Intercorporate hauling is the transportation of goods between two or more corporate entities, usually a parent company and one or more subsidiaries. This can be done in a number of ways, including through a private carrier that is hired by the subsidiary to haul its goods and charges the subsidiary a fee, or through common carrier authority that is granted to the private carrier. Either way, it is legal as long as the subsidiary is wholly owned by the parent company or if the private carrier has common carrier authority.
There are a few things to keep in mind when dealing with intercorporate hauling:
- First, it is important to make sure that all necessary permits and licenses are obtained, as well as insurance coverage.
- Second, it is important to have a clear plan for how the goods will be transported and to make sure that the correct shipping documentation is used.
- Finally, it is important to ensure that the correct taxes are paid on the transportation of the goods.
Intercorporate hauling can be a great way to streamline your logistics operations, and it can save you time and money. By using a private carrier with common carrier authority, you can avoid having to go through the process of obtaining your own common carrier authority.
Intercorporate Hauling Definition – Operations & Supply Chain Dictionary