- 61 - VIII. The Imbalance and Transfer Fees DHL shipments of domestic origin to foreign destinations to be delivered through DHLI were termed “outbound” shipments. DHLI shipments of foreign origin to domestic destinations to be delivered by DHL were termed “inbound” shipments. Shipments of foreign origin with foreign destinations, but which passed through the United States and were handled by DHL, were termed “transfer” or “transit” shipments. Before 1983, actual imbalances of shipments were not tracked or reported by either DHL or DHLI/MNV. In December 1983, however, the DHL board recognized the need to examine the ratio of U.S. inbound to outbound deliveries, as well as the need for further study of the allocation of air transportation costs for on-forwarding of international shipments between U.S. points and a comparison of corresponding international on-forwarding of U.S. shipments. Before 1987, neither DHL nor DHLI was compensated if the outbound or inbound shipments exceeded one another. Likewise, before 1987, DHL received no compensation for handling transfer shipments. In a 1988 amendment to the 1974 MOA, provision was made for a cost plus 2 percent compensation on the imbalance of shipments (imbalance fee). DHL’s system of determining imbalance shipments and applying cost plus a percentage markup was modeled after the system used by postal authorities throughout the world. The imbalance fee was implemented for the taxable year 1987 andPage: Previous 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 Next
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