the U.S. by Canadian carriers using Canadian drivers and Canadian equipment.
Both immigration and customs govern cabotage. In broad terms, customs laws cover the truck, immigration laws cover the driver. Sometimes, under customs laws, a particular movement is legal for the truck, but illegal under immigration laws without the necessary authorization.
To conduct legal motor carriage under cabotage rules, compliance with both customs and immigration laws in the country of travel is required.