Chapter 2 of B/L:

More explanation about B/L

A BILL OF LADING may be issued as a house bill of lading or a master bill of lading. 

1. A House Bill of Lading (HBL) is issued by NVOCC operator or a Freight Forwarder to their customers.
2. A Master Bill of Lading (MBL) is issued by the shipping line (carrier) to the NVOCC operator or a Freight Forwarder.

When issued for a FCL as well as LCL shipment (non-groupage), a HBL should always be issued on back to back basis with an MBL which means that the HBL should be an EXACT replica of MBL issued by a shipping line in respect of all details except the shipper, consignee and notify party details which will be different in the HBL and MBL.

HBL: 

1. In the HBL the shipper will be usually be the actual shipper/exporter of the cargo (or as dictated by the L/C).
2. The consignee will usually be the actual receiver/importer of the cargo (or as dictated by the L/C).
3. The notify could be same as consignee (or any other party as dictated by L/C)

MBL: 

1. In the MBL the shipper will usually be the NVOCC operator or the agent or the Freight Forwarder.
2. The consignee will usually be the destination agent or counter part or office of the NVOCC operator or the Freight Forwarder
3. The notify could be the same as consignee or any other party.

In the interest of insurance coverage/exposure, it is recommended that all the details on the HBL and MBL like vessel, voyage information, cargo description, number of containers, seal number, weight and measurement should remain same. The only difference should be in the shipper, consignee and notify details.

Unless disallowed by L/C the HBL is also used/treated as negotiable document and can be considered to fulfill the roles of bill of lading but due care must be taken when using HBL as negotiable document as sometimes it can be used for a counter productive and dangerous practices of consigning the HBL and MBL exactly the same which means that there are two sets of B/L issued by the two different entities for the same cargo.

Such issues can happen due to the ignorance of the NVOCC or Freight Forwarder. 

Below are the templates  of MBL and HBL


MBL of the carrier maersk line

 HBL of  Freight Forwarder INTEGRAL LOGISTICS SERVICES PVT.LTD.

 

Bill of Lading (BOL):

A bill of lading in shipping is a record of the traded goods which have been received on board. It is a document that establishes an agreement between a shipper and a transportation company for the transportation of goods. Carrier issues these records to the shipper.

A bill of lading indicates a particular carrier through which the goods have been transported to their final destination and the conditions for transporting the shipments to its final destination. Land, Ocean and Air are the means used for bill of lading.

It is also a receipt for the cargo being shipped, which contain the shipment details and their parties involved. It may also act as a legal transportation contract. 

For vessels, there are two types of bill of lading:

 A straight bill of lading, which is non-negotiable and negotiable or shippers's order bill of lading. The later can be bought, traded or sold while the goods are in transit. The customer usually needs an  original as proof  of ownership to take possession of goods.

There is also liner bill of lading with no pre-printed terms and conditions on it's back side, instead relationship between the carrier and the shipper should be governed by the carrier's standard condition of carriage.

Order bill of lading is the bill uses express words to make the bill negotiable. This means that delivery is to be made to the further order to the consignee using words such as " delivery to A Ltd. or to order or to assigns. The cargo is only delivered to the bonafide holder of the bill of lading, and it has to be verified by an agent who issues delivery order and the verified bill of lading

- is the most modern type bill which is widely used all over the         world.

- ensures the safety of delivery of cargo to a bonafide holder of   B/L.

- since ship visits several foreign ports where the language,   practice, procedures may be different, the master might be inconvenienced during the delivery of the cargo.People might fraudulently collect the cargo.

- to overcome this difficulty and avoid future claims and litigation, the consignee or the holder is required to surrender the bill of lading to the ship's agent at the discharge port who will verify the genuineness the bill of lading. When satisfied, the agent will issue the delivery order and the verified bill of lading. Now any person can collect the cargo from the ship by surrendering the bill of lading and delivery note to the ship.

All goods which have not been paid in advance and shipped under "To Order" of the bill of lading can be categorized into two types:

1.  To Order, Blank Endorsed: 

     Not consigned to any named party "To Order" of consignor with the intended-consignee's name given under notify party. The consignor must sign and stamp (endorse) this bill of lading so that it's title can be transferred.

2.   To Order, Bank:

       Consigned to a bank with the intended consignee's name given under notify party. The bank endorses the B/L to the intended consignee against payment of (or a pledge to pay) the amount of the accompanying bill of exchange 'To order B/Ls are used commonly in the letter of credit transactions and may be bought, sold or traded or used as security for borrowing money from the bank or landers.

