Bills of Lading
Bills of Lading
A bill of lading is a contract between the owner of the goods i exporter) and the carrier. It is evidence that the shipment has been made and is your receipt for the goods that have been shipped. Figure 4-14 is a Bill of Lading for an air carrier, called an Air Waybill. Figure 4-15 shows an ocean bill of lading.
Straight Bills of Lading.
These forms are nonnegotiable bills that consign the goods to an importer or other party named on the document. Once consummated, the seller and/or the seller's bank loses title control because the goods will be delivered to anyone who can be identified as the consignee.
Order Bill of Lading.
This form is a negotiable bill; that is, unlike the "straight" bill, it represents the title to the goods in transit and the original copy must be endorsed before it is presented to the bank for collection. In other words, the "order" bill can be used as collateral in financing—as documentation to discount or sell a draft. L/C transactions specify to whom the
endorsement is to be made. Typically, they are made "in blank," or to the order of a third party, a bank, or a broker.
Air bills of lading are usually "straight" (i.e., nonnegotia-ble). Ocean shipping companies can issue "straight" or "to order."
Clean on Board.
To verify shipping performance, the carrier indicates the condition of the goods upon acceptance. You should prefer to ship on a bill of lading marked "clean on board." That statement means that the carrier accepted the cargo and loaded it on board the vessel without exception.
Foul Bill.
A foul bill indicates an exception—some damage is noted on the bill of lading. Discuss this with your carrier or freight forwarder to make sure you have an opportunity to exchange any damaged goods and obtain a "clean" bill.
As you have learned in the previous three chapters, most of the fundamentals of international trade are common to importing and exporting, but some major elements are specific to one or the other. The next two chapters explain those things that are unique to exporting or to importing such as: government support systems, information systems, tax considerations, tariffs, and private-sector support organizations.
A bill of lading is a contract between the owner of the goods i exporter) and the carrier. It is evidence that the shipment has been made and is your receipt for the goods that have been shipped. Figure 4-14 is a Bill of Lading for an air carrier, called an Air Waybill. Figure 4-15 shows an ocean bill of lading.
Straight Bills of Lading.
These forms are nonnegotiable bills that consign the goods to an importer or other party named on the document. Once consummated, the seller and/or the seller's bank loses title control because the goods will be delivered to anyone who can be identified as the consignee.
Order Bill of Lading.
This form is a negotiable bill; that is, unlike the "straight" bill, it represents the title to the goods in transit and the original copy must be endorsed before it is presented to the bank for collection. In other words, the "order" bill can be used as collateral in financing—as documentation to discount or sell a draft. L/C transactions specify to whom the
endorsement is to be made. Typically, they are made "in blank," or to the order of a third party, a bank, or a broker.
Air bills of lading are usually "straight" (i.e., nonnegotia-ble). Ocean shipping companies can issue "straight" or "to order."
Clean on Board.
To verify shipping performance, the carrier indicates the condition of the goods upon acceptance. You should prefer to ship on a bill of lading marked "clean on board." That statement means that the carrier accepted the cargo and loaded it on board the vessel without exception.
Foul Bill.
A foul bill indicates an exception—some damage is noted on the bill of lading. Discuss this with your carrier or freight forwarder to make sure you have an opportunity to exchange any damaged goods and obtain a "clean" bill.
As you have learned in the previous three chapters, most of the fundamentals of international trade are common to importing and exporting, but some major elements are specific to one or the other. The next two chapters explain those things that are unique to exporting or to importing such as: government support systems, information systems, tax considerations, tariffs, and private-sector support organizations.
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