Transportation Mode and Respective types of Bill of Laden

In shipping, there is various transportation mode such as Ocean (sea by ship), Air (by aeroplane), Land (truck and train). All of these modes have distinct tools of application at different times for different purposes. One such tool is the Bill of Lading. 

Some of our clients who have come across a BOL for the first time have asked for clarity. We already have a post you should check if you need to know. In today’s post, you’d be acquainted with various transport mode and their respective types of bills.

Table of Contents

·         What is A Bill of Lading?

·         Bill of Lading by Transport Mode

o    Ocean Transportation

§  Types of Ocean Bill of Lading?

o    Air Transportation

o    Air Transportation

What Is A Bill Of Lading?

In one word, a Bill of Lading is a ‘receipt’. It is a legal document or contract between the carrier and shipper. It carries details of the type, quantity, and destination of goods being carried. When a carrier receives a shipment, it is important he obtains a document which must state that the receipt of the shipment. Information about the shipper, the receiver and other necessary information about the shipment are stated clearly.

Bill Of Lading By Transport Mode

We have three (3) major mode of transportation.

·         Ocean Transportation

·         Air Transportation and

·         Land Transportation.

Ocean Transportation

In sea shipping, there are several types of Bill of Lading. An Ocean Bill of Lading is issued whenever a carrier uses sea transportation.

Types Of Ocean Bill Of Lading?

An ocean bill of lading is an agreement between the shipper and the ocean carrier. The document acts as a carrier receipt to the shipper. The bill contains every detail of goods that are being transported. This document is submitted to shipper while picking up goods. The shipper later gives it to the receiver on the delivery of goods.

We limit our findings to 4 major BOL. They are as follows:

i. A Straight Bill of Lading: This type is used for shipping items that have already been paid for. Such shipments may be donations or gifts and don’t require payment It is a non-negotiable form of BOL addressed to the buyer directly. Due to its non-negotiable nature, it cannot be assigned to anyone but that party. This helps in the correct delivery of the goods.

In this type of BOL, it is only the person whose name appears on the bill that can claim the goods.

ii. Shipper’s Order Bill of Lading: Used for shipments ordered but payment not made in advance. This can be shipping to one of your distributors or a customer on terms. In other words, the ‘Order BOL’ is used when the goods are sold on credit, to either a distributor or the customer. It is addressed “to order” or “to order of [a party]” instead of the buyer.

The shipper’s order bill of lading is commonly used when the purchase of goods is covered by a letter of credit or if the goods are expected to be traded on a mercantile exchange while the shipment is still in transit.

iii. Clean Bill of Lading: This type of bill is not issued unless the receiver receives the goods in good condition. In order words, if the goods received are confirmed to have been damaged or with flaws, the Clean BOL is never issued.

It is issued to that the shipping carrier signs off to indicate that at the time the packages were loaded they were in good condition. On the contrary, if the products or shipment are flawed, a “Soiled Bill of Lading” or a “Foul Bill of Lading” are issued instead.

iv. On-board Bill of Lading:  As the name implies, this is one major Ocean Bill of Lading which is issued when the cargo is placed in a vessel. On this, the master of the vessel signs this bill of lading. In a nutshell, it verifies that goods have been placed on the cargo vessel.

Read Also: Sea Freight Shipping, a cheaper Mode of Transportation

Air Transportation

In Air shipping, a recognized name for Bill of Lading is Air Way Bill. There is a clear difference between an Air Way Bill and a Bill of Lading, even though they both serve similar purposes.

An Air Waybills or AWB, as implied is issued when goods are transported by air. This document accompanies goods shipped by an international air courier.  It provides detailed information about the shipment and allows it to be tracked.

An Air Waybill is a type of Bill of Lading that serves, also, as a receipt of goods, but by Air (not Sea).

Just like some types of Ocean Bill of Lading, the Air Waybill is non-negotiable. When Cargoes arrives at the airport of destination, they are immediately handed over to the consignee or some times, the customs clearing agents for customs clearance and final delivery.

