B-92523, JAN. 10, 1963

B-92523, JAN. 10, 1963

TO TRANS-AIR SYSTEM INC.:

WE AGAIN REFER TO YOUR LETTER OF OCTOBER 5, 1962, FILE GK/IA 10/5/62, WITH ENCLOSURES, IN WHICH YOU REQUEST PERMISSION TO USE A CERTAIN RECEIPT FORM IN PLACE OF THE CONSIGNEE'S CERTIFICATE OF DELIVERY ON THE ORIGINAL GOVERNMENT BILL OF LADING TO SUPPORT THE BILLINGS OF TRANS-AIR SYSTEM INC., AN INTERNATIONAL AIR FREIGHT FORWARDER, FOR TRANSPORTATION SERVICES FURNISHED THE GOVERNMENT.

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 BACK OF THE GOVERNMENT BILL OF LADING.

YOU PROPOSE VARYING THIS PROCEDURE BY RETAINING IN YOUR POSSESSION THE ORIGINAL GOVERNMENT BILL OF LADING ON WHICH WILL APPEAR THE SIGNATURE OF THE AGENT OF TRANS-AIR SYSTEM, ACKNOWLEDGING RECEIPT OF THE PROPERTY AT POINT OF ORIGIN; BY FORWARDING TO THE CONSIGNEE, IN PLACE OF THE ORIGINAL GOVERNMENT BILL OF LADING, A DELIVERY RECEIPT FORM (EXHIBIT "D," ATTACHED TO YOUR LETTER) TO BE EXECUTED BY THE CONSIGNEE UPON RECEIPT OF THE PROPERTY AND RETURNED TO TRANS-AIR SYSTEMS; AND BY SUBMISSION BY TRANS-AIR SYSTEM OF A BILL FOR CHARGES SUPPORTED BY THE UNACCOMPLISHED (CONSIGNEE'S CERTIFICATE OF DELIVERY LEFT BLANK) ORIGINAL GOVERNMENT BILL OF LADING, ACCOMPANIED BY THE DELIVERY RECEIPT SIGNED BY THE CONSIGNEE. THE DELIVERY RECEIPT PROPOSED TO BE USED, AS SHOWN IN EXHIBIT "D," 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 EXCEPTIONS TO THE GOOD ORDER AND CONDITION OF THE PROPERTY WHICH MAY BE NOTED UPON DELIVERY.

IN ITS INTERNATIONAL AIR FREIGHT FORWARDING OPERATIONS, PERFORMED UNDER AUTHORIZATION FROM THE CIVIL AERONAUTICS BOARD, TRANS-AIR SYSTEM ENTERS INTO CONTRACTS WITH THE GOVERNMENT TO PERFORM AIR FREIGHT TRANSPORTATION. THE TRANSPORTATION IN TURN IS PROCURED FROM CERTIFICATED CARRIERS. UNDERSTAND THAT THE CHARGES OF THE CERTIFICATED CARRIERS ARE PREPAID BY TRANS-AIR SYSTEM. THE CERTIFICATED OR DIRECT AIR CARRIERS WHICH YOU ENGAGE TO PERFORM THE TRANSPORTATION ORDINARILY HAVE NO DIRECT CONTRACTUAL RELATIONSHIP WITH THE GOVERNMENT SINCE THE TRANSPORTATION CONTRACT IS BETWEEN THE UNITED STATES AND TRANS-AIR SYSTEM, AS REPRESENTED BY THE GOVERNMENT BILL OF LADING. WHERE THE BILL OF LADING IS COMPLETED IN ITS FAVOR ONLY THE FORWARDER, AS THE PARTY CONTRACTING WITH THE GOVERNMENT, IS ENTITLED TO BILL AND COLLECT THE CHARGES PAYABLE UNDER THE TRANSPORTATION CONTRACT, AND ANY NECESSARY ADJUSTMENTS BECAUSE OF OVERPAYMENTS OR LOSS OR DAMAGE ARE HANDLED WITH THE FORWARDER.

YOU SAY THAT THE EXISTING PROCEDURES FOR ACCOMPLISHING GOVERNMENT BILLS OF LADING AND FOR BILLING CHARGES TO THE GOVERNMENT RESULT IN DIFFICULTIES WHICH UNDULY DELAY YOUR OBTAINING PAYMENT FOR THE SERVICES FURNISHED. FACT, YOU STATE THAT AT THE PRESENT TIME PAYMENTS HAVE BEEN OBTAINED ON A SCALE OF ONLY ONE-SEVENTH OF THE AMOUNT CONSIDERED DUE THE FORWARDER. THESE DIFFICULTIES ARE SAID TO ARISE FROM A GENERAL MISUNDERSTANDING AT THE FOREIGN INSTALLATIONS THAT TRANS-AIR SYSTEM IS PROPERLY AUTHORIZED TO BILL FOR THE SHIPMENTS, FROM THE FACT THAT DIRECT AIR CARRIERS OR THEIR AGENTS DELIVER THE SHIPMENTS ON BEHALF OF TRANS-AIR SYSTEMS, AND FROM THE LANGUAGE BARRIERS AND THE GENERAL UNFAMILIARITY WITH GOVERNMENT BILLING PROCEDURES AT FOREIGN INSTALLATIONS. IN MANY CASES DESTINATION INSTALLATIONS EXECUTE THE CONSIGNEE'S CERTIFICATE OF DELIVERY ON THE BILL OF LADING TO THE DELIVERING CARRIER WHICH HAS BILLED THE GOVERNMENT FOR THE CHARGES, NOTWITHSTANDING THE FACT THAT TRANS-AIR SYSTEM HAS PREPAID ALL CHARGES THROUGH TO DESTINATION. DIFFICULTIES ALSO OCCUR IN LOCATING 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; THIS UNDULY BURDENS GOVERNMENT SHIPPING OFFICERS WITH THE WORK OF PROVIDING CERTIFICATES IN LIEU OF LOST GOVERNMENT BILLS OF LADING.

