Bill Of Lading

A bill of lading (BL) is a legal document issued by a carrier

(transportation company) to a shipper that details the type, quantity, and
destination of the goods being carried. A bill of lading also serves as a
shipment receipt when the carrier delivers the goods at a predetermined
destination.

This document must accompany the shipped products, no matter the form

of transportation, and must be signed by an authorized representative from
the carrier, shipper, and receiver.

Understanding Bills of Lading

The bill of lading is a legally binding document that provides the carrier
and the shipper with all of the necessary details to accurately process a
shipment. It has three main functions:

 It is a document of title to the goods described in the bill of lading.

 It is a receipt for the shipped products.
 It represents the agreed terms and conditions for the transportation
of the goods.

Importance
The importance of a bill of lading lies in the fact that it’s a legally
binding document that provides the carrier and the shipper with all of
the necessary details to accurately process a shipment. This implies
that it can be used in litigation if the need should arise and that all
parties involved will take great pains to ensure the accuracy of the
document.

Essentially, a bill of lading works as undisputed proof of shipment.

Furthermore, a bill of lading allows for the segregation of duties that
is a vital part of a firm’s internal control structure to prevent theft.
Purpose

A bill of lading has three main purposes. First, it is a document of title to

the goods described in the bill of lading. Second, it is a receipt for the
shipped products. Finally, it represents the agreed terms and conditions
for the transportation of the goods.

Content

Typically, a bill of lading will include the names and addresses of the
shipper (consignor) and the receiver (consignee), shipment date, quantity,
exact weight, value, and freight classification. Also included are a
complete description of the items, including whether they’re classified as
hazardous; type of packaging used; any specific instructions for the
carrier; and any special order tracking numbers.

Conclusion
A bill of lading is a contract issued by a transport company to a shipper
that spells out the quantity, type, and destination of the goods being
shipped. It serves as a receipt of the shipment and can help prevent the
theft of goods being transported. It’s crucial to understand the different
types of bills of lading to ensure that the right ones are chosen. If not,
your shipment will likely be delayed.
Bill Of Entry
A key step in the export procedure is documentation. Whether it is
business registration or shipping and taxes, documents and licenses ensure
smooth export of goods and seamless payments. Export
Documents usually depend on origin and destination countries and the
products being exported, among other things.

All export goods must go through a specific set of procedures as stated by

the Customs Office to ensure that authorities are charging the right taxes
while checking consignments. This process includes examination,
assessment and evaluation of the goods. To allow the authorities to
correctly and accurately inspect imported products, every consignment is
made available with a set of official documents that contain all the details
about the consignment. The Bill of Entry is one such important document.

Need

A Bill of Entry provides the following benefits:

• Allows importers to furnish important details of the consignment to the
customs authority
• Serves as an authentication document to inform authorities that no illegal
commodities have been imported
• Assists customs authorities in cross-checking documents that have been
submitted by the exporter during export or shipping
• Enables the customs office to charge appropriate taxes while avoiding
malpractices
• Adds to the overall economic welfare of the nation

Types
Depending on the purpose and nature of commodities that are imported,
the customs office classifies a Bill of Entry into three categories2:
1. Bill of Entry for House Consumption: This is meant for commodities
that the importer will procure for self-consumption or specific business
processes.

2. Bill of Entry for Warehousing: Also known as Bond Bill of Entry, this

type is issued when the importer is not willing to pay import duties at the
time of import. In this case, the importer can store the goods in a dedicated
warehouse until all dues are cleared at the Customs department.

3. Bill of Entry for Ex-Bond Goods: When the importer has to release

goods from the warehouse and overrule the BOE for Warehousing, a BOE
for Ex-bond Goods is issued.

Contents

Some of the major components in a Bill of Entry form are:

• Name and business address of importer, Customs House Agent
• IEC
• Monetary value and description of the goods
• Name and business address of the exporter
• Destination port
• Importer’s license number
• Rate payable and import duty’s value
• Port code (A Bill of Entry number contains 13 digits – the first of which
are Port Codes)

Documents required

Depending on the type and nature of import, some documents required to

obtain BOE are:
• Shipping invoice
• Packing List
• Bank draft or letter of credit
• Bill of Lading
• Insurance documents
• CHA or importer’s declaration