Bill of lading Nigeria

BILL OF LADING NIGERIA: WHAT TO KNOW

Bill of lading NigeriaBill of lading Nigeria is a title we are using intentionally to indicate our focus on goods going into Nigeria. However, this information for bill of lading Nigeria is a comprehensive information about the bill of lading in general. The article is a sort of compendium of what the bill of lading is. Consequently, we will be looking at definition, forms, types and functions of the bill of lading. Additionally, we will unpack the differences between bill of lading types. Furthermore, we shall state the roles of each party in international logistics trade with respect to the bill of lading.

More so, in line with the title of this piece, we will tailor our discussion to the bill of lading in Nigeria. Thus, we will avail readers with what bill of lading is acceptable in Nigeria and what makes them acceptable. We urge you to read on and enjoy yourself. For more information, and for smooth cargo handling in Nigeria, contact us today.

BILL OF LADING NIGERIA; WHAT IS A BILL OF LADING?

A bill of lading is a shipping document, a receipt for transfer of cargo from customer to carrier or forwarder. Sometimes, the bill of lading alone is contract document between carrier (ship operator) and his customer. In addition, bill of lading can also be a title document, and is marked ‘negotiable’.

The bill of lading plays many other crucial roles in facilitating the smooth transportation of goods from one location to another. It also ensures accountability and provides legal protection for both the shipper and the carrier. Let us delve into the various forms and types of Bill of Lading. Moreover, we will be shedding light on their key details and significance of bill of lading Nigeria.

BILL OF LADING CLASSIFICATION BASED ON NEGOTIABLE AND NONNEGOTIABLE

Straight Bill of Lading:

A Straight Bill of Lading is a non-negotiable document in which a designated consignee receives the goods exclusively. Delivery to any other recipient is not possible with this type of Bill of Lading, eliminating the need for endorsement or transfer. Shippers commonly use this type of Bill of Lading when the consignee has already paid for the goods or when there is no intention to transfer ownership during transit. It provides a straightforward and secure way of delivering goods to the intended recipient, without the risk of unauthorized transfer.

Order Bill of Lading:

The Order Bill of Lading is a negotiable document that allows the transfer of ownership of the goods. The consignee named in the document can endorse it to another party, enabling them to claim the goods upon arrival. Commercial transactions involving multiple buyers and sellers often favors the use of this type of Bill of Lading, as it offers greater flexibility. The ability to transfer ownership through endorsement makes it easier for parties to buy and sell goods during transit, allowing for greater market liquidity and commercial opportunities.

Sea Waybill:

The Sea waybill is a relatively new concept in the shipping industry, mainly used for electronic transactions. It is a non-negotiable document, similar to the Straight Bill of Lading, which eliminates the need for physical document delivery, thus allowing for faster processing. However, it is important to note that the Sea waybill lacks the legal protection and transferability offered by the Order Bill of Lading. Despite its convenience and speed, it may not be appropriate for transactions involving ownership transfer or multiple parties.

Telex Release Bill of Lading:

Telex release bill of lading got its name from the era of telexes. Primarily, telex releases are emails sent via telexes. Such emails contain instructions from the carrier or forwarder to the local office of shipping company or bonded warehouse. The local office is to release cargo to the importer without presentation of original bill of lading. Consequently, the consignee takes cargo delivery with the proof of telex release. Nowadays, telex releases are in form of emails. What necessitates use of telex release are various in nature. Sometimes, speed of delivery is the reason, some other times cost optimization is the reason.

Whatever is the reason, telex release bill of lading is electronic, thus enables quickest clearance at the destination.

BILL OF LADING CLASSIFICATION BASED TRANSPORTATION MODE

Through Bill of Lading:

A Through Bill of Lading is useable when multiple modes of transportation are involved in the shipment of goods, such as a combination of sea, rail, and road transport. In addition, it covers the entire journey from the origin to the final destination and involves multiple carriers.

Multimodal Bill of Lading:

A Multimodal Bill of Lading is similar to a Through Bill of Lading. However, it is issuable by a single carrier who takes responsibility for the entire transport journey. It includes different modes of transportation.

Charter Party Bill of Lading:

A Charter Party Bill of Lading is useful in cases of vessel chatter (hire) for the transportation of goods. Hence, it outlines the terms, conditions of the charter agreement. Consequently, serves as a receipt and evidence of the contract between the charterer and the ship-owner.

BILL OF LADING CLASSIFICATION BASED ON STATE OF GOODS

Clean Bill of Lading:

A Clean Bill of Lading is issuable when received goods are in apparent good condition. Thus, the bill indicates goods are without any damage or discrepancies noted. It shows that the goods have been loaded and are in the expected condition.

Dirty Bill of Lading:

Dirty Bill of Lading is issuable when there are discrepancies, damages, or irregularities in the shipped goods. The Bill of Lading includes specific notations or clauses that describe the issues or damages observed. It informs all parties that the goods were not up to standard.

IMPORTING OR EXPORTING TO NIGERIA?
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CLASSIFICATION BASED ON THE ISSUER

Master Bill of Lading:

The master bill of lading Nigeria is contract of carriage, issuable by the carrier to the shipper or the forwarder. As a contract of carriage, its issuance is after cargo transfer to the carrier. Ordinarily, master bill of lading is issuable to the booking party. Nevertheless, the master bill of lading is only issuable to the forwarder for less than container loads.

