What is a Bill of Lading

What is Bill of Lading and Why bill of lading is so important in Freight Forwarding

The word lading is derived from the old-fashioned word “lade” which means loading cargo onto the vessel or any other type of carrier. A bill of lading (commonly referred to as BL, B/L, or BoL in the shipping industry) is a written declaration that highlights the nature and quantity of goods that were supposed to be shipped, it also contains information about the destination of the shipment.

What Purpose Does A Bill Of Lading Serve?

A B/L is an authentic document that helps the carrier as well as the seller (exporter) to ensure the smooth movement of freight across different territories may it be by land/Ocean.
It is mandatory for all the consignments ( may that be by the ocean or by land ) that they must have a complete, signed, and dated bill of lading.

Why Is A Bill of Lading Important?

Here find the purposes of the bill of lading:

Act as an Agreement
A B/L is an agreement of carriage between the carrier and consignee for import or export by ocean or land. As we already discussed, B/L contains the terms and conditions of transportation, it also serves as evidence that shows the carrier has agreed to transport the freight to the final destination respecting the agreement between the seller and buyer.

Shipping Receipt:
B/L serves as proof that the seller conveyed the freight in good condition to the carrier At the point of origin. 
According to contractual terms, the carrier confirmed receipt of goods on board their cargo vessels in good condition.

A document of title:
A B/L becomes a title to the goods. When the consignment is at its destination, it is important to show the bill to secure The release of the freight from the Carrier. We may also say that the BL is the only way to gain containment.

Please Find a Few Other Purposes of the Bill of Lading

Who Issues A Bill Of Lading?

All bills of lading contain the same information about the consignment, it can be issued by a cargo agent, freight forwarder, or a NVOCC intermediary.

Type of bill of lading  

There are three different kinds of B/L. It will prevent problems and misunderstandings during shipping by knowing which type applies to your shipment. 
Below given points are those which may affect the type of B/L you needed
The issuer of the BL.
Document purpose.
Buyer & Seller relationship.
The protection offered to buyers by it.
In case you are using a freight forwarder or other shipping intermediary to Manager your shipment l, there are going to be 2 sets of B/Ls, which we have elaborated on below:
Matter Bill of Lading (MBL): This B/L is issued by shipping carriers to the freight forwarder or the NVOCC or to the shipping agent. It works as an agreement of carriers and receipt of delivery to the carrier. BL Numbers are shared between forwarders and shippers for tracking purposes, as it will help to determine the status of the consignment.
House Bill of Lading (BL): this one is issued to the exporter of goods by the intermediaries. When this BL is issued to the exporter, the confirmation from the exporter’s side is supposed to come regarding the weight or dimension of the freight.

Type of Bill of Lading

Below we are providing your list of types of bill of lading with little description:

Original Bill of Lading
This is typically issued in the state of three. Till the time any one of the below-given conditions is not meat exporters have to take care of the original BL:
1.) Receiving the Payment (Seller’s point of view)
2.) Acceptance of a bill of exchange (seller’s point of view)
3.) Assurance of payment (seller’s point of view) 

Telex Release Bill of Lading
This is a digitized form of the original bill of lading. It helps in speeding up the process of shipping and customs clearance process.

Express Bill of Lading
This one is also known as express release, express BL, sea way-bill, and Straight bill of lading. When there is an express bill of lading there is no need for hardcopy to be issued a bill of lading,  as it is also a digitized form of the same. But here we may suggest that express BLs should be issued only when there is a good relationship between the shipper and the consignee.

Switch bill of lading

This replaces the original bill of lading, this is not issued by the carrier.  It follows the same format and offers the same purpose as the original one. Below we have listed the point which shows when they are needed: 
1.) When there is a need to change the port of discharge. A possible reason for this is the sale of the freight during transit.
2.) Buyer and shipper want to keep the identity of the supplier hidden from one another. This secures the chances of buyers directly approaching the supplier in the future.
3.) Consignee initially shipped the goods on a separate bill of lading and now wishes to consolidate everything into one.
4.) Buyer requests a separate bill of lading after the consignment was originally shipped on one bill of lading.

Cargo shipping companies

To Know More

  • Routine shipment, home consumption (duties paid)
  • Ex-Bond/In-Bond shipment
  • Shipments of DEPB, EPCG, and DFCEC licenses
  • 100% EOU / STPI / SEZ / TP for ship spares / R&D certification / passbook scheme
  • Import clearance for a project
  • Direct deliver perishables and certain cargo
  • Re-import after repairs / exhibition
  • Clearance of third-country exports
  • Clearance of high seas shipments
  • ATA carnet clearance
  • Second-hand capital goods
  • Free-of-charges shipments
  • Courier clearance
  • Door to door delivery
  • EPR and Other Certification (we follow up the concerned department on the behalf of importer and exporters)
  • Bill of entry (issued by customs only)
  • Commercial Invoice
  • Airway bill or Bill of Lading
  • Certificate of Origin
  • Delivery order from shipper/airline and freight forwarder. 
  • The CHA requires KYC documents for customs clearance. 
  • License for Import (In case of particular goods)
  • Certificate of Insurance (If necessary)
  • Letter of Credit or LC
  • Technical Write-up or Literature (Only required for specific goods)
  • Industrial License (Only required for specific goods)
  • Test Report (If any)
  • RCMC Registration/Membership Certificate (If required)
  • GATT declaration
  • License for duty benefits (As an option the importer may choose): AA(DEEC)/ DFIA/ EPCG/ EOU
  • And other specific documents for your goods are necessary to import customs clear in importing country.

There are certain certificates that you must obtain from the concerned departments regarding the following items:

  • Registration From Food Safety and Standards Authority of India (FSSAI) (For Food/Edible Import Consignments)
  • Animal Quarantine Certificate (A&Q) Required import in india (For animal, animal parts, animal feed, etc. )
  • Plant and Protection Quarantine Certificate/ import permit plus Fumigation treatment Certificate are required for the import of plant material (For seeds, plant and plant thereof)
  • Drug & Cosmetics Act, 1940, No-objection Certificate (NOC) from Assistant Drug Controller(ADC) (is mandatory for the import of drugs/bulk drugs, etc.)
  • BIS, Bureau of Indian Standards BIS is responsible for the harmonious development of the activities of standardization, marking and quality certification of goods and for matters connected therewith or incidental thereto
  • EPR, Extended Producer’s Responsibility With EPR India authorization, the manufacturer / importer of electronic and electrical products has been given the responsibility to control E-waste by the products after expiry of their lifetime.
  • WPC, Wireless Planning & Coordination Imports of radio equipment into India, without prior permission from WPC, will be confiscated by Customs at point of entry.
  • LMPC, Legal Metrology & Packaged Commodity Registration  For import of any pre-packed commodities commodity to distribute or sell Then he need to apply for packer / manufacturer registration