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GET HELP FORCDCSPrepared By :Sunil MudhanurBILL OF LADINGREFRESHER GUIDECLASS NOTES SERIES JUN 2023

EDITORS NOTEWe have gathered extensive information from various sources, includingboth on and offline resources, to help simplify complex trade financetopics. We have tried to obtain permission from the original writers ofthese resources wherever possible. However, for certain articles, we havenot received a response from the authors regarding reprint permission. Ifyou have submitted any work, and we haven't received your consent,please reach out to us. Provide us with the necessary source informationto give you credit and reprint your work.Please feel free to email me at sunilbytes@gmail.com if you have anyqueries or comments regarding these refresher series These materials serve as a refresher for our trainees. To gain a betterunderstanding, we recommend reading relevant ICC sources andpublications.Version. 01R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /BL REFRESHERINDEXIntroductions.......................................................................................................................Sample BL.............................................................................................................................. Key Items in BL........................................................................................................ Doc Exam Checklist BL ..................................................................................... Common Discrepancies...............................................................................................BL Bytes.........................................................................................................................True / False Questions....................................................................................................1.2.3.4.5.6.7.

Bills of Lading The document covering the carriage of goods by sea is called abill of lading (B/L or BOL). The B/L is the authentic receipt delivered by a carrier, confirming that thegoods therein specified (markings, types of goods, number of packages,etc.) have been loaded or taken in charge for loading on a designated vesselfor carriage to a specified port.Where a bill of lading issued, the contract between the cargo owner and thecarrier is governed by international conventions and national laws.FUNCTIONS OF BILL OF LADING a cargo receipt of carrier received from a customer: it statesthat the goods described in it have been loaded on a certainship for a certain destinationa document of title (a document proving ownership) of thegoods: it means that the goods can be sold to a new ownerwho upon legal possession of the B/L (holder) is entitled toclaim the goods. The B/L is thus often described as “the keyto warehousean evidence of a transport contract signed by carrier: It isevidence of the existence of a contract of carriage betweencargo owner and carrier, where the carrier commits to carrythe goods from one point to another. INTRODUCTIONBL REFRESHERR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

SAMPLE BILLS OF LADINGBL REFRESHERR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

KEY ITEMS IN BILLS OF LADINGShipper’s details1Consignee’s details - straight / to order 2Notify Party 3Signatory details :Carrier’s / Agent / 45678Place of Receipt, Port of Loading, Port ofDischarge, Place of delivery, Final destination910Container Number, Seal Number, Shipping Marks &Numbers, Description of goods, G .W/ CBM etcB/L Number, Vessel Name and Voyage numberTerms and Conditions of CarriageFreight Details Place and Date of Issue, SignatureBL REFRESHERR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

01020304DOC EXAMINATIONCHECKLIST -BLverift the BL received relates to documents being examined.verify for full set of original B/Ls has been presented,The number of original B/Ls received agrees with LCrequirements.Name of the carrier appears on face of B/L.05Bears signature of issuer and indicates name and capacity,i.e. shipper, carrier, owner, master, or agent.06Any alterations bear authentication.07Consigned to… (name)” or "Negotiable Consigned to theorder of… (name)" B/L presented complies with LC terms08Name and address of "Notify Party" on B/L matches to LC.09B/L properly endorsed by the party entitled on the face ofthe B/L10Pre-printed wording on the B/L.By means of a "Shipped On Board" notation. B/L indicates goods loaded on board (or shipped) on anamed vessel either by:BL REFRESHERR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

11121314DOC EXAMINATIONCHECKLIST -INSURANCECheck for any dirty clauses, B/L is not freight forwarder NVOCC (Non Vessel OwnerCommon Carrier).Check that incoterms stated in " on B/L matches LCstipulation.Freight charges to correspond with Incoterms stated in thecredit15Port of Loading and Discharge on B/L matches LCspecification.16BL should show Name of vessel on which goods have beenloaded.17B/L does not indicate subject to charter party and containsno indication18B/L to be is consigned as stipulated in LC.19No other merchandise is listed on bill of lading other thanindicated in LC.20Merchandise description, if generic, is consistent with LC.BL REFRESHERR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

