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B-92523, JUN. 8, 1964

B-92523 Jun 08, 1964
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THE GOVERNMENT BILL OF LADING IS THEN SURRENDERED TO THE DELIVERING CARRIER. WHICH IS ORDINARILY THE CARRIER ENTITLED TO PAYMENT. IF THE ORIGINAL BILL OF LADING IS LOST. A CERTIFICATE IN LIEU OF LOST GOVERNMENT BILL OF LADING IS REQUIRED. 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 THE AMERICAN EXPRESS COMPANY WHO ACKNOWLEDGES RECEIPT OF THE PROPERTY AT POINT OF ORIGIN. THE TRANSPORTATION IN TURN IS PROCURED BY THE AMERICAN EXPRESS COMPANY FROM CERTIFICATED CARRIERS. 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 THE AMERICAN EXPRESS COMPANY.

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B-92523, JUN. 8, 1964

TO MR. C. W. RINKA:

YOU REQUEST PERMISSION IN YOUR LETTER OF FEBRUARY 18, 1964, TO USE A CERTAIN RECEIPT FORM IN PLACE OF THE CONSIGNEE'S CERTIFICATE OF DELIVERY ON THE ORIGINAL GOVERNMENT BILL OF LADING TO SUPPORT YOUR BILLINGS FOR INTERNATIONAL AIR CARGO 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 THE 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 THE AMERICAN EXPRESS COMPANY WHO ACKNOWLEDGES 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 (COPY SUBMITTED WITH YOUR LETTER) TO BE EXECUTED BY THE CONSIGNEE UPON RECEIPT OF THE PROPERTY AND RETURNED TO THE AMERICAN EXPRESS COMPANY; AND BY SUBMITTING TO THE GOVERNMENT A BILL FOR CHANGES 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 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.

WE UNDERSTAND THAT IN ITS INTERNATIONAL AIR FREIGHT FORWARDING OPERATIONS, PERFORMED UNDER AUTHORIZATION FROM THE CIVIL AERONAUTICS BOARD, THE AMERICAN EXPRESS COMPANY ENTERS INTO CONTRACTS WITH THE GOVERNMENT TO PERFORM AIR FREIGHT TRANSPORTATION. THE TRANSPORTATION IN TURN IS PROCURED BY THE AMERICAN EXPRESS COMPANY FROM CERTIFICATED CARRIERS. 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 THE AMERICAN EXPRESS COMPANY, 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.

AS WE UNDERSTAND THE SITUATION, 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. THESE DIFFICULTIES MAY ARISE FROM A GENERAL MISUNDERSTANDING AT THE FOREIGN INSTALLATIONS THAT THE AMERICAN EXPRESS COMPANY IS PROPERLY AUTHORIZED TO BILL FOR THE SHIPMENTS, FROM THE FACT THAT DIRECT AIR CARRIERS OR THEIR AGENTS DELIVER THE SHIPMENTS ON BEHALF OF THE AMERICAN EXPRESS COMPANY, AND FROM THE LANGUAGE BARRIERS AND THE GENERAL UNFAMILIARITY WITH GOVERNMENT BILLING PROCEDURES AT FOREIGN INSTALLATIONS. IN VARIOUS CASES DESTINATION INSTALLATIONS MIGHT EXECUTE THE CONSIGNEE'S CERTIFICATE OF DELIVERY ON THE BILL OF LADING IN FAVOR OF THE DELIVERING CARRIER, OFTEN A FOREIGN FLAG CARRIER, AND THE FOREIGN FLAG CARRIER BILLS THE GOVERNMENT FOR THE CHARGES, NOTWITHSTANDING THE FACT THAT THE AMERICAN EXPRESS COMPANY MAY HAVE PREPAID ALL CHARGES THROUGH THE DESTINATION. DIFFICULTIES ALSO OCCUR IN LOCATING MISSING GOVERNMENT BILLS OF LADING AND DETERMINING WHETHER THEY ARE ACTUALLY LOST, SO THAT CERTIFICATES IN LIEU OF LOST GOVERNMENT BILLS OF LADING CAN BE SECURED; THIS UNDULY BURDENS GOVERNMENT SHIPPING OFFICES 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 GOVERNMENT BILL OF LADING CONTRACT SHOULD BE THE ONLY PARTY DEALING WITH THE GOVERNMENT, ASSUMING RESPONSIBILITY FOR THE TRANSPORTATION FROM POINT OF ORIGIN TO DESTINATION, THERE IS JUSTIFICATION FOR THE APPROVAL OF 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 THE AMERICAN EXPRESS COMPANY 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 THE AMERICAN EXPRESS COMPANY AND THE CONSIGNEE.

ACCORDINGLY, ON SHIPMENTS COVERED BY GOVERNMENT BILLS OF LADING TENDERED TO THE AMERICAN EXPRESS COMPANY 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 AMERICAN EXPRESS COMPANY 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 YOUR LETTER. WE HAVE APPROVED A MODIFIED FORM OF DELIVERY RECEIPT TO COVER SUCH TRANSPORTATION--- AS SET OUT IN OUR LETTER OF OCTOBER 18, 1963, TO THE INTERNATIONAL AIR TRANSPORT ASSOCIATION, COPY ATTACHED--- WHICH YOUR COMPANY MAY ALSO UTILIZE, IF DESIRED.

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.

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 ..END :

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