A bill of lading specifies a specific carrier by which the goods were brought to their final destination and the conditions of carriage of the consignment to its final destination. Land, sea and air are the means of lading. 6.2 The Ocean Bill of Assing is the only common law title to the goods currently recognised in English common law.1 As such, the transfer of a bill of lading is capable of symbolically transferring possession of the goods to the purchaser. It is this capacity that distinguishes the bill of lading from other documents containing or proving contracts of carriage and other documents used to receive the goods. 6.7 Sir Frederick Pollock explained the ability of keys and bills of lading to confer symbolic possession of goods on their holders as follows: The freight forwarder is not obliged to require that all originals be presented prior to delivery. It is therefore essential that the exporter retain control of all originals until payment has been made, a bill of exchange has been accepted or another guarantee of payment has been given. A bill of lading must accompany the goods being shipped, as the document serves as a contract and transaction receipt. Whether shipped by land, sea or air, a bill of lading is necessary to protect everyone involved and ensure the accuracy of the shipment details. 6.14 However, not all invoices received for shipping are identical. In Ishag v.
Allied Bank International,26 the bill referred to the vessel on which the goods were to be carried, but did not indicate that the goods were in the custody of the carrier at the time of issue. It merely stated that the goods were “at the disposal” of the carrier`s agents.27 was satisfied that the document in question could not be legally distinguished from a bill of lading received for shipment and concluded that “it was subject to customs as proved at The Marlborough Hill” and was therefore a document of title.28 Whether or not this decision is justified depends on whether the carrier`s “disposition” meant: that the goods were under its control, or if it simply meant that the freight forwarder had the contractual right to demand their delivery. In the latter case, it may be argued that the carrier itself did not have sufficient control over the goods to say that possession of the document corresponded to possession of the goods. The shipper is the actual seller`s carrier or NVOCC 6.25 As a general rule, the seller of goods retains the corresponding bill of lading as a price security. It is then usually presented against payment, with ownership transferred after payment has been made or secured. Although there is evidence of receipts for goods loaded on merchant ships dating back to Roman times[12] and the practice of recording cargo on board the ship in the ship`s logbook is almost as durable as the expedition itself, the modern bill of lading only came into use with the growth of international trade in the medieval world. According to FCA Incoterms, the seller is not obliged to arrange transport unless requested by the buyer or it is a commercial practice, but this must be done at the buyer`s risk/expense. A soiled or dirty bill of lading may contain expressions such as torn packaging, damaged cargo and missing goods. The consignee issues this dirty bill of lading and, as a result, it may be difficult for the freight forwarder or exporter to receive payments.
After all, the agreement was to deliver the cargo in good condition. Violation of this Agreement may result in financial loss and reputational damage. Consignment note number (important for cargo tracking) The carrier issues a bill of lading to the sender. As a contract between the shipper and the carrier, and as a title deed, it helps protect both parties from potential financial loss and theft of assets. As mentioned earlier, a bill of lading acts like a contract, which means that a legal obligation must be fulfilled. This declaration of commitment is one of the main functions of a bill of lading. The main difference between these two documents is that the consignment note gives the holder the right to possess the cargo, but does not confer ownership of the goods. Therefore, it is not necessary to present the physical document in order for the goods to be cleared through customs. The freight forwarder automatically hands over the goods to the consignee as soon as the import formalities are completed. This results in a much smoother flow of trade and has allowed shipping companies to move towards electronic data exchange, which can greatly facilitate the flow of global trade. A bill of lading (BL or BoL) is a legal document issued by a carrier to a shipper that specifies the type, quantity and destination of the goods carried. A bill of lading also serves as a shipping receipt when the carrier delivers the goods to a predetermined destination.
This document must accompany the products shipped, regardless of the mode of transport, and must be signed by an authorized representative of the carrier, carrier and consignee. 6.26 During the nineteenth century, two possible reasons were given for maintaining the invoice, which reserves title to the seller. First, the mere retention of the bill of exchange by the seller means that the buyer can never lawfully take possession of the goods49, nor legally abandon the carrier, thus retaining control of the goods.50 In the alternative, it has been stated that the fact that the seller has been designated as the person on whose order delivery of the goods is to take place means that the carrier is the seller`s representative and that it was therefore no delivery to the buyer;51 However, the reverse would also have occurred: if the buyer had been appointed, there would have been a delivery to the buyer`s representative and ownership would have been transferred with the shipment. Cornell Law School, Institute of Legal Information. “49 CFR Sec. 375.505 – Do I Need to Write a Bill of Lading?” Retrieved 6 August 2020. In international trade, the invoice and bill of lading as well as the insurance policy are crucial. This protects all parties involved from financial loss and helps ensure the smooth shipment and receipt of goods. FCA (Free Carrier) is an Incoterms commonly used worldwide for all types of transport, including sea, air and road transport.
It is simply a contract of purchase in which the seller fulfills its obligation of delivery when it has handed over the goods that have been exported to the custody of the carrier designated by the buyer at the designated place or point. When delivery to the carrier is complete, the buyer is responsible for all other import processes, including cargo loading, freight, insurance, import customs clearance and other documents such as import license if required.
