Can Bill of Lading be surrendered at port of loading?

Is original Bill of Lading required, if the amount of export proceeds received in advance?

Bill of lading is issued by carrier (ship owner or his agent) on receipt of goods after completion of customs formalities. Bill of Lading is used as a document of title, proof of receipt of goods, and contract of carriage.

As I have mentioned in detail about the procedures of release of Bill of Lading in other articles of same web site , BL is issued by carrier once after receipt of goods from shipper.

Let me explain the mechanism of movement of export documents in short:

Once after export takes place, the exporter submits all required documents to his bank – exporter’s bank sent to foreign buyer’s bank – buyer’s bank delivers to overseas buyer – buyer or his customs broker sends to submits to carrier to deliver goods.

Here, bill of lading is treated as a document of title. Means, without production of original bill of lading carrier does not release goods to consignee. Original bill of lading along with other shipping documents is sent to buyer through buyer’s bank by exporter.

Here the question is, if seller already received his full payment against exported goods, whether original bill of lading needs to be sent along with other documents to buyer?

If full payment of exported goods already received by seller in advance from buyer, dispatch of original bill of lading to buyer is not mandatory unless otherwise buyer insists to do so.

Let us discuss another example: The terms of payment under a export business contract is for 60 days from the date of bill of lading. Cargo arrived on 25th day. The consignee needs to take delivery of goods without effecting payment to overseas seller, as the maturity date is on 60th day from the date of bill of lading. Here also, the buyer needs to take delivery of goods without waiting to remit payment to his seller.

So, as per my opinion, except under DP – Documents against Payment and LC at sight, original bill of lading can be surrendered at port of loading unless otherwise buyer insists to send.

If original bill of lading is surrendered at port of loading, a surrender message can be arranged from carrier or his agent’s office at load port to their counterpart at destination port advising them not to insist for original bill of lading from consignee to release the goods.