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NAFTA and Cross-Border Traffic

(NOTE: Please check back frequently to ensure you have the most up-to-date information. Further implementation of NAFTA is currently under review.)

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 (truck, truck tractor, trailer, semitrailer, or passenger motor bus) 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) windshield sticker and a USDOT permit to be legal. For information on the USDOT permit, call the Motor Carrier Division at (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:

  • a NAFTA annual permit, issued by the Vehicle Titles and Registration Division (VTR), which is valid one year from month of issuance;
  • a 72-hour permit displayed on each vehicle; or
  • a 144-hour permit displayed on each vehicle.

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 pounds, 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 VTR regional offices.

Weight Increases

The weight can be raised on NAFTA annual permits up to the legal maximum weight 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.

Fees for a NAFTA annual permit

The fees for a NAFTA annual permit are based on the vehicle’s registration class. 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.

Availability of NAFTA annual permits

The NAFTA annual permit is available from the VTR 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;
  3. if applicant is a registered motor carrier through TxDOT’s Motor Carrier Division, a current registration listing indicating that the vehicle is in compliance; and
  4. pay required fees in cash, postal money order or certified check.

Insurance for Mexican motor carriers

USDOT and TxDOT 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.

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, and a NAFTA annual permit license receipt.

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.

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. If the trailer is unregistered, or displays an expired plate, a NAFTA annual permit must be issued so the trailer displays valid registration.

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, semitrailers, and motor buses owned by residents of the United States, Canada or Mexico.

The permits are available at the VTR regional offices, the state’s county tax assessor-collector offices, and by contacting TxDOT’s Motor Carrier Division at (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.

Note: Permits are only valid in the commercial zone for Foreign Motor Carriers.

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:
    • not more than 24 hours, or
    • 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 country 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.

Texas City Population Travel Miles Allowed from
City Limits Boundaries
Del Rio 30,705 6
Eagle Pass 20,651 4
El Paso 592,400 15
Fabens 1,599 3
Laredo 126,300 8
Presidio 3,072 4
Brownsville 266,600 *
Hidalgo 384,800 *
Rio Grande City 9,891 *
Progresso 1,951 *
Roma 8,059 *

* These cities are located in the border commercial zone of Cameron, Hidalgo, Starr, and Willacy Counties. Therefore, mileage or population does not mandate the zone limits.

NAFTA does not affect the current registration requirements for passenger cars, pickup trucks (not exceeding 2,000 pounds manufactured rated carrying capacity) and trailers and semitrailers (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 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.

Trailer License Plates

All foreign commercial motor vehicles, primarily engaged in transporting cargo across the border into or from a border commercial zone, must be registered in Texas or operated under the exemption noted above.

All foreign commercial motor vehicles operating within the border commercial zone must display one of the following types of registration on the semi-trailer:

  • Current foreign registration, including current Mexican registration
  • NAFTA annual permit trailer permit
  • 72-hour permit
  • 144-hour permit

Contact one of the VTR regional offices located within the border commercial zone to purchase a NAFTA annual permit trailer permit, a 72-hour permit, or 144-hour permit.

NAFTA annual permits cannot be purchased for apprehended vehicles and will be required to pay registration fees and a 20 percent penalty at the county tax assessor-collector’s office.

 
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