FAQs (Frequently Asked Questions)
Who requires the $75,000 bond?
All brokers and freight forwarders are required to have a $75,000 bond or trust.
When must the bond and new authority, if necessary, be in place?
The compliance date is October 1, 2013. The FMCSA has granted a 60 day extension (December 1) to allow existing carriers and brokers to obtain the necessary bond and to permit carriers to process broker and freight forwarder applications and obtain a bond to comply with the new act. SPA can help with the filing of applications for those carriers who need it.
Where is the Agency in terms of compliance?
Technically the bond requirement goes into effect October 1 and shippers and brokers will begin demanding proof of compliance on that date.
What is the bonding opportunity available through SPA?
We have negotiated to obtain a surety bond for our SPA clients. Based upon their individual qualifications, bonds can be obtained for as little as $1,500 per year with no one-time fees or additional collateral required. The surety is reputable and qualified, and the rates available to established brokers include a 25% discount which places our members' costs substantially below programs which are otherwise being advertised.
What are the penalties for noncompliance?
Those found to be arranging for transportation without a bond after the enforcement date may be subject to penalties of as high as $10,000 per violation. Aggrieved carriers who have not received payment because the arranger lacks a bond will have an independent cause of action against not only the defaulting carrier broker or forwarder but also against its principles. These provisions, unless modified by Congress, are severe and require your immediate attention.
In view of the increased regulatory requirements, SPA will be posting helpful information online to keep you in compliance. Please refer back to our site frequently for updates!
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