A surrender bill of lading is a type of bill of lading. It is a document issued by exporters that allow importers to legally own the vehicle the exporter shipped. When importers pay for a shipment, the exporters surrender their ownership rights to the vehicle so they cannot claim title or power over them; this tends to be a cleaner method of transferring ownership of the vehicle than some other bill of lading documents provide.
These surrender bill of lading documents are typically joined with a documentary collection, although even if this is not used, the entity charged with holding the bill oflading should not surrender it until the importer pays. The surrender bill of lading document can present a problem for exporters because importers who have it can go into a port and take the shipped vehicle or any item, even if they have not yet paid for them, and the port may charge extra for this type of bill of lading.
With some bill of lading documents, exporters still hold some ownership over the items/vehicles, the price can be negotiated or a lien can be placed on importers based on previous exchanges. When the surrender bill of lading used, exporters cannot claim any rights or power over the vehicles or items after importers pay. As long as importers do not pay for the vehicle, then the bill of lading should remain in the exporters’ hands so the exporters continue to legally own the items.
The surrender bill of lading document typically paired with a documentary collection payment method. Exporters use their local bank to forward payment terms and documents to a bank near the importers. When importers pay for the vehicle, they receive the bill of lading. Both banks act impartially, which makes the transaction safer for importers and exporters, and the transaction is more convenient because each party can just visit their local bank.
Aside from importers not paying, there are several other problems that can occur when using this type of document. Ports typically have to process the paperwork, so they tend to charge a fee. If importers are malicious and avoid port workers, then they can take the vehicle from the port without paying exporters anything. Payment also can drag out. So, exporters may not collect their funds until months or years in the future, if at all. This bill typically only used if exporters have an extensive, trustworthy relationship with importers.
Surrender information includes the following details:
1. Number of B/Ls to surrendered
2. Surrender date
3. Surrender office location
4. Surrender location classification
5. Surrendering party
6. Reason code for surrendering
7. Reason for surrendering
8. Endorsement details
9. Specific delivery instructions