SCAC Registration

The SCAC (Standard Carrier Alpha Code) is a unique four-letter code used to identify transportation companies, primarily motor carriers, in the U.S. The SCAC is primarily used for transportation industry purposes, including shipment documentation, customs processing, and other logistics-related tasks.

The SCAC code is crucial for businesses that transport goods across state lines or internationally, as it helps streamline operations, enhance tracking, and improve communication between parties involved in the shipping process.

Why Do You Need an SCAC Code?

  1. Industry Standard for Identification:
    • The SCAC provides a unique identifier for each transportation company. It is used by shippers, customs authorities, and other stakeholders in the logistics chain to identify motor carriers, freight forwarders, and other transport entities.
  2. Required for Electronic Systems:
    • The SCAC is required for various electronic systems, such as automated freight payment systems, bill of lading forms, and customs clearance. It is often used for interstate and international shipments.
  3. Customs and Regulatory Compliance:
    • If your business involves international shipping (e.g., to and from Canada or Mexico), the SCAC is required for customs filings and other regulatory compliance purposes. The code helps ensure that your shipments are processed efficiently through customs.
  4. Tracking and Reporting:
    • The SCAC code helps with the tracking of shipments, including invoices, bills of lading, and waybills. It simplifies reporting processes for both the carriers and the businesses they work with.

Who Needs an SCAC Code?

Typically, the following types of businesses need to register for an SCAC code:

  1. Motor Carriers:
    • Businesses or individuals that operate commercial vehicles to transport goods or passengers across state lines (interstate) or internationally.
  2. Freight Forwarders:
    • Companies that consolidate smaller shipments into larger loads for transportation across multiple destinations.
  3. Brokers:
    • Freight brokers who facilitate arrangements between shippers and carriers.
  4. Leasing Companies:
    • Companies that lease vehicles to motor carriers, brokers, or freight forwarders.
  5. Third-Party Logistics (3PL) Providers:
    • 3PL companies handling transportation and logistics operations for clients, including shipments that require SCAC codes for tracking.

How to Register for SCAC

To register for an SCAC code, follow these steps:

  1. Obtain and Complete the Registration Form:
    • To register, you need to fill out a SCAC registration form.
    • The form requires basic information about your business, including your legal business name, contact details, and details about your transportation services.
  2. Submit the Registration to NMFTA:
    • Submit the completed registration form along with the required fee for processing. The fee may vary depending on the type of business and number of SCACs requested.
  3. Receive Your SCAC Code:
    • After processing, NMFTA will assign your business a unique four-letter SCAC code. This code is issued once your application has been approved.

SCAC Code Fees

The cost of obtaining an SCAC code depends on the type of business registering. Here is a general fee structure:

  • Initial Registration Fee: Typically around $80 – $100 for a new SCAC code.
  • Annual Renewal Fee: A fee is required to renew your SCAC registration annually, typically in the range of $70 – $100.

Fees may vary, so it’s best to check the NMFTA website for up-to-date information.

Uses of the SCAC Code

  1. Shipping Documentation:
    • The SCAC code is used on various shipping documents, such as bills of lading, invoices, and shipping manifests. It ensures that the correct carrier is identified for each shipment.
  2. Customs Processing:
    • For businesses involved in international transportation (e.g., across the U.S.-Canada or U.S.-Mexico border), the SCAC code is required for customs documentation and to facilitate the clearance of goods through customs.
  3. Electronic Data Interchange (EDI):
    • The SCAC code is a key component in EDI systems used for electronic transmission of freight data. It helps automate communication between shippers, carriers, and other stakeholders in the logistics process.
  4. Freight Billing and Payment:
    • The SCAC code is used for freight payment systems to track and bill shipments accurately. This ensures that transportation costs are allocated correctly to the appropriate carriers.
  5. Tracking Shipments:
    • The SCAC code enables tracking of shipments by providing a clear identifier for the carrier, making it easier to trace shipments and resolve any issues that arise during transit.

How Long Is the SCAC Code Valid?

  • Permanent Code:
    Once assigned, the SCAC code remains valid indefinitely, as long as the business continues to operate and renews its registration annually.
  • Annual Renewal:
    The SCAC code must be renewed every year to ensure that it remains active in systems that require it for tracking, shipping, and regulatory purposes.

What Happens If You Don’t Have an SCAC Code?

  1. Inability to Process Shipments:
    • Without an SCAC code, your business will be unable to process shipments through certain automated freight payment systems or customs clearance procedures, leading to delays in operations.
  2. Non-compliance with Customs Requirements:
    • If your business deals with international shipping, failure to register for an SCAC code may result in customs issues, including potential fines or delays in clearing goods at the border.
  3. Operational Challenges:
    • Your shipments may not be properly tracked or processed, which can affect relationships with clients, shipping partners, and regulatory agencies.

The SCAC (Standard Carrier Alpha Code) is an essential tool for identifying transportation businesses in the U.S., especially those involved in interstate and international commerce. Registration for an SCAC code is required for motor carriers, brokers, freight forwarders, and leasing companies to ensure proper processing of shipments and compliance with customs regulations. By registering for an SCAC code, you streamline your operations, simplify freight billing and tracking, and ensure compliance with industry standards.