Air waybills, therefore, serve only as:

·         A cargo receipt whose function is to show that the carrier has received the shipment

·         A contract of carriage

·         Delivery instructions, if special handling is necessary

However, based on some conditions, the airway bill may be consigned to a bank, if items or goods are shipped under a letter of credit or where the shipper chose to use his bank to collect payment for goods prior to release to the consignee.

In such cases, the consignee must pay the bank, who in turn provides a bank release to the airline to authorizing the carrier to release the goods. This process typically takes several days during which the goods will sit at the airline warehouse and possibly incur demurrage.

Read Also: Why Air Freight Shipping is Considered Best Alternative

Air Transportation

Tags:

·         Air FreightBill of LadingSea FreightShipping document

First time exporter? Do these things before you start Export Business

Hold it a bit, until you are through with reading this post if you are a first time exporter. Yes, don’t start your first export yet, if you do not understand the basic things needed to be up and running an exportation business. Without proper guidance, you will be exposed to a 90% possibility of losing your hard-earned investment.

At this point, there is a likelihood of being unsure how to start, where to start from, what to export, what to put in place, or who offers you professional guides. Above all, what happens to you or your consignment should they arrive at their destination abroad. Most of all, urgency? What medium should be best? Export by Air Freight? by Sea Shipping?

All aspect and stages matter a lot in this business and deserve to be taken with all carefulness.

Would you find these essential tips useful? Why not check it out later. This post was put together as a follow-up post.

Remember, so much money is involved, you don’t want to lose them cheaply. The challenging nature of importation and exportation businesses cannot be over-emphasized.

That being said, it is imperative to gird your loins well enough to avoid errors yielding as a result of unpreparedness. It becomes important because this is an international business. At such, it demands that everyone, whether experienced or first time exporters have a deep understanding of all processes. You have to understand the market you are exporting to. There are several rules and regulations to be adequately acquainted with through consistent study.

We put together 8 essential points you need to act on before you start export business.

Understand All Export Documentation Required

In order to avoid delay in shipment, avoid increased cost of shipping, or avoid a repeat in a supposed foregone process of exportation, you must understand documentation requirement.

As an importer or an exporter, you can never complete your business without going in contact with customs clearance. Regardless of the varying countries, every country has a requirement that must be met, checked and approved for movement. A wrongly labelled consignment, intended for Canada, for example, whereas its destination is the US, experiences a high chance of loss.

Before you start an export business, you must be very careful with processes. You really need to acquire knowledge and be well acquainted with the Harmonized System (HS) codes. It helps importers and exporters classify their goods correctly.

Also ensure proper labelling of your consignment, if you do not want to encounter a delay in shipping, avoid high cost of shipping or repeat the processes over again, thereby wasting precious time.

To avoid the unexpected, you most especially need to pay attention to paperwork and include all necessary documentation.

Read Also: Exporting Farm Produce from Nigeria to the US

Check, Organise And Manage The Export Data

Everything about freight forwarding has gone automated. In the digital age, quite a lot is taking a new and better turn. Understanding this is as good as knowing how to manage and organise your export-related data, which can play a major role in running a successful shipping business.

The ultimate effect of this adoption is that with cloud-based data management, you have your data more properly stored. This guarantees security which helps eliminate access to your data by unauthorized persons, wielding off unwarranted damages.

This has drawn a thick line, placing the manual paper-based process of data management in the place of extinction. So, with the digital atmosphere, you are free from errors and time-wastage processing data. It saves a lot of time, money and effort, while giving aid to increase in productivity.

Interprete The HS Codes Effectively

HS Code stands for Harmonized System Code. It was developed by the World Customs Organization (WCO) as a multipurpose international product nomenclature that describes the type of good that is shipped. It became a tool for international trading owing to general acceptability by organizations around the world.

Though it is tricky to interpret, even as an experienced exporter, this does not pave the path for non-compliance, as the Codes are overtly required for your export business.

