You know that the International Fuel Trade Agreement is important, but do you know why it’s important to the trucking industry? A little while ago, those trucks passing through multiple states were required to purchase fuel permits in each of those territories which meant that they were losing both time and mileage while on their runs. In an effort to make the trucking industry a little more efficient, many states and Canadian provinces agreed to start using a single permit for transports hauling goods across their borders. Trucks will need to display an IFTA sticker on their truck, and here’s why it’s important to have that sticker.

Reduce the administrative burden

There are numerous advantages to having the IFTA sticker, and many of them help with reporting fuel taxes and administrative work for the carriers of these transport trucks. This means that companies get to use a single fuel tax license, which will be issued by the jurisdiction the company is based in.

Regulate trucking companies with IFTA licenses

Each trucking company that has this sticker had to apply for it, and therefore the DOT is regulating the companies. In order to be granted one of these stickers, the company will have to have met the following requirements

• Qualified motor vehicles registered in the appropriate jurisdiction
• Established a place of business in that same jurisdiction
• Have 2 axles and a GVW of more than 26,000 pounds
• Have 3 or more axles, regardless of weight
• Operate in more than one jurisdiction

Even if you have been approved, and given the stickers, you will still have to renew the IFTA sticker every year so be mindful that you don’t let it lapse for your company.

Establish similar rules all companies must follow

When an industry becomes regulated, one of the biggest benefits is that all companies within the industry are now playing with similar rules so they are all held to the same standard. The IFTA stickers come with basic rules each company must follow, including that each sticker is valid from January 1 to December 31 of the specified year. Further you must renew your stickers in appropriate time, and the stickers issued to you must be displayed on both sides of your truck’s cab. Each company also must file an IFTA tax return and pay appropriate fuel taxes on time to maintain the sticker approval. Finally, each driver working for your company must carry a copy of your company’s IFTA license at all times.

When does my company need to renew its stickers?

The taxes for each company must be filed quarterly for the license to remain valid. You can also only renew licenses that have been active for at least the last 6 months when its time to get a new sticker. Each company can renew its license and stickers online to make the process that much easier, and ensure you don’t have to rely on mailing any documents in.