Sunday 23 November 2014

Can an importer take delivery of goods without original bill of lading?

Import Delivery without original bill of Lading.

This is one of the common doubts among exporters and importers – 

  • Can an importer take delivery of goods without producing original bill of lading with carrier? 
  • We have learned in other articles in same website that Bill of Lading is a document of title and transferable. 
  • Without Bill of Lading, can carrier release goods to consignee at destination port?

Now let us discuss some different levels in export import trade where in Bill of Lading does function.

There are mainly four types of handling of Bill of Lading, normally by carriers in export import trade. Let us discuss below different levels of handling bill of lading by a shipping carrier of goods.

Delivery of Imported goods against Bill of Lading
Original bill of lading is issued by carrier of goods once he receives the cargo after completion of customs clearance procedures. The carrier can be a shipping line, freight forwarder, or a Multi model transport operator, or both. The exporter, once after obtaining original Bill of Lading, he submits the same along with other required documents with his bank to send to overseas buyer through buyer’s bank. The exporter’s bank sends the said documents to buyer’s bank after necessary formalities. The buyer’s bank delivers documents to the buyer. The buyer submits the said original bill of lading with the carrier of goods after completing customs procedures of importing country. The carrier receives the said Bill of Lading and arranges to deliver cargo to the consignee, after checking the authenticity of consignee if required.

Delivery of imported goods against OBL surrender message.
You (exporter) release Bill of Lading from carrier, and surrenders the same to the carrier. The carrier sends a message to his counter part at destination port about the surrender of Bill of lading at load port. He advises his office at destination to delivery the cargo to consignee without ‘insisting for original bill of lading’.
There could be many reasons to surrender OBL at load port. OBL could not have released in time, vessel would have reached at destination port before release of OBL, Buyer’s instruction to avoid loss in transit etc.etc.

Delivery of import goods against Express Release Bill of Lading:
You instruct carrier to release ‘Express Bill of Lading’. Here, the carrier issues a copy of express BL to exporter. A soft copy of the same BL is sent by carrier to his counterpart at destination. You (exporter) also send a soft copy to your overseas buyer. Your buyer can take delivery of goods by just submitting the said copy with the carrier at final destination of goods.

Release of Import goods against endorsed BL / transferred BL
The consignee column of BL mentions “To Order” and the address other than your buyer. Normally this address will by your bank address, as your sale contract may be under Letter of Credit. Here, the carrier can deliver cargo to your buyer, only after the written permission from the address mentioned in the ‘consignee column’ of Bill of lading. The said permission should be in the form of ‘Deliver order’. Normally bank delivers such ‘order’ to deliver the cargo, only after receiving the payment of goods from the buyer.


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