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Types of Bills of Lading

What is Bills of Lading ?

A bill of lading (BL) is issued by a shipping line or carrier to the shipper whose cargo is being transported by the carrier. It is a legal and mandatory document which is the proof that the shipping line or carrier received the cargo as per the details mentioned in the bills of lading and shipping line has to deliver the said cargo to the destination as per agreed terms. Bills of Lading is also a proof of ownership of the shipped cargo.

The main purpose of Bills lading is a) it show the title of shipped goods, b) it acts as transporting document (or transit receipt) and c) it is a contract between the shipper and the shipping line.

Details shown in Bills of Lading:-

Bills of lading shows the name of Shipper/ Exporter, Consignee Name, Notify Party Name, Bills of Lading Number, Vessel Name, Voyage Number, Port of loading, Port of discharge, Place of receipt, Place of delivery, Description of cargo, Gross weight, Net Weight, Shipped on board, Clean on board, Freight prepaid or freight collect and other details.

Types of Bills of Lading

There are different types of bills of lading which is issued by shipping lines as per contract with shipper :

Clean Bill of Lading

When cargo is stuffed and containers and loaded in Vessel without any declaration by shipping line or by its agents on the defective/ damaged goods or packages. If there is no such clause, the bill of lading are Clean Bill of Lading

Claused Bill of Lading

When there is cargo damage or quantity mismatch, in this case bill of lading is issued with this description of damaged / mismatched quantity by the shipping line or its agent and it is termed as Claused bills of lading.

RFS (Received for Shipment) Bills of Lading

Received for Shipment bills of lading issued by the shipping line or its agent upon receipt of cargo for shipment. It is issued prior to the loading of vessel and goods are not onboard.

Through Bills of Lading

This type of bills of lading allows the shipping carrier to pass the cargo in different modes of transportations or through different distribution channels. This includes both the inland and ocean bill of lading depending upon the destination.

Charter Party Bills of Lading

Charterparty Bills of lading issued to the charterer of the Vessel. It is an agreement between the vessel owner and the charterer of vessel. Charterer of the vessel issued charterparty bills of lading to the shippers whose cargo is onboard. This type of Bills of lading is issued in the break bulk shipment.

Container Bill of Lading

Container Bill of Lading is a document that gives information about goods that are delivered in a safe container or containers from one port to another.

House Bills of Lading

House Bills of lading is issued by NVOCC (Non-Vessel Operating Common Carrier) or an Ocean Transport Intermediary Freight Forwarder. This is also known as Forwarder Bills of Lading.

Master Bill of Lading

This document specifies the terms and condiitions that are required for transporting the freight, details of the consignor or the shipper, the consignee and the respective person who possess the goods. This document is created for shipping companies by their carriers as a receipt of transfer.

Multi modal Transport Document/ Combined Transport Document

This type of document requires a minimum two different modes of transportation. Like land & ocean etc. It can be classified as a through bills of lading also.

Stale Bill of Lading

Stale Bill of Lading is presented for negotiation after 21 days from the date of shipment or any other date/ number of days stipulated in the documentary credit.

Short-term/ Blank Back Bill of Lading

When the detail terms and conditions of the carriage is not given on the body oar back of the bills of lading, it is called Short term or Blank Back Bill of Lading.

Straight Bill of Lading

This is also considered as non-negotiable bills of lading. It indicates that the goods are consigned to a particular person and it is not negotiable free from the existing equities. This means that an endorsee acquires no better rights other than those that are held by the endorser. In banking point of view, such bills of lading are not considered safe.

Order Bill of Lading

Order Bill of Lading is the bill that expresses words that make the bill negotiable. This explains that the delivery is to be made to the further order of the consignee using terms such as ‘delivery to A Limited or to order or assigns.

Bearer Bill of Lading

This bills of lading means that the cargo will be delivered to whosoever hold the bills of lading.

A bearer bill can be negotiated by physically delivering it.

Surrender Bill of Lading

Surrender Bill of Lading works under the term ‘import documentary credit’, where the bank releases documents on receipt from the negotiating bank. The importer does not make the payment to the bank until the maturity of the draft under the relative credit.

International Trade Settlement in Indian Rupees (INR)

Quoted from RBI Circular

RBI/2022-2023/90
A.P. (DIR Series) Circular No.10

July 11, 2022

All Category-I Authorised Dealer Banks

Madam/Sir

International Trade Settlement in Indian Rupees (INR)

In order to promote growth of global trade with emphasis on exports from India and to support the increasing interest of global trading community in INR, it has been decided to put in place an additional arrangement for invoicing, payment, and settlement of exports / imports in INR. Before putting in place this mechanism, AD banks shall require prior approval from the Foreign Exchange Department of Reserve Bank of India, Central Office at Mumbai.

