Once fully implemented, the North American Free Trade Agreement will impact cross-border traffic.

• The North American Free Trade Agreement (NAFTA) will allow Mexican commercial vehicles to travel in the United States if they meet all local, state, and federal requirements. A moratorium, imposed by the U.S. Department of Transportation (USDOT), has been in effect since December 1995. When the cross-border moratorium is lifted, this means that Mexican commercial vehicle operators will be able to travel in the United States.

Mexican vehicles that stay within the border commercial zones do not need additional registration. The Federal Motor Carrier Safety Administration (FMCSA) will issue operating authority for both border zone carriers and those that operate beyond the border.

• If the Mexican commercial vehicle stays within the designated commercial trade zone, additional Texas registration is not necessary. However, these vehicles are required to have current registration and valid license plates from Mexico to enter Texas. Mexican vehicles also need to display the Secretaría de Comunicaciones y Transportes (SCT) sticker plus a USDOT permit to be legal. For information on the USDOT permit, call the Motor Carrier Division One-Stop Shop Telephone Menu at 1-800-299-1700, Option 8.

Once NAFTA is fully implemented, additional registration is required for Mexican motor carriers that travel beyond the commercial trade zones.

• Mexican vehicles, when traveling on Texas highways that go beyond the border commercial zones, are required to have one of three registration permits:

1. NAFTA annual permit, issued by the Vehicle Titles and Registration Division (VTR), which is valid one year from month of issuance;
2. 72-hour permit; or
3. 144-hour permit.

Qualifications for a NAFTA annual permit.

• The NAFTA annual permit is legal Texas registration for foreign commercial motor vehicles, trailers, or semitrailers that are not authorized to travel on Texas highways for lack of registration, or the country or state where the vehicle is registered does not have a reciprocal agreement with the State of Texas. The cost is based on the gross weight of the vehicle.

• An applicant from any foreign country may purchase a NAFTA annual permit. However, NAFTA annual permits should not be issued to Mexican commercial vehicles for traveling outside the border zones until the U.S. Department of Transportation lifts the border moratorium.

Size/weight limitations for a foreign vehicle.

• The same limitations apply to foreign vehicles and Texas vehicles. No vehicle or combination of vehicles, including the load being carried, shall exceed a gross weight of 80,000 lbs., except those vehicles operated under special oversize/overweight permits otherwise authorized by law.

• A TxDOT booklet entitled "General Information Covering Commercial Vehicle Operation in Texas" is available through the Vehicle Titles and Registration Division regional offices.

Weight Increases.

• The weight can be raised on NAFTA annual permits up to the legal limit in Texas. In order to raise the weight, the applicant would present the current annual permit receipt along with a new NAFTA Texas Annual Registration Permit Application, Form VTR-29-NAFTA, showing the new weight desired.

Can an NAFTA annual permit be issued to a vehicle with a Texas record?

• Yes. If the applicant indicates that the vehicle is from a foreign country, a NAFTA annual permit can be issued. The title record in the motor vehicle database does not necessarily reflect the current vehicle owner.

Can a foreign-based trucker apply for Texas title without paying sales tax?

• Sales tax is a State Comptroller issue. According to that agency, sales tax is due if the carrier is delivering their own goods. If the carrier is hauling for hire, the sales tax is not due. Contact the State Comptroller of Public Accounts at 1-800-252-1382 or (512) 463-4600.

Fees for a NAFTA annual permit.

• The fees for a NAFTA annual permit are based on the vehicle’s weight classification. For example, if an applicant purchased a NAFTA annual permit for a truck tractor with a combined gross weight of 80,000 lbs., the fee would be the same as for a truck with a gross weight of 80,000 lbs. displaying a combination plate - US $840.30.

• If a NAFTA annual permit is sold for a diesel truck, the 11% diesel fee is collected.

• NAFTA annual permits are not subject to the local county road and bridge fees or child safety fees.

• The applicant for a NAFTA annual permit is not required to provide proof of
  Heavy Vehicle Use Tax if the vehicle weighs 55,000 lbs. or more.

Are commercial fee charts available to Mexico-based trucking companies?

• Yes, the fee charts may be obtained from any Vehicle Titles and Registration Division (VTR) Regional Office or from VTR headquarters Special Services Branch or Operations Branch. In addition, there is a basic fee chart printed on the back of the NAFTA Texas Annual Registration Permit Application, Form VTR-29-NAFTA.

Availability of NAFTA annual permits.

• The NAFTA annual permit is available from the Vehicle Titles and Registration Division Regional Offices and the following border county tax assessor-collector offices: Brazoria, Brewster, Brown, Cameron, Culberson, Ector, El Paso, Hidalgo, Hudspeth, Jeff Davis, Kinney, Lubbock, Maverick, Midland, Montgomery, Nueces, Presidio, San Patricio, Starr, Tarrant, Travis, Val Verde, Victoria, Webb and Williamson.

