A company will have good prestige when exporting the product to other
countries around the world, it also safe the company when domestic market is
weak, even it is not easy to expand international market. Many other
competitors have been doing the same thing aggressively, it needs hard working
in marketing system. Several conditions are needed, beside good standard for
the product. They are consisted aspects or in other word, term and condition of
the transaction as stipulated in sales contract such as:
inspection during loading the container
required as shipping instruction or
letter of credit (L/C)
Latest date of
Shipment with LC payment will need more
complicated description for documentation, if the description is not match,
exporter or shipper has to pay some discrepancies to the bank, just after
getting approval from buyer for the discrepancies. Invoice or facture, packing list and bill of
lading are the most important documents, any other documents are available on
One of the most important document is Bill of Lading or B/L, a legal document between the shipper of
goods and the carrier detailing the type, quantity and destination of
the good being carried. The bill of lading also serves as a
receipt of shipment when the good is delivered to the predetermined destination.
Bill of lading must accompany the shipped goods, no matter the form of
transportation, and must be signed by an authorized representative from the
carrier. Description on bill of lading must be correct to make sure that buyer
or importer or consignee can release the container. So, I just need to say, be
careful with bill of lading, herewith I explain some important points as below:
Asking shipping instruction to buyer after getting down
payment (depending term of payment), but we do not need shipping instruction
from buyer if they pay us with letter of credit because all descriptions are
stipulated in letter of credit.
Sending shipping instruction to the ocean carrier or
forwarding company to make sure that they will issue correct bill of lading.
Asking draft of bill of lading before issuing the original,
we need to check them carefully word by word.
Sending draft bill of lading to buyer and asking their
approval, when they say OK with the draft, we can ask shipping company or
carrier or forwarder to issue the original.
Don’t ever send original bill of lading to buyer if he does
not settle full payment yet. This is especially for buyer that making payment
using TT, because if we send it without full payment, then he can release the
containers. It is enough sending copy of bill of lading after getting approval
on its description, make sure that we send it after payment reach our account.
We have to send original Bill of lading to our bank, if
payment is using letter of credit. After buyer signs letter of acceptance and
getting documents, his bank will send the payment to our bank. Usually bank requires original ocean bill of
lading for our presentation and reject other kinds of bill of lading.
We can use other
kind of bill of lading namely express bill of lading if buyer pays us 100% where
letter of credit is not involved. When working with express bill of lading, we
need only copy by email or fax and not need original bill of lading to release
the cargo. Express bill of lading will
save time, avoid additional paperwork, no need courier cost and will avoid any
demurrage cost at port of destination. The important thing that we should know,
express bill of lading is not accepted by all countries and shipping company, we
will need confirmation before we do it. Ocean carrier or forwarding agent or
shipping company at port of shipment sends instruction release to their agent
at port of destination after getting our instruction only. When telex release
has been done, we have no control on the goods anymore and consignee can
release the cargo.