Getting Ready for IRP? Here’s a Plan of Action

QUESTION: Our home province-New Brunswick-intends to join IRP by April 2001. What can we do to get ready?

You’ve already started: you’re aware that a change is coming. The decision of the provinces east of Saskatchewan to join IRP will create a real challenge for you. With the exception of Ontario, the implementation date is April 1, 2001. Prior to this date, all inter-jurisdictional trucking firms will have to revise their recordkeeping and tax-filing procedures to accommodate a new set of rules.

You and other carriers from these new member provinces will be used to travelling the U.S. under bi-lateral, or “full and free,” reciprocal agreements. In other words, you buy a plate from the home base jurisdiction, and it’s recognized in most states as a valid registration to travel in a state. When IRP comes into effect, you’ll need to carry a cab card in each truck listing all the states you’ve requested under IRP.

Although the forms may change, carriers currently filing under the Canadian Agreement on Vehicle Registration (CAVR) will be familiar with the prorate process-i.e., register with your home base and pay the fees which are divvied up by the base to the various jurisdictions.

The biggest change will be the exposure to audit.

Whereas CAVR had no hard and fast rule for audit, IRP does. In fact, each province will be monitored to ensure that it is auditing to IRP standards.

The good news is that the distance information you need for IRP is already being collected and submitted for IFTA. Don’t be fooled into thinking that IFTA and IRP rules are the same, however. For example, under IFTA, all the units (in the same fuel category) reported for a company are considered a fleet. However, under IRP, “fleet” has a different definition and prorate percentages are calculated based on units grouped by areas of travel.

So how do you start getting ready for the change to IRP? Here are some key questions you’ll need to address:

o Who should manage IRP? Some companies hire service bureaus to do their work. At small companies, it may be the owner or his or her spouse. At a medium-sized firm, often it’s an accountant. Big companies typically have a dedicated tax and licensing department.

o What training should they have? Make sure whoever manages your IRP work is trained to do so. If you’re the one who’ll do it, here’s an action plan:  Learn about new forms and procedures for filing.  Know that you don’t travel to the states without a cab card unless you want to buy single trip permits.  See whether your current recordkeeping system will meet the requirements of IRP.  Be ready to have to pay fees for your U.S. portion of travel in U.S. funds.  File your application at least three months before your plates expire to give yourself time to correct errors. Where can you go for IRP information and training? o Go to www.aamva.org and click on IRP Inc. o Read through all the literature that your provincial prorate office provides. o Your province will offer training seminars. Don’t miss out. o Your provincial trucking association may offer training, or be able to recommend someone in your area who can provide it. o Talk to other trucking companies or companies who are living in B.C., Alberta, Saskatchewan, which already use IRP. o Hire a reputable service bureau to help you through the process.

The fact that you’re thinking about IRP strategies now, nearly 18 months ahead of the implementation date, means you’ll have time to find good training resources and learn how to build a comprehensive compliance program without rushing. Good luck!