The United States, Canada, and Mexico rely heavily on trade with each other. One of the largest facilitators of trade is transporting goods via tractor-trailer. Under the USMCA, tractor-trailer drivers can transport goods to and from the United States with some limitations. We discuss the profession of a tractor-trailer driver, the principle of cabotage, and allowances under the USMCA here.
What is “cabotage”?
Cabotage is the transport of goods or passengers between two places in the same country. Cabotage limits what foreign-based operators are allowed to do within the United States to protect domestic (US) carriers. In general, transportation of goods within the United States by a foreign-based operator is not permitted.
What are the rules for foreign-based operators?
In general, foreign-based operators may be involved in international traffic, even if carriage occurs in the United States. Foreign-based operators may be admitted to deliver or pick up cargo traveling in the stream of international commerce, i.e., the cargo entering or leaving the United States. However, operators may not be involved in purely local traffic:
Transportation operators transporting goods or passengers to the United States from the territory of another Party or loading and transporting goods or passengers from the United States to the territory of another Party, with no unloading in the United States, to the territory of another Party. (These operators may make deliveries in the United States if all goods or passengers to be delivered were loaded in the territory of another Party. Furthermore, they may load from locations in the United States if all goods or passengers to be loaded will be delivered in the territory of another Party. Purely domestic service or solicitation, in competition with the United States operators, is not permitted.) – 8 CFR 214.2(b) – Visitors
This rule serves to protect point-to-point deliveries that would be otherwise done by domestic (US) carriers.
What is a foreign-based operator permitted to do in the United States?
US Customs and Border Protection (CBP) provides guidance on what foreign-based operators are permitted to do under the “stream of international commerce”. Under the CBP guidelines, the truck drivers may perform the following movements within the stream of international commerce:
- Drivers may deliver a shipment from Canada/Mexico to one or more U.S. locations.’
- Drivers may then pick up a return shipment from one or more U.S. locations for delivery
to Canada/Mexico (generally must be pre-arranged). - Drivers may deliver a shipment from Canada/Mexico to a U.S. location, deadhead with
the same trailer to another U.S. location, and live load that trailer for delivery to
Canada/Mexico. - Drivers may deliver a shipment from Canada/Mexico to a U.S. location, deadhead with
the same trailer to another location, drop the empty trailer, and pick up a second loaded
trailer for delivery to Canada/Mexico. - Drivers may deliver a shipment from Canada to a U.S. location, pick up the empty trailer
and deadhead that trailer to another U.S. location where the trailer is live-loaded for
delivery to Canada/Mexico. - Drivers may also drop a loaded trailer from Canada/Mexico at one location in the U.S.,
and drive an empty tractor to another location to pick up a loaded trailer for transport to
Canada/Mexico. - Relay drivers may drive entirely domestic segments of an international delivery if the
the driver of the delivery meets two conditions:- the driver must be employed by the same
the company as the delivery; and - the domestic portion of the trip is a necessary incident to the international nature of the trip. Relaying is permitted in order for drivers to comply with Federal regulations regarding the number of consecutive hours an individual is permitted to drive. They need not enter with the vehicle but must enter within a reasonable period.
- the driver must be employed by the same
- Drivers may perform activities that are “necessary incidents” of international commerce,
such as loading and unloading international cargo
In each situation above, each trailer must be used ONLY in delivering goods either to or from the United States.
What is a foreign-based operator NOT permitted to do in the United States?
Under the CBP guidelines, the truck drivers may NOT perform the following movements:
- Drivers may not pick up a shipment at one U.S. location and deliver that shipment to another U.S. location.
- Drivers may not reposition an empty trailer between two points in the U.S. when the driver did not either enter with or depart with that trailer.
- Drivers may not “top up” an international shipment with U.S. domestic shipments.
- Drivers may not solicit shipments for domestic deliveries while in the U.S.
Can I get a TN Visa as a truck driver?
The profession of a tractor-trailer driver (truck driver) is not listed under USMCA Chapter 16 Appendix-2 as a qualifying TN visa profession and does not qualify for TN Visa status. However, tractor-trailer drivers are allowed to carry loads to the United States under a B-1 visa and the limits of cabotage.
TN Visa Professions & Occupations List
What other visa options are available for foreign-based operators?
If your business has expanded beyond the limits of the B visa, there are other visa options that provide more latitude for doing business inside the United States as a trucking company. The two most common options are the E-2 Visa and the L-1 Visa. The E-2 Visa is available when a substantial investment has been made in a new or existing enterprise in the United States, and the L-1 Visa is available when a foreign company has or opens an affiliated office inside the United States. Both the E-2 Visa and the L-1 visa allow operators to compete directly inside the United States.
Additional Outside Resources
- Entry of Foreign Based Trucks – 19 CFR § 123.14(a)
- DHS – Guidelines for Drivers Engaged in Cross-Border Traffic
- 8 CFR 214.2(b) – Visitors
We Can Help!
Richards and Jurusik immigration attorneys have 30+ years of experience representing foreign-based carriers and operators. Contact us for assistance with your immigration matters.
