Understanding DHL's Essay On Customs Regulatory Compliance Management.

Important terms and conditions

Discuss About The Customs Regulatory Compliance Management?

DHL Express is a subsidiary of the German based company Deutsche Post DHL which deals with logistics such as express mail, parcel services, and offering global courier services. Deutsche Post DHL is a global leader and offers the best logistics solutions, specifically via the air and sea mail (Cosimato & Troisi, 2015). The company has some terms and conditions that must be followed to the letter. The company requires the shipper to read the terms and conditions, agree with them, and also agree on behalf of the receiver and any other party that has interest in the shipment (Mocker, Ross, & Ciano, 2014). The shipment refers to all the parcels and documents travelling under the same waybill that are chosen by the company, including road, air or any other carrier that may be appropriate. A waybill refers to an identifier which may be a barcode, label, consignment note or any other document that is produced by the company or the shipper to identify and acknowledge a shipment. It is interesting to note that the company’s shipments are transported on the basis of limited liability. Therefore, if a shipper requires intensified security and protection, then additional charges may apply to arrange for insurance services.

DHL has some important terms and conditions that are intended to allow the smoot operation of the company. The company states that a shipment can be termed as unacceptable due to various reasons. The first reason is if it contains animals, counterfeit products, bullion, gem stones, currency, weapons, ammunition, and illegal items such as narcotics and ivory. The second reason is if the shipment contains the wrong address or the address is not properly indicated. Postal codes and PO boxes cannot be used to deliver shipments. The receiver’s address that is given by the shipper is used to deliver the shipment. The company may give a notification to the receiver confirming a missed delivery or an upcoming delivery. Also, the company has the right to inspect the contents of the shipment without prior notice for security, safety or other regulatory considerations.

 The company’s fee and charges are based on the volumetric weight per piece or any other calculations as indicated by the company. DHL pledges to deliver the goods within the indicated timeline. It should be noted, however, that the DHLs delivery schedules are not regarded as part of contract. The company is not liable for any loss or damage caused by the delay of the ship, but the Money Back Guarantee offers a provision for the shipper to claim delay compensation (DHL n.d.). The liability of the company is exclusively limited to direct damage or loss of goods only to the kilogram limit as indicated by the company. Other types of damage and loss are not included. Also, the company is not liable for any loss or damage that may occur as a result of an unavoidable occurrence which includes magnetic or electric damages, defect of the shipment, or omissions by an individual not contracted or employed by the company, for instance, the receiver, the shipper, government officials or the customs. The natural occurrences such as storms, cyclones, earthquakes, floods, and others also apply in this case.

The importance of the Air Waybill

 In a scenario where the shipment is termed as unacceptable, or location of the receiver cannot be identified, or the receiver rejects the goods and fails to comply with the shipment charges, then the company, using the shipper’s cost, shall return the shipment to the shipper (DHL n.d.). If the law prohibits the company from returning the shipment to the shipper or the shipment contains dangerous goods, then DHL has the right to dispose or destroy the shipment.

The Air Waybill is an important document that contains the evidence of a contract between the carrier and shipper for carriage of commodities over the various routes. The air waybill has several functions. First, it evidences the conclusion and agreement of the carriage contract. Second, it proves that the commodities for shipment have been received. Third, it acts as a freight bill, also known as a bill of lading which is a legally acceptable contract that exists between the carrier and the shipper. Lastly, an air waybill acts as a guide that determines handling, dispatching, and conveyance of the goods. It is also important to note that a way bill should be completed appropriately and correctly.

On receipt of the specified goods and after meeting all the export custom requirements of the nation, an airway bill is given by the air carrier of the commodities. In other words, the shipper is issued with the airway bill after availing the cargo. The airway bill is attached to the shipment for easier reference on transit and also to enable the import customs release the goods at the destination. The cargo transfer manifest (CTM) that is given by an IATA agent and other important documents are passed to the air carriers after the customs processes have been completed (Beifert, Maknyt? & Prause, 2013). The importer, carrier, and the shipper are issued with an original airway bill each. On arrival of the goods at the destination, the importer’s agent or the importer himself goes to the air carrier office and picks the airway bill and other important documents (Reynolds-Feighan, 2013). Also, it is possible for the importer to receive the documents via mail or courier before the cargo arrives. To meet the LC requirements, the shipper can choose to send the airway bill via his bank.

On arrival of the goods, the sea carrier of the cargo issues a bill of lading to the shipper. The shipper is issued with a bill of lading after the process of export customs clearance has completed (Lertkitcha, 2015). The shipper gives the goods to his agent or sea shipping carrier after the export customs formalities have been completed. A bill of lading acts as the proof showing that the goods have been received. The agent or the sea carrier issues the document. Normally, the bill of lading is issued in triplicate. On request of the shipper, however, the document can also be issued in quintuplicate. This only happens when there is a special request from the shipper. On receipt of the bill of lading, the shipper sends the bill of lading plus other important documents to his bank. Later, the bank sends the same documents to the importer via the importer’s bank. The import customs clearance process is initiated once the importer is issued with the bill of lading and other necessary documents (Todd, 2013). Also, the shipper can issue the original bill of lading after the release of the bill of lading and in turn release an original bill of lading message to the sea carrier office. Therefore, the consignee will not have to produce the original bill of lading (Dibble, Dickinson, Harwood & Larney, 2012). The main difference between an airway bill and a bill of lading is that an airway bill is not considered a document of title. However, the airway bill can be created in a manner that allows it to be treated as a negotiable document and document of title.

In short, a bill of lading is a document given by the sea carrier of the cargo to the shipper after receipt of goods. It proves that the goods have been received (Clarke & Yates, 2013). On the other hand, an airway bill is given by the air carrier of the cargo to the shipper to prove that the goods have been received.

References

Beifert, A., Maknyt?, L., & Prause, G. (2013). SUSTAINABLE SUPPLY CHAIN MANAGEMENT ISSUES: CASE OF REGIONAL SMES'INVOLVEMENT IN THE AIR CARGO. Journal of Security & Sustainability Issues, 3(2).

Clarke, M. A., & Yates, D. (2013). Contracts of Carriage by Land and Air. CRC Press.

Cosimato, S., & Troisi, O. (2015). Green supply chain management: Practices and tools for logistics competitiveness and sustainability. The DHL case study. The TQM Journal, 27(2), 256-276.

DHL | Downloads | English. (n.d.). Retrieved from https://www.dhl.com/en/express/resource_center/express_downloads.html#shipping%C2%A0for

DHL | Waybill Guide | English. (n.d.). Retrieved from https://www.dhl.com.au/en/express/shipping/shipping_advice/waybill_guide/waybill_guide.html

Dibble, R. W., Dickinson, S. K., Harwood, T. W., & Larney, D. T. (2012). U.S. Patent No. 8,131,573. Washington, DC: U.S. Patent and Trademark Office.

Lertkitcha, A. (2015). Changing to electronic bill of lading by a freight forwarder in bangkok.

Mocker, M., Ross, J., & Ciano, P. (2014). Building a global process standard at the most international company on earth: DHL express.

Reynolds-Feighan, A. (2013). Comparative analysis of air freight networks in regional markets around the globe. In Handbook of Global Logistics (pp. 325-366). Springer New York.

Todd, P. (2013). Bills of lading and bankers' documentary credits. Taylor & Francis.