IN VIEW OF THIS SITUATION AND BECAUSE THE FORWARDER UNDER THE TRANSPORTATION CONTRACT SHOULD BE THE ONLY PARTY DEALING WITH THE GOVERNMENT AND BECAUSE IT ASSUMES RESPONSIBILITY FOR THE TRANSPORTATION FROM POINT OF ORIGIN TO DESTINATION, THERE IS 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 TRANS AIR SYSTEM 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 TRANS-AIR SYSTEM AND THE CONSIGNEE.

ACCORDINGLY, ON SHIPMENTS COVERED BY GOVERNMENT BILLS OF LADING TENDERED TO TRANS-AIR SYSTEM INC. AS THE PARTY WITH WHOM ARRANGEMENTS ARE MADE FOR TRANSPORTATION TO DESTINATIONS LOCATED IN COUNTRIES OTHER THAN THE UNITED STATES, THE U.S. GENERAL ACCOUNTING OFFICE WILL NOT OBJECT TO THE PAYMENT OF TRANS-AIR SYSTEM INC. BILLS, IF OTHERWISE PROPER, WHICH ARE SUPPORTED BY GOVERNMENT BILLS OF LADING NOT SIGNED BY THE CONSIGNEE, BUT ACCOMPANIED BY A DELIVERY RECEIPT SIGNED BY THE CONSIGNEE. HOWEVER, THE FORM TITLED "DELIVERY RECEIPT," IDENTIFIED AS EXHIBIT "D," WOULD NOT BE ACCEPTABLE TO OUR OFFICE UNLESS THE FIRST PART OF PARAGRAPH (1) WERE CHANGED SO AS TO INSURE THAT THE ROUTING AND GOVERNMENT BILL OF LADING NUMBER WERE INCLUDED IN THE DOCUMENT. THUS PARAGRAPH (1) SHOULD READ AS FOLLOWS: "WE HAVE TODAY FORWARDED IN ACCORDANCE WITH THE ABOVE ROUTING FOR DELIVERY TO YOU UNDER U.S. GOVERNMENT BILL OF LADING . . . THE SHIPMENT DESCRIBED ABOVE," OR "WE HAVE TODAY FORWARDED IN ACCORDANCE WITH THE ABOVE ROUTING FOR DELIVERY TO YOU THE SHIPMENT DESCRIBED ABOVE UNDER THE REFERENCED U.S. GOVERNMENT BILL OF LADING"--- TO BE SHOWN AT THE UPPER RIGHT PART OF THE FORM AS NOW INDICATED. THE SENTENCE IN PARENTHESES IN PARAGRAPH 1 SHOULD REMAIN ON THE FORM. IN ALL OTHER RESPECTS THE DELIVERY RECEIPT FORM SEEMS CAPABLE OF ACCOMPLISHING THE INTENDED PURPOSES.

ANY EXCEPTIONS SHOWN IN THE DELIVERY RECEIPTS AS TO THE CONDITION OR COUNT OF THE SHIPMENTS, WILL, OF COURSE, REQUIRE APPROPRIATE DEVELOPMENT AND POSSIBLE DELAY IN SETTLEMENT BECAUSE OF ADJUSTMENTS THAT THE CIRCUMSTANCES MAY WARRANT IN SUCH CASES. PAYMENT OF YOUR BILLS, WHERE THE AUTHORIZED PROCEDURE IS REQUIRED, SHOULD BE FACILITATED BY A STATEMENT PLACED ON THE BILLS OR ON THE ASSOCIATED DOCUMENTATION TO THE EFFECT THAT THE DELIVERY RECEIPT PROCEDURE WAS APPROVED IN COMPTROLLER GENERAL'S DECISION, B-92523, SHOWING THE DATE OF THE DECISION. YOUR DELIVERY RECEIPT FORM GENERAL REFERENCE (TOP CENTER) TO SUCH APPROVAL COULD BE MADE MORE SPECIFIC BY ADDING THE NUMBER AND DATE OF THIS DECISION.

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 THE PROCEDURE. IF, UPON FURTHER REVIEW, AND FOLLOWING SUFFICIENT EXPERIENCE TO ENABLE US TO MAKE A PROPER DETERMINATION, WE FIND THAT THE PROCEDURE IS NOT SATISFACTORY, IT MAY THEN BE NECESSARY TO CONSIDER POSSIBLE REINSTATEMENT OF THE USUAL PROCEDURE.