/ By tjchinafreight ivy / Shipping

The function of the bill of lading

The bill of lading is one of the most important documents in the shipping and freight process. It is a legal document that provides a record of the transport of goods from one place to another and ensures a convenient and safe logistics process. Bills of lading can be issued by

  • Shipping agent
  • Carrier or
  • Logistics company to shipper

The bill of lading also has three main functions:

1. Proof of the contract of carriage
A bill of lading is evidence of a contract of carriage between the "carrier" and the "shipper or owner" for the purpose of carrying the goods (not to be confused with a contract of sale between the buyer and the seller).

2. It acts as a receipt
When the carrier issues the bill of lading to the shipper, it confirms that the goods have been loaded onto the transport vessel. The shipper usually issues several original bills of lading which can be passed on to different parties along the way, essentially taking control of the cargo.

3. Ownership as a commodity (representing ownership)
The bill of lading usually includes details of the consignee (buyer/consignee) to which the carrier ships the goods. However, title does not pass until the bill of lading is passed on to the receiver. The shipper may forward a copy of the bill of lading to the consignee as proof of transport, but the person holding the original bill of lading retains title to the goods. Bills of lading are usually delivered to the consignee only after full payment.

The information listed on the bill of lading can include:

  • Shipper Details
  • Recipient (Consignee) Details
  • Carrier details and signature to confirm receipt
  • Loading date
  • Port of loading
  • Destination port
  • Details of the shipment
  • Shipping terms and conditions
  • Any special shipping requirements (for example, if the cargo is dangerous)

Shipping terms and conditions are especially important because they detail who is responsible for the goods at what stage, and who is responsible for paying the freight (Incoterm for the goods). Note that the bill of lading may not detail all the terms and conditions of carriage, but at least they should be mentioned.

So among these three functions, which is the most important function of the bill of lading..??

In the container business, the following are the most common types/methods of issuing bills of lading:

  • Direct bill of lading
  • Order bill of lading
  • Bill of Lading

All of the above types of bills of lading satisfy Functions 1 and 2 – Evidence of Contract of Carriage and Goods Receipt, but only the Order Bill of Lading satisfies Function 3 – Document of Title..

Why the other two types do not satisfy function 3..?? Let me explain..

1) When a bill of lading is issued in original form to the "appointed" consignee, it is called a "direct bill of lading", and a direct bill of lading is a non-negotiable and non-negotiable document. The bill of lading stationery will not have the words Straight Bill of Lading, but may have Ocean Bill of Lading or Port to Port Bill of Lading written at the top.

Release of goods at destination can only be made to the named consignee and only after surrender of at least one original issued bill of lading. This release condition is governed by the COGSA (Carriage of Goods by Sea Act) of the relevant country and jurisdiction. .
A direct bill of lading does not satisfy function 3 (document of title) because the document is neither transferable nor transferable.

2) When the bill of lading is issued to the "designated" consignee but without any original and using sea waybill or waybill stationery, it may be regarded as a "sea waybill".. this bill of lading is also a non-negotiable & non-negotiable document..
Since the sea waybill is not issued the original, it does not need to be returned.
The ocean bill of lading does not satisfy function 3 (document of title) because the document is neither negotiable nor negotiable.

Given below are ready-made estimators as to which type of bill of lading fulfills which role (in the context of container shipping).

 

So what is the most important function of the bill of lading? ?

The answer is: no one feature is more important than the other, because each feature has its own purpose and needs.

/ By tjchinafreight ivy / Transport

Various types of bills of lading

 

In foreign trade, the bill of lading is a document issued to the consignor by the transportation department when carrying the goods. The consignee picks up the goods with the bill of lading to the transportation department at the destination of the freight. The bill of lading must be signed by the carrier or the ship to take effect. It is one of the valid documents for the declaration of goods by sea to the customs.

1. Different types of bills of lading based on negotiable and non-negotiable documents

The main difference between the two types is that the title (ownership) of one can be transferred to another party, while the other is consigned to a named party, so he/she must be the ultimate receiver of the goods, as this type of title bill of lading cannot. transfer.
Readers should not confuse negotiable and non-negotiable bills of lading with "negotiable" and "non-negotiable" copies of a signed bill of lading.

① Direct bill of lading
A direct bill of lading is designated to a specific party, and the designated party cannot reassign it to anyone else. One party only needs to pick up the goods and cannot sell the goods by transferring the bill of lading to the other party's name.
② Order bill of lading
This is the bill of lading that most people encounter on board. The bill of lading is for the consignee, or for him. That is, the named consignee will be the owner of the goods or he can order the delivery of the goods to the other party by means of a bill of lading endorsed to the other party.
An order bill of lading is a negotiable document as the title (ownership) of the bill of lading is transferable.
③Bearer bill of lading
A bearer bill of lading is a bill of lading that states that the goods should be delivered to anyone who holds the bill of lading. These documents are issued exclusively or are purchase orders that do not specify the consignee by original or blank endorsement. Bearer notes can be negotiated by physical delivery.

