Transportation provides a massive business opportunity in Canada. There is a high demand in the market and not enough of truck drivers in the logistical market. So setting up a truck business and expanding across the provincial lines will bring your company more revenue.
If your trucking business is growing beyond its home province, there are a few legal aspects you need to address since your trucking business is not just operating in a single province.
Here’s what you and your trucking business need to take care of when it crosses inter-province boundaries.
Safety Fitness Certificate
If you are operating in Alberta, your trucking operation would have to be comply to the Alberta Traffic Safety Act. Furthermore, you’ll need a Safety Fitness Certificate. The certificate will mention a “Provincial” operating status in your possession.
Carriers that operate outside the province should have the Operating Status changed to Federal. The home provincial transportation department will do this.
National Safety Code
Whether you are the only employee in your trucking company or you have a whole fleet of operations, you are required to comply with the National Safety Code. The code contains 16 Standards; most of which you are already following when you comply with Alberta’s regulations. The additional regulations in the 16 Standards relate to recording retention and medical standards.
Once your trucking company goes Federal, the whole fleet operates under the same regulatory body.
Apply for the Operating Status Change
How do you change your Operating Status from Provincial to Federal? You apply for it.
It will cost $50. A new Safety Fitness Certificate will be issued, designating the Federal operating status of your truck. If you have a fleet, every vehicle will need a copy. You will have to prorate your fleet. Instead of paying for more plates and getting registered in each jurisdiction, prorated fees are calculated by the percentage of total distance traveled in the jurisdiction.
As complicated as it sounds, the Full Reciprocity Plan has made things easy. Under the plan, registration and renewals have become convenient, flexible and efficient. Ensure you have all the documents regarding your fleet ready before you start the process. You can visit the Prorate office in Calgary or call them at (403) 297-2920 for more help.
Want to set up offices in various provinces to generate more revenue? In that case, you will be required to register your truck company in the province you are setting up in.
If all of this is new to you, it’s best to get legal help. This way, you avoid mistakes that will affect your career and trucking business. You can find the best legal consultation at Prowse Chowne LLP.