is involved in a compliance fight with its main rival -- Federal Express.

This came to light through US Transportation Department (DOT) records that have been made available online by NetCompliance, an Internet provider of paperless compliance solutions.

US companies are required to comply with DOT rules regulating interstate and overseas transportation of property and mail and which have US citizenship requirements for air carriers travelling through US airspace. According to the DOT records released by NetCompliance, Fedex contends that DHL is in breach of these rules.

Fedex has said DHL may be under the control of foreign nationals as a result of its restructuring. DHL is currently owned by DHL Worldwide Express BV, a Netherlands company, which in turn is owned by DHL International Ltd., a Bermuda company.

DHL counters that it is in full regulatory compliance and that DOT has confirmed the company's citizenship over the past 20 years. The company said that as a result of the restructuring even more of its stock is in the hands of US citizens.

Fedex has asked DOT to conduct a formal investigation into DHL's compliance, to which DHL responded, "In the cause of driving us out of the market, Federal Express appears willing to sling whatever charges, innuendo or conspiracy theory it can dream up, regardless of merit.'' Whichever way DOT decides the issue, its compliance ruling is likely to have a major impact on the multibillion dollar air freight industry.