Bill of lading on the basis of method of operation:

1. Received for shipment B/L - This B/L is sent from agent/charter      to shipper. The endorsement of this bill ensures that the carrier        has received goods but does not confirm it is on board of the            assigned vessel.

2. Shipper B/L - This B/L is issued when cargo is loaded on                 board. It binds the ship owner and shipper directly.

3. A clean B/L - Is one which states that the cargo has been loaded      on board the ship in apparent good order and condition. Such          B/L will not bear any clause or notation which expressively              declares a defective condition of goods and/or the packing. The        opposite term is a soiled B/L. It reflects that the goods were              received by a carrier in anything but good condition.

4. Through B/L - This B/L is a legal document that allows for             direct delivery of cargo from point A to point B. The bill                 allows  the transportation of goods both within domestic border       and through international shipments as it serves as receipt of             cargo, a contract of carriage and sometimes title of the product         as well.

5.  Combined transport B/L - This bill gives information about           cargo being transported  in large containers by sea and land i.e         through multi modal transport.

6.  Dirty B/L - If a shipper raises an objection about the condition         of the cargo is in good order, he/she can include a clause                   thereby causing the B/L to be "claused or dirty" along with               the remark as per the finding of the cargo condition. E.g torn           packing, broken cargo, shortage in the quantity of the goods etc.

THE B/L COMPRISES THE FOLLOWING DETAILS:

1. The complete name and official address of the receiver and shipper.
2. The purchase order or reference/invoice nos. which helps the shipper and the consignee to release the goods for pickup or accepted at delivery.
3. The date and the pickup acts as a reference to track a freight.
4. The details of the items including the nos. and units being shipped, and weight and dimensions of the product along with the nature of the cargo carried e.g. dangerous goods etc.
5. If the goods are hazardous, department for transportation for hazardous material designation is tagged, ans it is cited on the bill to follow special rules and regulations
6. The details of packaging used such as crates, plates, cartons, pills, drums etc.
7. Any special notes or instructions for the carrier.

   B/L TRACKING:

Different companies use different B/L which makes it difficult to track them unless a specific tracking service is provided by the carrier. There are few companies which tie up with the shipping carriers to track the B/L for easy trade.

  

The Air Waybill:

The air waybill is the most important document issued by a carrier either directly or through its authorized agent. It is a non-negotiable transport document that covers the transport of cargo from airport to airport. By accepting shipment an IATA cargo agent is acting on behalf of the carrier whose air waybill is issued.

Air waybills have eleven digit numbers which can be used to make bookings, check the status of booking and a current position of the shipment.

Air waybill is issued in eight sets of different colours. The first three copies classified as originals, the first original,green in colour, is the issuing carrier's copy. The second coloured pink is the consignee's copy. The third coloured blue, is the shipper's copy. A fourth brown copy acts as the Delivery, Receipt or proof  of delivery. The other four copies are white. 

The format of air waybill is designed by IATA and these can be used for both domestic as well as  international transportation.

Usually, airline's air waybills are distributed to IATA cargo agents by IATA airlines. An air waybill shows:

The carrier's name

Its head office address 

Its logo

The pre-printed eleven digit air waybill number.

An air waybill is a contract and has to be signed by shipper or his agent and carrier or by its authorized agent. 

In airfreight, the exporter (consignor) often engages a freight forwarder or consolidator to handle the forwarding of goods. The consignor provides a shipper's Letter of Instructions which authorizes the forwarding agent to sign certain documents(e.g. the AWB) on behalf of the consignor.

International air waybill that contains consolidated cargo are called master air waybills( MAWB). MAWBs have additional papers called house air waybill (HAWB). Each HAWB contains information of each individual shipment (consignee, content etc.) within the consolidation. International AWBs that are not consolidated (only one shipment in one bill) are called simple air waybills. A house airway bill can also be created by a freight forwarder. When the shipment is booked, the airline issue a master air waybill to the forwarder, who in turn issue their own house air waybill to the customer. 

Radiation Certificate ( If  applicable):

Some countries including Saudi Arabia may require this certificate for some plant and animal exports. This certificate states that the products are not contaminated by radio activity.

Other Certificate (Product Related):

Additional certificates are needed for different purposes. Articals made of raw hair must be accompanied by a recognized official certificate showing the consignment to be free from anthrax germs. Used clothing requires a disinfection certificate. Grains requires a fumigation certificate. Many Countries in Middle East require special certificate for import of animal fodder,additives, livestock, pets and horses.

