Making an Export Shipment 1

lading, copies, carrier, consignee and bank

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23. The bill of lading.—The shipper must now make out the bills of lading upon forms supplied by the carrier and present them for signature. The de tails of the bill of lading are discussed in another chap ter of this Text.

The accompanying reproduction of a typical bill of lading should be carefully studied by the reader. The carrier is liable, as will appear from the excep tions noted, only when the vessel is unseaworthy, either as to hull or crew, and when negligence in stow ing or loading can be proven. The number of copies which must be prepared is determined by the number required by the consul, the shipper and the carrier.

In the case of a shipment to Argentina, for ex ample, three copies are required to be certified by the consul for which a fee of. $2 is charged. These certi fied copies are signed by the carrier and indorsed by the shipper and become negotiable bills of lading. In all, probably eight copies will have been made out. The three negotiable copies will be attached to the draft offered to the bank for collection, the five non-negotiable copies are disposed of as follows : two to the carrier, one going to the captain, the other being filed in the steamship office; one to the consul; one retained by the shipper; and one sent to the consignee.

The steamship company will not sign any bills of lading unless the dock receipt covering the shipment is returned and unless all requirements in regard to certificates of origin, export declarations, consular in voices or export license have been complied with and a custom house clearance is presented. Freight is, as a rule, paid in advance, tho some companies do not require it on goods not subject to rapid deterioration.

The insurance company may now be notified of the shipment and a certificate will be issued. This cer

tificate may be issued under an "open policy" of the foreign importer, or of the exporter, or each ship ment may be insured under a separate policy. The technique of marine insurance has been discussed in another Text.

24. The advice of copy of the bill of lading and the original of the in voice are sent to the foreign consignee with a letter called the "shipping advice" or "advice of shipment," giving the details of shipment including name of steamer, probable date of arrival, manner of insur ance, and the name of the claim agent in the port of arrival so that the consignee may know how to pro ceed should the goods arrive in a damaged condition.

25. Collecting the that remains to be done now is to attend to the collection of the draft which has been drawn against the consignee. This draft and one or two copies, called "the second," "the third," are sent to the bank for collection. This may be the shipper's local bank at an inland point, or a bank in the foreign country. To the draft are fast ened the "documents" by which the ownership of the goods is transferred and those which make entry into the country of destination possible. Usually the doc uments will include all the negotiable bills of lading, one copy of the commercial invoice, one or more cop ies of the consular invoice, one copy of the marine in surance policy, and one copy of the certificate of origin.

It is customary to write a letter accompanying the draft and documents, in which the bank is instructed how collection is to be made, and under what condi tions the documents may be placed in the hands of the consignee. Further details relating to the financ ing of foreign shipments may be found in the Text on "International Exchange."

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