Executive Summary: The Bill of Lading (B/L) serves three functions: It is a Receipt of goods, a Contract of carriage, and most importantly, a Document of Title. Buying goods F.O.B means you don’t own them until you have the B/L. Managing this document correctly is vital to release your cargo.
Original B/L vs. Telex Release
1. Original B/L: The shipping line issues 3 paper originals. The supplier mails them to you (DHL). You must surrender one paper original to the destination port to get goods.
Risk: If the paper is lost in the mail, it is a disaster (months of legal bonds to release cargo).
2. Telex Release (Surrender): The supplier physically surrenders the originals in China. The line sends an electronic message (“Telex”) to the destination release.
Benefit: Fast, no paper to lose.
Cost: ~$50 fee.
Consignee vs. Notify Party
- Consignee: The owner (You). This must match your Customs Bond exactly.
- Notify Party: Your Customs Broker / Forwarder. They get the arrival notice.
Error: If you put the Broker as the Consignee, you cannot clear customs in your name.
The “Draft B/L” Review Step
1 week before the ship sails, the forwarder sends a “Draft B/L” PDF. You must review this.
- Check: Piece count, Weight, Description.
- Check: HS Code (first 6 digits).
- Check: Spelling of your company name.
- Action: Confirm “OK” or “Revise” immediately. Changes after sailing cost money.
Common Discrepancies that Block Release
1. Weight Mismatch: B/L says 5000kg. Packing List says 5500kg. Customs will flag this.
2. No HBL: Using a “Master B/L” when a “House B/L” was required for LCL shipments.
3. Hold: Supplier puts a “Hold” on the release because you haven’t paid the 70% balance.
FAQ
Q1: Why does my supplier refuse Telex Release?
A: Because they haven’t received your final payment. The B/L is their only leverage. Once you pay, they will do the release.
Q2: What is a “Sea Waybill”?
A: Similar to Telex. No originals are ever created. Used for trusted relationships (e.g., Apple shipping to Apple Store).
Q3: I lost the Original B/L. What now?
A: You must post a cash bond (150% of cargo value) with the shipping line for 1-2 years. It is a nightmare. Always use Telex Release if possible.
Key Takeaways
- Go Digital: Always request Telex Release / Surrender to avoid lost mail.
- Proofread: The Broker clears customs based on the B/L. If the B/L is wrong, the entry is wrong.
- Match Documents: Commercial Invoice, Packing List, and B/L must tell the exact same story (weights, counts, values).
