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Freight Broker Requirements for Canada


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Many people ask us what the Freight Broker Requirements for Canada are and whether they can use the same Freight Broker Training as the USA.


One thing about being a Freight Broker is that once you learn it, you can broker


Freight anywhere in the world. The legal requirements for starting a brokerage or operating one in different countries will change, but the concept is the same everywhere. If you wish to broker freight in the United States of America, you must obtain authority to operate in the USA from the FMCSA website. Before using it, you must also follow all city, county, state, and government regulations.


Canadian Licensing Requirements


As a result of a jurisdictional dispute between the Federal Government and the Province of New Brunswick, the Federal Government relegated the administration of inter-provincial and extra-provincial road transportation to the individual provinces affected.


The following provinces and territories do not regulate freight brokers in Canada:


BRITISH COLUMBIA

ALBERTA

SASKATCHEWAN

MANITOBA

YUKON

NORTHWEST TERRITORIES

NUNAVUT

NOVA SCOTIA

NEW BRUNSWICK

PRINCE EDWARD ISLAND

NEWFOUNDLAND


The following provinces do regulate freight brokers in Canada:


ONTARIO: Effective January 1, 2006, Ontario Regulation 556/92 to the Truck Transportation Act and the Act itself are repealed.


One part of 556/92 has been retained in legislation and transferred to the Highway Traffic Act (HTA). Where the previous 556/92 required an application to obtain a Load Brokerage Certificate, the new addition to the HTA requires no such application or certificate. It will universally apply to all companies who broker freight “over the road,” including motor carriers, warehousemen, customs brokers, freight forwarders, 3PLs, and freight brokers. 556/92 of the HTA speaks mainly to the requirement that all parties who broker freight must maintain a trust account to hold monies payable to the carrier.


QUEBEC: Presently, the Commission des transports du Québec Section 332 requires that a “transport service intermediary” (any person who finds a carrier for his client's account) register with the CTQ. A person can be a freight forwarder, a forwarding agent, a broker, and so on, and corresponds to one of the following situations:

(1) concludes a contract in Québec

(2) has a place of business, an office or a business address in Québec, a post office box, or a telephone number

(3) has a representative or an agent with a proxy to transact on her behalf in Québec

(4) generally, acts in Québec for gain in the scope of professional or commercial activities


United States Licensing Requirements


Federal Motor Carrier Safety Administration (FMCSA) regulations state that freight brokers who arrange transportation in or through the U.S. are required to possess a Motor Carrier Number (MC#) backed by a minimum $75,000 (U.S. funds) surety bond or registered trust fund.


Ontario WSIB Requirements


If employing workers, Ontario-based freight brokers are required by law to register with the Workplace Safety and Insurance Board. For further information, visit the Workplace Safety and Insurance Board.


Freight Brokers must also obtain WSIB clearance certificates from all contracted carriers. You can get more information from the WSIB here: How to obtain Clearance Certificates.


Conclusion:


Many provinces in Canada do not have regulations for Freight Brokers; in fact, only Ontario and Quebec have limitations. All load brokers in Ontario must have a trust fund account. According to the Commission des Transports du Québec Section 332, all load brokers in Quebec require that a “transport service intermediary” (any person who finds a carrier for his client's account) register with the CTQ. A person can be a freight forwarder, a forwarding agent, a broker, and so on, and correspond to one of the following situations:


  • Concludes a contract in Québec

  • has a place of business, an office or a business address in Québec, a post office box, or a telephone number

  • has a representative or an agent with a proxy to transact on her behalf in Québec

  • generally acts in Québec for gain in the scope of professional or commercial activities

Legal Disclaimer: Information on this page has been compiled as accurately as possible. However, Andre Erving, LLC, the National Transportation Brokers Association, its Directors, and its Officers or Shareholders assume no liability for its accuracy. Readers are advised to verify any information on this page before making any business decision.


Now that we know what it takes to become a broker in Canada, it is time to receive Freight Broker Training. Click the image below to sign up for our Freight Broker Training online course.


We are also the number Freight Broker Program in Canada.


Best Freight Broker Training Program in Canada
Best Freight Broker Training Program in Canada


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