How to obtain a NAFTA annual permit.

• Interested parties must:

1. submit a completed NAFTA Texas Annual Registration Permit Application, Form VTR-29-NAFTA;
2. provide proof of insurance as required by Texas Transportation Code, Chapter 502, Subchapter G. All policies written for the operation of commercial motor vehicles must be issued by an insurance company or surety company authorized to write motor vehicle liability insurance in Texas; and
3. pay required fees in cash, postal money order or certified check.

Do I fill out a NAFTA annual permit application for EACH vehicle I own? Where do I submit the application and what other information should I attach?

• Yes. Submit applications to any Vehicle Titles and Registration Division Regional Office or any of the county tax offices that issue NAFTA annual permits. Applications must be submitted with valid evidence of insurance and applicable fees.

Insurance for Mexican motor carriers.

• USDOT and TxDOT's Motor Carrier Division require all Mexican motor carriers to have insurance covering bodily injury and property damage up to US $750,000. Hazardous materials carriers must have US $1 million to US $5 million in coverage depending on the hazardous materials transported.

Insurance requirements for a Mexican commercial vehicle that will be in Texas for 24 or 48 hours.

• All financial responsibility requirements applying to the vehicle must be satisfied.

Where can Mexican companies purchase the kind of insurance that will satisfy the requirements for doing business in Texas? What exactly are those requirements?

• From a company authorized to write liability insurance in Texas. The same insurance requirements apply to Mexican companies and Texas companies (minimum liability).

Registration insignia.

• For trucks and truck tractors, applicants will receive a NAFTA permit license receipt, annual permit windshield validation sticker, and NAFTA annual permit license plate. This sticker is designed with a black border and should be displayed in the lower left corner of the windshield.

• For trailers or semitrailers, applicants will receive a validated NAFTA annual permit license plate.

• A receipt is issued for each annual permit as evidence of registration and must be carried in the vehicle during the time the NAFTA permit is valid. If the receipt is lost or destroyed, the owner must obtain a duplicate from the department. The fee for a duplicate receipt is US $2.

Replacement NAFTA annual permit plates and/or windshield validation stickers.

• The vehicle owner should apply directly to the department or county tax office in writing for the issuance of a replacement NAFTA annual permit. Such request should include a copy of the registration receipt and replacement fee.

• The fee for a replacement NAFTA annual permit plate or windshield validation sticker is US $5.30.

Transfers not allowed.

• NAFTA annual permits are non-transferable between vehicles and/or owners.

• If the owner of a vehicle displaying a NAFTA annual permit sells or disposes of the vehicle during the time the permit is valid, the permit should be returned to the department immediately.

• Refunds on NAFTA annual permits will be examined on a case-by-case basis.

If a foreign vehicle is apprehended while operating illegally in Texas, can an NAFTA annual permit be issued?

• No. NAFTA annual permits can not be sold to apprehended vehicles. Apprehended vehicles are to be handled in the usual manner at the county tax offices and the 20% penalty for operating illegally is collected. Applicants with apprehended vehicles from Mexico that are sold Texas registration should be reminded that they can not legally operate outside of the border zones until the border moratorium is lifted by USDOT.

Exceptions to the NAFTA annual permit requirement.

• TxDOT will not issue a NAFTA annual permit to a vehicle used to import citrus fruit into Texas from a foreign country except for foreign export or processing for foreign export.

• Foreign semitrailers in excess of 6,000 lbs. gross weight and operated in combination with foreign power units registered with NAFTA annual permits are exempt from the display of the Token Trailer plate, and subsequently, the $15.30 token fee. However, the semitrailers must display current license plates.

Temporary registration using 72-hour or 144-hour permits.

• The 72-hour and 144-hour permits provide full temporary registration for movement of commercial vehicles, trailers, semi-trailers, and motor buses owned by residents of the United States, Canada or Mexico.

• The permits are available at the Vehicle Titles and Registration Division Regional Offices, the state’s 254 county tax assessor-collector offices, and by contacting TxDOT’s Motor Carrier Division at 1-800-299-1700. A completed application, proof of insurance, and fees are required for these permits.

• A 72-hour permit costs US $25, and a 144-hour permit costs US $50, by payment of cash, postal money order or certified check. The Motor Carrier Division accepts a wire transfer or escrow account for qualified customers.

Can a Mexico-based broker obtain 72-hour or 144-hour permits in bulk from any Vehicle Titles and Registration Division regional office?

