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    Global International Trading
International Export Manual Guide version 2.0 Free to try Download
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    Secrets of International Trade



  Secrets of International Trade

Bill of Lading - A document supplied to the exporter by the shipping company that is transporting the goods to their foreign destination, listing, item by item, the goods being shipped. It serves three basic purpose:

1. To acknowledge receipt by the carrier of the exporter's goods.

2. To indicate the carrier's contractual obligation to transport the goods to their destination in exchange for payment.

3. To record transfer of title (or ownership) from the seller to the buyer when payment for the goods takes place. Airlines use what is called an Air Waybill.

There are two basic types of bill of lading,
the straight bill and the order bill.

1. A straight bill of lading is a non-negotiable document, made out to a specifically named consignee, from which the steamship company acknowledges receipt of the freight and agrees to move it to its destination. Unlike an order bill, the straight bill does not have to be surrendered to the carrier in order for the importer to obtain possession of the goods.


2. An Order bill of lading is a document that is made out to the order of of the foreign importer or its bank, or the order of the export firm, its bank, or another designated party.

Title to goods being shipped is given by possession of the bill of lading that bears the exporter's endorsement. Often, this endorsement is in blank, thus giving ownership of the goods to the person possessing the bill, and therefore making the bill highly negotiable.

The order bill of lading is handed over only when the foreign importer has paid for the goods or made acceptable credit arrangements. The customs regulations of most countries specify the number of copies, either negotiable or non-negotiable, of the bill of lading that must be supplied for customs purposes.

Read More...An Order bill


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