Bill of Lading Learning objectives: Students are required to 1. understand the definition of B/L; 2. have an idea about the types and contents of B/L; 3. master the skills of making out a B/L; 4. master the useful words and expressions.

Bill of Lading Ability objectives: Have a clear idea about B/L and master the skills of making out a B/L correctly. Job projects: Make out a B/L according to the information given.

Bill of Lading (1-1) 1. What is Bill of Lading? B/L is a certificate issued by carrier to a shipper evidencing that the goods in good condition have been received or shipped on board the named vessel; promising to deliver the goods to the named consignee. Marine bills of lading are mainly used in international sales of cargos where the carriage of goods is by sea. Generally, the bill of lading has been evidence to prove that the goods have shipped on board a ship，

Bill of Lading (1-2) signed by the person (or his agent)， contracts to carry them，and stating the terms on which the goods were release to consignee which surrender of the documents when arrived destination port by sea. It is not the actual contract，but forms an excellent evidence of the terms of the contract.

Bill of Lading (1-3) 2. What is the content of B/L? A B/L contents: Shipper Consignee Notify party Signature of carrier Name of the document Date and place of issue B/L No. and Numbers of B/L

Bill of Lading (1-4) Port of Loading and port of discharge Name of vessel/voyage No. /Sailing date Marks and numbers Number and kind of package Description of goods Gross weight/net weight and measurement Freight and charges

Bill of Lading (1-5) 3. What are the functions of Bills of Lading? All bills of lading should be signed by either shipping company，captain ，authorized carrier agent. Generally , bill of lading has three main function： (1) it is a receipt from the carrier to the shipper; (2) it is a documents of title; (3) it is an evidence of the contract of carriage between the carrier and the shipper.

Bill of Lading (1-6) A bill of lading is a cargos' receipt issued by a carrier or authorized agent that an identifiable consignment of goods has been received by them for transshipment，or actually been loaded on board ship. Some cargos details are showed in the bill of lading, such as cargos quantity，condition，vessel name and voyage , port of loading , destination port , on board date. etc.

Bill of Lading (1-7) The function of a bill of lading, as a document of title, basically means that the rightful owner, and only the rightful owner, is entitled to receive the goods by the bill of lading. The rightful owner, is entitled to receiving the goods represented by the bill of lading.

4. Please name some kinds of B/L. Bill of Lading (1-8) 4. Please name some kinds of B/L. There are several forms of bills of lading such as: Order bills of lading Straight bills of lading Shipped bills of lading Received for shipment bills of lading

Bill of Lading (1-9) Direct bills of lading Combined transport bills of lading Foul bills of lading Anti-dated bill of lading Advanced bill of lading Stale bill of lading Short form bills of lading

Bill of Lading (1-10) Long form bill of lading On deck bill of lading Minimum bill of lading Ocean bill of lading House bill of lading Master bill of lading

Bill of Lading (1-11) 4. Explain some commonly-used B/L (1) What is complete set of bills of lading? Bills of lading are usually made out in four copies, three signed and one unsigned, the unsigned copy is retained by the ship’s master for his own use. The three signed copies, or three originals, constitute the “set” commonly referred to in commercial contracts or letters of credit, though there may be more or fewer copies according to the requirements specified in the particular contract or credit.

Bill of Lading (1-12) (2) What is clean bill of lading? A clean bill of lading is one which acknowledges receipt of the goods “ in apparent good order and condition” without any qualification. If a bill of lading bears such notations as “ five boxes broken”, “ some bags torn”, “ case No. 12 missing,” etc. is known as an Unclean Bill of Lading, which would be refused by the opening bank whose credit calls for Clean B/L.

Bill of Lading (1-13) (3) What is shipped on board bill of lading? The carrier issuing a “shipped on board bill of lading” acknowledges that the goods have been loaded on board his ship. In case a “ received for shipment” bill of lading is issued, it means that he confirms only that the goods have been delivered under his custody. For payment under documentary Ls/C, the Received for Shipment B/L is not acceptable.

