Canadian Carrier performing Interstate Moves in USA

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Gr8Loads

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Jan 19, 2024
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Can anyone clarify and state sources of what are the legal concequnces of transporting freight within USA for a Canadian Carrier?

Recently had a long debate over the obvious illegal moves, but my friend continued to tell me how it is done. My position was clear, you can do it until you get caught like everything else in this world but once you get caught - you will be nailed. I just cant seem to find actual information on the consequences.
 

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Over the years I've met with/worked with/knew of several Canadian drivers who got caught interstating. One got off with a warning.. another got a big fine and one had his truck and load seized and driver banned from the US for life. So i guess punishments may vary. Personally I wouldn't try it.
 
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In addition to the rules governing cabotage, you must also remember that US Immigration regulations are involved here as well. Canadian citizens, in this case drivers, cannot legally perform work in the US that could be done by American citizens, unless of course they have legal permission, “Green Card” to do so. There are some variations of all this when you start discussing indigenous people and their rights to work cross border. It is, as others have said, best not to get involved with.
 
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artmax said:
what about incidental movement?
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No such thing but we had a situation where BC carriers would drop their trailers in Blaine if their shipments weren't clear instead of putting it inbond for various reasons, saving bond cost, food product etc. CBP Blaine started posting up at the duty-free and warning drivers doing this and informed them that this is considered as interstate, although the freight is destined for Canada it needs to be done in one continuous movement, once that trailer is dropped even before the line, it is considered to be interstate. They warned for a few months and now they are fining drivers and carriers, no bans as the intent isn't there but it will get you in trouble.
 
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LrgCar said:
No such thing but we had a situation where BC carriers would drop their trailers in Blaine if their shipments weren't clear instead of putting it inbond for various reasons, saving bond cost, food product etc. CBP Blaine started posting up at the duty-free and warning drivers doing this and informed them that this is considered as interstate, although the freight is destined for Canada it needs to be done in one continuous movement, once that trailer is dropped even before the line, it is considered to be interstate. They warned for a few months and now they are fining drivers and carriers, no bans as the intent isn't there but it will get you in trouble.
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You are saying if I have an order from NJ, USA destined to Ontario Canada - and for whatever reason the goods can not cross the border yet but the load is on my truck - I need to sit and wait ? I can not drop it at a storage warehouse or yard in USA ?
 
Gr8Loads said:
You are saying if I have an order from NJ, USA destined to Ontario Canada - and for whatever reason the goods can not cross the border yet but the load is on my truck - I need to sit and wait ? I can not drop it at a storage warehouse or yard in USA ?
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Pretty much, you need to bond it or wait. Sucks but those are the rules. They used to be much more flexible but a lot of carriers took advantage of the leniency. Breakdowns are the only exceptions i know of and it needs to be well documented as well. If you are CTPAT talk to your Supply Chain Security Specialist Officer, they will be able to answer all your questions or situations you may need a second opinion on. Better to ask and if you get in trouble they will back you up.
 
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how about a Canadian driver ( Canadian Carrier ) picking up a load in the USA , drop the loaded trailer in Laredo Tx for Customs to clear for furtherance to Mexico ( on the same trailer it was picked up on )? Or a Trailer that was loaded in Mexico to deliver in the USA . US Inter-stating ?
 
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Bobby said:
how about a Canadian driver ( Canadian Carrier ) picking up a load in the USA , drop the loaded trailer in Laredo Tx for Customs to clear for furtherance to Mexico ( on the same trailer it was picked up on )? Or a Trailer that was loaded in Mexico to deliver in the USA . US Inter-stating ?
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Laredo is a FTZ (free trade zone) Cabotage rules should not apply

*Please fact check as this is a grey area
 
I know for sure of at least 3 Canadian mid size companies who pay their drivers somewhere around 250.00 to do it and keep their mouths shut.

Greed is definitely not worth losing your truck and company for
 
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Bobby said:
how about a Canadian driver ( Canadian Carrier ) picking up a load in the USA , drop the loaded trailer in Laredo Tx for Customs to clear for furtherance to Mexico ( on the same trailer it was picked up on )? Or a Trailer that was loaded in Mexico to deliver in the USA . US Inter-stating ?
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This is a very valid point, I think the first question is can a Candian driver / Canadian Carrier even take a load from US to Mexico? Who oversees those immigration or transport rules...

