Goods description in B/L - how accurate are they?
Post 1 of 4
My understanding is that shipping agents/companies only take a container stuffed by the exporter and issue a B/L with details as instructed by the exporter. The shipping agents/companies are not in anyway legally responsible for the correctness and accuracy of the goods description as stated in the B/L.
Let's take an extreme example: An unscrupulous exporter loads rubbish in a container, seals it and then informs the shipping agent to issue a B/L for a container of new computers. If this is possible then calling for a B/L in an L/C seems to be just more of a standard trading practice (and psychological comforting factor for the importer) rather than really useful at preventing fraud.
Or have I misunderstood the industry practice?
Thanks.
[Of course, an importer can always call for independent surveying of the loading of the container. But let's restrict our discussion to the more common situation - NO independent surveyor's service is engaged.]
Let's take an extreme example: An unscrupulous exporter loads rubbish in a container, seals it and then informs the shipping agent to issue a B/L for a container of new computers. If this is possible then calling for a B/L in an L/C seems to be just more of a standard trading practice (and psychological comforting factor for the importer) rather than really useful at preventing fraud.
Or have I misunderstood the industry practice?
Thanks.
[Of course, an importer can always call for independent surveying of the loading of the container. But let's restrict our discussion to the more common situation - NO independent surveyor's service is engaged.]
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08 Dec 2006 03:00
Post 2 of 4
Replying to [kai1]:
This is the "Usaul" practice as a shipping agent.
It is 1 of the many terms and conditions spelled out clearly on the back of all copies of the Original Bill of lading. Do read up the terms & conditions on the back of the Bill of lading, there are many clauses that is "UNFAIR" to the shipper/consignee.
Also, one may notice this terms on the description:
"Shipper Load, stowed & count"
All these clauses are to protect the shipping company from any laiblities, claims from shippers or consignees. As the shipping company can't possibly be supervising the loading or unloading of the containers.
Even in the event of total lost of container, regardless of actaul goods as decleared or otherwise, there is a limitation of the claims against the shipping company. A few US dollars a kg.
And the claim procedure are time consuming and lots of channels to go through with lots of supporting documents to be submitted should there be a claim against the shipping company. (This is only the 1st step)
The shipping company's claims department would reject the claims and divert the claims to the shipper's/consignee's insurance company.
Should the shipper/consingee successfully claims against the insurance company, then the insurance company would then claim against the shipping company.
The above is the "shorten" version of the whole claim procedure, the actual claims can drag on and on for months some times years depending on how big the amount and how complicated the claim is.
Hence, is important and essential to have independent surveyer and insurance in place for shipments. Or at least, find out more about the company you are dealing with.
For your info, I did came across such case before, they shipped rocks and decleared as T.V. sets.
This is the "Usaul" practice as a shipping agent.
It is 1 of the many terms and conditions spelled out clearly on the back of all copies of the Original Bill of lading. Do read up the terms & conditions on the back of the Bill of lading, there are many clauses that is "UNFAIR" to the shipper/consignee.
Also, one may notice this terms on the description:
"Shipper Load, stowed & count"
All these clauses are to protect the shipping company from any laiblities, claims from shippers or consignees. As the shipping company can't possibly be supervising the loading or unloading of the containers.
Even in the event of total lost of container, regardless of actaul goods as decleared or otherwise, there is a limitation of the claims against the shipping company. A few US dollars a kg.
And the claim procedure are time consuming and lots of channels to go through with lots of supporting documents to be submitted should there be a claim against the shipping company. (This is only the 1st step)
The shipping company's claims department would reject the claims and divert the claims to the shipper's/consignee's insurance company.
Should the shipper/consingee successfully claims against the insurance company, then the insurance company would then claim against the shipping company.
The above is the "shorten" version of the whole claim procedure, the actual claims can drag on and on for months some times years depending on how big the amount and how complicated the claim is.
Hence, is important and essential to have independent surveyer and insurance in place for shipments. Or at least, find out more about the company you are dealing with.
For your info, I did came across such case before, they shipped rocks and decleared as T.V. sets.
08 Dec 2006 06:10
Post 3 of 4
Replying to [kai1]:
Thanks. I understand the position shipping companies/agents: They cannot possibly ensure/verify the correctness/accuracy of the information given by the exporter with regard to the cargo. I believe this is practice since shipping industry started...
My curiousity is this: If a B/L is never meant to be a fraud preventing document, then why do many importers seem to have the idea that a B/L is the "bible truth". Don't they realise that an unscrupulous exporter can instruct shipping companies/agents to write anything and everything that the exporter wants?
Regards.
Thanks. I understand the position shipping companies/agents: They cannot possibly ensure/verify the correctness/accuracy of the information given by the exporter with regard to the cargo. I believe this is practice since shipping industry started...
My curiousity is this: If a B/L is never meant to be a fraud preventing document, then why do many importers seem to have the idea that a B/L is the "bible truth". Don't they realise that an unscrupulous exporter can instruct shipping companies/agents to write anything and everything that the exporter wants?
Regards.
09 Dec 2006 19:01
Post 4 of 4
Replying to [kai1]:
Normally, when an exporter books a container, he tells the shipping agnet what he wants to ship. The empty container is then delivered to the exporter's address, where it is loaded, doors closed, and sealed.
This is why you will see on all BLs the words "shippers load, count and seal" which means the shipper loaded the container, counted the goods, sealed the container, and is therefore responsible as to what and how many are shipped.
If he declares new computers and ships rubbish instead, he can do so, and the shipping company is not responsible. After all, they are contracted to just transport the Container, NOT what's in it.
![[em3]](http://img.alibaba.com/images/eng/style/icon/emoticons_grin.gif)
Normally, when an exporter books a container, he tells the shipping agnet what he wants to ship. The empty container is then delivered to the exporter's address, where it is loaded, doors closed, and sealed.
This is why you will see on all BLs the words "shippers load, count and seal" which means the shipper loaded the container, counted the goods, sealed the container, and is therefore responsible as to what and how many are shipped.
If he declares new computers and ships rubbish instead, he can do so, and the shipping company is not responsible. After all, they are contracted to just transport the Container, NOT what's in it.
09 Dec 2006 21:34
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