Lease and Interchange of Vehicles by Mexico-Domiciled Motor Carriers, 83714 [2016-28018]
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83714
Federal Register / Vol. 81, No. 225 / Tuesday, November 22, 2016 / Rules and Regulations
and 1.429, that this Order, Is Adopted,
effective thirty (30) days after
publication of the text or summary
thereof in the Federal Register, except
for the certification in paragraph 33,
which contains information collections
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Effective immediately upon
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67. It is further ordered that the
Commission Shall Send a copy of this
Order to Congress and the Government
Accountability Office pursuant to the
Congressional Review Act, see 5 U.S.C.
801(a)(1)(A).
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. 2016–28114 Filed 11–21–16; 8:45 am]
BILLING CODE 6712–01–P
DEPARTMENT OF TRANSPORTATION
Federal Motor Carrier Safety
Administration
49 CFR Part 376
Lease and Interchange of Vehicles by
Mexico-Domiciled Motor Carriers
Federal Motor Carrier Safety
Administration (FMCSA), DOT.
AGENCY:
ACTION:
Notice on applicability.
Section 219(d) of the Motor
Carrier Safety Improvement Act of 1999
(MCSIA) restricted Mexico-domiciled
motor carriers from leasing commercial
motor vehicles (CMVs) to U.S. carriers
to transport property into the United
States until the international obligations
under the North American Free Trade
Agreement (NAFTA) chapter on crossborder trade in services were met. Given
FMCSA’s acceptance of applications for
long-haul operating authority from
Mexico-domiciled motor carriers
following the conclusion of the U.S.Mexico Cross Border Long-Haul
Trucking Pilot Program, the obligations
are fulfilled and the restriction is no
longer applicable.
SUMMARY:
sradovich on DSK3GMQ082PROD with RULES
DATES:
Effective November 22, 2016.
FOR FURTHER INFORMATION CONTACT:
Bryan Price, Chief, North American
Borders Division, FMCSA, 1200 New
Jersey Avenue SE., Washington, DC
20590–0001. Telephone (202) 366–2995;
email bryan.price@dot.gov.
SUPPLEMENTARY INFORMATION:
VerDate Sep<11>2014
16:34 Nov 21, 2016
Jkt 241001
Background
The Motor Carrier Safety
Improvement Act of 1999 1 (MCSIA)
created FMCSA and transferred
authority for motor carrier safety from
the Federal Highway Administration.
Section 219(d) prohibited the leasing
by a Mexico-domiciled motor carrier
(lessor) of its equipment to a U.S. motor
carrier (lessee) for operation beyond the
commercial zones on the U.S.-Mexico
border. This restriction specifically
applied ‘‘Before the implementation of
the land transportation provisions of
NAFTA . . .’’ The second clause in
section 219(d) further states that this
prohibition exists ‘‘during any period in
which a suspension, condition,
restriction or limitation imposed under
section 13902(c) of title 49 . . . applies
to a [long-haul] motor carrier (as defined
in section 13902(e)).’’ Section 13902(c)
addresses ‘‘Restrictions on motor
carriers domiciled in or owned or
controlled by nationals of a contiguous
foreign country.’’
Section 13902(c)(3) provides that only
‘‘The President’’ or his delegate may
‘‘remove or modify in whole or in part
any action taken under paragraph (1)(A)
if the President or such delegate
determines that such removal or
modification is consistent with the
obligations of the United States under a
trade agreement or with United States
transportation policy.’’ In November
2002, President Bush issued a
presidential memorandum lifting the
moratorium on granting long-haul
operating authority to qualified Mexicodomiciled motor carriers of property
and of passengers.2 The only limitation
that remained following this
presidential action was the restriction
on point-to-point transportation within
the United States, which did not impact
the NAFTA land transportation
provisions.
In March 2002, FMCSA issued
Interim Final Rules that fulfilled a
Congressional mandate to ensure the
safe operation of Mexican vehicles in
the United States. Several organizations
filed suit in the U.S. Court of Appeals
for the Ninth Circuit challenging those
rules. The Court set aside the rules, and
the United States sought Supreme Court
review of the decision. In 2004, the
Supreme Court reversed the Ninth
Circuit and upheld the Agency’s Interim
Final Rules (Department of
Transportation, et al. v. Public Citizen,
et al., 541 U.S. 752 (2004)).