MULTI MODAL BILL OF LADINGA Multimodal Bill of Lading is an international transportdocument covering two or more modes of transport, such asshipping by road and by sea. It is also used as a carriagecontract and receipt that the goods have been received.NON‐NEGOTIABLE SEAWAY BILLThe main advantages of a sea waybill over a traditionalnegotiable bill of lading are its flexibility and ease of use.Importers can clear the goods from customs withoutpresenting at least one original copy of the bill of ladingwhen the sea waybill is selected as a transport document.¨Sea waybill is a non-negotiable bill of lading, invented by thetransportation industry very recently, to respond to themarket, that demands a more flexible marine transportdocument than a conventional bill of lading. CHARTER PARTY BILLS OF LADINGThe Charter Party Bill of Lading is a bill of lading that is issuedsubject to the terms and conditions of a charter party. A CPBLis synonymous with commodity or bulk shipment cargoes.Charter party shipment is subject to the signing of a charterparty contract between the owner of the vessel and thecharterer.TYPES OF BLBL REFRESHERR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

SHIPPED ON BOARD B/L This is one of the most common forms of B/L. The B/L, whensigned, confirms that the goods are on the vessel and havebeen shipped on board.The Received for shipment B/L may be exchanged orconverted into Shipped B/L or On board B/L when cargoloaded on board of vessel. A Shipped B/L can only be issued when the goods areactually shipped on board.BL REFRESHERR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /RECEIVED FOR SHIPMENT B/L When the goods are accepted on the quay or in thewarehouse, for shipment, by the shipping agent before theship has arrived,a document called “received for shipment” will be delivered,which represents the goods but which is not a real bill oflading, although the content is exactly the same with oneexception: “received” instead of “shippedR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

Does not indicate goods havebeen loaded on boarded orshipped on a named vesselBL not consigned as stipulated inthe credit. defective condition of the goodsand/or packaging. The Bill of Lading covers othermerchandise not called for in thecredit The Bill of Lading does notindicate the name of the carrier. The Bill of Lading is not properlyendorsed The Bill of Lading is not properlysigned or authenticatedMerchandise description isinconsistent with that stipulatedin the Letter of Credit. COMMON DISCREPANCIESB/L is “Received for Shipment” thedate of the “On Board” notation isnot within the latest date allowedfor shipmentDoes not indicate the port ofloading/discharge as stipulated inthe credit A full set of original Bill of Lading(s) has not been presentedB/L is “Shipped on Board”, and itis not within the latest dateallowed for shipment. BL REFRESHERR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

The multimodal transport document(MMTD) must cover the movement ofgoods at least two modes of shipment.The MMTD should not indicate that onlyone mode of transport is used. The modesof transport can be silent.There should be no charter party clause onthe face of the document.The routing of the goods (place + port +port + place) should hint at the type ofmultimodal transport document.The MMTD can be issued by any company,as long as it meets the conditions of Article19 of the UCP 600.If the LC calls for a freight forwardersmultimodal transport document (FF MMTD)or a house multimodal transport document(HMTD), it does not need to be signed asper article 19.The MMTD must indicate the name of thecarrier and identify the carrier as such.If the MMTD is signed by a branch of thecarrier, the same will be treated as signedby the carrier.If an agent signs on behalf of the carrier,the MMTD must state the name of theagent, the capacity in which the agent issigning, and the name of the carrierIf the master or captain signs the MMTD,the signature capacity must be identified as"Master" or "Captain". The name of themaster or captain does not need to bestated.If an agent signs on behalf of the masteror captain, the signature capacity mustbe stated, but the name of the master orcaptain does not need to be stated.The date of issue of the MMTD is treatedas the date of shipment unless there isan onboard notation.If the first leg of the transportation is bysea, an on board notation is required. Inthis case, the provisions of Article 36(b-d) of the UCP 600 will apply.If the LC requires the shipment tocommence from a port, and the portname is stated in the place section of theMMTD, an on board notation is requiredthat states the port of loading.If the LC requires the MMTD to indicatethe place of receipt, dispatch, taking incharge, port of loading, or arrival onboard in a particular country, thecountry name does not need to bespecified.If the LC indicates a geographical rangein the port of loading, the MMTD mustindicate a specific port or place.If the LC requires the shipment to beeffected to a port, the MMTD mustindicate a port in the place of discharge.If the port of discharge is indicated inthe place of discharge field, a notation isrequired indicating the actual port ofdischarge.If the LC indicates a geographical rangein the place of discharge, the MMTDmust indicate a specific port or place.R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /BL REFRESHERR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /MM - BILLS OF LADING - KEY POINTS

