Question

7. As a new seller in the international marketplace, transaction risk is a big issue for me. I have heard about a documentary transaction involving a Bill of Lading, but don't know what that means. Please describe it to me. Additionally, I want as little responsibility as possible when it comes to the delivering the goods to the buyer. How can I do this? Explain citing class concepts.

Answer 1

Bill of lading is the receipt that is given by the carrier as the acknowledgement that the goods have been loaded into the carrier. Bill of lading is the document of title of goods where it is the evidence of any insurance claim. Bill of lading is issued in 2/3 for at where orginal receipt is enough to claim the goods as it is one form of contract. Goods are only released at the destination only after submitting the orginaor bill of lading receipt.

These are following parties involved in bill of lading

1) Seller and buyer

2) Notifying person to whom we should notify after the consignment reaches the destination

3) Carrying vessel details

In order for trade ICC set some terms for both seller and buyer which are called as INCOTERMS which every country follows.

There is one Inco Term called as FCA where the seller has minimum responsibility when it comes to deliver goods to buyer.

FCA : Free Carrier

This means the seller deliver the goods upto the carrier mentioned by the buyer. Cost and risk of seller are only upto that point after that buyer responsible to that goods.