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20 Dec 2016

Past Leasing Restrictions Now Lifted

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Motor carriers based in Mexico may now lease equipment to carriers based in the United States. The Federal Motor Carrier Safety Administration (FMCSA), who finds the law against this type of leasing to be invalid and inconsistently enforced, issued a notice on November 21, 2016. As a function of this notice, carriers who assume complete responsibility for a trailer’s operation throughout the life of its lease may lease from Mexican carriers, no matter the shipment’s ultimate destination.

The law against leasing from Mexican carriers was introduced in the Motor Carrier Safety Improvement Act of 1999. The Act required that international agreements under NAFTA be met, and once the FMCSA felt that they had been met and upon completion of the U.S.-Mexico Cross Border Long-Haul Trucking Pilot Program, the restriction placed on Mexican carriers ceased to be relevant and has now been lifted.

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