The effect of inefficiency in knowing or interpreting the HS Code engenders improper usage. This, as a result, can be responsible for improper issuance of customs tariff, therefore increasing the cost of the transactions. Apart from that, improper usage of the HS Code can land a careless exporter in serious legal penalties for “non-compliance, misleading or misdeclaration.” Most of the time, it leads to the seizure of goods, thereby defeating the very purpose of the exporter’s business.

So, as a first time exporter, you’d want to be careful and well informed. Involve an expert on the field, or contact a qualified professional Customs Licenced Agent for advice on the correct HS codes to use.

You May Also Like: 11 Key Functions of the Nigeria Export Promotion Council

Acquaint Yourself With The Export Rules

Export Rules and Regulations vary by countries. As a first time exporter, you need to have an understanding of the legal and compliance regulations of the country(ies) you are dealing with. You can find most of this information on the respective government organization’s website. 

You want to ensure quality foreign trade relationship with a country, then it is essential that you get along with their policies, and ensure to avoid any legal issues. 

To ensure that, try to get a deeper understanding of their legal and compliance regulations. You can find most of this information on the respective government organization’s site. They maintain a list of denied parties with which you can’t indulge in any export business unless you have a valid license.

This Might Interest You: Most Common Mistakes Importers Make and How to Avoid Them

Check The Applicable Tariff And Fees Beforehand

Whether you are an experienced or first time exporter, once your consignment clears the customs in the destination country, there are additional fees charged. These fees are known as Applicable Tariff and Fees. There is a need to understand who pays for what charges therefore, necessitating the importance of checking the applicable tariff and fees ahead of time.

One other notable effect of this is that it mostly increase the cost of your product and create a scene of competitiveness in the market. This is why you must know your final cost, weighed in along with the current exchange rates that are applicable for that market.

The tariff rates on international shipments usually depend either on the country’s bylaws or on the globally recognized HS codes.

Conclusion

Exportation business in Nigeria is a lucrative business. One of the reason is that the profit you are making from the business is in hard currency (Dollars, Pounds or Euro). The problem here is that some people want to go into exportation business but they do not know the product they can export apart from the oil-related product or where to export and how they can export this product in other to make profit.

As a first time exporter, you won’t want to begin your journey recording losses as a result of limited information or inadequate guidance. There is actually no need starting off without first acclimatizing with industry best standard.  The above points are one of, first things to put into consideration, to familiarize with the entire process of exportation business.

See This: Shipping from China to Nigeria

Contact Bowagate Global Limited Today

Want to learn more about Sea Freight Shipping, Air Freight Shipping? Or you wish to talk to us about your Exporting your next consignment?

Give us a call: (234) 814 7068 472 during business hours or send us an email via info@bowagateglobal.com.  

Bowa Gate Global Limited offer Affordable, very fast (swift) and reliable quality cargo services that include Import, Export, Freight, Clearing/Customs Duty Brokerage, Groupage Freight, Warehousing, Consolidation, Air Freight Consolidation, Shipping Globally, Door to Door Freight Shipping, etc. 

Request a Quote here. For more information, you may use our contact form here. To have a chat with us directly via Whatsapp, click here.

11 Key Functions of the Nigeria Export Promotion Council

Without correct knowledge of what the Nigeria Export Promotion Council (NEPC) stands for, and its function, going into exportation business would be as good as impossible, a venture to attempt.

We deem it appropriate to begin from the most important part in order to determine for you how best to go about your importation business. Or at least, you’ll have little or no difficulty taking care of your exportation business, yourself.

So, therefore, we would like you to read this post to the end and bear in mind, all adequate information about the Nigerian Export Promotion Council (NEPC).

In this post, we put together some key functions of NEPC, a governmental body for exportation business. There might be more, please use the comment box to express your opinion on the subject matter. And if you need help with other information about our services, we are more than ready to work with you.

What NEPC Stands For In Exportation Business

The Nigerian Export Promotion Council (NEPC) is the government agency responsible for regulation, promotion, recording and monitoring of export trade in the country. It is the organ which the government uses to implement its export policies and strategies. NEPC is usually in charge of distribution and redistributing incentives when new exportation policies and incentives for exportation are given out by the government.

