HOW DOES PRORATE PLATE WORK? WHO NEEDS IT?

Everything about Prorate Plates:

Prorate Plates from ICBC allow transport vehicles to operate across North America. They eliminate the red tape of operating in 59 different states or provinces, each with complex regulations.

Whether you deliver your goods, others’ goods, or run empty, each zone requires taxes and registration fees. This applies to larger vehicles with a GVW over 11,800 kg or those with three or more axles.

In BC, ICBC serves as the clearinghouse, working with similar organizations across the 59 zones. ICBC ensures vehicles don’t operate from cheaper regions while using roads and facilities elsewhere without contributing to upkeep costs. This centralized system replaces the need for trip permits at each border crossing. The result is the PRORATE plate, which consolidates all costs into one yearly fee.

Getting a Prorate Plate from ICBC can seem complex. AMC Insurance helps simplify the process for your transportation business.

The first step is obtaining an International Fuel Tax Act Agreement (IFTA) number, which can take up to 15 days. You also need a National Safety Code (NSC), which takes about the same amount of time. To get an NSC, you must complete an instruction kit from Victoria and submit the details. It is processed quickly if the application is completed correctly. If you work under contract for an NSC-registered company, you can use their number with written permission. This is helpful but requires 100% of your work to remain under that contract.

Once you have these, AMC Insurance staff will help you complete the Prorate application for ICBC. Processing the application typically takes about five business days. You’ll inform AMC which zones you plan to operate in, and ICBC will calculate the taxes and fees for each. Rates depend on your mileage in those zones. For the first year, fees are based on averages from all prorate trucking fleets in BC. Rates will be adjusted annually based on actual mileage.

The Prorate Plate will not:

• Allow you to exceed length, width, height, or axle limits in any zone.
• Exempt you from filing proof of liability if required.
• Waive the need for operating authority.
• Waive the requirements of IFTA for the operator.

If out-of-province trucking isn’t for you, a midterm-canceled Prorate license can provide a refund. Exit taxes may apply. Happy trucking!