You’re heard the story before- a company gets all set up to run loads, and on the FIRST DAY operating, the vehicle gets pulled over. Officer runs the DOT#, and BAM- it turns out the vehicle has ALREADY been placed Out-of-Service by the FMCSA. The confused owner contacts the FMCSA and discovers that while the company was getting set up, it missed a Biennial Update and now has to sit out-of-service for the next 30 days.
But, what on earth is this "BU" thing?
According to federal regulations, specifically 49 CFR § 390.201, companies with DOT #s are required to file a biennial (every two years) update to ensure that the FMCSA has the company’s most current information.
But, you ask, if it’s every two years, how can a new company get placed out-of-service for non-compliance?
It turns out that the schedule for this Biennial Update is determined by the last two digits of a DOT#. The last digit of the number corresponds to the month of the year when the filing is due (Jan. is 1, Feb. is 2, etc), and the second to last digit of the DOT# corresponds to whether the filing is due in eve or odd numbered years (if the digit is ‘0’, that corresponds to even numbered years).
So, in the case above, it is possible for a company with a new DOT# to still owe a BU filing even if the company JUST opened the DOT#. And the failure to complete a BU can be fines, up to $1,000 per day for a maximum of 10 days (or $10,000). In addition, the DOT can place a DOT# out-of-service for this lapse in compliance, which is the story mentioned previously.
So, how can a company avoid issues like these?
It’s very simple, really.
Contact Federal Applications Processor Hoffenmer at updatemydot.us or speak to one of our experienced agents by calling (240) 544-0881. Federal Applications Processor Hoffenmer is your one-stop, friendly, compliance specialist that will work to ensure that your company remains fully compliant with the FMCSA.
And we do it better than our competitors. For only $98, you can rest easily knowing that your Biennial Update will be completed quickly and accurately. Federal Applications Processor Hoffenmer stands behind its work and its clients, and you will know that you are in good hands when you turn your compliance needs over to us.