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Shipper's Load and Count
The phrase "shipper's
Load and count" means cargo moving under a bill of lading
(B/L) where the carrier acts as a transport contractor without
responsibility for loading or unloading. The carrier marks this
phrase on the B/L if it does not supervise the loading or
unloading of the cargo, which is the typical case in a full
container load shipment. Hence, the carrier will not be held
accountable for the number of units reported on the B/L. The
carrier often adds the words "said to contain" or "said
by shipper to contain" before the number of units of a
commodity, for example, "3 40-FT.
CONTAINERS SAID TO CONTAIN 4,095 CARTONS RUBBER SHOES".
Clean versus Foul Bills of
Lading
The bill of lading (B/L) is made out according to the
information contained in the dock receipt, or in some cases
according to the completed working copy of the B/L supplied by
the customs broker. If a dock receipt is clean, the B/L will be
clean, otherwise the B/L will be foul. The bank will reject a
foul bill of lading, unless stipulated otherwise in the letter
of credit (L/C).
- Clean Bill of Lading
- The clean bill of lading bears an indication that
the goods were received without damages, irregularities or
short shipment, usually the words "apparent good order and
condition", "clean on board" or the like are
indicated on the B/L.
- Foul Bill of Lading
- The foul bill of lading---unclean
bill of lading, dirty bill
of lading or claused bill of
lading---is the opposite
of the clean bill of lading. It bears an indication that the
goods were received with damages, irregularities or short
shipment, usually the words "unclean on board" or the
like are indicated on the B/L, for example, "insufficient
packing", "missing safety seal" and "one carton
short".
Short Form versus Long Form
Bills of Lading
- Short Form Bill of Lading
- In a short form bill of lading---blank
back bill of lading---the terms and conditions of
carriage on the reverse (back) of the bill of lading (B/L) are
omitted, instead they are listed on a document other than the
B/L. Unless otherwise stipulated in the letter of credit
(L/C), a short form bill of lading is acceptable.
The short form B/L saves the cost of printing
(i.e., no printing on the back of the B/L) and if the terms
and conditions of carriage change, there is no need to reprint
the B/L form.
- Long Form Bill of Lading
- In a long form bill of lading the terms and
conditions of carriage are printed on the reverse (back) of
the bill of lading. The long form bill of lading is commonly
used in international shipping.
Received versus On Board
Bills of Lading
- Received Bill of Lading
- The received bill of lading does not prove that the
goods have been shipped. It only acknowledges that the goods
have been received by the carrier for shipment. Therefore, the
goods could be in the dock or warehouse.
- On Board Bill of Lading
- The on board bill of lading---shipped
bill of lading---proves that the goods have been
shipped, as evidenced by the pre-printed wording or the on
board notation (e.g. "on board", "laden on board"
or "shipped on board") on the bill of lading.
Straight versus Order
Bills of Lading
- Straight Bill of Lading
- In a straight bill of lading---non-negotiable
bill of lading---the title to the goods is
conferred directly to a party named in the letter of credit
(the importer usually), as such the title to the goods is not
transferable to another party by endorsement. In other words,
the bill of lading is not negotiable.
The letter of credit calls for a straight bill of
lading usually by using such words as "consigned to [the named party]" or "issued
in the name of [the named party]".
The named party can obtain the goods directly from the carrier
at destination. Therefore, unless the cash payment has been
received by the exporter or the buyer's integrity is
unquestionable, the use of a straight bill of lading is risky
(please see Fly-By-Night Importers for related information).
- Order Bill of Lading
- In an order bill of lading---negotiable
bill of lading---the title to the goods is
conferred to the order of shipper or to the order of a named
party in the letter of credit (the issuing bank usually).
The purpose of an order bill of lading is to
protect the interest of the shipper or the named party to the
title to the goods.
The title to the goods is transferable to another
party by endorsement, usually on the reverse (back) of the
bill of lading (B/L) by the title holder of the B/L. If the
endorsement of B/L is required in the letter of credit (L/C),
all the originals must be endorsed.