2. According to whether the goods have been shipped

①Shipped B/L, or On Board B/L
Refers to the bill of lading issued to the shipper by the carrier or its authorized agent on the basis of the chief mate's receipt after the goods are loaded on board. If the carrier issues an on-board bill of lading, it confirms that he has the goods on board.
②Received for Shipment B/L
It is a bill of lading issued by the carrier at the request of the shipper when it has received the goods from the shipper but has not yet been loaded on board.

3. According to whether there are comments on the order or not

①Clean B/L
Refers to the bill of lading that the goods are in good condition when loaded on the ship, and the carrier has not added any damage to the goods, poor packaging or other obstacles to the settlement of foreign exchange.
②Unclean B/L or Foul B/L
Unclean B/L or foul B/L refers to the bill of lading marked on the bill of lading by the carrier that the goods and packaging are in poor condition or defective, such as wet, oily, stained, rusted, etc.

4. According to the different modes of transportation

①Direct B/L
Refers to the bill of lading issued after the goods are loaded from the port of loading and sailed directly to the port of unloading without changing ships in the middle.
②Transhipment B/L
It refers to the full bill of lading issued by the carrier at the port of shipment for the goods to be transshipped to reach the port of destination.
③Multimodal transport document/multimodal transport document
A multimodal transport document or combined transport document is an intermodal bill of lading involving at least two different modes of transport, land or sea. However, the mode of transportation can be anything from cargo ships to air.

5. Special Bill of Lading

①Container Bill of Lading
A container bill of lading is a document that provides information about the shipment of goods in secure containers or containers from one port to another.
②Combined B/L
Refers to two or more batches of liquid bulk cargo of the same variety, quality, port of loading and unloading, but belonging to different consignees and packed in the same liquid cargo tank, and are respectively the consignee of each batch of goods Issuing a bill of lading with the seal of 'Consolidation Clause' stamped on it.
③Parcel Receipt B/L
Refers to the bill of lading issued for goods consigned in the form of parcels. This is a bill of lading set by the carrier according to the special needs of the trade, and the weight must not exceed 45kg.

/ By tjchinafreight ivy / Shipping

Lost bill of lading – how to solve and deal with it?

A bill of lading is a document that certifies the contract of carriage of goods by sea and that the carrier has received or loaded the goods and guarantees that the carrier will deliver the goods in accordance with the contract. Since the goods can only be picked up by the bill of lading, in international trade, especially under the conditions of FOB and CFR, the bill of lading is of great significance and is considered to be the representative and sign of the goods.
However, since only one set of bills of lading can be issued for one shipment of goods, and the bill of lading is a negotiable document, once the bill of lading is lost, it will have a great impact on the development of foreign trade, which may cause the seller to fail to settle foreign exchange and the buyer to pick up the goods.

What is a bill of lading?
A bill of lading (BOL or B/L) is a shipping document whereby the carrier is obliged to deliver the goods at a named place.
The bill of lading is also proof that the contract is signed before the bill of lading is handed over to the master.
For more information on bills of lading, see our article - Bills of Lading.

Lost bill of lading
Losing a bill of lading can be a big problem as ocean carriers deliver containers against it. Missing this document may prevent us from picking up your order.
Downtime or demurrage charges may apply if containers remain in port for too long.

What to do if OBL is lost..??

Here are some steps you can take if a negotiable bill of lading is lost, stolen or destroyed

1. Pictures of lost bills Advertise in local media about the "lost" or "obsolete" original bills
2. Security may be obtained by a court order advising the carrier (shipping line) to deliver the goods to the owner of the goods, subject to the security provided by the goods claiming entity, in the amount of the court..
3. The carrier shall also receive an indemnity letter to indemnify the carrier or any person injured by the delivery against liability under the unpaid original bill. The court may also order reasonable costs and attorneys' fees to be paid to the carrier.
4. Certain banks accept a letter of guarantee signed by the bank and the bank will be jointly and severally liable to return the original bill of lading (if found).

However, some precautions need to be taken, such as:

Advertising about damages is by no means a complete defense of liability for wrongful delivery.
This is only evidence that the loss occurred and that the original owner had the intention to cancel the original bill of lading issued.
The carrier should know who owns the goods and only issue copies to that entity, as in some cases an entity that does not own the goods has advertised the loss and persuaded the carrier to issue a second set of originals, while the first still remains. In the hands of its rightful owners, nothing was actually lost.

