B-92523, APR. 18, 1960

B-92523, APR. 18, 1960

TO MR. ROBERT J. LANDAMAN, STAFF COUNSEL, AIR EXPRESS INTERNATIONAL CORPORATION:

WE HAVE CONSIDERED YOUR REQUEST FOR PERMISSION TO USE A CERTAIN RECEIPT FORM NOT NOW ACCEPTABLE BY ITSELF IN THE PRESCRIBED BILLING PROCEDURES FOLLOWED IN OBTAINING PAYMENT FOR TRANSPORTATION SERVICES FURNISHED THE UNITED STATES.

UNDER PRESENT PROCEDURES, THE ORIGINAL GOVERNMENT BILL OF LADING, THE DOCUMENT REQUIRED AS EVIDENCE IN SUPPORT OF A BILL FOR TRANSPORTATION CHARGES, MUST BE ACCOMPLISHED BY THE CONSIGNEE OR HIS AGENT ACCEPTING DELIVERY AT DESTINATION, BY EXECUTING THE "CONSIGNEE'S CERTIFICATE OF DELIVERY" AT THE BOTTOM OF THE DOCUMENT. THE GOVERNMENT BILL OF LADING IS THEN SURRENDERED TO THE DELIVERING CARRIER, WHICH IS ORDINARILY THE CARRIER ENTITLED TO PAYMENT, FOR SUBMISSION WITH ITS BILL TO THE APPROPRIATE ADMINISTRATIVE AGENCY OF THE GOVERNMENT. IF THE ORIGINAL BILL OF LADING IS LOST, A CERTIFICATE IN LIEU OF LOST GOVERNMENT BILL OF LADING IS REQUIRED. SEE "INSTRUCTIONS" ON THE BACK OF THE GOVERNMENT BILL OF LADING.

YOUR PROPOSAL CONTEMPLATES VARYING THIS PROCEDURE THUS: (1) RETENTION OF THE ORIGINAL GOVERNMENT BILL OF LADING (ON WHICH MUST APPEAR THE SIGNATURE OF THE FORWARDER'S AGENT ACKNOWLEDGING RECEIPT OF THE PROPERTY AT POINT OR ORIGIN) BY AIR EXPRESS INTERNATIONAL; (2) FORWARDING TO THE CONSIGNEE IN PLACE OF THE GOVERNMENT BILL OF LADING A DELIVERY RECEIPT FROM (EXHIBIT B TO YOUR LETTER) TO BE EXECUTED UPON RECEIPT OF THE PROPERTY AND RETURNED TO AIR EXPRESS INTERNATIONAL; AND (3) SUBMISSION BY AIR EXPRESS INTERNATIONAL OF A BILL FOR CHARGES SUPPORTED BY THE UNACCOMPLISHED (CONSIGNEE'S CERTIFICATE OF DELIVERY LEFT BLANK) GOVERNMENT BILL OF LADING ACCOMPANIED BY THE DELIVERY RECEIPT SIGNED BY THE CONSIGNEE. THE DELIVERY RECEIPT PROPOSED TO BE USED, AS SHOWN IN YOUR EXHIBIT B, MAKES PROVISION FOR AN EXTRACT OF NECESSARY INFORMATION FROM THE GOVERNMENT BILL OF LADING AND FOR A REPORT BY THE CONSIGNEE OF ANY LOSS, DAMAGE, OR OTHER EXCEPTION TO THE GOOD ORDER AND CONDITION OF THE PROPERTY WHICH MAY BE NOTED UPON DELIVERY. THE FORM IS UNOBJECTIONABLE EXCEPT AS TO PARAGRAPH "/1)" READING,"WE HAVE TODAY FORWARDED IN ACCORDANCE WITH THE ABOVE ROUTING FOR DELIVERY TO YOU THE ABOVE REFERENCED GBL," TC., WHICH SHOULD BE MODIFIED TO READ: "WE HAVE TODAY FORWARDED IN ACCORDANCE WITH THE ABOVE ROUTING FOR DELIVERY TO YOU THE SHIPMENT UNDER THE ABOVE REFERENCED GBL," ETC.

