A Bill of Lading is a crucial document issued by a Carrier (somebody who transports and delivers goods) to the Shipper (also known as the Consignor ), confirming that the goods were received in an acceptable condition and are ready to be shipped. It is a legally binding document, and often serves as proof of ownership over the goods being carried as only the consignee listed on the Bill of Lading has contractual rights to request for the release of the cargo.
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A Bill of Lading (B/L or BoL) document is an extremely important document that the Carrier (the company responsible for the transport of goods) issues to the Shipper (the Consignor). It serves a few critical roles within an export shipment: Evidence of contract of carriage A Bill of Lading is essentially a contract of carriage between the Shipper, Consignee, and Carrier stating the terms and conditions of carriage. Receipt of goods It acts as proof of delivery, confirming that the goods were received in an acceptable condition and are ready to be shipped. Document of title to the goods A Bill of Lading also serves as proof of ownership over the goods being carried. The owner of the cargo (the holder of the B/L) has the legal rights to claim the goods or arrange transfer ownership of the cargo to another party in the supply chain. In some cases, the Shipper can withhold the Bill of Lading until having received payment from the Consignee. Doing this prevents the Consignee from accessing their goods until payment has been made and the Bill of Lading has been released. * Only the consignee listed on the Bill of Lading has contractual rights to request the release of the cargo.
Click on 'New document set' and select the Bill of Lading template along with any other export documents you wish to create.
Fill out the document, customize template fields to your needs and add your company letterhead. To save time and prevent re-entry errors, enter key shipment data into the Master File to have it sync across all other documents in your set automatically.
Click on the signature box at the bottom of your document to create and place a digital signature then hit “Save & Quit”. On the document preview screen, click on the ‘More’ dropdown button and select “Add company seal” to place a digital stamp.
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There are many types of Bill of Lading documents and formats that carriers can issue along the supply chain. Below are a few examples of B/L types:
House Bill of Lading
Surrender Bill of Lading
Straight Bill of Lading
Master Bill of Lading
Blank Bill of Lading
The B/L will state that the shipment has been sent on ‘Freight Collect’ or ‘Freight Pre-Paid’ terms. These terms relate to which party will be paying for the International Freight costs.
If the shipment is sent Freight Collect – the freight charges will be ‘collected’ by the Consignee. If the shipment has been sent on Freight Pre-Paid terms, the shipper will be billed for the freight charges.
It’s important to note that the carrier must receive payment of the shipping charges (by either party) BEFORE they will release the cargo to the Consignee.
Freight Collect Incoterms® include – EXW, FCA, FAS, FOB Freight Pre-Paid Incoterms® include – CFR, CIF, CPT, CIP, DAP, DPU, DDPNotify Party (if different to the Consignee). In most cases the Notify Party will be the same as the Consignee, so the Notify party will be marked as ‘same as consignee’. This notify party can be used to notify any 3 parties that need to be made aware of the shipment updates, progress and delivery.
Carrier’s details, including company name, logo, address, contact details and their Terms and Conditions of carriage.
B/L Number – the unique B/L number issued by the Shipping Company or Freight Forwarder that is arranging the carriage of the cargo.
Vessel Name and Voyage number Place of Receipt, Port of Loading, Port of Discharge, Place of delivery, Final destinationContainer Number, Seal Number, Shipping Marks & Numbers, Description of goods, Gross Weight, Cubic Measurement (m3), Special Instructions
Freight Prepaid or Freight Collect Place and Date of Issue, Signature Terms and Conditions of Carriage (usually on next pages)A Bill of Lading (BOL) is primarily written and issued by the carrier or their agent. The carrier is the entity responsible for transporting the goods from the shipper to the consignee and is the central figure in the creation of the BOL. This document serves as a receipt for the goods shipped, a contract between the shipper and carrier, and a title document, evidencing the carrier's possession and responsibility for the goods during transit.
When a BOL is issued, it is generally at the point when the goods are loaded onto the carrier's mode of transport, signifying that the carrier has taken possession and responsibility for the shipment. The carrier's responsibilities and the specifics of the BOL can vary depending on the type of shipment and the terms agreed upon in the transport contract. There are several types of BOLs used depending on the nature of the shipment and its requirements, such as whether it is a domestic or international shipment, the need for transferability of the document, and the type of goods being transported. Below are the major players that issue BOL's.
Carrier : The primary party responsible for issuing a Bill of Lading is the carrier, such as a shipping line, an airline, or a road transport company. They acknowledge receipt of the cargo and commit to transporting it under specified conditions.
Freight Forwarder : Freight forwarders act as intermediaries between the shipper and the carrier. They often issue a House Bill of Lading , which serves the same purposes as the carrier's Bill of Lading within the freight forwarding and logistics community.
Shipper : Sometimes, the shipper may prepare the Bill of Lading for the carrier to sign. This tends to happen when the shipper has significant control over the logistical elements of their shipments.
Logistics or Shipping Agent : Agents handling logistics on behalf of the shipper or the carrier might also be involved in preparing or processing the Bill of Lading.
NVOCC (Non-Vessel Operating Common Carrier) : NVOCCs book space on ships and sell it to shippers, without operating the vessels themselves. They can issue their own House Bills of Lading, functioning both as shippers with the actual carrier and as carriers to the original shipper or consignee.
The penalty for late filing of a Bill of Lading (BoL), specifically in the context of the Importer Security Filing (ISF) required for shipments entering the United States, is typically a monetary fine. Importers can face a standard penalty of $5,000 per shipment for late ISF filing. This fine is part of a broader range of penalties that U.S. Customs and Border Protection (CBP) may impose, which can reach up to $10,000 per violation if there are multiple infractions such as failing to file, incomplete filing, or discrepancies between the ISF and the Bill of Lading.
Importantly, while first-time offenders may have the opportunity to remove or reduce their penalties to between $1,000 and $2,000 depending on the circumstances, repeated or severe violations can lead to more substantial fines and additional consequences like cargo holds and examination delays. These measures are enforced to ensure compliance and security in the shipping and logistics sector.
For businesses involved in importing, understanding and adhering to these requirements is crucial to avoid financial penalties and disruptions in their supply chain operations. Employing the services of a customs broker or using automated ISF filing systems can help mitigate the risk of late filings and ensure compliance with CBP regulations.
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