{"id":222,"date":"2023-06-19T08:18:12","date_gmt":"2023-06-19T08:18:12","guid":{"rendered":"https:\/\/china-docshipper.uiart.io\/en\/2024\/12\/26\/bill-of-lading-definition-template-types\/"},"modified":"2025-02-05T08:46:47","modified_gmt":"2025-02-05T08:46:47","slug":"bill-of-lading-definition-template-types","status":"publish","type":"post","link":"https:\/\/china.docshipper.com\/en\/logistics\/bill-of-lading-definition-template-types\/","title":{"rendered":"Bill of Lading: Definition, Template, Types"},"content":{"rendered":"\t\t
Don’t worry if, during your first transaction, the term “Bill of Lading”<\/strong><\/span> looks foreign to you.<\/span> We’ll clarify the characteristics of this renowned document. The Bill of Lading (or B\/L) is one of the key commercial documents<\/strong><\/span> used for transactions requiring transportation by land, air, or rail. <\/span>A carrier will give a shipper a bill of lading to affirm that the goods have been received in good order and are prepared for shipping. <\/span>These things will then be delivered to the recipient by the carrier. The Bill of Lading <\/span>ultimately acts as a transportation agreement<\/strong><\/span> (usually for maritime transit) between the shipper, recipient, and carrier. <\/span>This article will serve as an introduction to the document, enabling you to understand its purpose and how to approach it successfully.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t The bill of lading is a document<\/span> that a carrier<\/span> gives to a shipper<\/span> to affirm that the items have been received in excellent shape and are prepared for shipping.<\/span> The transporter will next deliver these things to a recipient. In the end, the Bill of Lading acts as a contract of carriage<\/span><\/a>, stipulating the terms of the transportation between the shipper, recipient, and carrier.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t A Bill of Lading is necessary for the execution of shipments. <\/span><\/span>For commodities to move from point A (such as the country of origin) to point B, B\/Ls must be issued (e.g., the destination country). It is a document used for maritime shipping in which the carrier or its representative acknowledges receiving the listed items.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t The Bill of Lading acts as the commodities’ title of ownership<\/span> after they arrive at their destination. <\/span>To ensure that the shipment is released by the carrier and to establish ownership, the designated recipient must show the bill of Lading. In this sense, it serves as proof of delivery confirmation<\/span>.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t The original Bill of Lading could occasionally be kept by the shipper until payment is made. <\/span>In this case, the products won’t be available to the recipient until payment has been received <\/span>and the Bill of Lading has been released.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t The only organization permitted to issue the Bill of Lading is the “carrier.” Although not all freight forwarders are NVOCCs<\/a>, the term “carrier” in the context of maritime freight transportation can refer to either an ocean carrier (Vessel Operating Common Carrier) or a Non-Vessel Operating Common Carrier (NVOCC), also known as a freight forwarder (such as DocShipper). <\/span>Both domestic and foreign deliveries may need a bill of lading. <\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t Mistakes in the preparation of bills of lading have resulted in disastrous consequences<\/span> for certain transportation companies. For instance, in 2019, a court in New South Wales ruled that a freight forwarder must pay damages exceeding $800,000<\/span> for engaging in “misleading conduct.” This verdict stemmed from the bills of lading giving the false impression that they originated from maritime carriers when, in fact, they did not.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t Another case serves as an example:<\/strong> <\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t A Turkish trader, conducting business in Syria, procures steel from Ukraine through an intermediary. The transaction is financed via a documentary credit opened with a French bank, naming the appointed agent as the beneficiary. A Turkish bank confirms the credit, the necessary documents, including the charter-party bill of lading, are dispatched, and the documentary credit is activated.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t However, two months later, the same party files a complaint in Turkish courts<\/strong>, alleging money laundering, fraud, and forgery\/counterfeiting.<\/strong> They notify the beneficiary that any payment is contingent upon the outcome of the criminal proceedings. Consequently, the principal refuses to release the documents, contesting the settlement of the documentary credit. <\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t Specifically, the issuing bank, having fulfilled its commitment, concludes that execution is unnecessary due to the fraud perpetrated to its detriment. The court of appeal grants a stay while awaiting the resolution of the criminal proceedings in Turkey, relying on Article 4 of the Criminal Procedure Code and the principle that “criminal matters take precedence over civil matters.” The ruling emphasizes that the principal’s refusal to release the documents was not solely due to document irregularities, but rather to suspicions surrounding the legality of the transaction. <\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t These suspicions arise from indications that the seller is an empty entity, the purportedly loaded vessel does not exist, and the bill of lading is fraudulent. As a result, the autonomy of the documentary credit must yield to suspicion of fraud. The mere initiation of fraudulent activities is enough to impede the independent and irrevocable commitment made under the documentary credit.<\/span> <\/span><\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t Bills of lading serve various purposes for different parties involved in the shipping process:<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t The shipper, who is usually the seller or shipping company, relies on the bill of lading as both evidence of shipment and a contractual agreement with the carrier<\/strong>. It includes comprehensive details about the shipment, such as the nature of the goods, quantities, packaging requirements, and delivery instructions. The shipper uses the bill of lading to ensure that the goods are transported in compliance with the agreed-upon terms.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t These professionals play a crucial role in facilitating customs clearance<\/a> at international borders. They use the bill of lading to verify essential information about the goods<\/strong>, including product specifications, customs codes, serial numbers, and more. This enables them to prepare the necessary documentation for smooth import or export processes<\/a> and ensures compliance with customs regulations.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t The consignee, who is the buyer or recipient of the goods, relies on the bill of lading as proof of ownership and entitlement to receive the goods.<\/strong> It contains vital delivery information, such as the consignee’s name, delivery address, and payment terms. The consignee utilizes the bill of lading to claim the goods upon arrival and to address any potential issues related to delivery or the condition of the goods.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t Example: If the goods are imported by a freight forwarder <\/span>under Ex Works (EXW)<\/a> conditions (refer to Incoterms), here is the journey of the bill of lading:<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t This is the process if the goods are exported:<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t DocShipper Advice<\/p>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t Is Your Bill of Lading Accurate?\n\n\n\n\n\n<\/p>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t Providing accurate information in your bills of lading is essential. That\u2019s why you have to be extremely careful when providing these documents. You may call a freight forwarder to take care of this step and avoid a loss of time. <\/span>Contact us for free<\/span><\/a>.\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\tWhat is a Bill of Lading?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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What are the Bill of Lading\u2019s roles? \n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
Receipt confirmation <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
Property title\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
Payment guarantee\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
Who emits the Bill of Lading?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
What information do you have to find in a bill of lading? \n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
<\/p><\/div><\/div><\/div><\/div><\/div><\/div><\/section><\/div><\/div><\/div><\/div><\/div><\/div><\/section><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
The consequences of a lack of precision in the bill of lading\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
Who is the bill of lading for? \n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
Shipper<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
Customs broker or freight forwarder\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
Consignee\n<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
Import bill of lading steps\n\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
Export bill of lading steps\n\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t