Bill of Lading (1-14) Some useful saying in B/L: (1) Marked Freight Prepaid or Paid When freight charges are included in the invoice but the bill of lading is not marked with the words “freight prepaid” or “freight paid:,” the opening bank might refuse to make payment to the exporter. This applies, of course, to C&F and CIF contracts only. For FOB contracts, bills of lading are usually marked “freight collect” or “ freight payable at destination”.

Bill of Lading (1-15) (2) To order and blank endorsed When a letter of credit stipulates that the bills of lading should be made out “ to order” and endorsed in blank, it means that Order Bills of Lading are called for. An Order Bill of Lading is in contrast with a Straight Bill of Lading. The former is also called a Negotiable Bill of Lading, and the latter, a Non-Negotiable Bill of Lading.

Bill of Lading (1-16) What is straight bill of lading? A Straight Bill of Lading is one which is made out to a named consignee (usually the buyer or importer) without adding the words “ to order” or “or order”. It is not negotiable in as much as only the named consignee may take delivery of the goods. This being the case, the bank would be deprived of the right to the merchandise. Since on of the features of the bill of lading is that it evidences the control of goods, most

Bill of Lading (1-17) banks are reluctant to issue Ls/C calling for non-negotiable bills of lading. An Order Bill of Lading is made out to order instead of to the named consignee and the seller or shipper writes his name on the back thereof. A mere signature by the seller or shipper on the back of the bill of lading with no words of any kind added thereto is called an endorsement “ in blank”. Such a negotiable bill of lading enables the bank to dispose of the goods freely.

Bill of Lading (2-1) What to pay attention while making out a B/L? While making B/L, you should pay attention to: 1. Consignee: To order To order of the shipper/xxx Bank To bearer （open B/L） Consigned to … only ((straight B/L)

Bill of Lading (2-2) If the L/C stipulates…Bill of Lading made out to order and blank endorsed.., Consignee：To order 2. Notify party: the whole name of the notify party except there is “Same As Consignee”: ….. Bill of Lading made out to order …… notify the applicant: the name and full address of applicant.

Bill of Lading (2-3) 3. Shipping terms Port of Loading: the specific port such as Shanghai, China Port of Discharge/Port of Destination such as New York, USA Final Destination (inland city) such as Shangxi, China

Bill of Lading (2-4) Port of Transshipment/Via/ThroughPre-carriage by Place of receipt Vessel/S.S./Ocean Vessel Voyage No. /Voy. No. Sailing Date/On or about… ：DEC. 25th, 2004

Example: SHIPPER: SAKATACHI CO., LTD 万海航运股份有限公司（承运人） OSAKA, JAPAN （托运人公司名称及地址） WAN HAI LINES LTD.   CONSIGNEE: （收货人） BILL OF LADING  TO ORDER NO. TH86BBU0073   NOTIFY PARTY: LIAONING METALS & MINERALS I/E CORP. DALIAN, CHINA （通知方名称及地址） PORT OF LADING PORT OF DISCHARGE VIA FINAL DESTINATION MELBOURNE DALIAN HONGKONG DALIAN AUSTRILIA CHINA CHINA  VESSEL VOYAGE FLAG HAPPY ISAND A824 MARKS NO. OF DESCRIPTION OF GROSS NET MEASUREMENT PKGS GOODS WEIGHT WEIGHT AC02W148048 KGS KGS CBM DALIAN CHINA YARN CLEANER 2520.00 2340.00 9.822 TTL: 2 CONTAINERS 3 W/CASES 1X20’: PCIU2309299 TOTAL: THREE WOODEN CASES ONLY 1X40’: PCIU2306476 FREIGHT PREPAID ON BOARD NO. OF ORIGINAL B(S)L: THREE PLACE AND DATE OF ISSUE: DALIAN, CHINA JAN. 5TH, 2004