The NEPC was established in and has its offices across Nigeria. Established as a service unit to offer funding and support to indigenous manufacturing companies and other companies. Most especially the companies that produce exportable products so that they can get their products into the export market easily.

They make it easier for exporters to access the foreign market, identify products that can be exported, understand standardization, specifications and packaging requirements.  

Related: Essential Tips on Exportation  

The governmental body became even more active under the democratic dispensation. As an exporter, there are several ways through which the NEPC can help and protect your export business.  

Some of this include-:

1. Provide a list of Exportable Products: If you are just considering going into export business but you are unsure of what to export; you can visit the NEPC’s website. There, you would find a long list of products that you can export and the countries you can export to.

You may also check out these lists of items that are exportable from Nigeria to other parts of the world. However, if you need to see an export business expert, get in touch with Bowa Gate Global Limited. If you have an existing business, you can also find out where you can start exporting your products through the NEPC.  

Read Also: Exporting Farm Produce from Nigeria to the US  

2. They Provide Technical Support to Exporters in the following areas:

·         Ensure proper documentation of export transactions: Proper documentation is very important in exportation because it shows proof and provides a legal basis for transactions. The NEPC would let you know which documents you need, how to get them, the need for those documents as well as the places to send the documents to.

·         Business Registration: Before you can carry out exportation business; you have to register with the NEPC. This registration is beneficial for you because the NEPC maintains a database of all Nigerian exporters that overseas buyers can use to find legitimate suppliers. That opens ups another avenue for buyers to reach you and buy products from you.

·         Quality and Standards: The NEPC also monitors the quality and standards of products goings out to ensure that they are of high quality. Payment -: The agency also helps you suggest the best and most secure payment methods.

3. Bring Exporters together: The NEPC also creates an avenue for exporters to come together under one umbrella to relate and discuss issues related to export promotion and development. It makes it easier for exporters to network with one another.

4. Provides information on product sourcing: If you are unsure of where to get particular products for export, you can ask the NEPC for help. They would be able to give you information on where to find the products you are looking for in Nigeria.

Image from Ships and Ports

5. They Administer Grants and Incentives: If you are registered with the NEPC, then you can easily access some of the grants and incentives that the government doles out regularly to help exporters in the country. Exporters of agricultural products receive a lot of incentives from the government regularly.

6. They also help to simplify the export procedure: If you are new into exportation, it’s easy to get confused and misunderstand the procedure; a visit to the office of the Nigeria Export Promotion Council would help to enlighten you and put things in perspective. The NEPC can assist you such that you don’t have to go through some so-called ‘export gurus’ who charge you thousands just to train you on how to start an exportation business.

7. They Organize Trade Fairs and Exhibitions: The NEPC also helps to organize and facilitate the participation of Nigerians in international trade fairs and exhibition events. If you are registered with the Nigeria Export Promotion Council and have a solid or innovative product; the NEPC can facilitate your participation in trade fairs and exhibition programs.

Read Also: Why Air Freight Shiping is Best Alternative Mode of Shipment for Importers & Exporters

8. They Carry out research and studies: The NEPC also carries out regular studies and research into matters concerning exporters and factors that may affect/influence exportation in Nigeria. As an exporter, you can benefit greatly from such research and studies.

9. They Create Awareness and Publicity: The NEPC also does a lot of local and international advertisements and promotions which is also directly beneficial to you as an exporter.

10. Help to Solve Problems: If at any point in your export business you encounter some challenges or problems; the NEPC is your go-to agency for complaints and solutions to your challenges. If you want to find out if a company/overseas buyer is legitimate or not; you can contact the Nigeria Export Promotion Council who would help you investigate through the buying country’s embassy.

11. They Provide Financial Support: Lastly, you can get financial support through the NEPC; although the NEPC might not be able to give you direct loans, they can provide useful information on where to get loans easily for your export business. They may also be able to guarantee a loan for you.  

Selected for you: What you need to know about Customs Clearance in Nigeria.  