It should be treated differently according to different situations:

  • Under a named bill of lading: the carrier may deliver the goods to the consignee of a named bill of lading after receiving the consignee's company guarantee and the consignor's written assurance that the goods are to be handed over to the consignee.
  • Under the order bill of lading: if the port of discharge agent receives a request from the consignee that the bill of lading is lost and cannot take delivery of the goods against this bill of lading, the consignee shall be required to present the original/copy of the bill of lading issued by the original carrier, commercial invoice, commercial Documents such as contracts and packing lists to check whether the consignee is the consignee. The port of discharge agent should also require the consignee to provide a form of guarantee issued by a first-class bank that meets certain standards. At the same time, the agent of the port of discharge should ask the agent of the port of loading to contact the consignor on the bill of lading to obtain the consignor's consent. In this case A written guarantee that the shipment is released to the consignee.
  • Under the bearer bill of lading: refer to the instruction bill of lading for specific practices. If the consignee returns the full set of original bills of lading, the letter of guarantee can be returned to the consignee. If the consignee cannot return the full set of original bills of lading, in principle, the letter of guarantee shall be retained indefinitely. If the consignee makes a return request, the port of discharge agent shall retain a minimum period according to the law of the host country. The domestic port proposal needs to be kept for 6 years. After the bill of lading is lost, contact the shipping company immediately to control the cargo, no matter what the circumstances. In this way, losses can be reduced, and at the same time, the rights and interests of the receiver and the consignor will not be damaged.
/ By TJ China Freight / Shipping

Can you split the order? Summary of requirements for splitting orders

Splitting the bill of lading is a relatively common behavior in the foreign trade industry. For example, when there are multiple consignees for a single shipment, many foreign trade companies will use the method of splitting the bill of lading. However, is it allowed in every country? What about the bill of lading? This is not necessarily true. The following will bring you a summary of the requirements of various countries.

Countries that allow splitting

• Pakistan: Goods imported into Pakistan allow the same box to be split in multiple bills of lading.

• China: Goods imported into Xingang are allowed to be split in the same box on multiple bills of lading.

Countries that conditionally allow order splitting

• Ukraine: The same box is allowed to be split in multiple bills of lading for goods imported into Ukraine, but the consignee of each bill of lading must be the same.

• Russia: The goods imported into Russia are allowed to be split in the same box in a multi-ticket bill of lading, but the consignee must be a local company in Russia.

• Australia: Goods imported into Australia allow the same box to be split in multiple bills of lading, but the consignee of each bill of lading must be the same or belong to the same group.

• Saudi Arabia: The goods imported into Dammam; Jeddah; Riyadh are allowed to be split in the same box in a multi-ticket bill of lading, but the consignee must be the same and cannot be combined with other boxes in a bill of lading.

• Indonesia: The goods imported into Jakarta are allowed to be split in the same box in a multi-ticket bill of lading, but the consignee must be the same.

• Malaysia:

1. The goods imported into Pasir Gudang allow the same box to be split in multiple bills of lading, but the consignee of each bill of lading must be the same and cannot be handled as bulk. If the customer insists on releasing the goods to different consignees, it is recommended that the consignor contact his own customs clearance agent to inquire whether he can go through customs clearance according to the freight forwarding form issued by himself.

2. The goods imported into Port Klang allow the same box to be split in multiple bills of lading, but the consignee of each bill of lading must be the same (except for bulk cargo).

• Singapore: Goods imported into Singapore allow the same box to be split in multiple bills of lading, but the consignee must be the same.

• Iran: General cargo imported into Iran allows the same box to be split in multiple bills of lading, but if it is dangerous goods, the consignee and notifier of each bill of lading must be the same. The goods in the freezer are not allowed to be split in the same box on a multiple bill of lading.

• Philippines: Goods imported into the Philippines allow the same box to be split in a multi-ticket bill of lading, but if there are multiple consignees, the consignor needs to inform the consignee to designate an agent to arrange customs clearance and cargo release.

• Thailand: Bulk cargo imported into Thailand allows the same box to be split in a multi-ticket bill of lading.

Countries that do not allow splitting

• Bangladesh: Goods imported into Bangladesh are not allowed to be split in the same box on multiple bills of lading.

• Israel: Goods imported into Israel are not allowed to be split in the same box on multiple bills of lading.