Example: ON BOARD 1800 KGS 6.628 M3 FREIGHT PREPAID IN US DOLLARS SHIPPER: 万海航运股份有限公司 CONSIGNEE: WAN HAI LINES LTD.   BILL OF LADING   NO. WHL002 NOTIFY PARTY: SHANGDONG IMP/EXP 62 JIANGXI RD, QINGDAO, CHINA TO THE ORDER OF THE FIRST CITY BANK LTD., BANGKOK NAN HENG INTERNATIONAL TRADING CO., LTD 104/4 LARDP RD. WANGT BANGKAPI.BKK L/C NO. 001-10397-1998 PLACE OF RECEIPT OCEAN VESSEL VOYAGE NO PORT OF LADING PORT OF DISCHARGE PLACE OF DELIVERY EAST WIND V. 19 QINGDAO, CHINA BANGKOK, THAILAND MARKS NO. OF PACKAGE & G. W. (KG) MEAS (M3) DESCRIPTION OF GOODS TOTAL PREPAID NO. OF ORIGINAL B(S)/L PLACE AND DATE OF ISSUE IN … CURRENCY 1800 KGS 6.628 M3 TRI-CIRCLE BRAND BRASS PADLOCKS 9 WOODEN CASES SAY NINE WOODEN CASES ONLY NHIT BANGKOK NO. 1-9 ON BOARD FREIGHT PREPAID IN US DOLLARS THREE (3) QINGDAO, CHINA, 1999年12月31日之前

Job project (1-1) Making out a B/L according to the following information: 1: the terms of L/C (1) L/C No. CER 22/04 DATED Sept. 4, 2004 issued by Bank of India. (2)Full set clean shipped “ on board” Ocean Bill of Lading dated not later than 15th Oct. 2004 Marked “ freight paid” made out and endorsed to the order of Bank of India. Louboruch, Stershire Denil ZBK, USA notify Win Shipping Services, 94 Beaumond Road. New York. (3) Expiry date: Oct. 30th, 2004

Job project (1-2) (4) Short form Bills of lading are not acceptable. (5) Evidencing current shipment from People’s Republic of China Port to New York for the under-mentioned goods: 810 cartons Sliced Water Chestnut @ USD 12.00 per carton under Contract No. SF5976 CIF New York . (6) Beneficiary: China National I/E Corp. Weida Branch. (7) Applicant: Michel Bull Co. Ltd, 1210 Conker RD, Central, USA 2. Some other information:

Job project (1-3) (1) Marks: N. H. NEW YOURK No.1-810 (2) Shipment date: 10th Oct, 2004 (3) B/L No. 453 (4) Gross Weight 1800kgs. (5) Measurement: 24.533M3 (6) Ocean Vessel: Kangke V.37

ON BAORD PREIGHT PAID Shipper: 万海航运股份有限公司 CHINA NATIONAL I/E CORP. WEIDA BRANCH ………….(ADD) Shipper: 万海航运股份有限公司 Consignee : WAN HAI LINES LTD. BILL OF LADING Notify party NO. 453 TO ORDER OF BANK OF INDIA WIN SHIPPING SERVICES 94 BEAUMOND ROAD, NEW YORK ON BAORD Pre-carriage by Place of receipt Ocean vessel Voy No Port of Loading Port of discharge Place of delivery Final destination (for the Merchant reference) PREIGHT PAID KANGKE V.37 XINGAN, CHINA NEW YORK, U.S.A. Marks. & No. Number of Kind of packages G/W Measurement & Description of Goods kgs M3/cbm Total Package: Freight & Charges Revenue Ton Rate Per Prepaid Collect Exchange rate Prepaid at Payable at Place and date of issue N.H. NEW YORK NNO.1-80 SLICED WATER CHESTNUTS 810 CARTONS 1800KGS 24.533M3 SAY EIGHT HUNDRED TEN CARTONS ONLY XINGANG, CHINA XINGANG, CHINA, 10. OCT.2004