The MMTD must indicate the number oforiginals issued.All originals, duplicates, and triplicates aretreated as originals.If the LC requires a straight consignment,the MMTD must not include the prefix "toorder" or any other similar wording.If the MMTD is issued to order or to orderof shipper, an endorsement made byanother entity is acceptable, provided theyare signing on behalf of the entity named inthe MMTD.The MMTD may indicate multiple notifyparties when the LC requires.If the LC does not stipulate a notify party,any party can be named as notify party. Ifthe MMTD mentions the applicant as notifyparty, all the details must be as per the LC.If the LC requires the MMTD to beconsigned to/notify or to the order of theissuing bank or applicant, the MMTD statingonly the name without the address isacceptable.If the LC prohibits partial shipments andmore than one MMTD is presented withinthe geographical range specified in the LC,the set of MMTDs must indicate that theycover the carriage of goods on the samemeans of conveyance and same journeyand that the goods are destined for thesame destination. This will not beconsidered as a partial shipment.If the LC prohibits partial shipments andmore than one MMTD is presented, thelatest date among the MMTDs will be takenfor calculating the maturity date.If the LC allows partial shipments andmore than one MMTD is presented, theearliest date among the MMTDs will betaken for calculating the maturity date.No claused BL = Clean Bills of lading.goods description can be in generalterms when LC requires MMTD to mention thename + address of the delivery agent atthe port of discharge of the finaldestination. the address of the deliveryagent can be anywhere in the world.any corrections in MMTDs can becorrected by carrier/master / or any oftheir agents. Non Negotiable copies of MMTD neednot be required for authentication forany corrections.When LC prohibits additional cost tofreight the MMTD is not to indicate thatcosts additional to the freight have beenor will be incurred.An indication of costs additional tofreight Free In (FI), Free Out (FO), Free Inand Out (FIO), and Free In and OutStowed (FIOS).(demurrage costs) or (detention costs) isnot an indication of costs additional tofreight.R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /BL REFRESHERR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

GETFO RCDCSHE LP1A bill of lading used in a port-to-port shipment credit must be titled as "Marine Bill of Lading" or"Ocean Bill of Lading."2A bill of lading can be issued by any entity other than a carrier or master, as long as it meets therequirements of UCP 600 Article 20.3When a credit allows for "Freight Forwarder's Bill of Lading" or "House Bill of Lading," the issuingentity does not need to indicate its capacity or the name of the carrier.4When a pre-printed "Shipped on Board" bill of lading is presented, the issuance date is consideredthe date of shipment, regardless of any separate on board notation.5When a credit requires a straight bill of lading or consignment to a named entity, the expressions"to order" or "to order of" preceding or following the named entity should be included in the BL6When a credit requires a bill of lading consigned to or to the order of "Issuing Bank" or "Applicant,"the bill of lading should mention their addresses and contact details as stated in the credit7Corrections made on a bill of lading should be authenticated by the carrier, master (captain), ortheir named agents, even if a different agent issued or signed the bill of lading.8when a credit requires a bill of lading to be marked “freight payable at destination”, it may bemarked “freight collect”9Free In (FI), Free Out (FO), Free In and Out (FIO) and Free In and Out Stowed (FIOS). Are fewexamples of indication of costs additional to freight10Demurrage and Detention costs are examples an is an indication of costs additional to freight12345678910BILL OF LADINGTRUE FALSER e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /