Intrastate or Interstate port of entry?

Discussion in 'Intermodal Trucking Forum' started by snowflake1, Apr 5, 2018.

  1. brian991219

    brian991219 Road Train Member

    2,921
    5,811
    Aug 10, 2013
    Lords Valley, PA
    0
    Wrong, you are the one that needs to understand what the difference between interstate and intrastate is. The truck itself does not need to leave the state, it is solely based upon the origin and final destination of a piece of freight. The regulation has been quoted, and correctly interpreted several times in this thread. Just because it doesn't support your opinion does not make the rest of us incorrect. Trust me, I deal with this daily as a compliance consultant, usually from misinformed carriers and drivers wanting a defense against some assessment or fine they received due to their misunderstanding or willful disregard for the regulations.

    Again, for your education, here is the relevant guidance directly from the FMCSA website.
    Regulations Section
    Question 6: How does one distinguish between intra- and interstate commerce for the purposes of applicability of the FMCSRs?

    Guidance: Interstate commerce is determined by the essential character of the movement, manifested by the shipper’s fixed and persistent intent at the time of shipment, and is ascertained from all of the facts and circumstances surrounding the transportation. When the intent of the transportation being performed is interstate in nature, even when the route is within the boundaries of a single State, the driver and CMV are subject to the FMCSRs.
     
    DSK333 Thanks this.
  2. Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  3. snowflake1

    snowflake1 Light Load Member

    83
    9
    Feb 3, 2011
    0
    well brian991219 I would not use you for an consultant and I am not impressed with your knowledge. not trying to be sneaky or grey about anything. I have boldly put my thoughts out on here with no intent of doing anything illegal unless there are laws that clearly state it(which is why I posted this thread in the first place). picking some obscure reference and attaching it on here when there are other factors that go into interstate and intrastate. that last part simply states, as I see it, interstate must abide by fmcsr even when within state boundaries. it doesn't single out intrastate carriers in that statement. Also if you are doing business as an interstate carrier within state boundaries start to finish the carrier must also apply for a state dot number aka intrastate authority. I don't know how you boys do it up north. There are lots of drivers who are only plated for intrastate that haul containers from the rails. I wanted to know if it could be done at the port if a interstate carrier took possession of it first
     
  4. brian991219

    brian991219 Road Train Member

    2,921
    5,811
    Aug 10, 2013
    Lords Valley, PA
    0
    Don't worry I wouldn't take you as a client! To answer your first question, could you contract with an interstate carrier to pull freight out of the port then deliver it, sure anything is possible. Is it legal, absolutely not regardless of what you think or some carriers do as a matter of policy.

    The link I posted earlier is not some obscure reference, it is the official FMCSA guidance and it applies unilaterally except within intracity zones. Maybe that is where your confusion stems from, or you just won't accept any answer that doesn't agree with your preconceived notion of what is legal.

    Legal and what is done in practice are not always the same thing. Just because some carriers take possession of interstate freight and re-dispatch it under a new BOL to an intrastate carrier as a regular business practice does not make it legal, they just have obscured the paper trail enough to not get caught.

    Honestly, since the sunset of the ICC there really isn't anyone except a few state PUC agencies policing the interstate freight world regarding these types of shipments, so unless something happens it goes unchecked.

    As for how we do it up north, we too have intrastate authority in most states. My home state of Pennsylvania regulates property and passenger carriers as public utilities through the PA PUC. We are required to obtain operating authority for any intrastate moves and pay the PUC an assessment (tax) of 1% of the gross on any intrastate moves. This simple fact is why I make a good portion of my living as a consultant working on the distinction between inter and intra state commerce. I defend motor carriers that have been wrongly assessed for intrastate movement by the PA PUC and/or the NJ Division of Taxation. Both of these agencies watch the trucking industry vigilantly looking for misclassified freight so they can levy their assessments and the fines for non-compliance.

    I know these concepts inside out and am recognized as a qualified witness and permitted to testify in PA, NY, NJ, NM and TX on all matters related to motor transportation. But don't let the fact that I make a living out of working these rules on behalf of legitimate motor carriers stop you from doing what you want.
     
    DSK333 Thanks this.
  5. brian991219

    brian991219 Road Train Member

    2,921
    5,811
    Aug 10, 2013
    Lords Valley, PA
    0
    I think where you are getting confused is the fact that you are not just an intrastate carrier once you load a shipment of interstate freight. Simply put, your truck leaving the state is irrelevant it is the origin and final destination of the freight that matters, nothing more nothing less. The intent of the definition of interstate commerce and the interstate commerce clause is to provide regulation of interstate shipments throughout their entire life cycle. So it is illegal to move any part of an interstate shipment without Federal MC authority.

    The fact that Texas and several other states require an interstate carrier to obtain intrastate authority to pull intrastate loads is irrelevant to whether or not a rail or seaport shipment (or any other for that matter) is interstate or intrastate commerce. Again, the only determining factor is the origin and final destination of the freight.
     
    DSK333 Thanks this.
  6. brian991219

    brian991219 Road Train Member

    2,921
    5,811
    Aug 10, 2013
    Lords Valley, PA
    0
    DSK333 Thanks this.
  7. snowflake1

    snowflake1 Light Load Member

    83
    9
    Feb 3, 2011
    0
    I will check it out, you swayed me over pretty far but still need a little more.
     
  8. brian991219

    brian991219 Road Train Member

    2,921
    5,811
    Aug 10, 2013
    Lords Valley, PA
    0
    I am not trying to be difficult, and in reality you can probably get a way with what you want to do as few agencies enforce the old ICC rules but I can only give factually accurate legal advice otherwise I risk losing my ability ro testify as a qualified witness.

    I don't take it personally and am used to being labeled as thick headed or difficult, it comes with looking at things like a lawyer instead of as a practical person may. I agree it makes no sense for a carrier that physically does not leave a single state to be regulated as an interstate carrier but I don't make the rules only help folks comply with them, even the ones that don't make sense.
     
    DSK333 Thanks this.
  9. brian991219

    brian991219 Road Train Member

    2,921
    5,811
    Aug 10, 2013
    Lords Valley, PA
    0
    @snowflake1 Here is one more case law study for you, and this one pertains directly to railheads as the noted "final" destination of freight on a bill of lading. It is from 1950 but is still relevant today since the FMCSA draws their power to regulate interstate commerce from the same legal principle that the former ICC did. This should clear up any misunderstandings as it is directly relevant to your desire rather than the tax situation in my other link.
    https://www.repository.law.indiana....oo.com/&httpsredir=1&article=3761&context=ilj
     
  10. brian991219

    brian991219 Road Train Member

    2,921
    5,811
    Aug 10, 2013
    Lords Valley, PA
    0
    And finally, here is a flow chart from the Oklahoma Highway Patrol which is relevant to all states not just Oklahoma that illustrates the true definition and how to determine if a shipment is truly intrastate or interstate.
    Oklahoma Highway Patrol Troop S - Intrastate/Interstate
    Intrastate Commerce vs Interstate Commerce Chart.jpg
     
    DSK333 Thanks this.
  11. snowflake1

    snowflake1 Light Load Member

    83
    9
    Feb 3, 2011
    0
    thanks brian991219 that was impressive. didnt have time to look over the case studies but that chart was nice. it was like a game of plinko but i ended up on the right side interstate second to the bottom. the unknown address would explain how household goods can change from interstate to intrastate if a house is not found and the shipment must sit in temporary storage from the state it delivers to. i guess the only way is a undetermined address during transit which is rare. anyway i take back not wanting your consultation. thanks for your time
     
    DSK333 and brian991219 Thank this.
  • Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.