Importance of Bill of Lading in Used Car Import from Japan. Bill of Lading is a legal document between the shipper of used car from Japan and the carrier specifying the type, quantity and destination of the cars being carried.
The bill of lading also serves three important purposes:
- A receipt of shipment when the car is delivered to the destination port.
- As an evidence for the contract of carriage.
- As a document of ownership.
Bill of Lading must be sent along with the shipped car, in any form of transportation, and must be signed by authorized representatives from the carrier, shipper, and receiver. There are different types of bill of lading used to import Japan used cars.
It is an important document used in the transportation of cars, vehicles and other goods all over the world. As a document of title, it is also an important financial instrument and contains the following information:
- Consignor’s/Exporter’s and Consignee’s/Importer’s name.
- Name of departure and destination ports.
- Vessel’s name
- Date of Departure.
- Itemized list of cars being transported with number of packages and kind of packaging.
- Marks and numbers of the packages.
- Weight and/or volume of the cargo.
- Freight rate and amount.
B/L can be both negotiable and non-negotiable. In non-negotiable form, a sea waybill may be issued instead of bill of lading as Under Article III of the Hague-Visby Rules, a carrier must, on demand, provide the shipper with a bill of lading; but if the shipper agrees, a lesser document such as a “sea waybill” may be issued instead.
What is the criteria for a Bill of Lading?
The main difference between bill of lading and sea waybill is that the sea waybill does not grant title of the cars to the bearer, and as a result there is no need for the physical document to be presented for the vehicles to be released. The carrier will automatically release the cars to the consignee once the import formalities have been completed.
This results in a much smoother flow of trade. However, for Letter of Credit transactions, In negotiable form, Bill of Lading is commonly used in letter of credit transactions and may be bought, sold, or traded, or used as a security for borrowing money. It is important to retain title to the cars until the transaction is complete.
This means that the bill of lading still remains a vital document within international trade. All the Japanese used cars exported to the different countries in the world are accompanied with the Bill of Lading as an important document and is required in almost all the countries at the time of clearing the vehicle at the destination port.
A bill of lading is required in all claims for compensation for any damage, delay, or loss; and for the resolution of disputes regarding ownership of the cars in some cases. The rights, responsibilities, and liabilities of the carrier and the shipper under a bill of lading (often printed on its back) are governed generally either by the older Hague rules, or by the more recent Hague-Visby rules.
The paper bill of lading is associated with difficulties such as cost and inefficiency. To overcome these problems the paper bill of lading must be replaced with an electronic bill of lading or BL. The eB/L must be made legal and functional equivalent to paper bill of lading and replicate its core functions such as receipt, evidence of contract of carriage and if negotiable then as a document of title.
Importance of Bill of Lading in Used Car Import from Japan. Bill of Lading abbreviated as B/L is a document issued by a carrier, or its agent to the shipper as a contract of carriage of used cars from Japan. It also works as a receipt for cargo accepted for transportation and must be presented for taking delivery at the destination port.