Read also: TYPES OF BILL OF LADING: MASTER BL IN NIGERIA

House Bill of Lading (HBL):

The House Bill of Lading plays a vital role in Nigeria’s shipping and logistics industry. This is because most cargos to Nigeria are less than container loads. The HBL is a bill of lading issued by the freight forwarder or a non-vessel operating common carrier (NVOCC) to the shipper. HBL document serves as a receipt for the goods and evidence of the contract of carriage between the shipper and the forwarder. What this means is that the HBL presupposes the existence of LCL.

KEY DETAILS OF A BILL OF LADING

  • Shipper and Consignee Information:

A Bill of Lading includes detailed information about the shipper, whom is the party sending the goods, and the consignee, who is the intended recipient. This information typically includes names, addresses, contact details, and any relevant identification numbers. Accurately identifying the involved parties ensures correct delivery and facilitates communication during the transportation process.

  • Description of Goods:

Including accurate and comprehensive descriptions of the shipped goods is crucial in a Bill of Lading. This includes details such as quantity, weight, dimensions, packaging, and any special handling instructions. Precise information guarantees proper identification and handling of the goods throughout the transportation process. It also assists in customs clearance procedures, preventing discrepancies or disputes regarding the nature or condition of the goods.

  • Carrier and Vessel Information:

A precise Bill of Lading must incorporate carrier information and transportation details. These details enable tracking and provide important references in case of any disputes or claims in the future. The Bill of Lading includes the carrier’s name, address, contact details, vessel’s name, voyage number, and port details. Moreover, this practice not only helps establish accountability but also facilitates seamless communication between all parties involved.

  • Terms and Conditions:

Bill of Lading outlines carriage terms, including liabilities, responsibilities, and limitations for carrier and shipper. It is essential to carefully review and understand these terms to ensure compliance and avoid any potential legal issues. The terms and conditions may cover various aspects such as the scope of liability for loss or damage to the goods, timeframes for delivery, documentation requirements, and dispute resolution mechanisms. Seamless transportation necessitates both parties’ awareness and adherence to the rights and obligations stipulated in the Bill of Lading.

WHAT ARE THE BILL OF LADING ACCEPTABLE IN NIGERIA? 

Virtually all types of bill of lading are acceptable in Nigeria. What varies is the situation of acceptability. Therefore, a bill of lading accepted in a peculiar situation may not be acceptable in others. Hence, the question of what bill of lading to use is dependent on the shipment peculiarity. Master bill of lading cannot be useable to clear a less than container load for example. Similarly, no shipping company releases cargo in Nigeria with the HBL.

Thus, each Importer must understand his shipment through engagement of professionals. Vagmon e-Grup & Logistics Ltd is a foremost expert in cargo handling and documentation thereof. Our contact us page gives our email address, phone numbers and WhatsApp chat number.

Read also: HOUSE BILL OF LADING IS ACCEPTABLE IN NIGERIA

WHAT ARE SPECIFIC BILL OF LADING INFORMATION IN NIGERIA?

In addition to all generic or international requirements, bill of lading Nigeria must have the following:

  • Form M numbers: Bill of lading Nigeria must state Form M numbers clearly. This Form M requirement is specific to Nigeria bound goods. For details on Form M, see our article for FORM M NIGERIA: HOW TO PROCESS AND OBTAIN IT
  • Shipped onboard date: note that shipped onboard date is not the same as date of issue of the bill of lading. Even if the bill of lading issuance date coincides with the onboard date, banks require stating onboard date differently. Equally important, Importers must ensure that shipped onboard date comes after Form M registration date. The implication therefore is that you must obtain Form M document before shipping. This requirement sounds so simple, but can delay goods clearance if violated.
  • Original bill of lading: most Nigerian banks require Exporters to courier original bill of lading to the banks for PAAR issuance. In fact, this requirement is a policy of the central bank of Nigeria. Read our article for IMPORTING INTO NIGERIA: WHAT IS PAAR DOCUMENT? to know more about PAAR.

CONCLUSION

The Bill of Lading is a vital document in international shipping trade. It serves as evidence of the contract of carriage and receipt of goods. Bill of lading plays a crucial role in facilitating the smooth transportation of goods from one location to another. It also ensures accountability and provides legal protection for both shipper and carrier. In this article, we have delved into the various types and forms of Bill of Lading used in Nigeria, shedding light on their key details and significance. Primary, a bill of lading performs the following functions

  • Firstly, bill of lading is a receipt for cargo transfer from shipper or consignee to the carrier or the forwarder.
  • Secondly, a bill of lading is a proof of ownership or title if marked as negotiable
  • Thirdly, a bill of lading can stand in place of contract for carriage where there is none.

Our focus finally is on the bill of lading Nigeria. Therefore, our readers know what bill of lading is acceptable for specific projects in Nigeria. Lastly, requirements specific to Nigeria are in this page. Furthermore, feel free to contact us today for cargo clearance and consultancy.

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