Insurance Certificate:

Insurance certificates are used to assure the consignee that insurance will cover the loss of or damage to the cargo during transit. These can be also be obtained from your freight forwarder.

Goods in transit insurance, can be referred as GIT.

Phytosanitary Certificate (if applicable):

Shipments of fresh fruits,vegetables,seeds nuts,flour,rice,grain,plant and plant material require a federal Phytosanitary Certificate. This certificate verify that the product is free from specified epidemic and agricultural diseases. A Phytosanitary Certificate for export or re-export can be issued only by a public officer who is technically qualified and duly authorized by an NPPO (national plant protection organization).

Ingredient Certificate:

A certificate of Ingredient required for food products. A certificate may issued by manufacturer and must give description of product, contents and percentage of each ingredient, chemical data, microbiological standard, storage instructions; shelf life and date of manufacture. If the animal fat used, the certificate must state the type of fat used. All foodstuffs are subject to analysis by ministry of Health Laboratories to establish their fitness for use.

Inspection Certificate (if applicable)

Inspection certificate sometime also called as pre-shipments inspection certificate, is generally issued by independent inspection company. The company verifies  whether or not the goods are in conformity with the sales contract in regard to quality, quantity tariff classifications, import eligibility and price of goods for custom purposes.  

Fisheries Certificate (If applicable)

The National Marine Fisheries Services conducts inspections and analyse the fishery commodities for export. They inspect if the product is not under prohibited to export items. 

Halal Certificate (if applicable)

This certificate mainly required for the middle east countries. This certificate states fresh or frozen meat or poultry product were slaughtered under Islamic Law. Certification by appropriate chamber and legalization by the consulate of the destination country is usually required.

Health Certificate (if applicable)

Live animal or animal product (processed food stuff poultry, meat fish, seafood, dairy products and eggs and egg products) some countries required that health certificate be notarized or certified by chamber and legalize by consulate.  

DANGEROUS GOODS CERTIFICATE (if required)

Export submitted for handling by air or by sea classified as dangerous goods need to be accompanied by shipper's declaration required by the carriers by air.

International Air Transport Association (IATA) always needs shipper's declaration certificate to carry by air. The exporter is responsible for accuracy of the form and ensuring that requirement related to packaging, marking and other required information by IATA have been met.

For ocean export, hazardous material regulations are contained in the INTERNATIONAL MARITIME DANGEROUS GOODS regulations.

FUMIGATION CERTIFICATE (if applicable)

The Fumigation Certificate provides evidence of fumigation of exported goods(especially agricultural products) this form assists in the quarantine clearance of any goods of plant or animal origin. The supplier is required to fumigate the commodity at his or her expense a maximum of 15 days prior to loading.

Wooden Packaging Needs to be Fumigated. It must carry Valid Fumigation Certificate.

FUMIGATION is type of pest control. it completely fills the area with gaseous pesticides or fumigants to poison the pests within. this method effects the structure itself, effecting pests that inhabit the physical structure such as termites and wood borers.

Export License (if required)

An export license is government document which required to export specific goods in specific quantity to a particular destination.This required for most or all exports to some countries or for other countries only under special circumstances.These licenses are issued by Department of commerce's bureau of industry and security (dual use article), the state department directorate of defense trade control (defense article), the nuclear regulatory commission (nuclear material) and the U.S. drug enforcement Administration (controlled substances and precursor chemical).

Certificate of Origin: 

The certificate of Origin (CO) is required for some countries for all or only certain products. In many cases, a statement of origin is printed on company letter head. The exporter should verify whether the CO is required with the buyer/or an experienced shipper/freight forwarder or the trade information center.

EXPLANATION OF REQUIRED DOCUMENTS FOR EXPORT:

1.    COMMERCIAL INVOICE: It is a bill from seller to buyer. These invoices often used by                     Governments to determine the true value of good when assessing  the customs duties.                           Governments that use commercial invoices to control export and import.

2.    EXPORT PACKING LIST: It is more detailed and informative than domestic packing list,           export packing list lists seller,buyer,shipper invoice number. Date of shipment, mode of transport,     carrier and quantity such as boxes, crates, drums, the quantity of packages, total net and gross     weight, package mark and dimensions. Freight Forwarders and commercial stationers carry packing    list forms. Packing list is not substitute for commercial invoice.