LrgCar said:
Pretty much, you need to bond it or wait. Sucks but those are the rules. They used to be much more flexible but a lot of carriers took advantage of the leniency. Breakdowns are the only exceptions i know of and it needs to be well documented as well. If you are CTPAT talk to your Supply Chain Security Specialist Officer, they will be able to answer all your questions or situations you may need a second opinion on. Better to ask and if you get in trouble they will back you up.
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Im having a hard time to understand how could carriers take advantage of this situation. 2 trucks doing the same shipment? 1 cab from point a to b near the canadian border and 1 cab from point b to c into canada... but why would you dedicate 2 trucks if 1 can do the job?
 
There are some exceptions to the cabatoge rules. 1) ownership and final destination of goods. There is a court case where a driver picked up a load of bus parts in Nc and took them to Fargo, Nd dropped them off to be painted then empty home to Winnipeg, a week later he goes back to pick them up and brings them to Winnipeg. Court found this to be legal. 2) Canadian goods shipped by rail to Chicago, the rail goes down for remainder of trip to Minneapolis, then a CDN truck can pu th Cdn goods for final delivery.
As for the many comments, yes it can get expensive to have lawyers defend these positions and find case law. Is it worth it if caught to take a fine and being expelled from USA for 5 or 10 years. My question is what are the consequences for a USA driver to perform cabatoge within Canada, As of yet I have never heard of anyone being caught.
 
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What if a Canadian Carrier hires a US based driver. According to my understanding he can do crossborder and work within USA, but can not work within Canada. Right?

Did anyone hear of insruance restrictions on canadian carriers, where the insruance provider wouldnt approve a us driver?
 
bubba-one said:
There are some exceptions to the cabatoge rules. 1) ownership and final destination of goods. There is a court case where a driver picked up a load of bus parts in Nc and took them to Fargo, Nd dropped them off to be painted then empty home to Winnipeg, a week later he goes back to pick them up and brings them to Winnipeg. Court found this to be legal. 2) Canadian goods shipped by rail to Chicago, the rail goes down for remainder of trip to Minneapolis, then a CDN truck can pu th Cdn goods for final delivery.
As for the many comments, yes it can get expensive to have lawyers defend these positions and find case law. Is it worth it if caught to take a fine and being expelled from USA for 5 or 10 years. My question is what are the consequences for a USA driver to perform cabatoge within Canada, As of yet I have never heard of anyone being caught.
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USA carriers get one domestic move in Canada to reposition for a load to the USA
 
Gr8Loads said:
What if a Canadian Carrier hires a US based driver. According to my understanding he can do crossborder and work within USA, but can not work within Canada. Right?

Did anyone hear of insruance restrictions on canadian carriers, where the insruance provider wouldnt approve a us driver?
Click to expand...
Yes to the first question, and no restrictions from my understanding but US insurance rates are relatively cheaper from what I hear. Quite a few Canadian carriers do this to satisfy cabotage rules. We had a driver work for us whos Canadian and was working for an American carrier, they did get audited as they were using the Canadian drivers to haul inter-state. I believe they got shutdown because of this.
 
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MLCAR said:
Yes to the first question, and no restrictions from my understanding but US insurance rates are relatively cheaper from what I hear. Quite a few Canadian carriers do this to satisfy cabotage rules. We had a driver work for us whos Canadian and was working for an American carrier, they did get audited as they were using the Canadian drivers to haul inter-state. I believe they got shutdown because of this.
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It used to be the truck and the driver had to be American, clear the truck through U.S Customs and then hire an American driver living in Canada. I'm not sure if that has changed
 
MARTYI said:
It used to be the truck and the driver had to be American, clear the truck through U.S Customs and then hire an American driver living in Canada. I'm not sure if that has changed
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hmmm that is a game changer, which makes sense logically. Interstate = both US truck and driver. I wonder how I can confirm this.
 
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