/ By TJ China Freight / Shipping

Brazil Shuangqing, Brazil shipping line

As we all know, the tariffs of South American countries are very high, and customs clearance is difficult. Brazil is a country of South America, and one of the hardest to do so. Today, I'll follow the search network for the Brazil customs clearance.
Brazil is a developing country. In order to protect its industrial production, it has adopted a tax protection policy on foreign imports in terms of imports. Brazil customs is a few countries to check the strict international parcel inspection, for they rate as high as one hundred percent, does not meet the requirements for shipment of goods or the customs will return the goods will be shipped, and shipped back to have a cost.
The main reason for the goods being imported by the Brazil customs is that the correct document information can not be provided during the customs clearance, and the timely homework can greatly reduce the possibility that the goods will be detained by the Brazil customs office so as to smooth customs clearance.
What are the requirements for customs clearance in Brazil?
The common customs clearance documents used in Brazil are bills of lading, invoices, boxes, fumigation certificates, power of attorney (both in Portuguese and English versions). NCM encoding and imported party bill of lading must be marked on the goods CNPJ number, NCM encoding HS encoding similar to the international general, to classify and tax on the product, CNPJ, is similar to the registration number, to determine the importer's identity and qualification. In addition to the invoice indicating the consignor, name, weight, volume, value, contract number, departure, destination and other basic information, but also need to indicate the product price, and address of the manufacturer. The International Plant Protection Convention as "" (International Plant Protection Convention, referred to as IPPC) signatory, Brazil in June 1, 2005 since the implementation of "international trade in wood packing material management standards" (ISPM15), for wood packing material requirements after fumigation / disinfection treatment and affix the IPPC logo.
Brazil customs special bill of lading requirements:
At the customs of the Brazil, all non - individual goods (missing or incorrect documents) will be deemed to be smuggled immediately after unloading and will be seized by the customs and fined. At the same time, the customs of the Brazil has the following special requirements for the original bill of lading:
1) the consignee shall not be "TO ORDER"".
If the bill of lading the consignee (Consignee) as "TO ORDER", the goods will be detained by customs, submit to the Brazil customs system until the consignee details (including complete address, telephone, fax number CPNJ enterprises, etc. and contact etc.), the customs will allow the delivery.
2) the Brazil customs does not accept the description of the general cargo. Such as: Department, good, merchandise, Chemical, Dry, cargo and so on.
3) must be labeled with the consignee (Consignee) enterprise tariff CPNJ goods, Brazil commercial customs NCM code encoding. If Notify and Consignee are different, also must identify its corporate tax CNPJ. In addition, the bill of lading must indicate the volume of the goods (per cubic meter).
4) the freight must be marked in figures and words at the same time on the bill of lading.
Brazil customs - Documentation / equipment inspection
For different channels of goods, the customs will take different means of inspection, in accordance with past experience, most Chinese products will be classified as yellow or red channel, rarely included in the green channel. For the goods of the Yellow channel, the customs will focus on the inspection of customs documents, evaluate the information of the value of the goods, the quantity of goods and the classification of the goods, and release them in the case of the audit. For the red channel of the goods, the situation is more complicated, first by the customs officer of customs documents for review, and then assigned to the port customs inspection personnel on-site inspection, if still unable to obtain the accurate judgment, should be combined with the third party inspection engineer jointly issued by the official inspection and report. From the beginning of the inspection to the issue of a report often takes weeks, this link is the entire customs clearance process in a longer period of time, but also the most difficult to grasp the link.
Brazil customs clearance procedures cumbersome
According to the world economic forum released the "2014-2015" in the global competitiveness report, ranked 144 countries (or regions), in the Brazil customs efficiency ranked 138, so the export of goods to Brazil for a long time, need to have patience.
There are three main tariff rates for imported goods in Brazil:
1 federal taxes
A. import duties. According to different commodities, the import tax rate is different. The average tax rate is now 17%. General raw material tax rate is very low or zero; consumer goods in general is about 20-30%.
B. industrial product tax. The average tax rate is 10%, which is a progressive tax, and is calculated at the price of CIF plus the total value of the import duty.
2. State taxes
C. commodity circulation service tax, which is equivalent to VAT, is a progressive tax, and is calculated at the CIF price plus the import duty, the processing industry, and the total value of the product tax. There are two tax rates, 17% and 18%, 18% in St Paul and 17% in all other states (both of which refer to transactions within the state) Depends on the state of the importer.
Brazil customs is not generally high, in addition to import tariffs and other mixed taxes, customs clearance to pay tips. Moreover, many products in Brazil have anti-dumping duties, and if Chinese goods are exported to Brazil at a high tariff, entrepot trade may be considered.
What products does China levy against the tax on Brazil?
Brazil Chinese of automotive glass, safety glass refrigeration appliances, agricultural tires, truck tires, bicycle tires, motorcycle tires frameless glass mirror, ball pen, coil, ring magnet, plastic vacuum tubes, seamless steel pipe, PVC resin, ceramic filter, two oxygen