B-92523, B-147002, APR. 3, 1962

B-92523, B-147002, APR. 3, 1962

TO AIRBORNE FREIGHT CORP.:

WE AGAIN REFER TO YOUR LETTER OF FEBRUARY 6, 1962 (WITH ENCLOSURE), 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 YOUR BILLINGS FOR TRANSPORTATION SERVICES FURNISHED TO 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 AIRBORNE FREIGHT CORPORATION 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 (EXHIBIT A TO YOUR LETTER) TO BE EXECUTED BY THE CONSIGNEE UPON RECEIPT OF THE PROPERTY AND RETURNED TO AIRBORNE FREIGHT CORPORATION; AND BY SUBMISSION BY AIRBORNE FREIGHT CORPORATION 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 YOUR EXHIBIT A, 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, AIRBORNE FREIGHT CORPORATION ENTERS INTO CONTRACTS WITH THE GOVERNMENT TO PERFORM AIR FREIGHT TRANSPORTATION. THE TRANSPORTATION IN TURN IS PROCURED BY AIRBORNE FREIGHT CORPORATION FROM CERTIFICATED CARRIERS. YOU STATE THAT THE CHARGES OF THE CERTIFICATED CARRIERS ARE PREPAID BY AIRBORNE FREIGHT CORPORATION. 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 AIRBORNE FREIGHT CORPORATION, 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. THESE DIFFICULTIES ARE SAID TO ARISE FROM A GENERAL MISUNDERSTANDING AT THE FOREIGN INSTALLATIONS THAT AIRBORNE FREIGHT CORPORATION IS PROPERLY AUTHORIZED TO BILL FOR THE SHIPMENTS, FROM THE FACT THAT DIRECT AIR CARRIERS OR THEIR AGENTS DELIVER THE SHIPMENTS ON BEHALF OF AIRBORNE FREIGHT CORPORATION, AND FROM THE LANGUAGE BARRIERS AND THE GENERAL UNFAMILIARITY WITH GOVERNMENT BILLING PROCEDURES AT FOREIGN INSTALLATIONS. YOU REPORT THAT IN MANY CASES DESTINATION INSTALLATIONS EXECUTE THE CONSIGNEE'S CERTIFICATE OF DELIVERY ON THE BILL OF LADING TO THE DELIVERING CARRIER, OFTEN A FOREIGN FLAG CARRIER, AND THAT THE FOREIGN FLAG CARRIER HAS BILLED THE GOVERNMENT FOR THE CHARGES, NOTWITHSTANDING THE FACT THAT AIRBORNE FREIGHT CORPORATION 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 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 TRANSPORTATION CONTRACT SHOULD BE THE ONLY PARTY DEALING WITH THE GOVERNMENT AND BECAUSE IT ASSUMES RESPONSIBILITY FOR THE TRANSPORTATION FROM POINT OR 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 AIRBORNE FREIGHT CORPORATION UNTIL IT IS SUBMITTED FOR PAYMENT, IT SEEMS REASONABLE TO ASSUME THAT REQUEST 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 AIRBORNE FREIGHT CORPORATION AND THE CONSIGNEE.

ACCORDINGLY, ON SHIPMENTS COVERED BY GOVERNMENT BILLS OF LADING TENDERED TO AIRBORNE FREIGHT CORPORATION 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 AIRBORNE FREIGHT CORPORATION 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 A TO YOUR LETTER. HOWEVER, THE WORD "UNDER" SHOULD BE INSERTED IN PARAGRAPH (1) OF THE FORM BETWEEN THE WORDS "YOU" AND "THE" IN THE SECOND LINE. THE PARAGRAPH WILL THEN READ: "WE HAVE TODAY FORWARDED IN ACCORDANCE WITH THE ABOVE ROUTING FOR DELIVERY TO YOU UNDER THE ABOVE REFERENCE GOVERNMENT BILL OF LADING CONTAINING: THIS ASSUMES THAT THE BILL OF LADING REFERENCE WILL APPEAR AT THE TOP OF THE FORM. AS AN ALTERNATIVE THERE WOULD BE NO OBJECTION TO CHANGING THE PARAGRAPH TO OMIT THE WORDS "ABOVE REFERENCED" AND LEAVING A SPACE AFTER THE WORDS "BILL OF LADING" FOR INSERTION OF THE NUMBER.

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 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, B-147002, 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 REINSTATEMENT OF THE USUAL PROCEDURE.