Conclusion

The roles exportation plays in boosting a nation’s economy and its importance cannot be over-emphasized. The functions of the Nigeria Exportation Promotion Council (NEPC) are great values to exporters. There is a great need to be acquainted with its functions. These functions apply to both new and experienced exporters in Nigeria.

Contact Bowagate Global Limited Today

Want to learn more about Sea Freight Shipping, Air Freight Shipping? Or you wish to talk to us about your Exportation Business?

Give us a call: (234) 814 7068 472 during business hours or send us an email via info@bowagateglobal.com.  

Bowa Gate Global Limited offer Affordable, very fast (swift) and reliable quality cargo services that include Import, Export, Freight, Clearing/Customs Duty Brokerage, Groupage Freight, Warehousing,Consolidation, Air Freight Consolidation, Shipping Globally, Door to Door Freight Shipping, etc. 

Exporting Farm Produce from Nigeria to the USA

If you have not already started to export farm produce from Nigeria to the US to other parts of the world, then you are leaving money on the table. This is the time to get involved in the exportation of farm produce, especially during ‘-ember’ months.

Introduction

Prior to the oil boom in Nigeria, Agriculture has been one of the Nigeria major economic drivers. This boom turned Nigeria to a mono-economic country, relying only on crude oil as her major source of revenue. 

But in the long run, there arose the volatility in oil price and uncertainty of the global economy. This compelled the government to diversify towards other areas for revenue generation, with Agriculture as the topmost evergreen opportunity.

This diversification has led to much talked about ‘non-oil export’. In essence, something else other than oil export that can foster a robust revenue generation in the country. 

In the opinion of Chief Segun Awolowo (The Former Nigeria Export Promotion Council boss), “It was regrettable that Non-oil export trade between Nigeria and USA has remained abysmally low at 2%.” Mind you, we have in another post the key functions of the Nigeria Export Promotion Council (NEPC). 

He expressed that the government had set up a Committee for Export promotion to be chaired by the Vice President of the Federal Republic of Nigeria, to boost productivity in the nation non-oil export in a bid to get goods exported to the US, with ease.

This is the time to take advantage of the rising opportunity by starting a small scale export business in Nigeria. In a future post, we’d be revealing our discoveries on how you can effortlessly export foodstuff from the shores of Nigeria to the United States of America and to other parts of the world. 

Exportation of local goods, foodstuff or handmade products from Nigeria to overseas is one business of the many small and large scale businesses available, where you can generate as much as 5 times what is obtainable here in Nigeria, selling same local products.

Today’s post is not about the biggest exportation business, which we all know as mostly being dominated by top business tycoons or the Government, for example, crude oil exportation, petroleum exportation.

We want to show you how lucrative the exporting farm produce is and how you can leverage it effectively. It’s no more news that you can also export your farm produce from Nigeria to any parts of the world as the Nigerian government has now given expressed supports by way of providing loans and other means to aid startups in the country.

The agricultural business may have initially been overlooked, but now…?

“… it is the much go-to venture if you want to create a business that can generate over 200% return on investment.”

Meanwhile, just as it is possible to export agricultural products for business purposes, you may also send food items to your family and friends in the diaspora, for consumption. This is a clear indication that in as much as there are implications to it, there are however more to benefit from this evergreen.

Read Also: Common Mistakes Importers Make and How to Avoid them

Let’s first start with what export is.

What Is Exportation And Who Is An Exporter?

Export, in simple term, means to ship goods and services out of the port of a country. It refers to all the process involved in selling goods and services produced in the home country to other markets, usually international.

An Exporter is known as the seller of the goods and services being moved beyond the country of export to another country. The buyer of any goods and services from the country of import is known as an Importer.

Export of commercial quantities of goods normally requires the involvement of the customs authorities in both the country of export and the country of import.

How Can You Leverage This Exportation Goldmine Opportunity?

In this post, you get to gather 3 simple steps you must take before you begin to export farm produce from Nigeria to the US. Exporting Farm Produce from Nigeria is one business, of all, where you can generate as much as 5 times what is obtainable in sales of the same products here in Nigeria. 

