Bill of Lading - R R Padmanabhan, Director - Exim Academy

Bill of Lading

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There are 3 documents that are defined as mandatory in terms of Para 2.06 of Foreign Trade Policy issued by the Ministry of Commerce, Government of India.  The said para is reproduced below: 

2.06 Mandatory documents for export/import of goods from/into India:

(a) Mandatory documents required for export of goods from India:

1.    Bill of Lading/ Airway Bill/ Lorry Receipt/ Railway Receipt/Postal Receipt

2.    Commercial Invoice cum Packing List*

3.    Shipping Bill/Bill of Export/ Postal Bill of Export

(b) Mandatory documents required for import of goods into India

1.    Bill of Lading/Airway Bill/Lorry Receipt/ Railway Receipt/Postal Receipt in form CN-22 or CN 23 as the case may be.

2.    Commercial Invoice cum Packing List*

3.    Bill of Entry

In both export and import, Bill of Lading is common.  Of all the export and import documents, Bill of lading is the only legal document.  It is the Document of title conveying the ownership of goods. Besides, it is the official evidence of contract and receipt of goods on board.   However, there are different kinds of Bills of lading that can be used depending upon the situation. 

To order Bill of lading

In this type, the consignee is the intended buyer but may not be the actual buyer.  The buyer might change.  So, the ownership is transferable depending upon the payment for the goods. 

Straight Bill of lading 

In this type, the payment for the shipment has been made.  So, the buyer is defined and the Bill of Lading becomes non negotiable in nature.  Since the buyer is defined and it is non negotiable, there is no need for presentation of original Bill of Lading at the time of taking delivery.  This arrangement eliminates detention and demurrage. 

Claused Bill of lading 

This bill of lading refers to the condition of goods, whether they are mutilated, stained, or wet etc.  Clause refers to condition.  Since a Bill of lading is essentially a receipt for goods shipped, if the condition at the time shipment is perceived to be unacceptable to the buyer, then such a condition is endorsed on the Bill of lading. 

Port to Port or Ocean Bill of Lading

This Bill of Lading covers carriers’ responsibility from the port of loading to port of discharge. 

Multimodal Transport Bill of Lading

There are 5 modes of transport namely air, sea, rail, road and pipeline.  Multimodal Bill of lading is issued in cases where two or more modes of transport are used. 

Through Bill of Lading

In this type, there is only one mode used but there are different legs.  For example, the goods may cover chennai to Singapore in the first leg and in final leg may transit from Singapore to Penang.  But a through Bill of lading is issued to cover end to end. 

Switch Bill of Lading 

It is actually a duplicate for a Bill of lading that has already been issued.  The owner of the cargo does not want the ultimate buyer to know the original supplier of the cargo.  In such cases, Switch Bill of lading is used.


R R Padmanabhan

Director - Exim Academy





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