Posted in Operations and Supply Chain Terms, Total Reads: 698
Definition: Exempt Carrier
An exempt carrier is a transport agency which is exempted from the regulation of interstate commerce act and is specialization in any particular service or commodity. Interstate act was formed to avoid the monopolies in railroads industry and was then extended to other means of transportation.
The exemption to exempt carriers under interstate commerce act is to help the simple service groups like taxis, farmers, school buses etc. to operate without any interference from the government regulations, as there is no threat of monopolization in these services.
Example: School buses
There are following few exemptions for carriers:
• A motor vehicle providing transport to school students and teacher for to and fro journey
• A motor vehicle delivering taxicab service
• Transport Service provided to hotel patrons between hotel and location station
• A vehicle used by a farmer to transport agriculture goods
• Vehicles owned by Cooperatives
• Transport services used to handle the ordinary livestock and agriculture commodities
• Newspaper delivery vehicle
• Vehicles providing transportation to aircraft passengers
• The transport vehicles in national monuments
• A motor vehicle carrying less than 15 people in a single, daily roundtrip commute to and from work