What is an Exempt Carrier?
These are transporting agencies that can transport commodities that are exempt from the regulation of the Interstate Commerce Act. These agencies essentially transport cargo or items that are not federally regulated. Exempt carriers are not required to have insurance, an MC number, or have operating authority.
Items, products such as farm products, foods, and certain bulk cargo could be delivered through the use of an exempt carrier. To get an idea of what items are exempt and not exempt from federal regulations, check out Administrative Ruling 119.
Examples of an Exempt Carrier
Exempt carriers are not like typical parcel carriers. They are not transporting finished goods, rather they are mostly transporting people and raw goods. Some examples include
- School bus transporting students
- Motor vehicle providing a taxi service
- Motor vehicles transporting livestock, food for livestock, agricultural seeds, and plants.
- Vehicles used to distribute newspapers
- Vehicles carrying wood chips
- Vehicles transporting empty shipping materials like containers, pallets, and other materials
For most e-commerce merchants, you’ll never be able to use an exempt carrier because they do not deliver parcels.