The rules for the lending of carrier codes are fairly straightforward.
Two Simple Rules:
- Bonded highway carriers may lend their code out to non-bonded carriers
- Non-bonded highway carriers cannot lend their code to any other carriers
Bonded highway carriers may contract with other non-bonded carriers to transport goods on their behalf because they have posted maximum security of $25,000. The bonded carrier must issue a Letter of Authorization to the non-bonded carrier in order for the non-bonded carrier to be able to proceed with the load. The contracting carrier (carrier borrowing the code) must produce, upon request, the Letter of Authorization signed by the originating carrier (the bonded carrier) at time of report. The Letters of Authorization must be printed on company letterhead and must adhere to the format outlined by the Canada Border Services Agency.
The bonded carrier lending his carrier code maintains full liability for the goods and the performance of the carrier they are lending it to. Any tracers or penalties will be issued to the authorizing bonded highway carrier. The bonded carrier is also responsible for controlling the distribution and validity of Letters of Authorization of being issued.
Before you lend or borrow a carrier code, do your due diligence and be aware of the rules and responsibilities involved.
For more detailed information and a sample of the Letter of Authorization.
Are you a non-bonded carrier that”s interested in becoming bonded? Visit Border Pro for Carriers and/or call our Carrier Relations Liaison toll-free at 855.542.6644 for more information.