AS A FREIGHT FORWARDER, AIR EXPRESS INTERNATIONAL ENTERS INTO CONTRACTS WITH THE GOVERNMENT TO PROVIDE IT WITH NEEDED AIR FREIGHT TRANSPORTATION. THE TRANSPORTATION IS THEN PROCURED BY AIR EXPRESS INTERNATIONAL FROM CARRIERS CERTIFICATED TO PERFORM THE ACTUAL CARRIAGE. THE CHARGES OF THESE CERTIFICATED CARRIERS, ACCORDING TO THE INFORMATION GIVEN IN YOUR LETTER, ARE PREPAID BY AIR EXPRESS INTERNATIONAL; THE CERTIFICATED OR DIRECT AIR CARRIERS HAVE NO VALID AND SUBSISTING INTEREST IN THE CHARGES TO BE PAID BY THE GOVERNMENT; THEY HAVE NO DIRECT CONTRACTUAL RELATIONSHIP WITH THE GOVERNMENT SINCE THE CONTRACT IS BETWEEN THE UNITED STATES AND AIR EXPRESS INTERNATIONAL, AS REPRESENTED BY THE GOVERNMENT BILL OF LADING. ONLY THE FORWARDER, AS THE PARTY CONTRACTING WITH THE GOVERNMENT, IS ENTITLED TO BILL AND COLLECT THE CHARGES PAYABLE UNDER THE CONTRACT, AND ANY NECESSARY ADJUSTMENTS BECAUSE OF OVERPAYMENTS OR LOSS OR DAMAGE ARE HANDLED WITH THE FORWARDER. YOU REPORT THAT THE EXISTING PROCEDURES FOR ACCOMPLISHING GOVERNMENT BILLS OF LADING AND BILLING CHARGES TO THE GOVERNMENT GENERATE DIFFICULTIES WHICH UNDULY DELAY YOUR OBTAINING PAYMENT FOR THE SERVICES FURNISHED TO THE POINT WHERE YOUR OPERATING CAPITAL IS SERIOUSLY PREJUDICED. THE DIFFICULTIES WHICH CONFRONT YOU APPARENTLY ARISE PRIMARILY IN INTERNATIONAL AIR TRANSPORTATION, WHERE DELIVERY AT FOREIGN DESTINATIONS IS FREQUENTLY MADE BY FOREIGN AIR CARRIERS, FOREIGN SURFACE CARRIERS, OR THEIR AGENTS. IT IS INDICATED THAT UNFAMILIARITY WITH GOVERNMENT BILLING PROCEDURES AND INABILITY TO COMMUNICATE BECAUSE OF LANGUAGE BARRIERS INTERFERE WITH THE PROMPT ACCOMPLISHMENT AND RETURN TO YOUR COMPANY OF THE ORIGINAL GOVERNMENT BILLS OF LADING. SIMILAR DIFFICULTIES APPARENTLY SOMETIMES PREVENT LOCATING THE MISSING GOVERNMENT BILLS OF LADING AND DETERMINING WHETHER THEY ARE IN FACT LOST, SO THAT CERTIFICATES IN LIEU OF LOST GOVERNMENT BILLS OF LADING CAN BE SECURED. YOU SUGGEST ALSO THE POSSIBILITY THAT CONSIGNEES, AFTER ACCOMPLISHING BILLS OF LADING, FOLLOW TO THE LETTER THE INSTRUCTIONS THEREON BY SURRENDERING THEM, NOT TO AIR EXPRESS INTERNATIONAL, BUT TO THE CARRIER ACTUALLY MAKING DELIVERY; THE LATTER, ALTHOUGH ITS CHARGES HAVE BEEN PREPAID BY AIR EXPRESS INTERNATIONAL, IS IN A POSITION TO PRESENT ITS BILL, SUPPORTED BY THE COMPLETED ORIGINAL GOVERNMENT BILL OF LADING, TO THE UNITED STATES GOVERNMENT, IN WHICH CASE YOU SAY YOUR BILLING, SUPPORTED BY THE CERTIFICATE IN LIEU, WILL NOT BE HONORED.

EXHIBIT A TO YOUR LETTER CONTAINS A BREAKDOWN, FOR THE YEARS 1956 THROUGH 1958, AND FOR 1959 THROUGH OCTOBER 23RD, OF SUMS DUE AIR EXPRESS INTERNATIONAL FOR TRANSPORTATION FURNISHED THE GOVERNMENT ON WHICH THE CHARGES WERE PREPAID TO THE CARRIERS PERFORMING THE ACTUAL CARRIAGE. OF OCTOBER 23, 1959, THERE WAS OUTSTANDING IN YOUR ACCOUNTS, ACCORDING TO THIS EXHIBIT, A TOTAL OF $785,947.68 ON WHICH YOUR COMPANY HAD NOT COLLECTED TRANSPORTATION CHARGES FROM THE GOVERNMENT, AND YOU INTIMATE THAT YOUR INABILITY TO COLLECT A LARGE PART OF THAT AMOUNT IS TRACEABLE TO THE PRESENT REQUIREMENT FOR SUPPORTING YOUR BILLS WITH THE FULLY COMPLETED GOVERNMENT BILLS OF LADING. OF THIS TOTAL, $221,844.38 COVERED SERVICES RENDERED BETWEEN 1956 AND APRIL 1959, AND MORE THAN $564,000 COVERED SERVICES FROM MAY THROUGH OCTOBER, 1959.

