Revealed: Hidden Restrictions on Surrounded B/L in Trade

Telex release bill of lading (SURROUNDED B/L) means that during the transportation of goods, the holder of the bill of lading entrusts the rights of the bill of lading to others (usually banks or trading companies) so that they can quickly obtain the goods. Telex release bill of lading may not be used under the following circumstances:

1. According to the freight contract or the terms of the letter of credit, the telex release of the bill of lading is not allowed;

2. When the consignee requires the original bill of lading to pick up the goods;

3. Restricted by the laws and regulations of the port of destination or the country of transit, the telex release of the bill of lading is not allowed.

It should be noted that different countries and regions may have different acceptance levels for telex release bills of lading.

Some countries may impose restrictions on the telex release of bills of lading, and only the original bill of lading is allowed to pick up the goods.

Some countries need to provide CO/FORM-F certificates of origin. For example, Iran, Syria, Iraq, Bangladesh, Nigeria, and other countries may only accept the original bill of lading and not get a telexed bill of lading. In addition, countries in South America, such as Cuba, Venezuela, Brazil, Chile, and Costa Rica, also require the original.

But why sometimes the consignee in the Anglo-American law system can pick up the goods without presenting the bill of lading?

We know that the bill of lading (BILL OF LADING) should logically be a "certificate of property rights"; that is, whoever "legally obtains" the bill of lading can claim the right to possess the goods. Another situation is a registered bill of lading; the "Consignee " column specifies the consignee's company name and address, and only this company can pick up the goods. Just because the consignee is limited, only the Anglo-American law system, in the past, it was considered that the registered bill of lading was not a document of title. Therefore, countries with standard law systems recognize that even if the consignee does not have the original, he can pick up the goods as long as he proves his identity. This is why we encounter foreign consignees who can pick up the goods without getting our business's original bill of lading. Especially when D/P is the payment term, extra attention should be paid.

So which countries in the standard law system belong to those mentioned above that can pick up goods without a bill of lading?

United States, Canada, United Kingdom, Australia, Hong Kong, New Zealand, India, Pakistan, Bangladesh, Malaysia, Singapore, Bahamas, Botswana, Brunei, Cameroon, Cyprus, Fiji, Gambia (Gambia), Ghana, Gray Nada, Guyana, Jamaica, Kenya, Kiribati, Lesotho, Maldives, Malta, Mauritius, Mozambique, Namibia, Nauru, Nigeria, Seychelles ), Lion Rock, South Africa, Sri Lanka, Eswatini, Tanzania, Tonga, Trinidad and Tobago ( Trinidad and Tobago), Tuvalu, Uganda...etc. If in doubt, readers can check on the Internet whether the location of the consignee belongs to a common law country ("RECENT CASES BILLS OF LADING -- CARRIER WHO NEVER RECEIVED GOODS NOT LIABLE TO CONSIGNEE NAMED IN STRAIGHT BILL UNDER § 22 OF FEDERAL ACT," 1950).

In addition, different shipping companies or forwarders may have additional regulations and restrictions. They confirm and communicate with the consignee/forwarder before the operation is recommended.