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what is Bill of lading?

What is bill of lading? where it use ? how it uses in Export cenario?

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  • Best Answer
    Sep 04, 2007 at 07:29 AM
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    Former Member
    Aug 17, 2007 at 07:30 AM

    Bill of lading



    A Bill of Lading is a type of document that is used to acknowledge the receipt of a shipment of goods and is an essential document in transporting goods overland to the exporter's international carrier.

    A through Bill of Lading involves the use of at least two different modes of transport from road, rail, air and sea. The term derives from the noun "bill", a schedule of costs for services supplied or to be supplied, and from the verb "to lade" which means to load a cargo onto a ship or other form of transport.

    In addition to acknowledging the receipt of goods, a Bill of Lading indicates the particular vessel on which the goods have been placed, their intended destination, and the terms for transporting the shipment to its final destination. Inland, ocean, through, and airway bill are the names given to bills of lading.

    The standard short form bill of lading is evidence of the contract of carriage of goods and it serves a number of purposes:

    it is evidence that a valid contract of carriage, or a chartering contract, exist, and it may incorporate the full terms of the contract between the consignor and the carrier by reference (i.e. the short form simply refers to the main contract as an existing document, whereas the long form of a bill of lading (connaissement intégral) issued by the carrier sets out all the terms of the contract of carriage);
    it is a receipt signed by the carrier confirming whether goods matching the contract description have been received in good condition (a bill will be described as clean if the goods have been received on board in apparent good condition and stowed ready for transport); and
    it is also a document of transfer, and a negotiable instrument, i.e. it governs all the legal aspects of physical carriage, and, like a cheque or other negotiable instrument, it may be endorsed affecting ownership of the goods actually being carried. This matches everyday experience in that the contract a person might make with a commercial carrier like FedEx for mostly airway parcels, is separate from any contract for the sale of the goods to be carried, however it binds the carrier to its terms, irrespectively of who the actual holder of the B/L, and owner of the goods, may be at a specific moment.

    Main types of bill

    Straight bill of lading



    This bill states that the goods are consigned to a specified person and it is not negotiable free from existing equities, i.e. any endorsee acquires no better rights than those held by the endorsor. So, for example, if the carrier or another holds a lien over the goods as security for unpaid debts, the endorsee is bound by the lien although, if the endorsor wrongfully failed to disclose the charge, the endorsee will have a right to claim damages for failing to transfer an unencumbered title.

    Also known as a non-negotiable bill of lading.

    Order bill of lading



    This bill uses express words to make the bill negotiable, e.g. it states that delivery is to be made to the further order of the consignee using words such as "delivery to A Ltd. or to order or assigns". Consequently, it can be endorsed by A Ltd. or the right to take delivery can be transferred by physical delivery of the bill accompanied by adequate evidence of A Ltd.'s intention to transfer.

    Also known as a negotiable bill of lading.


    Bearer bill of lading



    This bill states that delivery shall be made to whosoever holds the bill. Such bill may be created explicitly or it is an order bill that fails to nominate the consignee whether in its original form or through an endorsement in blank. A bearer bill can be negotiated by physical delivery.

    A sample of the issues



    In most national and international systems, a bill of lading is not a document of title, and does no more than identify that a particular individual has a right to possession at the time when delivery is to be made. Problems arise when goods are found to have been lost or damaged in transit, or delivery is delayed or refused. Because the consignee is not a party to the contract of carriage, the doctrine of privity of contract states that a third party has no right to enforce the agreement. However, whether this is a problem to the consignee depends on who owns the goods and who holds the risks associated with the carriage. This will be answered by examining the terms of all the relevant contracts. If the consignor has reserved title until payment is made, the consignor can sue to recover his or her loss. But if ownership and/or the risk of loss has transferred to the consignee, the right to sue may not be clear in contract, although there could be remedies in tort/delict (the issue of risk will have been most carefully considered to decide who should insure the goods during transit). Hence, a number of international Conventions and domestic laws specifically address when a consignee has the right to sue. The legal solution most often adopted is to apply the principle of subrogation, i.e. to give the consignee the same rights of action held by the consignor. This enables most of the more obvious cases of injustice to be avoided.

    In the municipal law of the U.S., the issue and enforcement of bills which may be documents of title, is governed by Article 7 of the Uniform Commercial Code. However, since bills of lading are most frequently used in transborder, overseas or airborne shipping, the laws of whatever other countries are involved in the transaction covered by a particular bill may also be applicable including the Hague Rules, the Hague-Visby Rules and The Hamburg Rules at international level for shipping, The Warsaw Convention for the Unification of Certain Rules for International Carriage by Air 1929 and The Montreal Convention for the Unification of Certain Rules for International Carriage by Air 1999 for air waybills, etc. It is customary for parties to the bill to agree both which country's courts shall have the jurisdiction to hear any case in a forum selection clause, and the municipal system of law to be applied in that case choice of law clause. The law selected is termed the proper law in private international law and it gives a form of extraterritorial effect to an otherwise sovereign law, e.g. a Chinese consignor contracts with a Greek carrier for delivery to a consignee based in New York: they agree that any dispute will be referred to the courts in New York (since that is the most convenient place — the forum conveniens) but that the New York courts will apply Greek law as the lex causae to determine the extent of the carrier's liability.

    Reward points if helps

    Regards

    Sai

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    Former Member
    Aug 17, 2007 at 10:14 AM

    BILL OF LADING

    A bill of lading is a document which is issued by the transportation carrier to the shipper acknowledging that they have received the shipment of goods and that they have been placed on board a particular vessel which is bound for a particular destination and states the terms in which these goods received are to be carried. Separate bills of lading are issued for the inland or domestic portion of the transportation and the ocean or air transportation, or a through bill of lading can be obtained covering all modes of transporting goods to their destination. Bills of lading, whether in land or ocean, can be issued in either non-negotiable (straight) form or in negotiable form. If the bill of lading is specified as being non-negotiable, the transportation carrier must deliver it only to the

    siva

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    Former Member
    Aug 17, 2007 at 07:17 AM
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    Former Member
    Aug 17, 2007 at 07:19 AM

    Hello,

    Documents issued by sender of goods that are shipped with the goods.

    Regards

    AK

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    Former Member
    Aug 17, 2007 at 07:30 AM

    Hello

    Bills of Lading are transport documents issued by the shipping lines as a confirmaiton of:

    1 - That the goods were loaded onto a ship

    2 - What the shipping details are

    This is a legal document normally used by all parties involved in a export process as:

    1 - From the suppplier view a trigger for billing

    2 - From the customer view a confirmation that delivery is effected

    3 - From the bank as the payment release document (in particular for letters of credit)

    Regards

    Let me know if this helps

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