IN VIEW OF THIS SITUATION AND OF THE NATURE OF THE FORWARDER SERVICE, WHEREIN THE FORWARDER IS THE ONLY PARTY DEALING WITH THE GOVERNMENT, AND ASSUMING RESPONSIBILITY FOR THE TRANSPORTATION FROM POINT OF ORIGIN TO DESTINATION, THERE SEEMS TO BE ADEQUATE JUSTIFICATION FOR CONCURRING IN YOUR PROPOSAL WITH RESPECT TO THE INTERNATIONAL AIR CARRIAGE OF GOVERNMENT SHIPMENTS. SINCE UNDER THIS PROCEDURE THE ORIGINAL GOVERNMENT BILL OF LADING WILL NOT LEAVE THE CUSTODY OF AIR EXPRESS INTERNATIONAL UNTIL IT IS SUBMITTED FOR PAYMENT, IT SEEMS REASONABLE TO ASSUME THAT REQUESTS FOR CERTIFICATES IN LIEU OF LOST GOVERNMENT BILLS OF LADING SHOULD BE ALMOST ELIMINATED OR AT LEAST MATERIALLY REDUCED; IF DELIVERY RECEIPTS ARE LOST, THE PROCUREMENT OF DUPLICATES WILL BE A MATTER FOR HANDLING ENTIRELY BETWEEN AIR EXPRESS INTERNATIONAL AND THE CONSIGNEE.

ACCORDINGLY, IN CONNECTION WITH SHIPMENTS COVERED BY GOVERNMENT BILLS OF LADING TENDERED TO AIR EXPRESS INTERNATIONAL AS THE PARTY WITH WHOM ARRANGEMENTS ARE MADE FOR TRANSPORTATION TO DESTINATIONS LOCATED IN COUNTRIES OTHER THAN THE UNITED STATES, THE GENERAL ACCOUNTING OFFICE WILL NOT OBJECT TO THE PAYMENT OF AIR EXPRESS INTERNATIONAL BILLS, IF OTHERWISE PROPER, WHICH ARE SUPPORTED BY GOVERNMENT BILLS OF LADING NOT SIGNED BY THE CONSIGNEE, BUT ACCOMPANIED BY DELIVERY RECEIPTS SIGNED BY THE CONSIGNEE IN THE FORM SET OUT IN EXHIBIT B TO YOUR LETTER, AS MODIFIED HEREIN.

ANY EXCEPTIONS SHOWN IN SUCH DELIVERY RECEIPTS AS TO THE CONDITION OR COUNT OF THE SHIPMENTS WILL, OF COURSE, REQUIRE APPROPRIATE DEVELOPMENT AND POSSIBLE DELAY IN SETTLEMENT BECAUSE OF ANY ADJUSTMENT THAT MAY BE WARRANTED UNDER THE CIRCUMSTANCES. PAYMENT OF YOUR BILLS, WHERE THE AUTHORIZED PROCEDURE IS REQUIRED, SHOULD BE FACILITATED BY A STATEMENT PLACED ON SUCH BILLS OR ASSOCIATED DOCUMENTATION TO THE EFFECT THAT THE DELIVERY RECEIPT PROCEDURE WAS APPROVED IN COMPTROLLER GENERAL'S DECISION B-92523, SHOWING TODAY'S DATE.

IT IS TO BE UNDERSTOOD THAT WE WILL NOT OBJECT TO THE DELIVERY RECEIPT PROCEDURE SO LONG AS WE ARE SATISFIED THAT THE INTERESTS OF THE UNITED STATES ARE BEST SERVED BY SUCH PROCEDURE. IF, UPON FURTHER REVIEW OF THE MATTER, FOLLOWING SUFFICIENT EXPERIENCE TO ENABLE A PROPER DETERMINATION, WE FIND THAT THE PROCEDURE IS NOT SATISFACTORY, IT WILL THEN BE NECESSARY TO CONSIDER POSSIBLE REINSTATEMENT OF THE USUAL PROCEDURE.