Page 15 - DMGT546_INTERNATIONAL_TRADE_PROCEDURE_AND_DOCUMENTATION

International Trade Procedures and Documentation

Notes A Stale Bill of Lading is one that is presented by the importer at the port of discharge
late and as a result he may be required to pay fines and warehousing charges, etc. If
this delay is caused due to exporter’s late dispatch of documents, the importer is
likely to penalize him.
A Transshipment Bill of Lading is needed where goods are required to be
transshipped. However, the original carrier who issues such a bill, takes on the role
of an agent in all subsequent journeys and thus cannot be held responsible for any
loss/damage to the cargo during such subsequent transport.
A Through Bill of Lading is required where goods are to move from one carriage to
another. This B/L acts as a combined transport document where the original carrier
takes on the role of the principal carrier and thus becomes responsible for the total
journey for loss/damage to the cargo.

The shipping company issues a Charter Party Bill of Lading in cases of charter
shipping. Such B/Ls require specific authorization in the L/C for purposes of
negotiation.
A Short Forms Bill of Lading contains all the elements of a B/L except that it does not
have all the attributes of a contract of affreightment. Banks do accept such bills for
negotiation unless expressly prohibited by the L/C.
A House Bill of Lading, also called a freight forwarders’ bill of lading, is issued by
the freight forwarder, consolidator or a NVC (non-vessel carrier). It is a non-
negotiable document containing the names, addresses of the parties and specific
description of the goods shipped.

2. Airway Bill: Airway bill is a bill of lading used when the goods are shipped using air
transport. It is also known as an air consignment note or airway bill of lading. It is similar
to the ocean bill of lading on two counts. One, it too serves as a receipt of goods by the
carrier and two, it also works as a contract of carriage between the shipper and the carrier.
However, unlike a marine bill of lading it does not serve as a document of title to the
goods. Hence, it is a non-negotiable document.
The goods will be delivered to the party named as consignee in the AWB without need of
any further formalities, once the importer obtains customs clearance. Therefore, an exporter
is advised to ensure the payment receipt, as it is quite risky to consign goods through air
direct to the importer.
As per IATA (International Air Transport Association) norms, an airway bill is issued as a
set of 12 copies, having three originals as explained below:
(a) First Original is green in colour. It is meant for the carrier issuing it and is to be
signed by the exporter or his agent
(b) Second Original is pink coloured and is meant for the importer (consignee) and
therefore accompanies the shipment through to the final destination and is signed
by the carrier or his agent.
(c) Third Original is blue in colour and is for the exporter. It is signed by the air carrier
after goods have been accepted for airfreight and handed over to the consignor.

Note Airway bill is a very important document when goods are sent through air. It
serves the all-important purpose of tracking the shipment and is also required at the time
of customs clearance.

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