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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 and
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