2. The broad framework for cross border trade transactions in INR under Foreign Exchange Management Act, 1999 (FEMA) is as delineated below:

Invoicing: All exports and imports under this arrangement may be denominated and invoiced in Rupee (INR).
Exchange Rate: Exchange rate between the currencies of the two trading partner countries may be market determined.
Settlement: The settlement of trade transactions under this arrangement shall take place in INR in accordance with the procedure laid down in Para 3 of this circular.

3. In terms of Regulation 7(1) of Foreign Exchange Management (Deposit) Regulations, 2016, AD banks in India have been permitted to open Rupee Vostro Accounts. Accordingly, for settlement of trade transactions with any country, AD bank in India may open Special Rupee Vostro Accounts of correspondent bank/s of the partner trading country. In order to allow settlement of international trade transactions through this arrangement, it has been decided that:

Indian importers undertaking imports through this mechanism shall make payment in INR which shall be credited into the Special Vostro account of the correspondent bank of the partner country, against the invoices for the supply of goods or services from the overseas seller /supplier.
Indian exporters, undertaking exports of goods and services through this mechanism, shall be paid the export proceeds in INR from the balances in the designated Special Vostro account of the correspondent bank of the partner country.

4. Documentation: The export / import undertaken and settled in this manner shall be subject to usual documentation and reporting requirements. Letter of Credit (LC) and other trade related documentation may be decided mutually between banks of the partner trading countries under the overall framework of Uniform Customs and Practice for Documentary Credits (UCPDC) and incoterms. Exchange of messages in safe, secure, and efficient way may be agreed mutually between the banks of partner countries.

5. Advance against exports: Indian exporters may receive advance payment against exports from overseas importers in Indian rupees through the above Rupee Payment Mechanism. Before allowing any such receipt of advance payment against exports, Indian Banks shall ensure that available funds in these accounts are first used towards payment obligations arising out of already executed export orders / export payments in the pipeline. The said permission would be in accordance with the conditions mentioned in para-C.2 on Receipt of advance against exports under Master Direction on Export of Goods and Services 2016 (as amended from time to time). In order to ensure that the advance is released only as per the instructions of the overseas importer, the Indian bank maintaining the Special Vostro account of its correspondent bank shall, apart from usual due diligence measures, verify the claim of the exporter with the advice received from the correspondent bank before releasing the advance.

6. Setting-off of export receivables: ‘Set-off’ of export receivables against import payables in respect of the same overseas buyer and supplier with facility to make/receive payment of the balance of export receivables/import payables, if any, through the Rupee Payment Mechanism may be allowed, subject to the conditions mentioned in para C.26 on Set-off of export receivables against import payables under Master Direction on Export of Goods and Services 2016 (as amended from time to time).

7. Bank Guarantee: Issue of Bank Guarantee for trade transactions, undertaken through this arrangement, is permitted subject to adherence to provisions of FEMA Notification No. 8, as amended from time to time and the provisions of Master Direction on Guarantees & Co-acceptances.

8. Use of Surplus Balance: The Rupee surplus balance held may be used for permissible capital and current account transactions in accordance with mutual agreement. The balance in Special Vostro Accounts can be used for:

Payments for projects and investments.
Export/Import advance flow management
Investment in Government Treasury Bills, Government securities, etc. in terms of extant guidelines and prescribed limits, subject to FEMA and similar statutory provision.

9. Reporting Requirements: Reporting of cross- border transactions need to be done in terms of the extant guidelines under FEMA 1999.

10. Approval Process: The bank of a partner country may approach an AD bank in India for opening of Special INR VOSTRO account. The AD bank will seek approval from the Reserve Bank with details of the arrangement. AD bank maintaining the special Vostro Account shall ensure that the correspondent bank is not from a country or jurisdiction in the updated FATF Public Statement on High Risk & Non Co-operative Jurisdictions on which FATF has called for counter measures.

11. The above instructions shall come into force with immediate effect. AD banks may bring the contents of this Circular to the notice of their constituents and customers concerned.

12. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.

Benefits and Usage of Makhana or Foxnut (Lotus Seed)

मखाना के फायदे और उपयोग

Constituents of Makhana or Foxnut

Based on constituents of Makhana, we can understand about its benefits and usage.

