Analysis of Customs-Regulatory Compliance Management at DHL Express

This report provides an in-depth analysis of DHL Express's customs-regulatory compliance management. It begins with an introduction to DHL Express, a global leader in logistics, and its operational structure. The report then examines DHL's crucial terms and conditions, including shipment acceptability criteria, liability limitations, and procedures for handling unacceptable shipments. A significant portion of the report focuses on the importance and functionality of the Air Waybill, highlighting its role in evidencing contracts, proving receipt of goods, and guiding shipment handling. The report then differentiates between DHL's Air Waybill and a maritime bill of lading, detailing their respective functions and processes, including issuance, documentation, and the involvement of banks in international trade. The report concludes with a summary of key differences, emphasizing that the Air Waybill is not a document of title, while a bill of lading serves as a proof of goods receipt. The report references several academic sources to support its findings.

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Customs-Regulatory Compliance Management
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Introduction
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.
Important terms and conditions
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

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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.
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 importance of the Air Waybill

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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.
Difference between DHL’s Air Waybill and a maritime bill of lading.
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, Maknytė & 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.

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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.

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References
Beifert, A., Maknytė, 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
http://www.dhl.com/en/express/resource_center/express_downloads.html#shipping
%C2%A0for
DHL | Waybill Guide | English. (n.d.). Retrieved from
http://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.

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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.