Congress, however, subsequently
passed Section 6901 of the U.S. Troop
1 Public Law 106–159, 113 Stat. 1748, 1768,
December 9, 1999.
2 67 FR 71795 (November 27, 2002).
PO 00000
Frm 00090
Fmt 4700
Sfmt 9990
Readiness, Veterans’ Care, Katrina
Recovery, and Iraq Accountability
Appropriations Act of 2007,3 imposing
further limitations on the Agency’s
ability to expend appropriated funds to
issue operating authority to Mexicodomiciled motor carriers. The Agency
was unable to process applications for
long-haul operating authority from
Mexico-domiciled motor carriers until a
pilot program was completed pursuant
to these new requirements.
From October 14, 2011, through
October 10, 2014, FMCSA conducted a
pilot program to determine the ability of
Mexican motor carriers to operate safely
in the United States. FMCSA delivered
the requisite report to Congress in
January, 2015. On January 15, 2015 (80
FR 2179), FMCSA announced that it
would begin accepting and processing
applications for long-haul operating
authority from Mexico-domiciled
property carriers under 49 U.S.C. 13902.
Because Mexico-domiciled motor
carriers may now apply for and receive
long-haul operating authority, the land
transportation provisions of NAFTA for
property carriers have been
implemented. Therefore, the previous
leasing restrictions are not applicable,
consistent with Section 219(d) of
MCSIA.
This notice is being issued to prevent
inconsistent enforcement of a law that is
no longer applicable. It also serves to
inform all motor carriers and the general
public that, in accordance with NAFTA
and MCSIA, Mexican-domiciled motor
carriers (lessors) are allowed to lease
their equipment to U.S. motor carriers
(lessees) regardless of the destination of
the cargo, as long as the carriers meet
the requirements of 49 CFR part 376.
Included in part 376 are requirements
that the ‘‘authorized carrier’’ (in this
case, the U.S. motor carrier) assume
‘‘complete responsibility for the
operation of the equipment for the
duration of the lease’’ [49 CFR
376.12(c)]. These types of leasing
arrangements are compliant with
MCSIA and the Agency’s regulations.
Issued on: November 9, 2016.
T.F. Scott Darling, III,
Acting Administrator.
[FR Doc. 2016–28018 Filed 11–21–16; 8:45 am]
BILLING CODE 4910–EX–P
3 Public Law 110–28, 121 Stat. 112, 183, (May 25,
2007).
E:\FR\FM\22NOR1.SGM
22NOR1
Agencies
[Federal Register Volume 81, Number 225 (Tuesday, November 22, 2016)]
[Rules and Regulations]
[Page 83714]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-28018]
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DEPARTMENT OF TRANSPORTATION
Federal Motor Carrier Safety Administration
49 CFR Part 376
Lease and Interchange of Vehicles by Mexico-Domiciled Motor
Carriers
AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.
ACTION: Notice on applicability.
-----------------------------------------------------------------------
SUMMARY: Section 219(d) of the Motor Carrier Safety Improvement Act of
1999 (MCSIA) restricted Mexico-domiciled motor carriers from leasing
commercial motor vehicles (CMVs) to U.S. carriers to transport property
into the United States until the international obligations under the
North American Free Trade Agreement (NAFTA) chapter on cross-border
trade in services were met. Given FMCSA's acceptance of applications
for long-haul operating authority from Mexico-domiciled motor carriers
following the conclusion of the U.S.-Mexico Cross Border Long-Haul
Trucking Pilot Program, the obligations are fulfilled and the
restriction is no longer applicable.
DATES: Effective November 22, 2016.
FOR FURTHER INFORMATION CONTACT: Bryan Price, Chief, North American
Borders Division, FMCSA, 1200 New Jersey Avenue SE., Washington, DC
20590-0001. Telephone (202) 366-2995; email bryan.price@dot.gov.
SUPPLEMENTARY INFORMATION:
Background
The Motor Carrier Safety Improvement Act of 1999 \1\ (MCSIA)
created FMCSA and transferred authority for motor carrier safety from
the Federal Highway Administration.
