November 21, 2016 10:00 AM, EST

Mexican Carriers Now Permitted to Lease Equipment to US Carriers, FMCSA Says

Sam Hodgson/Bloomberg News

The Federal Motor Carrier Safety Administration has lifted a prohibition that prevented Mexico-domiciled motor carriers from leasing their equipment to U.S. motor carriers.

FMCSA said its Nov. 21 notice was being issued to prevent inconsistent enforcement of a law that no longer is applicable.

The notice said that the agency now permits Mexican carriers to lease their equipment to U.S. motor carriers regardless of the destination of the cargo if the authorized U.S. carrier assumes “complete responsibility for the operation of the equipment for the duration of the lease.”

“The Motor Carrier Safety Improvement Act of 1999 restricted Mexico-domiciled motor carriers from leasing commercial motor vehicles to U.S. carriers to transport property into the United States until the international obligations under the North American Free Trade Agreement chapter on cross-border trade in services were met,” FMCSA said. “Given FMCSA’s acceptance of applications for longhaul 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of the U.S.-Mexico Cross Border Long-Haul Trucking Pilot Program, the obligations are fulfilled and the restriction is no longer applicable.”