In 100 grams of Makhana (fox nuts), it is observed that calorific value is 350. The major contents are Carbohydrate and Protein. Out of 350 calories, Carbohydrates contributes for 308 calories and Protein contributes for 30 calories. It has an insignificant amount of fats and no trans-fat. Total fat constitutes around 0.1g, total carbohydrate 77gm, and protein 9.7gm in 100gms of Makhana. Moreover, it is high in potassium and provides a little amount of calcium.

There are several benefits of Makhana. Here is the detail of some of them

Reduces Ageing Effect

The inherent property of Lotus seed is to deter the ageing process. It contains the enzymes in high quantity which is useful in preserving and fixing of impaired proteins. Anti-ageing property of Makhana or fox nuts is one of the major advantage.

Good Quality Protein

Makhana/ Foxnuts is a very good source of protein. It is useful for reducing protein deficiency in the body.

Keeping Energetic

Makhana/ Foxnut are very low in Glycemic Index. Low glycemic index means that Makhana slowly and gradually release energy levers in the body so that it keeps you very much energetic throughout the day.

Helps in Weight Loss

Being low in Glycemic Index and low fat, Makhana helps in feeling full and satisfied and which restrains over eating pattern and ultimately helps in weight loss.

Helps in Sleeping

Makhana is very helpful for people those who are suffering from Insomnia. It is a healthier solution and an alternative for this problem.

Help in Digestion

Makhana is very high in fibre content and it good for body metabolism. It is recommended to people those who are having digestion issues.

Makhana Reduces Heart Disease Risk

Makhana contains medical properties which are believed to strengthen the heart and improve cardiovascular function. The content of folate and magnesium reduce the risk of diseases linked with coronary heart diseases.

Good for Pregnant Women

Makhana contains high nutrients which are very good for pregnant women. The high nutrients contained in Makhana are good for pregnant women at high risk of gestational diabetes and hypertension and the high calcium content is very good for fetal development.

Good for Blood Pressure

As Makhana or Foxnut contains high potassium and low sodium, so it is beneficial for anyone with hypertension. It helps in regulating blood.

Helpful in Diarrhea

It is extremely helpful in getting rid of diarrhea. Lotus seeds are known to stop prolonged diarrhea since it contains a high quantity of caustic quality which if consumed, can even improve the appetite

Useful in Arthiritis and Diabetes

Due to high calcium content, Makhana is very useful for persons suffering from arthirits.

The metabolic disorder accompanied by high blood which is the result of inappropriate working of the pancreas, which discharges the insulin hormone. Lotus seed contains vital proteins and starch which is great for the health of a diabetic.

FAQs About AD Code (Authorized Dealer Code)

Q – What is an AD Code?

A – This is a numeric code issued by Reserve Bank of India. AD code is issued to those banks which are dealing in foreign currency or authorized for it.

Q – Is there requirement for AD Code Letter for an Exporter/Importer?

A – Yes. It is mandatory in India to have Authorized Dealer Code Letter for Exporter/ Importer.

Q – What is an AD Code Letter?

A – An AD Code letter is issued by a bank which is dealing in foreign currency to the Exporter/ Importer who is having bank accounts in that Bank.

Q – What are the details mentioned in an AD Code Letter?

A – An AD code letter is issued by the Authroized Dealer Bank mentioned, Name and address of Exporter/Importer, IEC number (which is issued by DGFT), Bank Account Detail, Duration of Account an exporter/Importer having with the bank

Q – Where is AD code letter required?

A – An exporter/importer has to submit this AD code letter to the customs from where export/import clearance is being done. Now, it can be done online by exporter of importer from icegate portal. Step wise detail and guidance is given on this LINK

Q – Why does an exporter or importer need to register AD code?

A – An AD code is require for filing shipping bill or bill of entry. Shipping bill must have AD code detail with bank account number of exporter. If there is any government rebate in taxes/duties or any benefit, it will be passed on the exporter’s account directly.

Q – Can we change/modify AD Code?

A – Yes. We can change/modify AD code through icegate portal on this link https://www.icegate.gov.in/

Incoterms – Explained in a very Simple way

During international transactions it is very important that the selling terms are clearly drawn between the buyer and the seller. Incoterms stand for International Commercial terms. This is the set of rule published by ICC (International Chamber of Commerce). These rules are accepted by the legal authorities around the world. Incoterms states when the risk, cost and tasks transfers from the buyer to the seller.

Exw (Ex works) - Place

Seller – Packing