Posted on 10 April 2023 Category : Bill of Lading
The information provided here is part of Import Export Training course online STALE BILL OF LADING What does it mean? When does a Bill of Lading become Stale? I have written a couple of articles in this web blog in detail about the importance of Bill of Lading, it’s function and mechanism in international business. Now, let us discuss about Stale Bill of Lading (Stale BL). What is Stale Bill of Lading? How does Stale Bill of Lading work? Is stale bill of lading acceptable by negotiating bank, discounting bank, buyer’s bank or buyer? Before explaining about stale bill of lading, let us have a brief idea about the time of releasing bill of lading. When can a Bill of lading be issued? Bill of Lading can be issued immediately up on completion of export customs clearance formalities of the country. If ‘ON BOARD’ bill of lading is required, shipper can release bill of lading from carrier immediately up on the shipment gone on board the vessel. Once after releasing bill of lading from shipping carrier, exporter submits the same with his bank along with other documents to send to his overseas buyer. Now let us discuss about Stale BL What is Stale BL? A Bill of Lading can be treated as ‘Stale’ , if it is presented long after sailing of vessel pertaining to a shipment at port of loading. Such presentation of Bill of Lading could be with the Supplier’s Bank, Discounting Bank, Negotiating Bank, Buyer’s Bank or buyer. The term ‘Stale Bill of Lading’ is also used when a bill of lading is presented with a bank after expiry date of credit.
According to international commercial practice, Bill of Lading along with other shipping documents must be presented to the bank not later than twenty one days of the date of shipment as given in the Bill of Lading. In some cases, the Importer may indicate the number of days within which the documents are to be presented from the date of shipment. Exporter has to comply with the stipulation period of time indicated. Otherwise, the Bill of Lading becomes stale and is not accepted by the bank for payment. A stale bill is one which is tendered to the presenting bank so late a date that it is impossible for the bank to dispatch to the consignee’s place, in time, before the goods arrive at the destination port. In other words, bank finds it impossible to see the documents reach before the ship reaches the destination. Here, Bill of Lading reaches after goods reaches at destination. If a bill of lading presented to consignee or a bank after the last date specified in the documentary credit becomes stale. So a Stale Bill of Lading can be rejected by the bank where in such Bill of lading is presented for negotiation under documentary credit.
In this article, I have exaplained about Stale Bill of Lading in simple language to understand easily. Have you satisfied with this article about Stale Bill of Lading? Would you like to add more information about Stale Bill of Lading (BL)? Share your experience in handling Stale BL.
Discuss below your thoughts about Stale BL.
The above information is a part of Online Training Course on howtoexportimport
STALE BILL OF LADING What does it mean? Difference between Clean On Board Bill of Lading and Shipped On Board Bill of Lading. Can Original Bill of lading be surrendered under DP terms of payment Can Original Bill of lading be surrendered under LC at sight Can Bill of Lading be surrendered on LC terms How to obtain a duplicate BL, if original bill of lading lost? Can a Bill of Lading be consigned to a customs broker? Can I get bill of lading before loading cargo Can two consignments meant for one buyer be shipped together under one Bill of Lading? Consignee To Order in Bill of Lading How to avoid delay in receiving OBL Original Bill of Lading? Amendment of Bill of Lading How to amend shipper details in Bill of Lading?. How to surrender HBL House Bill of Lading Surrender of Bill of Lading Some facts. How does Bill of Lading work in Sight LC. How does Bill of Lading work in DP payment terms? Can a Bill of Lading (BL) be predated for LC negotiation? What is the earliest date can be mentioned on Bill of Lading. Can BL date and let export date be same day? Can shipping line predate Bill of Lading,What is the earliest date can be mentioned on Bill of Lading. What is Said to weigh in Bill of Lading What is Shipper Load, stow and count in Bill of Lading What is said to contain in Bill of Lading. Can an importer take delivery of goods without original bill of lading? What is House BL House Bill of Lading Can Bill of Lading (BL) be before date of Certificate of origin GSP? What is Express Release Bill of Lading? Can Bill of Lading be surrendered at port of loading? Transferability of Bill of Lading What is charter party bill of lading ? How transshipment bill of lading works? What is Combined Bill of Lading / Multi model Bill of Lading Unclean Bill of Lading/Claused bill of lading/foul bill of lading/Dirty Bill of Lading What is Clean on board Bill of Lading? Is received for shipment Bill of Lading sufficient for LC negotiation? Different types of Bill of Lading 3 Reasons under Importance of bill of lading in international trade When can an exporter get bill of lading from shipping company?
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Comments
As an expert with extensive knowledge in international trade, particularly in the field of Bill of Lading and related concepts, let me delve into the information provided in the article dated 10 April 2023 about Stale Bill of Lading (Stale BL).
Understanding Stale Bill of Lading:
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Definition of Stale Bill of Lading:
- A Stale Bill of Lading refers to a situation where the document is presented long after the vessel's departure from the port of loading.
- It can also occur when the bill of lading is presented after the expiry date of the credit.
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Time of Releasing Bill of Lading:
- A Bill of Lading can be issued immediately upon completion of export customs clearance formalities.
- For an 'ON BOARD' bill of lading, it can be released once the shipment has gone on board the vessel.
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Presentation to Banks:
- After obtaining the Bill of Lading from the carrier, the exporter submits it to their bank along with other necessary documents for overseas buyers.
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Stipulated Presentation Period:
- According to international commercial practice, the Bill of Lading must be presented to the bank within a specified period, often not later than twenty-one days from the date of shipment as stated in the Bill of Lading.
- Non-compliance with this stipulated period renders the Bill of Lading stale.
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Consequences of a Stale Bill:
- A stale bill is one that is presented so late that the bank cannot dispatch the documents to the consignee's location before the goods arrive at the destination port.
- It may be rejected by the bank for payment if presented after the specified time.
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Rejection by Banks:
- A Bill of Lading becomes stale and is not accepted by the bank for payment if presented after the stipulated period.
- The bank finds it impossible to ensure the documents reach the consignee before the goods arrive at the destination.
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Handling Stale Bill of Lading:
- A Stale Bill of Lading can be rejected by the bank when presented for negotiation under a documentary credit.
Related Concepts Discussed in the Article:
The article also touches upon various related concepts in international trade, including:
- Clean On Board Bill of Lading vs. Shipped On Board Bill of Lading
- Surrender of Original Bill of Lading under DP and LC terms
- Amendment of Bill of Lading
- Transferability of Bill of Lading
- House Bill of Lading (HBL)
- Express Release Bill of Lading
- Types of Bill of Lading (BL)
- Importance of Bill of Lading in international trade
The information provided in the article is valuable for professionals involved in import-export operations, freight forwarding, and banking transactions related to international trade. If you have any specific questions or would like further clarification on these topics, feel free to ask.
