x You want to find out what a bill of lading is, what is included in the document, and what are the regulations?
x Are you wondering about the function and meaning of the Bill of Lading (B/L) by sea?
x You need to understand how many steps are involved in making a B/L bill of lading for sea goods?
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What is a bill of lading?: Concept, function and meaning of bill of lading
What is a bill of lading?
In the field of sea transportation, there are many specialized terms that if you are new to the profession, you will still be confused. One of the most used terms is Bill of Lading, this is an extremely important document. So, what is a sea order?
Bill of lading, termed Bill of Lading, is an important sea transport document. The ocean bill of lading is issued by the carrier (can be the ship owner, agent, or person responsible for transportation) to the shipper after the goods have been loaded onto the ship or after confirmation by the ship owner.
Without a bill of lading, businesses will not be able to conduct customs declaration as well as carry out necessary procedures for import and export. In addition, this is also the basis for determining the quantity of goods and value of goods that the buyer needs to pay to the seller.
Function and meaning of Bill of Lading
Bill of Lading has the following functions and meanings:
- Is evidence confirming the transportation contract signed by both parties with specific legal content and terms. The bill of lading defines the legal relationship between the carrier and the shipper, and the legal relationship of the carrier and the consignee.
- B/L is a document confirming ownership of the goods recorded on it. Therefore, in some cases, a bill of lading can be valuable as a document used for mortgage, purchase and transfer.
- The bill of lading is also considered a confirmation receipt from the carrier to the carrier. The carrier will only deliver the goods to the person who presents the first valid B/L that he or she has signed at the loading port. Therefore, B/L is very important, attached to the set of documents in foreign trade transactions.
Content required in the Bill of Lading
The Bill of Lading includes the following basic contents:
- Bill of lading number: Regulated by the issuer, helps to look up the shipment B/L and customs declaration, along with information related to the shipping company and its logo.
- Shipper information: Full name, address of shipper and forwarder.
- Recipient information: There are many different ways of expressing it, based on the import-export contract.
- Party to be notified: Record the same as the item receiving goods.
- Ship name: each type of cargo ship at sea will have its own name and code for each trip.
- Port of loading and unloading: Including the name and address of the place where goods are loaded and unloaded from the ship will also be recorded.
- Goods information: Shown through HS code and general name of the shipment.
- Number of packages, packaging: information clearly stating the number of packages, number of boxes and number of containers.
- Container number and index number: Numbers called container codes and sealing indices will be recorded to support delivery confirmation and loading and unloading.
- Information about weight and volume: Each shipment will have a different weight and cover volume and they are shown to help with delivery and loading and unloading of goods.
- Fee information: Types of fees will be clearly shown by the amount, the fee amount generally includes the amount payable or receivable.
- Date, represents the date of loading onto the ship and officially delivered to the shipping unit. There is also information about bill of lading delivery time and delivery address.
- The original bill of lading number will help you know how many original copies were issued (usually 3 copies).
- The signature of the carrier and authorized issuing agent.
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Necessary regulations of ocean bill of lading
Legal basis of ocean bill of lading
This is a regulation on the source of law that regulates the terms of the bill of lading as well as resolves disputes between shippers and carriers. This source of law, in addition to national law, also includes relevant international conventions such as the Hague rules and the Brussels convention of August 25, 1924, the 1968 Visby Protocol or the 1978 Hamburg convention on sea bills of lading.
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Notes you need to know about the Bill of Lading
- Legality of bill of lading:
Because bills of lading are mainly used to transport goods from shipper to recipient, it is necessary to ensure legality. Phenomena such as loss and damage will be resolved based on the information recorded on the bill of lading. Accordingly, it should be noted that the bill of lading must have correct and accurate legality as a basis for the parties.
- Check bill of lading information:
It is necessary to check the information written on the bill of lading to limit the occurrence of disputes and lawsuits. The information that receives the most attention is related to the type of goods, quantity of goods, transaction date, confirmation of goods, etc., which is important information that helps shippers, carriers, and consignees. have a basis to determine how the goods are received. At the same time, how to make payments, debts, etc.
* Conclusion: Bill of lading is an important document in container shipping. Although there are many ways to classify bills, in reality people often see two main types of bills of lading: Master Bill and House Bill. The original Bill is the most important bill and the original Bill must not be lost. If you don't want customers to wait for the original Bill, you can make a Surrendered Bill or Seaway Bill.
>>See more: Sea bill of lading function
Steps in the process of making a Bill of Lading
The specific process of issuing Bill of Lading is as follows:
Step 1: Shipper/Consignor delivers the goods to the shipping agent at the loading port at the prescribed time and place and requests the issuance of a bill of lading.
Step 2: The shipping agent issues the original bill of lading to the shipper, usually consisting of 3 copies.
Step 3: Shipper sends the bill of lading to the consignee in one of the following two ways:
- Method 1: Send 1 copy of Original B/L directly to Consignee.
- Method 2: Go through the bank to send Original B/L to Consignee.
Step 4: The ship agent at the unloading port sends a notification to the Consignee.
Step 5: Consignee presents a valid bill of lading.
Step 6: Change the delivery order. The ship agent at the unloading port issues a D/O (Delivery Order), and the Consignee carries out import procedures. If it is a whole container, go to the shipping agent to complete tax payment procedures (if any) and deposit the container.
Step 7: The shipping agent at the unloading port delivers the goods to the consignee on the basis that the consignee presents a valid delivery order.
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Bill of Lading and necessary knowledge such as concepts, functions, meaning, content, regulations of the bill of lading, etc. have been answered by PROSHIP LOGISTICS. If your unit is having trouble preparing documents and presenting bills of lading, you can refer to and apply the instructions above. Contact 0909 344 247 for advice and quotes for cheap sea container shipping services to North and South directly.
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