Bill of lading
1. The bill of lading is the most
important export document whenever goods are sent by ship. It is issued by the
shipping company.
2. The key information in a bill of lading
are as follows:
(a) The name of the shipping company.
(b) The name of the shipper (beneficiary) or
his agent.
(c) The name of the carrying vessel.
(d) The names of the ports of shipment and
discharge.
(e) The identification (shipping) marks and
numbers.
(f) The number of containers, cases, packages
or individual items.
(g) A description of the goods in general
terms consistent with the description of the goods in the letter of credit.
(h) Evidence that the goods have been
received for shipment or shipped (loaded) on board and its date.
(i) The name of the consignee (if not made
out 'to order') and also the name and address of the 'notify party' wherever
applicable.
(j) Whether freight has been prepaid or
payable at destination.
(k) The number of originals issued (A bill of
lading is normally issued in a set of three originals; anyone of which may be
used to take delivery and possession of goods. It is important that the
consignee must secure all the originals.)
(l) The date of issuance and the
signature of the ship's master or the carrier or his agent.
3.
Bills of lading are normally issued in a 'set' of two or more transferable
copies, all of which must be signed by the master of the ship who makes a note
on the bills of lading, of the number of copies issued and any damages to the
goods taken on board. He then keeps one copy for reference. The other copies
are sent to the foreign importer by separate mail or returned to the exporter
(consignor).
4. However, if the
exporter has arranged for the importer to open a letter of credit in the
exporter's favour in a local bank, then the bills of lading together with the
other shipping documents such as the invoice, the consular invoice, the marine
insurance policy and a certificate of origin must be lodged by the exporter at
the local bank, together with the bill of exchange.
5. It is one of the
documents that has to be submitted to the advising bank before the shipper can
secure payment in the letter of credit.
6.
The functions of a bill of lading are as follows:
(a) It acts as an advice note indicating the
quantity and description of goods sent by a named ship.
(b) It is a receipt of goods in good condition on
board, signed by the master of the ship. Any damage to goods is noted.
(c) It is evidence of a contract of carriage between
the shipper and the shipowner.
(d) (i) It is
a document of title to goods described therein. This means that the holder of
the bill of lading can claim the goods when he hands it over to the Port
Authority at the port of discharge.
(ii) When delivery of goods has taken place, all other
copies of the bill of lading are rendered invalid.
(e) Since it is a
document of title it can be used as a basis for negotiating for a letter of
credit from the bank.
(f) (i) It
informs the customs authorities of the type of imports/exports and the country
of origin or destination respectively.
(ii)
It allows the customs to see at a glance whether the imports or exports are
taxable.
(iii) It helps in the recording of statistics.
(g) It may be used as
a document in support in the event of an insurance claim.
Consignment note / Delivery note
1. It is sometimes called a rail and road consignment
note or a delivery note. It is normally prepared by the road/rail transport
company or a freight forwarder.
2. The key information
in a consignment note/delivery note are as follows:
(a) The name and
address of the sender (consignor).
(b) The name and address of the recipient
(consignee).
(c) The number of packages or cases.
(d) The marks and numbers on the packages or
cases.
(e) A brief description of the goods.
(f) The place of departure and the date of
departure.
(g) The time of collection and delivery.
(h) The time of arrival.
(i) The type of haulier and the vehicle
number.
(j) The signature of the carrier. (if its a
Rail Consignment Note, it is stamped by the Station master).
(k) The freight charged.
3.
The functions of a delivery note are as follows:
(a) This is an advice note, indicating the
quantity and description of goods being despatched on a certain date by the
named road or rail transport agency.
(b) It is evidence of a contract of carriage
but is not negotiable.
(c) It is not a document of title but should
be despatched with other documents for it shows the date of despatch of the
goods which is useful for exchange and import control purposes.
(d)
It is a receipt for goods and a document for delivery.
(e) It is also on a note of freight charges.
Airway bill / Air consignment note
1.
An airway bill is a very important document used whenever goods are sent by
air.
2.
An airway bill is issued by an airline company in a set of 12 copies. However,
only three copies are originals - the first is for the carrier, the second for
the consignee and the third is for the shipper. The balance 9 (nine) copies are
retained by the airline company for administrative purposes. It corresponds to
a Bill of Lading but it is only used when goods are sent by air.
3. The key information in an
airway bill are as follows:
(a) The name of the airline company or
carrier.
(b) The name and address of the shipper
(beneficiary).
(c) The names of the airports of departure
and destination, flight number and actual flight date.
(d) A description of the goods in general
terms, its weight and the freight charged, its declared value
(e) The number of pieces sent.
(f) Evidence (by and authorized signature)
that the goods have been received by the carrier or its agent, and the date of
issuance.
(g) The name and address of the
consignee and also the name and city of the carrier's agent.
(h) The status of the freight charges prepaid or
payable at destination.
4. It is normally
prepared in triplicate by the consignor. The part marked for the 'Carrier' has
to be signed by the consignor. The part marked for the 'Consignee' travels with
the goods. The third part is signed by the carrier and returned to the
consignor.
5. The consignee is
usually the bank that issues the letter of credit, and the party to be notified
when the goods arrive is the importer
6. The functions of
an airway bill are as follows:
(a) It is an advice note indicating all
the key information stated above.
(b)
It is evidence of contract of carriage but is not negotiable.
(c) It is not a document of title. The delivery of
goods is not dependent upon the presentation of the Airway Bill but rather the
goods will be delivered to the named consignee against proof of identification
at the airport of destination.
(d) It should be despatched with other
documents for it shows the date of despatch which is useful for exchange and
import control purposes.
(e) It may be used as a receipt to be
signed by the consignee on the delivery of the goods.
(f)
It is also a note of freight charges.
