In international trade, a Bill of Lading (B/L) serves as a document of title for goods, recording key information such as the shipper and consignee.Dual-header bill of ladingrefers to displaying two company names simultaneously in the Shipper or Consignee fields of the bill of lading, typically using formats like O/B (on behalf of) or C/O (care of). This practice is common in trade scenarios involving intermediaries, aiming to meet specific requirements for bank payments, trade contracts, or cargo ownership.
In certain trade situations, banks or trade contracts may require the bill of lading to display specific company names to ensure clarity in payments or cargo ownership. For example, intermediary Company B needs to pay exporter Company A, but the bank requires Company Bs name on the bill of lading to release funds. In this case, using a dual-header (e.g., A O/B Company B) satisfies the banks requirements while maintaining Company As status as the actual exporter.
Depending on trade requirements, dual-headers can appear in either the Shipper or Consignee fields. Below are two common methods:
If the Certificate of Origin also requires a dual-header, the Shipper field can similarly be filled as A O/B Company B. If the local chamber of commerce or inspection bureau cannot issue a dual-header Certificate of Origin, a note can be added below the Goods Description: Shipper: Company B name to meet relevant requirements.
Selection advice: Depending on the actual situation, if Company B is an intermediary that needs to pay Company A and the bank requires Company Bs name on the bill of lading for payment, it is recommended to useShipper dual-header, i.e., A O/B Company B, to meet the banks payment conditions.
Dual-title bills of lading may seem complex but are actually a flexible tool in trade practice. By properly setting dual titles for Shipper or Consignee, they can meet bank remittance requirements while ensuring clear ownership of goods.foreign tradeBeginners should communicate thoroughly with all parties and pay attention to details to successfully complete export operations. This article aims to demystify dual-title bills of lading and smooth your foreign trade journey!
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