When does the shipping company provide the Bill of Lading to the exporter or seller in Import Export Business?

 

One of the most common questions asked by exporters or sellers in the industry is by when does the shipping company or carrier provide them with the Bill of Lading (BOL)? What is the approximate time taken to release the Bill of Lading (BOL)? By when can an exporter or the seller expect to receive the Bill of Lading (BOL) from the carrier? Will he/she be eligible to obtain the Bill of Lading (BOL) right after handing over of his goods or services to the shipping company or the carrier vessel? Normally does the Bill of Lading (BOL) be generated before the movement of goods from the warehouse? Can the exporter collect the Bill of Lading (BOL)in import export business before the completion of export formalities and customs clearances procedures? Once the export invoices are generated, can the exporter/seller collect his/her Bill of Lading (BOL)? Once the shipment is moved from the factory, can the Bill of Lading (BOL) be generated and released? Can the exporter or seller enquire about the Bill of Lading (BOL) as soon as he/she confirms the booking consignment? Can the Bill of Lading (BOL) be released once the shipping bill with Customs Department is filed for export?

The Bill of Lading (BOL) is a legally bound document of title that is issued by the shipping company or the carrier chosen to transport the goods or services from destination A to destination B. This document serves as the receipt of goods or services received by the shipping company entailing all the major details of the goods or services such as, the description of goods, quantities, the number of boxes or packages, details of gross weight, details of freight, point of departure, loading port details, point of arrival, unloading port details, final destination details, shipper’s name, consignee name, notification party if any, buyer or importer details etc.

As known, the movement of goods or services from one country to another can be processed and executed only after the completion of all the formal procedures put down by the Export Customs Clearance Department of that country. While talking about India and the rules put down by the Customs Department and the LEO (Let Export Order) is the final document or permission given by the Customs Department for the movement of cargo to a foreign destination.

The Bill of Lading (BOL) is issued and generated by the carrier of goods or services after receiving the cargo and post completion of all export formalities and customs procedures. Let Export Order (LEO) of the shipping bill is the proof of completion of all export formalities and customs procedures in India. Let Export Order (LEO) of shipping bills is the proof of receipt for the movement of goods or services handed over to the carriers after is it duly signed by the Customs Officials. Once the Customs House Agent (CHO) delivers the Let Export Order (LEO) to the shipping company, the shipping company then goes ahead and generates and issues the Bill of Lading (BOL) confirming the receipt of goods or services from the exporter or seller.

After this step, it officially means that the cargo (goods or services) is in the custody of the shipping company and the company has been permitted to move the cargo to its final destination. As understood, that the Bill of Lading (BOL) is the proof of receipt or goods or services received by the carrier.  The shipping carrier can release the Bill of Lading (BOL) only after they receive the goods or services along with other major customs documents duly signed including the Let Export Order (LEO) which signifies the completion of custom formalities in India.

If the exporter or seller decides to release the Bill of Lading (BOL) as soon as he/she delivers the goods or services to the shipping carrier post completion of all the necessary legal export customs clearances and formalities, he/she is eligible to collect a “Received for shipment” Bill of Lading and not “Shipped on board” Bill of Lading.

In case the exporter or seller requires an “On Board” Bill of Lading, he/she needs to wait till the goods or services are loaded on board the vessel. Once this is done, the shipping carrier or the agent will release an “On Board” Bill of Lading to the exporter or seller.