But it requires quite a lot to become successful.

 You have to understand the market trend and get familiar with high-demand products in the US or any part of the world. This would give you a better chance of making profits in the business. Besides, you have to take some significant steps, which without, you may land your business in ‘shambles’

To leverage on this business opportunity, the following 3 steps are very important to note before you begin. 

·         Do a Thorough Research

·         Register your Export Business

·          

1. Do A Thorough Research

The export business is broad and requires a reasonable decision. This requires lots of serious research. Find out about how to establish contacts, check on market satiation, best means and approach to advertisement and promotion of the same product, research on capital/startup cost, as well as research on best means of transportation. 

You would want to ensure you have the right freight forwarder, Check on the most convenient shipping companies or flight cargoes, the legal requirement (what kind of documents you need before you start.

Research on high-demand product outside Nigeria

High demand products of great needs and best selling. There are several factors used in determining how to find such products. Some determinable factors are as follows: 

1.     Find out how lucrative such products are, 

2.     What location in the world would have high demands for the products, 

3.     The cost of producing the products and also, 

4.     How you can source the products and make them available to overseas customers who are already waiting for the products

Research on Best Shipping/Transportation method

Another important consideration is transportation. You want to get the most reliable means of transportation to convey your goods out of the country. Would you be shipping by sea freight, Air Freight, or other available modes? What shipping companies would be more reliable for us.

You want to ensure proper channels for this aspect as it applied to other areas. 

Research on Legal Requirements & Documents needed

Your company is required to meet up with some legal requirements and other important documents before venturing into exportation business. Ask questions about the proper documents to set in place before exporting from Nigeria to any parts of the world.

So, for smooth passage, we put together documents you need to have in place for your export business. So, which of the documents below are more important for you? 

·         The Commercial Invoice: This type of document is provided by the exporting company. It serves as a customs declaration for exporting the products outside your country or overseas. 

·         The Cargo Bill: This document plays the part of a receipt detailing a list of ship cargo, usually given by a captain of the ship to the person who ships the goods. 

·         The Consular Invoice: As the name implies, this document is required to be submitted to the consulate or embassy of the country where the goods are to be exported. It is an important requirement. 

·         Certificate of Origin (CO): This is a document that is provided by the exporter indicating the origin of goods. It shows where the products were made and packaged.

·         The Inspection Certificate: This is one of the most important document. Without this document, exporting those goods would definitely not be possible. This document helps in certifying that the products being shipped were in perfect condition at the time of inspection. This is required in many countries to help limit the movement of contraband goods/products.

·         The Dock Receipt: The document is issued by the sea freight carrier to prove that your goods are at the carrier’s shipping terminal. 

·         The Warehouse Receipt: This document is issued when goods are stored in a warehouse. It is proof-document which states the ownership of export goods stored for safekeeping. It is a negotiable document anyway. 

·         The Destination Control Statement: This is a document that serves the purpose of notifying the carrier and other foreign parties that the item can be exported but only to particular/certain destinations. It may be issued as part of the commercial invoice, air waybill or ocean. It can be also in the Shippers Export Declaration (SED).

·         The Insurance Certificate: Insurance is a document which provides information on particular insurance coverage in case of any emergencies. You would have to prepare an insurance certificate for your shipment. The certificate is your proof of insurance policy and usually contains some detailed information on types and limits of insurance coverage, your insurance company’s contact information, policy number, and the insurance’s expiration date.

·         The Export License: Once you begin to export any products from Nigeria, it is desirable for you to get a license from the government agencies. This document will be good evidence of legal business for your customers. These are the ten documents, which any exporter should have before starting the export business and shipping the goods abroad. But before you move to documents part, you still need to decide what to ship! 

Register Your Export Business

3.     Search for Foreign Customers

Contact Bowa-Gate Global Limited for more professional supports

The export business is broad and requires a reasonable decision. Any attempt to jump in without an adequate guide can sink all your capitals just before your goods leave the country.