WASHINGTON — A group representing small trucking companies and owner operators is concerned about unfair competition from foreign-based motor carriers approved to operate in the U.S., but that concern is not supported by federal data.
The Small Business in Transportation Coalition (SBTC) is asking the U.S. Department of Transportation and FMCSA to repeal regulations – specifically 49 CFR Subpart H, subsection 385.601-385.603 – which allow new-entrant, non-North America-domiciled carriers to apply for operating authority in the U.S., asserting that providing such authority runs counter to U.S. interests.
“Notwithstanding bona fide E-2 Treaty Investors [foreign nationals who invest significant capital in a U.S. business], who make substantial, at risk investments, we contend this current FMCSA practice of granting operating authority to individual foreign nationals violates immigration law, constitutes illegal and unfair competition against American citizens operating small motor carrier and independent owner-operator businesses within the United States, and unreasonably restrains American trade,” stated SBTC Executive Director James Lamb, in an email petition to FMCSA.
“We respectfully request this section please be repealed, any certificates or permits of operating authority granted under this subpart be revoked, and FMCSA be directed to discontinue this unlawful practice in the interest of public safety.”
Regulations require carriers and brokers outside North America that apply for non-domicile operating status complete an FMCSA-administered safety audit before FMCSA will allow them to operate in the U.S.
“The safety audit is a review by FMCSA of the carrier’s written procedures and records to validate the accuracy of information and certifications provided in the application and determine whether the carrier has established or exercises the basic safety management controls necessary to ensure safe operations,” the regulations state.
Asked to comment on the petition, P. Sean Garney, co-director of Scopelitis Transportation Consulting, said he’s “not seeing a growing problem” based on FMCSA registration data.
The data reveals that as of June 2025, only three operating authorities – two property carriers and one broker – are based outside North America. There have not been more than seven such registrants in a given year since 2016, according to FMCSA statistics.
“I wonder about the scope of the problem we’re looking to solve and where we should be spending our resources to make our roads safer,” he said.
SBTC’s request follows a regulatory crackdown by the Trump administration aimed at combatting CDL fraud, including a nationwide audit of non-domiciled CDL holders. The audit, to be conducted by FMCSA, responds to a directive issued by President Trump in April.
FMCSA’s review of states issuing non-domiciled CDLs “will examine state procedures for issuing non-domiciled CDLs to identify and stop any patterns of abuse and ensure federal standards are being met across the country,” according to DOT.
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