DHL Corporation and Subsidiaries - Page 21

                                         - 11 -                                       
               For shipments to locations outside DHL’s or DHLI’s territory           
          or jurisdiction, the documents or packages would be sent to a               
          “foreign” clearing point of the other company, and they would               
          then be completely processed by the receiving company.  For                 
          example, if DHL picked up a package in San Francisco that was               
          bound for a location in Southeast Asia, it would be transferred             
          to DHLI at one of DHLI’s foreign points of entry, and then DHLI             
          would take responsibility for customs clearance, further                    
          transportation (frequently across international borders), and               
          delivery to the foreign consignee.  The entity to whom the                  
          customer first submitted the package was paid by the customer and           
          retained the payment even though another entity delivered the               
          package.  Accordingly, in the above example, DHL would retain the           
          customer’s payment even though a DHLI/MNV company completed the             
          delivery.  The worldwide air express service operated by DHL and            
          DHLI was generally represented as, and perceived to be, a single            
          worldwide delivery system (DHL network).                                    
               In the foreign portion of the DHL network, local operating             
          companies and independent agents operated under agreements with             
          DHLI and related companies.  Normally, local operating companies            
          or agents billed customers an all-inclusive price for shipments             
          to other service areas.  The local operating companies or agents            
          normally retained a percentage or predetermined portion of the              
          revenue received from their customers and remitted the remainder            

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011