What are the precautions for a bill of lading (B/L)?

In the field of foreign trade, the most terrifying thing is to encounter problems at the last moment. The goods have crossed the ocean, but in the end, due to a single document getting stuck, they can't be picked up and the payment can't be received. That would truly be a situation where one is desperate but has no tears to shed. 


And this crucial document that determines your risk of "losing both money and goods" is the bill of lading (B/L). It is like the "passport" and "property certificate" of the goods, and it is one of the most important documents in international trade.

So, Changshi Shuixiu International's Lisa has to talk to you today. After obtaining the bill of lading, there are several red lines that you must absolutely avoid crossing. 

In simple terms, the bill of lading serves as a receipt for the goods, a transportation contract, and a document of title. It directly affects whether you can receive payment and pick up the goods smoothly. Therefore, every detail must be handled carefully. 


Check the basic information: Not a single letter can be wrong! 


This is the most fundamental but also the most crucial step. Any minor mistake could lead to the inability to clear customs or receive the goods. 


Shipment and receiving party information: Ensure that the company name, address and contact details are completely accurate. 
Goods description: Must be consistent with the commercial invoice, packing list, etc. For goods from Turkey, it is necessary to check with your customs clearance company to ensure that the bill of lading information is correct. If the HS classification name is incorrect, the subsequent customs clearance process will be blocked. Minor issues may result in additional taxes, while serious cases may lead to red labels or even fines. Please pay special attention to this when dealing with goods from Turkey!!! 
Quantity and quantity of items: Verify that the total quantity, gross weight, and volume are all accurate. 
Destination port and vessel name voyage: Verify whether these details match your arrangements. 


2. Pay attention to the type of bill of lading: Determine the ownership of your goods 


The different types of bills of lading determine the mode of delivery and the control rights of the goods. 


Original Bill of Lading (Original B/L): This is the document certifying ownership of the goods. Only by presenting the original can you collect the goods. 
Telex Release Bill of Lading: Suitable for short-sea transportation, with fast delivery. 
Sea Waybill: It is not a title document and carries high risks. It is usually only used for long-term cooperative partners with excellent reputation. 


3. Clearly define payment terms: This directly affects your hard-earned money. 


This directly concerns the security of your payment and is the core of the foreign trade transaction. 


Payment by Letter of Credit (L/C): All information on the bill of lading must strictly comply with the terms of the letter of credit. 
Payment against Documents (D/P): The buyer obtains the original bill of lading only after making the payment through the bank. 
Telegraphic Transfer (T/T): Ensure that the full payment is received before sending out the original bill of lading, or choose a secure telegraphic release method. 


4. Pay attention to special clauses and annotations: Don't fall victim to the "small print"! 


Any additional terms or annotations on the bill of lading may affect your rights and interests. 


Clean Bill of Lading (Clean B/L): A bill of lading without any adverse remarks, indicating that the goods are in good condition. 
Unclean Bill of Lading (Claused B/L): It contains unfavorable remarks such as "Goods packaging is damaged", which will affect the bank's negotiation. 
Shipping payment method: Clearly indicate "Freight Prepaid" or "Freight Collect". 


In conclusion, after obtaining the draft of the bill of lading, you must carefully check every item as if you were a detective. 


These details may seem trivial, but any oversight could lead to significant losses. X-Change International has witnessed too many cases where a single letter or punctuation error caused a great deal of trouble, as people had to go to great lengths to correct the documents and communicate.