3120-002A Financial Responsibility: Foreign Domiciled Carriers

Published CBP guidance; operative status and applicability must be assessed from the retained publisher edition.

CUSTOMS DIRECTIVE
ORIGINATING OFFICE: FO:TP DISTRIBUTION: S-01
CUSTOMS DIRECTIVE NO. 3120-002A
ISSUE DATE: JUNE 19, 2000
SUPERSEDES: 3120-002, 5/15/85
REVIEW DATE: JUNE 2002
SUBJECT: FINANCIAL RESPONSIBILITY; FOREIGN DOMICILED CARRIERS
1 PURPOSE. To provide guidance for the enforcement of the evidence of
financial responsibility required of contiguous foreign domiciled carriers.
2 POLICY. The references and procedures outlined in this directive will be
followed to ensure consistency and uniformity in determining financial responsibility of
contiguous foreign domici led carriers.
3 AUTHORITIES/REFERENCES. 49 U.S.C. 31138 and 31139.
4 DEFINITIONS. For the purpose of this directive, the following definitions will be
used.
4.1 Private carriage -Transportation provided by a person who is the owner, lessee,
or bailee of the property being transported and the property being transported is for
sale, lease, rent, or bailment or to further a commerci al enterprise.
4.2 For-hire carriage -Transportation of property except when the property is
transported by a person engaged in a business other than transportation; and the
transportation is within the scope of and furthers a primary business (other than
transportation) of the person.
4.3 Hazardous material - a substance or material which has been determined by the
Secretary of Transportation to be capable of posing an unreasonable risk to health,
safety, and property, and which has been so designated. For further reference, see the
Hazardous Materials Table in 49 CFR 172.101.
4.4 Nonhazardous property - anything being transported that is not a hazardous
material.
4.5. In-bulk -the transportation of property, as cargo, (except Class A and B
explosives and poison gases) in containment systems with capacities in excess of

3,500 water gallons.
4.6. In-bulk (Class A and B explosives) - the transportation, as cargo, of any Class A
or B explosive(s) in any quantity.
4.7 In-bulk (poison gas)- - the transportation, as cargo, of any poison gas, in any
quantity.
5 RESPONSIBILITIES. CMC Directors and Port Directors must ensure
compliance with this directive. Port Directors are responsible for developing procedures
to implement this directive.
6 PROCEDURES. The following procedures will be followed to ensure service
wide uniformity.
6.1 The Commerci al Motor Vehicle Safety Act of 1994 (Public Law 103-272) gives
the Secretary of Transportation authority to establish regulations requiring minimum
levels of financial responsibility for carriers transporting passengers and different
classes and quantities of merchandise. The law requires that carriers not having
evidence of sufficient financial responsibility within the cab of the vehicles, be denied
entry to the United States by the Secretary of the Treasury and the Secretary of
Transportation.
6.2 Financial liability for foreign-based trucks will be documented on Form MCS-90
which the driver must have in the vehicle at all times. If this form is not presented or the
liability amount is insufficient, entry will be denied to the carrier. NOTE: On the
Mexican border Form AUTO-787 is allowed for periods not to exceed 24 hours.
6.3 Foreign based passenger carriers are required to have a copy of Form MCS-90B
or MCS-82B in their possession as proof of sufficient financial liability. Those lacking
the proper form or sufficient financial liability will be denied entry to the United States.
6.4 Using the criteria outlined under financial liability requirements, inspectors will
determine if the carrier is covered by the act, and if so, then what level of financial
liability must the carrier have.
6.5 For trucks, the law applies to those vehicles with a gross vehicle weight (GVW)
rating in excess of 10,000 lbs. or more. The GVW of a vehicle can be determined by
checking the permanent metal tag attached to the door or doorframe of the vehicle,
(NOTE: 10,000 lbs. equals approximately 4,550 Kg.). Almost all vehicles larger than a
pickup have a GVW greater than 10,000 lbs. There is one exception to the GVW rule
which will be listed after the liability requirements.
6.6 A minimum financial liability of $750,000 is required for a for-hire carrier
transporting interstate or foreign non-hazardous cargo.

6.6.1 A financial liability of $5,000,000 is required for transporting
intrastate/interstate/foreign, any quantity of poison gas, compressed or liquefied gas or
Class A explosives, or over 3,500 gallons of hazardous material as defined by the
Secretary of Transportation.
6.7 Exception to the GVW Rule, applies to ALL vehicles regardless of size if they are
transporting any quantity of Class A or B explosives, or any quantity of poison gas, or a
large quantity of radioactive material.
6.8 For buses, the Motor Carrier Safety Act covers for-hire carriers who transport
passengers in interstate or foreign commerce in the U.S. The level of financial liability
required for buses depends on the passenger capacity of the bus including the driver.
6.8.1 A capacity of 16 passengers or more requires a liability of $5,000,000.
6.8.2 A capacity of 15 passengers or less requires a liability of $1,500,000.
7 MEASUREMENT. The Director, Field Operations, Customs Management
Center, will ensure that ports under their jurisdiction are in compliance with this directive
via management controls.
Acting Assistant Commissioner
Office of Field Operations