Comments on: DHL Agrees to 9.44 Million Dollar Fine

By: R

Tue, 18 Aug 2009 04:12:42 +0000

I currently work at DHL Global Forwarding in the Special Projects Division, and the gap between the divisions are huge. I read a story like this and wonder ,”how did this happened?!”, then I read further and saw it was actually DHL Express.

In my division, compliance is definitely top priority. We will not move freight until we receive all the information we need (licensing requirements by any agency, EAR99 or ECCN, etc). I remember a few months ago I was involved in a new project going to a place that can definitely throw red flags. The customer was starting to get angry with me when I started demanding licensing requirements, ECCN numbers, and everything else. He didn’t realize it until one of his products had an ECCN and surprise, a license requirement. He now fully understands just how much trouble we saved him.

A good freight forwarders explains to their customer that yes, we’re throwing the rule book at you, but we’re doing it for you and your company’s well being. Bad ones just move freight and not ask questions, like the case here. Heck, they even lost airwaybills?! That’s crazy.

By: Mervyn Griffiths

Mervyn Griffiths — Thu, 13 Aug 2009 12:36:42 +0000

An interesting comment from Mike Liberto refering to “blame the forwarder”. The forwarder has to understand what the law does and does not allow you to do, that way you they both their company and client on the right side of the law. Most western countries correctly follow an ethical export control policy, if a forwarder transgresses that policy they have no room for complaint. Forwarders need to understand export control as much and companies in the defence industry, if they do not they should stay away from defence industry work as they are not fit for purpose.

For the record I am a forwarder.

By: jobless 1

jobless 1 — Sun, 09 Aug 2009 02:24:47 +0000

As an ex-DHL employee, I can assure you their motto is customer based and certainly not “by the books”..Do whatever it takes to make the customer happy, even if it means moving freight that has not cleared customs…You only pay the fines if you get caught, then you mitigate it down, but in the meantime keep moving more…..

By: Mike Liberto

Mike Liberto — Fri, 07 Aug 2009 18:33:44 +0000

Cheering? I just saw a group of defense industry executives go by doing the macarena.

The good ole “blame the forwarder” days are back! And the blame is for not keeping records! What could be better?

By: Ex-OFAC

Ex-OFAC — Fri, 07 Aug 2009 13:53:07 +0000

I’m interested in the role of the Berman Amendment in these investigations, because I assume that a large volume of what couriers carry is documents — most of which are exempt from OFAC or BIS regulation under IEEPA. Clearly, the failure to identify the contents of shipments on air waybills or to keep records as required would have killed any defense DHL might have had under Berman. I can’t tell whether this is a result of cynical intention or just sloppy operations.

By: Jim Dickeson

Jim Dickeson — Fri, 07 Aug 2009 03:42:09 +0000

The not-round figure was a result of mitigation. The nitty gritty can be found at http://efoia.bis.doc.gov/exportcontrolviolations/e2119.pdf, with the Prepenalty Notice on pages 16 to 21. Don’t miss page 17 where it begins “The prior enforcement guidelines…”.

And it’s not just exports. They never inquire to the importer when filing customs entries. Years ago, an express courier company (who will remain unnamed) cleared a shipment of foreign-made computer monitors under 9801 just because it was being “returned for repair/replacement”. Then they came to me when Customs asked them for a Manufacturer’s Affidavit. I told them that I wouldn’t provide it because they weren’t made in the U.S. I further asked them why they filed 9801 when the Taiwan origin was clearly printed on the commercial invoice, and they said, “Oh, we never look at the invoice, we just use what was keyed in at origin.” Oh. Really. Does Customs know that their foreign offices are conducting Customs business without a license?

Lesson: The DHLs, FedExes, and UPSs are inexpensive because they make their money processing tremendous volumes all the same way. But if you need something “special”, like a customs clearance or license exception, you’re taking your chances. Let them handle the documents (unless they contain controlled technical data) because they do that very well. But if you have real freight, better use a real freight forwarder or customs broker.

By: Hillbilly

Hillbilly — Fri, 07 Aug 2009 02:00:19 +0000

Pat B.: Having spent a good bit of my misspent youth at Commerce, I can only tell you that they are very formulaic there. Good sorts really, but very much attached to formulae and procedures. OFAC would be the one for round numbers, lest they worry their pretty little heads trying to count on their fingers and toes.

By: Pat B.

Pat B. — Thu, 06 Aug 2009 21:30:50 +0000

I wonder how the parties came to settle on the extremely not-round figure of $9,444,744. Were BIS and OFAC concerned that a mere $9,000,000 would have been a slap on the wrist? Was DHL worried that $9,500,000 would topple it into bankruptcy?

By: Jairo

Jairo — Thu, 06 Aug 2009 18:08:29 +0000

Cliff:

It is not that one feels happy for the misfortunes of others, a very repulsive emotion very common these days, but this is happening too often not only with DHL but Fedex. They get away very easily submitting SED’s by the thousands. For the record I have experienced cases when the big guys did not use the license, used a license wihout lodging or failed to use the license altogether.

Sorry for them but I am going to frame this report for sales and marketing tooling. Is in the public domain and there is no need for a license from OFAC, DDTC nor BIS.