The letter of credit may calls for an order bill
of lading that is: (1) To order blank
endorsed or To order of shipper and
blank endorsed, (2) To order of
shipper and endorsed to order of [the
named party], or (3) To order of [the named party
(other than the shipper)].
To order blank endorsed or
To order of shipper and blank
endorsed
Unless provided otherwise, a consignment that is "to
order" means to order of shipper. The "blank endorsed"
means without specifying to whom the bill of lading (B/L) is
transferred. In such instance, whoever bears the B/L after
endorsement holds the title to the goods.
If the sample
letter of credit requires a B/L that is "to order blank
endorsed", as such enter the words "To Order" in
the Consignee field in the bill of lading and other
documents/forms.
In a "to order blank endorsed"
bill of lading (B/L), technically speaking whoever bears the
B/L after its issuance holds the title to the goods.
If the sample
letter of
credit requires a B/L that is "to order of shipper and
blank endorsed", as such enter the words "To Order of
UVW Exports" in the Consignee field, since the shipper in
such L/C is UVW Exports.
In both the above sample cases, the B/L must bear
blank endorsement of the shipper as follows:
UVW Exports
(plus the authorized signature)
And, entering the words "To Order" or "To
Order of UVW Exports" in either of the above cases is
correct, but to avoid rejection of documents, always follow
the wordings stipulated in the letter of credit as a
precaution.
To order of shipper and endorsed
to order of [the named party]
This letter of credit (L/C) requirement resembles the "to
order of shipper and blank endorsed", except that the words "To
Order of [the named party]" must
be indicated over the shipper's endorsement.
If the sample
letter of
credit requires a bill of lading that is "to order of
shipper and endorsed to order of The Moon Bank", as such enter
the words "To Order of UVW Exports" in the Consignee
field in the bill of lading and the endorsement as follows:
To Order of The Moon
Bank
UVW Exports
(plus the authorized signature)
To order of [the
named party (other than the
shipper)]
The named party under this letter of credit (L/C)
requirement most often is the issuing bank. The L/C does not
call for an endorsement, thus the exporter does not have to
endorse the bill of lading.
The sample
letter of credit
requires a bill of lading "to order of
The Sun Bank, Sunlight City, Import Country", as such enter
the words "To Order of The Sun Bank, Sunlight City, Import
Country" in the Consignee field in the bill of lading and
other documents/forms.
Go to To
Synopsis:
The Title to the Goods in an Order Bill of Lading
- To order blank endorsed
or
To order of shipper and blank
endorsed
- The title to the goods is conferred to the shipper,
who retains the ownership in the consignment.
The shipper presents the blank endorsed bill
of lading (B/L) and other required export documents to the
bank, the bank negotiates the letter of credit (L/C) and
the bank becomes the title holder in the goods. In such a
case the B/L is negotiable, that is, the rights of
holder can be transferred to another party.
- To order of shipper and endorsed
to order of [the named party]
- The title to the goods is conferred to the shipper,
who retains the ownership in the consignment.
If the named party is the negotiating bank,
the shipper's endorsement of the bill of lading (B/L)
transfers the title to the goods to the negotiating bank,
and the bank can transfer the title to the goods to
another party by endorsement. The shipper presents the
endorsed B/L and other required export documents to the
negotiating bank.
If the named party is other than the
negotiating bank, then the negotiating bank merely holds
the B/L, not its title, on behalf of the named party.
- To order of [the named party (other than the shipper)]
- The title to the goods is conferred to the named
party, who retains the ownership in the consignment. The
shipper merely holds the bill of lading (B/L) on behalf of
the named party.
The shipper presents the B/L and other
required export documents to the negotiating bank, the
bank holds the B/L on behalf of the named party and
negotiates the letter of credit (L/C).
The named party can transfer the title to the
goods to another party by endorsement. In practice, the
named party in the "to order of [the
named party]" usually is the issuing bank.
Therefore, unless the importer pays the issuing bank and
the issuing bank endorses the B/L to order of the
importer, the importer cannot obtain the goods from the
carrier. Clearly, the interests of the issuing bank and
the exporter (the shipper) are protected if the B/L is "to
order of [the named issuing bank]".
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