• Not at this time. The regional offices do issue bulk permits to trucking firms. A trucking firm can place an order for permits through the regional office.

• The regional office prepares each receipt in the name of the firm but leaves the vehicle description blank. When the firm assigns the permit to a specific vehicle, the vehicle description is completed on the receipt and a copy of the receipt is returned to the regional office with proof of insurance.

• If the firm fails to provide proof of insurance information in a timely manner, the capability to obtain bulk permits is lost.

If a vehicle from Mexico with a 72 or 144-hour permit is on the way back from, say Dallas and the vehicle breaks down – how and where can another permit be obtained so that the operator won’t get in trouble for being in the country too long? Do carriers from Mexico have to cross the border back and forth to obtain another 72 or 144-hour permit?

County tax offices, Vehicle Titles and Registration Division Regional Offices, or the
Motor Carrier Division can issue 72 or 144-hour permits. No, Mexican carriers do not have to cross the border back and forth.

Exemptions.

• A foreign commercial vehicle is exempt from Chapter 502, Texas Transportation Code, and Chapter 548, Transportation Code, relating to inspection certificates or emissions inspections, including a law providing for a temporary registration permit, if:

• The vehicle is engaged solely in transportation of cargo across the border into or from a border commercial zone;

• For each load of cargo transported the vehicle remains in this state:

1. not more than 24 hours, or
2. not more than 48 hours, if:

the vehicle is unable to leave this state within 24 hours because of circumstances beyond the control of the motor carrier operating the vehicle; and all financial responsibility requirements applying to the vehicle are satisfied; the vehicle is registered and licensed as required by the law of another state or county as evidenced by a valid metal license plate attached to the front or rear of the exterior of the vehicle; and the country in which the person that owns or controls the vehicle is domiciled or is a citizen provides a reciprocal exemption for commercial motor vehicles owned or controlled by residents of this state.

• Until the border opens, commercial vehicles are permitted to operate only within specified zones of cities located along the contiguous border with Mexico.

• The Border Commercial Zones for the United States/Mexico ports of entry in Texas are based on the number of miles from the city limit boundaries and are based on the population of the city.

• The boundaries of a Border Commercial Zone may be modified or established only as provided by federal law.

• NAFTA does not affect the registration requirements for passenger cars, pickup trucks (not exceeding 2,000 pounds manufactured rated carrying capacity) and trailers and semi-trailers (not exceeding 4,000 pounds gross weight). These vehicles will continue to be operated according to the paired city understandings with the Mexican States of Coahuila and Chihuahua and the bilateral understanding with the Mexican State of Tamaulipas.

Bus operations from Mexico to Texas

• Charter buses may obtain US $5 One-Trip Permits to operate into or through the State of Texas. Motor and private buses may operate to and from Texas terminals of cities listed in the Border Commercial Zones, provided such buses are operating a through service into and from the interior of Mexico.

Is there a list of all documentation that Mexican companies will be required to show if they are pulled over by police in the U.S.?

• The Texas Department of Public Safety (DPS) booklets "Texas Motor Carrier Guide to Highway Safety" and "Driver and Vehicle Requirements for Commercial Transportation in Texas" cover the state requirements including: proof of vehicle registration; operating authority; motor fuel taxes; and insurance. These booklets are available at DPS Regional Offices statewide through the agency’s License and Weight Services division.

• In addition, the Vehicle Titles and Registration Division (VTR) booklet entitled "General Information Covering Commercial Vehicle Operation in Texas" is a cooperative publication involving TxDOT, DPS, and the State Comptroller of Public Accounts. Copies of our booklet are available at any VTR Regional Office, VTR Headquarters, and the Motor Carrier Division

How can I contact the Vehicle Titles and Registration Division?

• The Headquarters Office for the Vehicle Titles and Registration Division (VTR) is located in Austin. There are also VTR Regional Offices statewide. Send any correspondence to:

Texas Department of Transportation
Vehicle Titles and Registration Division
4000 Jackson Avenue
Austin, TX 78779-0001

Contacts for additional information.

• Permit Information

Vehicle Titles and Registration Division
Customer Information Help Desk
(512) 465-7611
or any of the Vehicle Titles and Registration Division Regional Offices

• Safety And Enforcement

Texas Department of Public Safety Public Information Office
(512) 424-2080.

• Insurance Company Authorization Requirements

Texas Department of Insurance
1-800-578-4677.

• Motor Carrier Registration

TxDOT’s Motor Carrier Division
One-Stop-Shop Automated Menu
1-800-299-1700 (options 3, 1)

• Federal Motor Carrier Registration Requirements

United States Department of Transportation (USDOT) through
TxDOT's Motor Carrier Division
One-Stop-Shop Automated Menu
1-800-299-1700 (option 8).