---------------------------------------------------------------------------
\1\ Public Law 106-159, 113 Stat. 1748, 1768, December 9, 1999.
---------------------------------------------------------------------------
Section 219(d) prohibited the leasing by a Mexico-domiciled motor
carrier (lessor) of its equipment to a U.S. motor carrier (lessee) for
operation beyond the commercial zones on the U.S.-Mexico border. This
restriction specifically applied ``Before the implementation of the
land transportation provisions of NAFTA . . .'' The second clause in
section 219(d) further states that this prohibition exists ``during any
period in which a suspension, condition, restriction or limitation
imposed under section 13902(c) of title 49 . . . applies to a [long-
haul] motor carrier (as defined in section 13902(e)).'' Section
13902(c) addresses ``Restrictions on motor carriers domiciled in or
owned or controlled by nationals of a contiguous foreign country.''
Section 13902(c)(3) provides that only ``The President'' or his
delegate may ``remove or modify in whole or in part any action taken
under paragraph (1)(A) if the President or such delegate determines
that such removal or modification is consistent with the obligations of
the United States under a trade agreement or with United States
transportation policy.'' In November 2002, President Bush issued a
presidential memorandum lifting the moratorium on granting long-haul
operating authority to qualified Mexico-domiciled motor carriers of
property and of passengers.\2\ The only limitation that remained
following this presidential action was the restriction on point-to-
point transportation within the United States, which did not impact the
NAFTA land transportation provisions.
---------------------------------------------------------------------------
\2\ 67 FR 71795 (November 27, 2002).
---------------------------------------------------------------------------
In March 2002, FMCSA issued Interim Final Rules that fulfilled a
Congressional mandate to ensure the safe operation of Mexican vehicles
in the United States. Several organizations filed suit in the U.S.
Court of Appeals for the Ninth Circuit challenging those rules. The
Court set aside the rules, and the United States sought Supreme Court
review of the decision. In 2004, the Supreme Court reversed the Ninth
Circuit and upheld the Agency's Interim Final Rules (Department of
Transportation, et al. v. Public Citizen, et al., 541 U.S. 752 (2004)).
Congress, however, subsequently passed Section 6901 of the U.S.
Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq
Accountability Appropriations Act of 2007,\3\ imposing further
limitations on the Agency's ability to expend appropriated funds to
issue operating authority to Mexico-domiciled motor carriers. The
Agency was unable to process applications for long-haul operating
authority from Mexico-domiciled motor carriers until a pilot program
was completed pursuant to these new requirements.
---------------------------------------------------------------------------
\3\ Public Law 110-28, 121 Stat. 112, 183, (May 25, 2007).
---------------------------------------------------------------------------
From October 14, 2011, through October 10, 2014, FMCSA conducted a
pilot program to determine the ability of Mexican motor carriers to
operate safely in the United States. FMCSA delivered the requisite
report to Congress in January, 2015. On January 15, 2015 (80 FR 2179),
FMCSA announced that it would begin accepting and processing
applications for long-haul operating authority from Mexico-domiciled
property carriers under 49 U.S.C. 13902.
Because Mexico-domiciled motor carriers may now apply for and
receive long-haul operating authority, the land transportation
provisions of NAFTA for property carriers have been implemented.
Therefore, the previous leasing restrictions are not applicable,
consistent with Section 219(d) of MCSIA.
This notice is being issued to prevent inconsistent enforcement of
a law that is no longer applicable. It also serves to inform all motor
carriers and the general public that, in accordance with NAFTA and
MCSIA, Mexican-domiciled motor carriers (lessors) are allowed to lease
their equipment to U.S. motor carriers (lessees) regardless of the
destination of the cargo, as long as the carriers meet the requirements
of 49 CFR part 376. Included in part 376 are requirements that the
``authorized carrier'' (in this case, the U.S. motor carrier) assume
``complete responsibility for the operation of the equipment for the
duration of the lease'' [49 CFR 376.12(c)]. These types of leasing
arrangements are compliant with MCSIA and the Agency's regulations.
Issued on: November 9, 2016.
T.F. Scott Darling, III,
Acting Administrator.
[FR Doc. 2016-28018 Filed 11-21-16; 8:45 am]
BILLING CODE 4910-EX-P