Requirements & Procedures involved while filing the Bill of Lading

Author: Jaylin Khan

One of the most common documents, the Bill of Lading is very crucial to the shipping process. The shippers abbreviate it as B/L or BoL. The document serves as a contract between the carrier and the exporter of the goods. Yes, a lot of new traders tend to believe that B/L is a part of the shipping contract they have with their clients. However, the purpose of this record is to allow the carrier to understand the shipping term between the freight owner and importer. Let us understand the requirements and procedures of filing the BOL to conclude its objective.

Why Is A Bill of Lading Important? The carrier acts as an intermediary in the contract liable for delivering the goods to the client as per the delegation of the exporter. The Bill of Lading legally binds the terms of freight shipment. It contains all the minor details of the consignment and the goods in it. That is why some traders may also use it for negotiations and transfer of the delivery liability to a third party. Therefore, the exporters must know how to file the BOL accurately.

The duly signed copy of the BOL serves as a viable contract between the carrier and freight owner.

Requirements and Major Sections of the Bill of Lading

To file the BOL, an exporter must know the sections of the bill and the documents that it includes. The major segments of the B/L include:

  • Detailed Information of The Trading Parties: Contact information of both the parties included in the shipping contract, that is, the exporter and the receiver of the goods (referred to as the consignee). The name, address, and telephone numbers of the concerned individuals must be documented accurately.

  • Purchase Order Number: The shipper generates a purchase order number at the time of filing the Bill of Lading. This number is useful in creating references for the contract.

  • Date of Pickup: This date helps the consignee and the exporter maintain the internal records accurately.

  • Detailed Description of The Shipping Goods: The major purpose of the Bill of Lading is to specify all the information related to the consignment. This information mostly includes shipping units, weight and volume of the cargo, and identification message, etc.

  • Type of Cargo Packaging: The exporter specifies the type of packaging he wants for his cargo. The general ones include crates, palettes, cartons, and drums, etc.

  • NMFC Code: The Nmfc (National Motor Freight Classification) code designates the freight class description must be present in the B/L.

  • DOT Material Designation: DOT (Department of Transportation) designation is vital for consignments that include hazardous materials. Such consignments require special instructions for shipping the freight.

  • Instructions for The Freight Carrier: The exporters can also include special instructions for the carrier to handle the freight carefully.

How to File the Bill of Lading?

The carrier provides a template of the Bill of Lading to the exporter/freight owner at the time of booking the shipment. It is the responsibility of the trader to complete all the formalities and fill out the template accurately. Follow the following steps to understand the filing process.

  • Fill in the date, the Bill of Lading number and the barcode provided by the carrier.

  • The PO reference number, ID number and PRO number are also a part of the bill. The carrier will debrief all the details before finalising the document.

  • Fill up the full and accurate address of the consignee and freight owner in the dedicated rows. Make sure the Pincode is true and precise enough for the carrier to navigate it.

  • If there is any third party involved in the process who is liable for the payment or other commitments, the exporter must mention the details of the same.

  • Describe the mode of payment, if it is COD (Cash on Delivery) or not.

  • Describe the nature, weight, volume, units of each item of the goods in the cargo. The details must be true, or else it can cause trouble in the customs clearance process.

  • NMFC code and class specification of the cargo is also includable in the Bill of Lading.

Apart from this information, a shipper may have to add other details if prescribed by the carrier. The basic Bill of Lading template may observe slight variations depending upon the country of shipment and the carriers. Therefore, the exporter must understand the terms and filing process with the help of their shipping partner to avoid last moment rectifications.

The Bill of Lading is one of the most vital documents for the exporter as it lays down all the terms of shipment between the carrier and him. This bill goes to the importer/buyer of the cargo, and he is also liable to sign it and produce it at the time of delivery. So, the best way is to take help from an experienced shipping service provider to get all the doubts cleared and sorted.