The lading bill is called many things, B/L, a BoL, and a Bill of Lading most commonly. It is an essential document in the chain of import and export of goods and pertains to the transportation of these goods.
Its primary function is to act as a receipt issued by the carrier to the shipper normally. The bill contains the shipping bill number, date, details of the shipping line, name and address of the receiver, as well as the shipper and other contact details.
The carrier is the owner of the goods and is the only party that can issue a legally binding bill of lading. In the case of the house Bill of Lading, the BoL is created by the NVOCC (the company doing the shipping as well) and is also called an NVOCC Bill of Lading.
The Bill of Lading also depends on the modes of transportation there are AWB or Airwaybill. They can be classified into road waybills, and rail waybills. This is a comprehensive guide containing all the questions you may have regarding the Bill of Lading document involved in the import-export process.
What Is A Bill Of Lading?
Along with functioning as a receipt, it also acts as an attestation to the condition of the goods when they arrived vs the condition of goods when they reach the destination. It is issued by a carrier (a person who works in international trade with importers and exporters who want to transport goods). The BoL is responsible for the goods right from the supplier to the buyer in most cases.
A consignor (the ship that transports the goods) is responsible for the goods from port to port. Their responsibility does not pass beyond water transportation. The last term in the cycle, which is common to most documents, is the term consignee.
This term refers to the end buyer that has imported this product from an international supplier. There are several types of Bill of Lading, but they usually follow this procedure.
What Is Bill Of Lading Used For
This is a primary function that all of them serve. It also acts as proof of ownership and is a legally binding document when the cargo is being transported from port A to port B.
2. Title To Goods
On arrival at the import port, the consignee or a representative of the consignee has to show up and present a copy of the Bill of Lading. It is only on the authentication of this document that the goods are then handed over.
The shippers can hold the original Bill of Lading until the consignee has paid them. This prevents the consignee from accessing and taking the goods until the amount due has been paid in full.
What Are The Contents Of A Bill Of Lading?
These are the contents that basic bills of lading have
- Details of the transportation company
- Place of loading of goods
- Mode of transportation
- Already agreed-upon terms of shipment or incoterms
- A detailed description of the goods
While multiple types of Bill of Lading have different content, this is the basic layout of every bill.
Different Types Of Bills Of Lading
A. On Condition Of Bills Upon Arrival
1. Dirty Bill Of Lading
This is commonly known as a soiled Bill of Lading is a bill that indicates that some damage and loss of Bill of Lading occurred during transport. This happens on claused bills of lading (which are all bills of lading) and causes problems for the seller because most financial institutions are unwilling to pay for a soiled Bill of Lading.
2. Clean Bill of Lading
This is used when the goods arrive at their destination in the same condition. No goods were lost or damaged during the cargo, and financial institutions issue payment to the supplier immediately.
B. On Issue Of Bill Of Lading
1. House Bill of Lading
Also called an NVOCC Bill of Lading, in this case, it is issued by the freight forwarder. It lists the actual shipper and the consignee. It is only issued to the supplier once the cargo has been received. It acts as a formal acknowledgement of goods being shipped and is therefore essential to the shipping process.
2. Master Bill Of Lading
A master Bill of Lading is issued by a carrier that is usually the shipowner or operator. It is a contract between the shipper and the carrier, and the cargo shipper will only get a Bill of Lading if they are working directly with a freight forwarder or a mainland carrier.
Once the carrier confirms the cargo, the master Bill of Lading is released to the consignee.
Where Does A Trade Data Company Come In?
Trade data is involved in every facet of international trade. Whether it be connecting buyers with suppliers abroad, connecting carriers with the two of these, trade data signify connection through knowledge. This is why trade data companies are invaluable to international trade.